MANILA - Valenzuela City Mayor Rex Gatchalian on Wednesday suspended the business permit of Nexgreen Enterprise after paying its employee with centavo coins and its supposed failure to give the right wages to its workers, among other violations.

During a meeting between local government officials and the factory owners on the matter, it was found out that Nexgreen has not been paying some of its workers correctly, including Russel Mañoza, who complained about the coin payment.

• READ: Valenzuela factory worker seeks help after receiving salary in centavo coins

Based on Valenzuela City's computation, Nexgreen owes Mañoza a little over P55,000 in underpayment and non-payment of overtime and holiday pay.

Nexgreen said it is not contesting the complaints, with its owner Jasper So even apologizing to Mañoza.

The worker had resigned from the factory after the incident.

Meanwhile, So explained that the coins were given to Mañoza by mistake. He said he keeps a stock of coins for his religious offerings.

Here is the list of violations cited by the city government against the factory:

• Mayor’s permit
• Waiver and/or undertaking
• Article 19 of the Civil Code of the Philippines in relation to Bangko Sentral ng Pilipinas Circular No. 537, Series of 2006 after paying its worker his salary in coins of small denomination more than the limit allowed by law
• Provisions of the Labor Code when it failed to pay correct minimum wage, non-payment of overtime pay, non-payment of night shift differential, non-payment of holiday pay
• Provisions of other legislations for non-coverage of SSS, PhilHealth, and Pag-IBIG fund

According to Gatchalian, the city government will give the company 15 days to respond and rectify the issues raised.

Failure to do so, he said, would result in the permanent closure of Nexgreen.

• READ: Mayor Gatchalian: Paying wage-earner in 5, 10 centavos ‘takes person’s dignity away’

The local chief executive said the city government would possibly file cases against the factory.

Various labor officials on Tuesday said the payment of wages through coins is “legal” but might be discriminatory.

Labor Secretary Silvestre Bello III earlier said his office would also look into Nexgreen following the worker’s complaint.

- With report from Raffy Santos, ABS-CBN News

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