Understanding Local Labor Laws for U.S. Citizens and Green Card Holders in Philippines

1. What are the minimum wage laws in Philippines?

The minimum wage in the Philippines is set by the Regional Tripartite Wages and Productivity Board (RTWPB). The current minimum wage for most sectors is P537 per day, as set in 2019. For some sectors, a higher minimum wage is in effect. Different regions of the country have different minimum wages.

2. Are there any restrictions for overtime work in Philippines?

Yes, there are restrictions for overtime work in the Philippines. Companies are limited to eight (8) hours of overtime work per day and forty-eight (48) hours per week. Additionally, employees must be compensated for overtime work at an hourly rate of at least 25% more than their regular hourly rate. Lastly, any employee who works beyond eight (8) hours per day is also entitled to rest periods of thirty (30) minutes.

3. Are worker’s rights to sick leave and other vacation days guaranteed in Philippines?

Yes, workers’ rights to sick leave and other vacation days are guaranteed in the Philippines. Under the Labor Code of the Philippines, employees are entitled to at least five (5) days of paid sick leave for every year of service. Workers are also entitled to up to twelve days of vacation leave per year, depending on the length of their service.

4. What is the maximum number of hours a worker can be made to work in Philippines?

The maximum number of hours a worker can be made to work in the Philippines is 8 hours per day and 48 hours per week.

5. Does Philippines have any laws governing parental leave for employees?

Yes, the Philippines has laws governing parental leave for employees. The Maternity Leave Law, or Republic Act No. 7322, grants female employees up to 60 days of full-paid maternity leave for normal delivery, and 78 days for Caesarian delivery. This can be extended to a total of 120 days if the employee needs to rest longer due to illness. Male employees are also eligible for seven days of paid paternity leave. Additionally, Republic Act No. 8187, known as the Solo Parents’ Welfare Act of 1997, grants solo parents seven days of leave with full pay each year.

6. What are the requirements for employers to provide medical insurance for their staff in Philippines?

Employers in the Philippines are required to provide Social Security System (SSS) coverage to all employees. This includes medical coverage for hospitalization, disability and death benefits, as well as unemployment insurance, maternity benefits, and retirement benefits. The employer must contribute 3.63% of the employee’s monthly salary to the SSS, and the employee must contribute 1.17%. The SSS provides medical coverage for basic medical treatment. Employers are also required to provide private health insurance for their employees if they have more than 10 employees. Private health insurance usually covers hospitalization, laboratory tests, doctor visits, and prescription drugs. Employers must pay at least half of the premium for the insurance.

7. How is severance pay calculated in Philippines?

In the Philippines, severance pay is calculated based on the employee’s length of service and monthly salary rate. For those who have served in an organization for at least six months but less than one year, the severance pay is one-half of their monthly salary rate. For those who have served in an organization between one and six years, the severance pay is one month’s salary for every year of service. Finally, for those who have served in an organization for more than six years, the severance pay is two-months’ salary for every year of service.

8. What are the labor laws related to termination and dismissal procedures in Philippines?

The termination and dismissal procedures in Philippines are governed by the Labor Code of the Philippines. According to the Code, employers must provide employees with written notice of termination or dismissal at least one month prior to the date of termination. Employers must also provide a detailed explanation of the reasons for the termination or dismissal. An employee who has been terminated or dismissed can file a complaint with the Department of Labor and Employment if they feel that the termination or dismissal is unjustified. The Labor Code also requires employers to pay a separation pay to employees who are terminated or dismissed due to redundancy, retrenchment, closure of business, or any other cause beyond their control. Finally, employers are prohibited from engaging in any form of discrimination, harassment, or retaliation against employees who have been terminated or dismissed.

9. Does Philippines have any restrictions on how much employers can deduct from an employee’s paycheck?

Yes, the Philippines does have restrictions on how much employers can deduct from an employee’s paycheck. According to the country’s Labor Code, employers cannot deduct more than 10% of an employee’s basic salary for any cause or reason. Additionally, deductions must be authorized in writing by the employee, and any deductions that are not for statutory obligations such as taxes, SSS contributions, and PhilHealth premiums are prohibited.

10. Are there any restrictions on employers requiring workers to take drug tests in Philippines?

Yes, employers in the Philippines are generally not allowed to require workers to take drug tests. However, the Department of Labor and Employment (DOLE) recently issued an advisory which states that employers may require their employees to take drug tests if there is reasonable suspicion or a just cause to do so. Additionally, employers are encouraged to provide training on drug abuse prevention and establish a drug-free workplace policy.

11. Are there any labor laws regarding discrimination based on gender, race, age, or religion in Philippines?

Yes, there are labor laws regarding discrimination based on gender, race, age, or religion in the Philippines. The Philippine Labor Code prohibits discrimination in the workplace on the basis of gender, race, age, or religion. Article 135 of the Labor Code states that it is unlawful for any employer or labor organization to deny any person employment on account of his or her race, creed, or color. Additionally, Sections 5 and 6 of Republic Act No. 8042, otherwise known as the Migrant Workers and Overseas Filipinos Act of 1995, prohibits unfair recruitment practices and discrimination against migrant workers and overseas Filipinos on the basis of sex, age, and religion.

12. Are there any prohibitions against employers asking for personal information from their employees in Philippines?

Yes. The Philippines’ Data Privacy Act (DPA) prohibits employers from collecting, processing, and storing personal information of their employees without the employee’s consent, except when required by law. Employers cannot ask for information that is not necessary and relevant to the performance of the job, and any collected information must be used appropriately, stored securely, and deleted or destroyed when no longer needed.

13. Is collective bargaining allowed in Philippines?

Yes, collective bargaining is allowed in the Philippines. The Philippine Constitution and the Labor Code guarantee the right of workers to engage in collective bargaining and to peaceful strike actions.

14. What are the rules governing vacation and holiday pay in Philippines?

Vacation and holiday pay in the Philippines is governed by the Labor Code and other laws and regulations.

Under the Labor Code, employers are required to provide their employees with at least one (1) day of rest a week. Employees are also entitled to a paid vacation leave of five (5) days after every twelve (12) months of service.

In addition, employees are entitled to thirteen (13) paid national holidays in the Philippines, including New Year’s Day, Maundy Thursday, Good Friday, Araw ng Kagitingan, Labor Day, Independence Day, National Heroes Day, Bonifacio Day, Christmas Day, Rizal Day, All Saints’ Day, All Souls’ Day and Eid al-Fitr.

Employees who work on a holiday are entitled to two hundred percent (200%) of their regular wage for that day.

15. Is there a legal requirement for employers to provide safety equipment and training to their staff in Philippines?

Yes. In the Philippines, employers are legally required to provide safety equipment and training to their employees. The Labor Code of the Philippines requires employers to exercise “due diligence” in providing adequate safety and health standards and conditions to their employees. This includes providing appropriate safety equipment and training, as well as maintaining such equipment and providing refresher courses as necessary.

16. Does Philippines have any laws concerning workplace harassment and bullying?

Yes, the Philippines has laws concerning workplace harassment and bullying. The Philippines Labor Code defines harassment as any “unwanted physical, verbal or non-verbal conduct that has the purpose or effect of creating an intimidating, hostile, humiliating or offensive environment” in the workplace. The Code also requires employers to take all reasonable steps to prevent and address acts of workplace harassment. Additionally, the Philippine Commission on Human Rights has a code which prohibits any form of discrimination, including workplace harassment.

17. Is overtime pay mandatory in Philippines?

Yes, overtime pay is mandatory in the Philippines. The law requires employers to provide additional pay for any hours worked beyond the standard eight-hour workday. The rate of overtime pay is usually 25% above the employee’s regular wage.

18. What are the laws regarding working hours for non-adults in Philippines?

In the Philippines, the Labor Code requires employers to limit the working hours of non-adults to 8 hours a day. Non-adults are not allowed to work at night, from 10 pm to 6 am, and no more than 6 days a week. There are also restrictions on the types of work non-adults can do, such as hazardous work, or activities that are not appropriate for their age or stage of development. Finally, non-adults must be given rest periods of at least 1 hour between shifts.

19. Are employers required to provide meal and rest breaks for their workers in Philippines?

Yes, employers in the Philippines are required to provide meal and rest breaks for their workers. Under the Philippine Labor Code, employers are required to grant their employees two rest periods of not less than 30 minutes each per day, one in the morning and one in the afternoon. Additionally, employers are required to provide at least one hour of meal break for every 6 hours of work and must be given within or after 5 hours of work.

20. Are there any labor laws specifically designed to protect citizens and green card holders in Philippines?

Yes. In the Philippines, the Labor Code of the Philippines (Republic Act No. 1082 of 1974) provides a comprehensive set of labor laws which protects the rights of workers, whether they are citizens or Green Card holders. This includes protection related to workers’ wages, hours of work and working conditions, occupational safety and health, maternity leave and other benefits, termination of employment, and freedom of association.