Article 111 of the Labor Code: Attorney's fees in wage cases
Status: In force
What does Article 111 say?
(a) In cases of unlawful withholding of wages, the culpable party may be assessed attorney’s fees equivalent to ten percent of the amount of wages recovered.
(b) It shall be unlawful for any person to demand or accept, in any judicial or administrative proceedings for the recovery of wages, attorney’s fees which exceed ten percent of the amount of wages recovered.
Read the Labor Code on the DOLE website (it uses the article numbers before 2015)
What does it mean in plain language?
Article 111 of the Labor Code deals with attorney's fees in cases about wages. When wages are unlawfully withheld, the party at fault may be made to pay attorney's fees equal to ten percent of the wages recovered. The same article caps lawyers' fees: no one may demand or accept more than ten percent of the wages recovered in a case to recover wages.
The article keeps the same number after the 2015 renumbering of the Labor Code, as Supreme Court decisions from 2017 to 2026 show.
How does it work in real life?
Nestor: unpaid wages for three months
Nestor's employer stops paying his wages for three months, and he files a claim. The labor tribunal finds the wages were unlawfully withheld and orders the employer to pay them. Under the first paragraph, the employer may also be ordered to pay attorney's fees equal to ten percent of the wages recovered.
Liza: a lawyer asking for a third of the award
Liza wins a case to recover unpaid wages. Someone asks her for a third of the amount as attorney's fees. The second paragraph makes it unlawful to demand or accept fees above ten percent of the wages recovered in such a case.
Ramon: a disability claim
Ramon, a seafarer, claims disability benefits after an injury on board. Under Pacific Ocean Manning, Article 111 is not the basis for attorney's fees in his case, because it is not about withheld wages.
What does this mean in practice?
- The award is not automatic: the article says the culpable party "may be assessed" the fee, and the tribunal decides.
- The fee is computed on wages actually recovered, so the amount depends on the final award.
- Unpaid wages are a money claim with a three-year deadline. See labor money claims prescription and how to file a labor complaint.
- Illegal deductions from pay are covered by Article 113; small wage claims may go to the DOLE Regional Director under Article 129.
- If you cannot afford a lawyer, the Public Attorney's Office and other free services may help. See Free legal help in the Philippines.
What does Article 111 say?
It has two paragraphs. The first allows an award of attorney's fees:
In cases of unlawful withholding of wages, the culpable party may be assessed attorney’s fees equivalent to ten percent of the amount of wages recovered.
The second sets a limit on fees:
It shall be unlawful for any person to demand or accept, in any judicial or administrative proceedings for the recovery of wages, attorney’s fees which exceed ten percent of the amount of wages recovered.
"Culpable party" means the one at fault for withholding the wages, usually the employer.
When does the 10% award apply?
When wages were unlawfully withheld and the worker recovers them. In Jolo's Kiddie Carts v. Caballa (2017), the employer could not prove that it had paid holiday pay, wage differentials and 13th month pay. The Supreme Court said the labor tribunal "correctly awarded attorney's fees" under Article 111 and ordered ten percent of those awards.
In Ador v. T. Osada Logistics (2026), the Court awarded attorney's fees of ten percent of the total monetary award.
When does it not apply?
When the case is not about wages. In Pacific Ocean Manning v. Bobiles (2024), a seafarer won a disability claim, and the Court of Appeals had upheld an award of attorney's fees relying in part on Article 111. The Supreme Court said that "Article 111 clearly speaks of attorney's fees only in the context of unlawful withholding of wages and recovery thereof." It does not apply to cases involving only disability or death benefits. The Court called an earlier ruling that said otherwise "inaccurate."
Attorney's fees in other kinds of cases may rest on other legal grounds. This page covers only Article 111.
Frequently asked questions
What is Article 111 of the Labor Code about?
It is about attorney's fees in wage cases. When wages are unlawfully withheld, the party at fault may be made to pay attorney's fees of ten percent of the wages recovered. It is also unlawful to demand or accept attorney's fees above ten percent of the wages recovered.
Is the 10% attorney's fee automatic in labor cases?
No. Article 111 says the culpable party 'may be assessed' the fee, and it applies to unlawful withholding of wages. In Pacific Ocean Manning v. Bobiles (2024), the Supreme Court said it does not apply to cases involving only disability or death benefits.
Ten percent of what amount?
The article says ten percent of the amount of wages recovered. In practice the Supreme Court has computed it on the monetary award, for example ten percent of the total award in Ador v. T. Osada Logistics (2026).
Can my lawyer charge more than 10% in a wage case?
Article 111 makes it unlawful for any person to demand or accept, in a judicial or administrative case for the recovery of wages, attorney's fees above ten percent of the wages recovered.
Does Article 111 cover OFW disability claims?
No. In Pacific Ocean Manning v. Bobiles (2024), a seafarer's disability case, the Supreme Court said Article 111 applies only to unlawful withholding of wages and their recovery, not to cases involving only disability or death benefits.
General information, not legal advice. For your case, ask a lawyer, the Public Attorney's Office (PAO) or the agency.
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