To effectively manage your workforce in the Philippines, it is essential to understand and adhere to the employment laws and regulations set in place to protect workers. This not only mitigates legal and financial risks but also cultivates a fair and inclusive work environment for your organisation.
In this detailed guide, we share valuable insights into specific laws that protect employees in the Philippines, including whistleblower protections, data privacy regulations, equal treatment of temporary agency workers, anti-discrimination laws, and pay equity legislation. We’ll cover all these topics to help you protect your business from potential risks and establish a solid foundation for your workforce management. Remember, failing to comply with these regulations can hinder your growth and success.
Although the Philippines has not yet passed a comprehensive whistleblower protection act, there are legislative initiatives and existing laws that support whistleblowers in the workplace.
Under the Safe Spaces Act (Republic Act No. 11313), employers are mandated to safeguard employees who report gender-based sexual harassment from any form of retaliation. This highlights the importance of fostering a safe and inclusive workplace environment where every employee feels protected and valued.
Article 118 of the Labour Code of the Philippines, on the other hand, protects employees against unfair labour practices related to wage complaints. Here are some essential points from Article 118:
Implementing internal policies that align with Article 118 also sets a standard for managerial conduct and workplace ethics. Employers are encouraged to establish clear guidelines and communication channels that allow employees to express their concerns and report grievances without fear of retaliation. Training management and HR personnel on these procedures ensures that they handle such matters with the required level of professionalism and discretion.
In the Philippines, the law governing data protection policy in the workplace is the Data Privacy Act of 2012 (DPR) and its implementing rules and regulations (IRR). Employers are required to comply with the principles set out in the DPA and IRR, especially regarding the collection, use, storage, and disposal of personal information about employees and job applicants. It emphasises the importance of adherence to general data privacy principles and outlines specific obligations for personal information controllers and processors, including those operating within workplace environments.
The law requires that any personal information collected by employers must be relevant and necessary for their declared purpose and must be processed lawfully in a way that respects the rights of data subjects. Employers are also tasked with implementing reasonable and appropriate organisational, physical, and technical measures to protect personal data from unauthorised access, use, disclosure, or destruction.
It also establishes the necessity for organisations to create, implement, and maintain a data protection policy that outlines their data management practices. This policy should cover consent forms for the collection and use of personal data, a list of policies and procedures related to privacy and data protection, and specific procedures for dealing with information requests from parties other than the data subjects, such as the media, law enforcement, and other representatives.
To ensure compliance, organisations must appoint a Data Protection Officer (DPO) responsible for overseeing data protection measures and policies within the organisation. This responsibility extends to ensuring that personal data is processed transparently, lawfully, and securely, minimising the risks of unauthorised access and data breaches.
The primary data protection authority in the Philippines is the National Privacy Commission (NPC). The NPC is responsible for ensuring the protection of personal data and upholding individuals’ privacy rights. It does so by overseeing the enforcement of the Data Privacy Act of 2012, which aims to protect personal information maintained by government and private sector entities, including in the workplace.
The NPC plays several roles in protecting data in the workplace, including:
In the Philippines, temporary agency workers, which include temporary staff sourced through manpower agencies, are entitled to certain protections, including fair reasons for termination and considerations during layoffs or furloughs. This means they cannot be dismissed without just or authorised cause as defined by law, and due process must be followed. The law also ensures that workers are paid at least the minimum wage and are compensated for overtime and holiday work according to the standards set by the Philippine labour law.
Under Department Order No. 174 issued by the Department of Labour and Employment (DOLE), there are defined rules for manpower agencies regarding the treatment of their workers. These regulations are in place to safeguard the rights of agency workers and to provide them with a degree of job security and benefits comparable to those of regular employees, although the direct employer in this scenario remains the agency rather than the business utilising the temporary staff.
Moreover, all employees, regardless of their employment status—whether part-time, on a fixed-term contract, or as temporary agency workers—are covered under the discrimination laws, which apply equally to all types of employees. Republic Act No. 11058, on the other hand, enhances the protection of workers by ensuring their right to a safe and healthy workplace. This Act applies to all workers, regardless of their employment status, and mandates that employers, including agencies, implement comprehensive health and safety practices to prevent accidents and illness at work.
The Philippines has various laws and regulations to safeguard workers against discrimination in the workplace. These laws aim to protect employees from being discriminated against based on various aspects, such as physical health conditions, union affiliations, and more. The following is the list of anti-discrimination laws in the Philippines:
In the Philippines, the Anti-Age Discrimination in Employment Act, also known as Republic Act No. 10911, was enacted to combat age discrimination in the workforce. This prohibits any form of discrimination against any individual on the basis of age in aspects of employment that include, but are not limited to, hiring, promotion, training, compensation, and termination.
The anti-age discrimination law in the Philippines is also designed to ensure that employment decisions are based on an individual’s competencies, skills, and qualifications rather than age. It is against the law for employers to engage in any of the following activities:
The Anti-Sexual Harassment Act of 1995, or Republic Act No. 7877, was enacted to protect individuals from sexual harassment in the workplace and in educational institutions. It highlights the importance of maintaining a safe, respectful, and dignified environment, free from any form of sexual coercion, intimidation, or exploitation.
The Act specifically outlines that sexual harassment is not confined to physical acts but also includes verbal and non-verbal gestures that may be deemed offensive or unwelcome. It mandates employers to take proactive steps in preventing occurrences of harassment. This includes the creation of mechanisms for the resolution of sexual harassment cases, the establishment of policies against sexual harassment, and the conduct of education or information campaigns to raise awareness about the issue.
In the Philippines, the principle of equal pay for equal work is enshrined in its labour laws, specifically under Article 3 of the Labour Code, which ensures the rights of all workers to equal work opportunities regardless of sex, race, or creed. Moreover, the principle is further highlighted under Republic Act No. 6727, known as the “Wage Rationalisation Act,” which states that workers should be entitled to equal pay for work of equal value.
The Magna Carta for Women (Republic Act No. 9710), on the other hand, guarantees women’s right to decent work. This does not only cover opportunities for employment but also extends to fair remuneration and security in the workplace. The Labour Code also prohibits discrimination on the ground of sex (including marriage and pregnancy) as well as trade union membership. The Women in Developing and Nation Building Act 1991 gives women equal work opportunities with men.
For persons with disabilities, their rights to equal work opportunities, including equal pay, are safeguarded by the Magna Carta for Disabled Persons (Republic Act No. 7276).
Managing an extensive workforce across multiple countries while staying up-to-date with changing labour laws and regulations can be overwhelming—unless you partner with a reliable global employment solution provider like CXC.
At CXC, we understand the challenges you face in scaling your business. That is why our comprehensive EoR solution lets you quickly and compliantly find, manage, and engage with workers wherever they are located. We provide you with a dedicated team of seasoned experts who are always ahead of the curve, ensuring that you remain compliant with labour laws and regulations. This strategic approach enables you to focus on what matters most: growing your business.
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With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.
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