Dear PAO,
My daughter authorized me to claim her last salary from
the company she used to work with. The company issued a check under my
daughter’s name. When I tried to encash it, the bank refused even if I
have already presented to them the authorization from my daughter as well as a valid ID. I
requested from the company to issue a check in my favor, but until now
they have not acted upon my request. What is my recourse? My daughter is
currently in UAE.
EA23
Dear EA23,
Private companies more
often than not require the personal appearance of the employee who
desires to claim his or her last salary. In some instances, companies
allow an authorized representative of the employee concerned to collect
such salary, subject to certain restrictions which is for the protection
of both the employee concerned as well as the company.
In the
situation that you have presented before us, it is only expected that
the check was issued under your daughter’s name considering that she is
the former employee of the company and that the same was issued to
answer for her last salary. You cannot impose on the company to issue
you another check under your name because you are not the employee who
is entitled thereto. Moreover, your authority is limited because you
were merely authorized to claim your daughter’s last salary. Thus, you
may not exceed such limitation and the company has the right to validly
refuse your request.
It is likewise understandable that the bank
with which you presented the said check refused to allow you to encash
the same because it was issued particularly under your daughter’s name.
Only your daughter is entitled to encash the said check. While a check
is considered as a negotiable instrument and works as a substitute for
money, there are limitations set under our laws. While a negotiable
instrument, such as a check, may be negotiated in favor of another
person, such may only be done by delivery, if the same is made payable
to bearer, or by indorsement and delivery, if it is payable to the order
of a specified person (Section 30, Negotiable Instruments Law).
Considering that the check was issued by the company under the name of
your daughter, the same may only be validly negotiated if your daughter
indorses the same in your favor.
Since your daughter is presently
in the United Arab Emirates (UAE), you may opt to send her the check so
that she can indorse the same to you. Be advised that the indorsement
must be written in the check itself or upon a paper attached thereto.
But her signature, without additional words, may be considered as a
sufficient indorsement (Section 31, id). On the other hand, you may
consider depositing the check in the bank account under your daughter’s
name. This way, your daughter may be able to receive the cash value
thereof after the same has been cleared by the issuing bank as well as
her bank of account. Furthermore, depositing the check in your
daughter’s account will lessen the risk of having a stale check.
source: Manila Times' Column by
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