A relatively new form of employee payment has emerged and it involves paying employees with payroll cards, which essentially function as an ATM where employers directly deposit money into an employee's account. These cards can then be used at any bank free of charge and allow employees to withdraw money.

Although not provided for expressly under law, the DLSE opined that these cards are allowed under the Labor Code if they are redeemable in cash, at least one withdrawal is free, the employee has at least 30 days to withdraw the funds, and the employee voluntarily elects to use the card as the form of payment.

COUNSEL TO MANAGEMENT:Because these cards are new, their implementation should be done with some caution. The best way to implement the use of these cards is to inform employees about them during orientation and have them sign a pre-prepared form allowing for payment through a payroll card account.

If an employee still refuses to accept the use of these cards employers must allow some other form of payment.

These cards can be great for migrant workers who can send a duplicate card to any family members in foreign countries that will give them instant access to the cash.