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Article 288. Other similar coercions; (Compulsory purchase of merchandise and payment of wages by means of tokens). - The penalty of arresto mayor or a fine ranging from Forty thousand pesos (P40.000) to One hundred thousand pesos (P100,000), or both, shall be imposed upon any person, agent or officer of any association or corporation who shall force or compel, directly or indirectly, or shall knowingly permit any laborer or employee employed by him or by such firm or corporation to be forced or compelled, to purchase merchandise or commodities of any kind.

The same penalties shall be imposed upon any person who shall pay the wages due a laborer or employee employed by him, by means of tokens or objects other than the legal tender currency of the Philippines, unless expressly requested by the laborer or employee.

ACTS PUNISHED:
1. By forcing or compelling, directly or indirectly, or knowingly permitting the forcing or compelling of the laborer or employee of the offender to purchase merchandise or commodities of any kind from him.
2. By paying the wages due his laborer or employee by means of tokens or objects other than the legal tender currency of the Philippines, unless expressly requested by such laborer or employee.


ELEMENTS OF NO. 1:
1. That the offender is any person, agent, or officer of any association or corporation.
2. That he or such firm or corporation has employed laborers or employees
3. That he forces or compels, directly or indirectly, or knowingly permits to be forced or compelled, any of his or its laborers or employees to purchase merchandise or commodities of any kind from him or from said firm or corporation.

ELEMENTS OF NO. 2:
1. That the offender pays the wages due a laborer or employee employed by him by means of tokens or objects
2. That those tokens or objects are other than the legal tender currency of the Philippines.
3. That such employee or laborer does not expressly request that he be paid by means of tokens or objects

General rule: wages shall be paid in legal tender, and the use of tokens, promissory notes, vouchers, coupons or any other forms alleged to represent legal tender is absolutely prohibited even when expressly requested by the employee. (Section 1, Rule VIII, Book III, Omnibus Rules Implementing the Labor Code)

No employer shall limit or otherwise interfere with the freedom of any employee to dispose of his wages. He shall not in any manner force, compel, or oblige his employees to purchase merchandise, commodities or other property from the employer or from any other person. (Art. 112, Labor Code.)