SC rules employers must prove bank receipt of payroll for salary payments

The Supreme Court has ruled that employers must provide proof showing payroll was submitted to and received by a bank to demonstrate salary payments through banks.

This ruling, penned by Chief Justice Alexander Gesmundo on April 5, affirms the Court of Appeals decision in a case involving Philippine Airlines (PAL) pilots who went on strike in 1998.

The SC emphasized that payroll records are insufficient proof unless they show actual receipt of money by employees and when it was made.

In the PAL case, the court noted that while documents indicated payroll preparation, there was no evidence showing submission to or receipt by the bank, failing to prove actual payments were made.

PAL argued that amounts were credited to claimants' accounts in a workplace arrangement but this was not accepted as valid proof by the SC.

The Supreme Court returned the case to the National Labor Relations Commission (NLRC) to determine the exact amount owed to former employees based on this ruling.