Salary Deductions for Late Form Filing: Is It Fair to Penalize Employees?

Is there a rule or law on salary deduction every time an employee is late in filing an Official Business Form or Leave Form? Is it okay to deduct it from their salary without a refund in case they file it later?

Internal Policy on Timekeeping and Attendance

There should be an existing internal policy pertaining to timekeeping and attendance, particularly regarding the filing of Official Business (OB) or Leave forms. If, at present, you don't have any written policy on this, then I don't think you can deduct from your employee's salary. If the employee applies for OB/Leave at a later date and that application is approved by the supervisor, then that application is already authorized or accepted; hence, a refund is in order. You can hold the supervisor liable since he/she approved the late application.

Legally, a deduction may be authorized if the employee is a daily/hourly paid worker.

Internal Policy on Salary Deduction

What if there is an internal policy on this? It indicates that "Salary deduction with refund for late filing (not late approval) will be granted on the first offense. Salary deduction without refund will be meted on the succeeding offenses. Offenses will be reset on the first day of the month." Have we violated the law (if any)?

The employee is paid on a monthly basis.