Philippines HR Information

Updated on: 2025/08/04 14:03 (UTC)

Overview

In the Philippines, relations between workers and employers are governed by the constitution, presidential decrees and executive orders, acts of Congress and the Labor Code.

The constitution expressly requires the state to protect labor, promote full employment, ensure equal work opportunities regardless of sex, race or creed, regulate relations between workers and employers and ensure the rights of workers to self-organization, collective bargaining, security of tenure and just and humane work conditions. The constitution also requires that all questions of the interpretation of the Labor Code be decided in favor of labor.

The Department of Labor and Employment is the executive agency responsible for formulating labor policies, implementing worker programs and services and enforcing the Labor Code.

Hiring

Employment Contracts

The Labor Code does not contain specific requirements for employment contracts.

Employees can be hired for a trial period. The maximum trial period is six months unless a worker is involved in an apprenticeship program and a longer period is stipulated. A worker must be informed at the time of hiring of the performance standards he or she must meet to become a regular employee and can be dismissed only for failing to meet those standards or for just cause.

Employers can offer employees a telecommuting program on a voluntary basis. The arrangement must abide by the requirements of the Labor Code, including those relating to work hours, overtime, rest days, and leave entitlements. Employers also must ensure fair treatment for telecommuting employees.

Restrictions on Hiring

Children younger than 15 years of age cannot be employed except by parents or guardians and only then if the employment does not interfere with schooling. Children aged 15 to 17 may be employed for a reasonable number of hours as determined by the labor secretary. Youths under 18 cannot be employed in dangerous jobs.

Recordkeeping

When required by public interest, the secretary of labor may direct companies to submit a report on the status of employment, including job vacancies, details of job requisitions, separation from jobs, wages, other terms and conditions of employment and other employment data.

Background Checks

The Occupational Safety and Health Standards require physical examinations for all workers when they enter the labor force or change jobs and periodically during their employment.

Noncompetition Agreements

The Labor Code does not address noncompetition agreements.

Reference Citations

Employment Contracts: Labor Code, 1974 (as amended), art. 281

Restrictions on Hiring: Labor Code, 1974 (as amended), arts. 18, 40, 139

Recordkeeping: Labor Code, 1974 (as amended), art. 152

Background checks: Occupational Safety and Health Standards, 1989, § 1966.02

Immigration and Work Permits

In General

Employees must obtain work visa 9(G) to work in the Philippines. A request letter from the employer is required for this visa in addition to a certified copy of the employee’s contract of employment stating the exact salary to be received for the next year. The initial period of the visa can be one, two or three years and it can be extended for one, two or three years depending on the employment contract.

An Alien Employment Permit also must be obtained from the Department of Labor and Employment. The AEP is valid for one year from the date of issue and is renewable to a total five years.

The employer must prove that the foreign national possesses the required skills for the position and that no Filipino is available who is competent, able and willing to do the intended job. Foreign nationals are required to conduct an understudy training program to transfer their knowledge to two counterpart Filipino workers.

Visas and Work Permits

Employees must obtain work visa 9(G), a nonimmigrant visa for prearranged employees, to work in the Philippines. A request letter from the employer is required for this visa in addition to a certified copy of the employee’s contract of employment stating the exact salary to be received for the next year. The initial period of the visa can be one, two or three years, and it can be extended for one, two or three years depending on the employment contract.

Applicants for the visa 9(G) must appear personally at the consular section of the Philippine embassy or consulate concerned and submit:

• their valid U.S. passport;
• two completed application forms;
• four identical pictures (passport size) of the applicant signed on the front bottom of each;
• medical and physical examination report by an authorized physician including chest x-ray, laboratory reports and a certificate that the applicant is free from AIDS, which must be submitted to the quarantine officer at the port of entry in the Philippines with the visa application within six months from the date the examination is conducted;
• police clearance issued by the police authorities of the place where the applicant resides and
• visa application fee.

Foreign nationals who have applications pending for prearranged employment can apply for a provisional work permit.

An Alien Employment Permit (AEP) also must be obtained from the Department of Labor and Employment. The AEP is valid for one year from the date of issue and is renewable to a total five years.

Foreign nationals can apply for an AEP at a Philippine embassy or consulate. Local employers that wish to hire a foreigner can apply on behalf of the foreign national at the nearest regional office of the DOLE. Foreign nationals who are already in the Philippines can apply for an AEP through their prospective employers with the nearest regional office of the DOLE.

The employer must prove that the foreign national possesses the required skills for the position and that no Filipino is available who is competent, able and willing to do the intended job.

An application for an AEP will denied based on the following conditions:

• misrepresenting facts in the application,
• falsifying documents,
• conviction for a criminal offense,
• availability of a Filipino who is competent, able, and willing to the do the job,
• working without a valid AEP for more than one year, and
• application for renewal with an expired visa or with a temporary visitor’s visa.

Employers found to have submitted fraudulent AEP applications three times will be barred from filing an application for a period of five years.

Post-Entry Requirements

After the foreign worker is hired, the DOLE will publish the individual’s name, position, job description, qualifications, monthly salary range and other benefits (if any), along with other employer information, on the DOLE website, in the Public Employment Service Office and in a newspaper of general circulation for 30 days. This posting period is intended to allow Filipino workers the opportunity to file an objection to the foreign worker’s employment with the DOLE. A work permit can be revoked if the objection is deemed to have merit.

Foreign nationals are required to conduct an understudy training program to transfer their knowledge to two counterpart Filipino workers.

Application for renewals of an AEP should be submitted not more than 60 days before the expiration of the permit. A foreign national whose AEP has been denied on the grounds of a criminal conviction or grave misconduct in the treatment of workers cannot reapply within ten years. A foreign national whose AEP has been denied due to the misrepresentation of facts or submission of falsified documents cannot reapply within five years.

Penalties

A fine of 10,000 pesos for every year or fraction of a year can be imposed on foreign nationals found working without an AEP or with an expired AEP.

Forms

Alien Employment Permit Form

Visa Application Form

Provisional Work Permit Application

National Skills Registry Form

Reference Citations

Visas and Work Permits: Labor Code, 1974 (as amended), art. 40; Department of Labor and Employment Order No. 186, 2017

Nondiscrimination

In General

The Labor Code prohibits discrimination in employment on the basis of sex, race or creed, age or disability.

Age Discrimination

The Expanded Senior Citizens Act of 2003 provides incentives in the form of tax deductions to employers that hire senior citizens. The Labor Code prohibits discrimination against workers based on their age.

Disability Discrimination

The Magna Carta for Disabled Persons (Republic Act No. 7277) prohibits discrimination in hiring, working conditions or dismissal against people with disabilities who are qualified for a job.

Gender Discrimination

Employers are prohibited from discriminating against women in conditions of employment, including paying them less than male employees for work of equal value or providing them with fewer opportunities for promotion, training or study and scholarship grants solely on account of their sex.

The Labor Code makes sex discrimination a criminal offense and allows aggrieved employees to file separate civil actions.

Employers are prohibited from firing a female employee because of her pregnancy or while she is on leave or in confinement due to her pregnancy. It is also unlawful for an employer to discharge a woman or refuse her return to work for fear that she may again be pregnant.

It is illegal for an employer to require as a condition of employment or continuation of employment that a female employee not get married or to discriminate against a female employee because of her marriage.

The Anti-Sexual Harassment Act of 1995 prohibits all forms of sexual harassment in employment, education and training. It defines sexual harassment in the workplace as requests for sexual favors that can affect the worker’s chances of getting hired or his or her working conditions, that would impair the worker’s rights under labor law or that would result in an intimidating, hostile or offensive environment for the worker.

Employers are required to provide training programs to prevent sexual harassment and to establish rules for investigating complaints and punishing those found to have committed sexual harassment. Employers that receive complaints of sexual harassment and don’t immediately act on them can be held liable for damages.

Mental Health

The Mental Health Act of 2017 prohibits discrimination against employees who have a mental health condition. Employers must develop policies and programs aimed at:

• raising awareness on mental health issues;
• correcting the stigma and discrimination associated with mental health conditions;
• identifying and providing support for individuals at risk; and
• facilitating access of individuals with mental health conditions to treatment.

Employers must ensure that all information, communications, and records regarding an employee’s mental health are kept confidential. Generally, employers cannot disclose mental health information about an employee to third parties without the written consent of the employee or his or her legal representatives, subject to certain exceptions.

Employers that violate the provisions on nondiscrimination and non-disclosure can be imprisoned for up to two years or fined up to 200,000 pesos.

Reference Citations

Nondiscrimination: Labor Code, 1974 (as amended), art. 3

Age Discrimination: Senior Citizens Act, Republic Act No. 9994, § 4; Labor Code, 1974 (as amended), art. 3

Gender Discrimination: Labor Code, 1974 (as amended), art. 135; Anti-Sexual Harassment Act of 1995, Republic Act No.7877, §§ 2-3

Mental Health: Republic Act No. 11036 Establishing a National Mental Health Policy, 2017

Employee Privacy

Employee Data

When processing personal information, employers must ensure the data are:

• processed lawfully and fairly;
• collected and recorded for specific, explicit, and legitimate purposes;
• accurate and kept up to date;
• relevant, complete, and not excessive in relation to the purposes for which the data are collected or subsequently processed; and
• kept in a form that permits identification of the employee for no longer than is necessary.

Employees must be given the right to:

• update or modify the data,
• erase or block data that have been processed illegally, and
• object to the processing of their data if they have legitimate grounds.

Employers are required to designate an employee to serve as a data protection officer responsible for ensuring compliance with data privacy laws. Employers also must implement data protection policies across the organization and maintain records describing their data processing systems and who will have access to the data.

Employee Monitoring and Surveillance

Monitoring and surveillance of employees are subject to the following principles:

• the employee must be aware of the nature, purpose, and extent of the processing of his or her personal data, including the risks and safeguards involved, the identity of the personal information controller, his or her rights as a data subject, and how these rights can be exercised;
• any information and communication relating to the processing of personal data should be easy to access and understand, using clear and plain language;
• the monitoring must be lawful and fair; and
• the processing of the information must be adequate, relevant, suitable, necessary, and not excessive in relation to a declared and specified purpose.

Reference Citations

Employee Data: Data Privacy Act, Regulations, 2016, Rules IV-VII

Employee Monitoring and Surveillance: Data Privacy Act, Regulations, 2016, Rule IV

Compensation

Hours of Work

A normal workday is eight hours.

Hours worked include all time during which an employee is required to be on duty or at the workplace. Rest periods of short duration during working hours are counted as time worked. Every employer must provide employees at least an hour break for regular meals.

Employees are entitled to at least 24 consecutive hours off from work after six consecutive workdays. The employer can determine and schedule the weekly rest day of employees subject to collective bargaining agreements and labor regulations. If an employee has a preference for a particular rest day based on religion, however, the employer is required to respect that preference.

Employees may be required to work on their regular rest day under particular circumstances, such as actual or impending emergencies, work that is urgently needed on equipment or machinery, special periods of heavy workloads, potential loss of perishable goods or when the nature of the work requires continual operation. Employees who are required to work on a rest day get an extra 30 percent of premium pay and higher premium pay if the rest day falls on a regular or special holiday.

Minimum Wage

Each of the 17 administrative regions in the Philippines sets minimum wage requirements. Minimum wages applicable in the Philippines are broadly differentiated based on whether they are for nonagricultural or agricultural work. Each minimum wage rate consists of a basic wage rate and a cost of living allowance. From July 17, 2024, in the National Capital Region (NCR), the dailyminimum wage for non-agricultural workers is 645 pesos, and for agricultural workers the daily rate is 608 pesos. From July 16, 2023, in the National Capital Region (NCR), the daily minimum wage for non-agricultural workers is 610 pesos, and for agricultural workers the daily rate is 573 pesos.

Overtime

For work done in excess of eight hours in a day, workers get their regular wage plus 25 percent. For overtime on a holiday or rest day, workers get the holiday or rest-day rate plus 30 percent. Employers cannot avoid paying overtime rates by having employees work less on another day or through use of compensatory time off.

Employees are entitled to extra pay of 10 percent of the regular wage for each hour of work performed between 10 p.m. and 6 a.m. If overtime work falls within the nighttime period, premiums for overtime work should be integrated into the regular hourly rate of the employee before computing night-shift pay.

The following holiday pay rules apply to all private sector employers except retail and service establishments that regularly employ fewer than 10 workers:

• An employee required to work on a regular national holiday gets double time if the holiday falls on a regular workday, double time plus an extra 60 percent if it falls on a rest day. Any overtime—hours worked in excess of eight in a day—is paid at a further 30 percent premium.
• An employee required to work on a special holiday gets a 30 percent pay premium if the holiday falls on a regular workday, a 50 percent premium if it falls on a rest day. As with regular holidays, overtime work earns a further 30 percent premium.

Wage Payment

Wages must be paid at least once every two weeks or twice a month at intervals not exceeding 16 days. Payment of wages should in most cases be made at or near the workplace.

Employers are not allowed to make deductions from the wages of employees except:

• to recompense the employer for an insurance premium paid on the employee’s behalf,
• for union dues if authorized in writing by the individual worker or
• when authorized by law or regulations issued by the secretary of labor.

Employers cannot require workers to pay in advance for potential loss or damage to tools or equipment supplied by the employer, except in sectors in which such deposits are customary or are allowed by a ruling of the labor secretary. It is also unlawful to make deductions from wages in return for a promise of employment or retention of employment or as retaliation for a worker making a complaint about a violation of the Labor Code.

The Labor Code also makes it unlawful for any person, directly or indirectly, to withhold wages or to induce a worker to give up any part of his or her wages by force, stealth, intimidation, threat or any other means without the worker’s consent.

Mandatory Bonuses

Under a 1976 presidential decree and later amendments, employers are required to pay employees who work at least one month during the calendar year an extra month’s pay—the “13th month pay”—no later than Dec. 24.

Reference Citations

Hours of Work: Labor Code, 1974 (as amended), arts. 83, 85, 91, 93

Minimum Wage: Labor Code, 1974 (as amended), arts. 86, 93

Overtime: Labor Code, 1974 (as amended), art. 87

Wage Payment: Labor Code, 1974 (as amended), arts. 102-105, 112-116

Mandatory Bonuses: Presidential Decree No. 851, 1975, § 1

Benefits

Vacation

Every employee of a business with 10 or more employees who has worked for that employer for at least a year is entitled to five days of leave paid at his or her regular rate, known as “service incentive leave.” Unused service incentive leave may be cashed in at the end of the year.

Holidays

Employees are entitled to the following eight paid holidays:

• Jan. 1: New Year’s Day
• Maundy Thursday
• Good Friday
• Bravery Day
• Labor Day
• Independence Day
• Christmas Day
• Rizal Day

In addition, the government each year announces several special holidays, which are unpaid days off and may change from year to year. These have included:

• Chinese New Year
• End of Ramadan
• Festival of Sacrifice
• Monday nearest Aug. 21: Ninoy Aquino Day
• Last Monday in August: National Heroes Day
• Nov. 1-2: All Saints Day
• Monday nearest Nov. 30: Bonifacio Day
• Dec. 24: Christmas Eve
• Dec. 31: Last Day of the Year

The Philippines recognizes various holidays that are categorized as either regular holidays or special (nonworking) days. Employees covered under the Holiday Pay Rule are entitled to have regular holidays off with regular remuneration if they do not work and 200 percent of regular remuneration if they do work.

If employees work on a holiday that falls on a rest day, they are entitled to receive 230 percent of regular pay. Employees who do not work on special days are not entitled to receive any pay. However, if employees work on a special day, they are entitled to 30 percent extra pay if the day is a weekday and 50 percent extra pay if the special day falls on a rest day.

Holidays that fall on a weekend are moved to the next regular workday.

Maternity Leave

Female employees are entitled to 105 days of paid maternity leave. For cases of miscarriage or emergency termination of pregnancy, the employee is entitled to 60 days paid leave (78 days paid leave for Cesarean delivery). Single mothers are entitled to an additional 15 days of paid maternity leave, and all new working mothers can take an extra 30 days of unpaid leave.

Female employees receive benefits equivalent to 100 percent of their average daily salary. Employers are responsible for paying difference between the benefit the employee receives from social security and the employee’s salary. Female employees must have remitted to the Social Security System at three monthly contributions in the 12-month period prior to the childbirth to be entitled to benefits.

Female employees have the option to allocate up to seven days leave to the child’s father, regardless of whether or not the father is married to the female employee.

An employee who already has four children cannot get maternity leave for any further pregnancies.

Paternity Leave

Every employer must grant seven days of paid paternity leave to all married male employees—regardless of employment status (e.g., probationary, regular, contractual, project-based)—after the birth of a child or a wife’s miscarriage. The employer may allow the employee to use the leave before or during delivery as well, but this is not required. The leave can only be used for the employee’s first four children.

Additionally, female employees have the option to allocate up to seven days of their maternity leave to be used by the child’s father, regardless of whether or not the father is married to the female employee.

Sick Leave

The Labor Code does not provide for sick leave, but employers usually provide this through collective bargaining agreements. Workers who have used up or do not have any sick leave but have made at least three months of contributions into the Social Security System in the prior 12 months and whose injury or illness leaves them unable to work for at least four days are eligible for the social security sickness benefit. The sickness benefit pays about 90 percent of average salary for up to 120 days in a calendar year.

Other Leave

Solo parents—defined as single parents, parents otherwise left alone with the responsibility of parenthood because of the disability or imprisonment of a spouse or abandonment by a spouse or another family member who alone assumes responsibility for the care of a child—are entitled to seven days of paid leave a year after their first year of service with an employer. Employers must also accommodate solo parents through such measures as flexible work schedules and cannot discriminate against them.

Pensions and Social Security

There are several forms of retirement benefits, including those provided by employers in collective bargaining agreements, those required under the Labor Code and those paid under the Social Security System.

Retirement is compulsory at age 65. Employees age 60 or older who have made contributions for at least 120 months can also retire with benefits.

The minimum retirement pay due employees under the Labor Code is one half month’s salary for every year of service. Retirement provisions in collective bargaining agreements must at a minimum provide this level of benefits.

In addition, retirees receive benefits from the Social Security System. Those who have made at least 120 monthly contributions into the system receive a monthly pension, the amount depending on how many contributions they have made, how many years they have been in the system and how many dependent children they have.

Retirees who have not made 120 contributions receive a lump sum equivalent to the contributions made by them and their employer plus interest.

Workers’ Compensation

Coverage in the State Insurance Fund is compulsory for all employers and their employees not over 60 years of age. An employee who is over 60 years of age and paying contributions to qualify for the retirement or life insurance benefits administered by the Social Security System is also subject to compulsory coverage.

Sick or injured employees receive needed medical services, equipment and supplies.

Temporary total disability: Any employee who sustains a work-related injury or illness resulting in temporary total disability qualifies for a benefit equal to 90 percent of his or her average daily salary for up to 120 days, a period that may be extended to 240 days if the condition requires more treatment. If the condition persists beyond 240 days, it is considered a permanent total disability.

Permanent total disability: An employee who is permanently and totally disabled qualifies for a monthly benefit equivalent to the old-age pension benefit—the amount of which depends on the number of contributions the person made into the Social Security System and his or her years of membership. The monthly benefit is suspended if the employee is gainfully employed, recovers from the total disability or fails to undergo a medical examination at least once a year.

Permanent partial disability: Employees who suffer a permanent partial disability qualify for the same benefits available to those who suffer a permanent total disability, but with time limits that vary depending on the type of disability. If the time limit for a worker’s injuries is less than a year, the worker receives a lump-sum payment.

Death: If a workplace injury or illness results in a worker’s death, the deceased’s primary beneficiaries qualify to receive the amount of his or her monthly pension plus 10 percent for each dependent child up to five. A funeral benefit of 10,000 pesos is paid to the person who paid for the funeral.

Reference Citations

Vacation: Labor Code, 1974 (as amended), art. 95

Holidays: Labor Code, 1974 (as amended), arts. 93-94

Maternity Leave: Act Increasing Maternity Benefits, No. 7322; An Act Increasing Maternity Leave to 105 Days, Republic Act No. 11210, 2019 §§ 3-6

Paternity Leave: Republic Act, No. 8187, 1996, § 2

Sick Leave: Republic Act, No. 8282, 1997, § 14

Other Leave: Republic Act, No. 8972, 2000, §§ 6-8

Pensions and Social Security: Social Security Law, Republic Act, No. 8282, 1997, § 12-B

Workers’ Compensation: Social Security Law, Republic Act, No. 8282, 1997, §§ 13-14

Labor Relations

In General

Workers’ right to organize is guaranteed, and the law prohibits anyone from interfering with this right through either coercion or discrimination.

The parties to a labor dispute are encouraged to use voluntary conciliation/mediation or arbitration. If a labor organization decides to strike or an employer decides to lock out workers because of a bargaining deadlock, 30 days’ advance notice must generally be given to the Department of Labor and Employment. In cases involving unfair labor practices, only 15 days’ notice is generally required. Unions may picket an employer if they are nonviolent, do not use coercion or intimidation and do not block public facilities.

Right to Organize

Both the constitution and the Labor Code guarantee workers’ right to organize and the law prohibits anyone from interfering with this right through either coercion or discrimination. Under the Labor Code, managers and most civil servants are banned from joining unions. Supervisory employees cannot join the same labor organization as rank-and-file workers, but they are permitted to form their own labor organizations. Intermittent workers, itinerant workers, the self-employed and rural workers may also join together to form labor organizations.

Dispute Resolution

The parties to a labor dispute are encouraged to use voluntary conciliation/mediation or whatever grievance processes are laid out in a collective bargaining agreement. If the parties do not wish to use conciliation or the process does not resolve the dispute, the matter can be taken to labor arbiters at the National Labor Relations Commission. Arbiter decisions can be appealed to the NLRC, whose decisions are binding on the parties.

Cases involving alleged unfair labor practices by employers or labor organizations can be taken to National Labor Relations Commission arbiters. Parties found guilty may be subject to criminal prosecution.

Unfair labor practices by employers include:

• interfering with, restraining or coercing employees in their right to organize;
• requiring a worker not to join or to withdraw from a labor organization as a condition of employment;
• outsourcing work performed by union members when such action will interfere with the workers’ right to organize;
• initiating, dominating, assisting or otherwise interfering with the establishment or workings of a labor organization;
• discriminating against workers in wages, hours of work or other conditions of employment to encourage or discourage membership in a labor organization;
• dismissing or discriminating against an employee in retaliation for giving testimony in a labor case;
• violating the duty to bargain with a labor organization;
• paying negotiation or attorneys’ fees to a union or its agents as part of a settlement of a dispute and
• violating a collective bargaining agreement.

Unfair labor practices by labor organizations include:

• interfering with, restraining or coercing employees in their right to organize;
• causing or attempting to cause an employer to discriminate against an employee;
• violating the duty to bargain collectively;
• asking for or accepting negotiation or attorneys’ fees as part of a settlement of a dispute and
• violating a collective bargaining agreement.

Strikes and Lockouts

If a labor organization decides to strike or an employer decides to lock out workers because of a bargaining deadlock, 30 days’ advance notice must generally be given to the Department of Labor and Employment. In cases involving unfair labor practices, only 15 days’ notice is generally required, although if the employer has fired union leadership to the extent that the existence of the union may be threatened, no advance notice is required.

During this cooling-off period, the Department of Labor will seek to get the parties to resolve the dispute through conciliation and mediation.

A simple majority of union members must vote for the strike via secret ballot. Similarly, a company’s decision to engage in a lockout must be approved by a majority of the board of directors of a corporation or partners in a partnership, also via secret ballot.

If a medical facility is involved in a work stoppage, the party that takes the labor action must ensure that enough workers are available to protect the life and health of the patients. In an industry considered vital to the national interest, if a labor dispute appears headed for a strike or lockout, the labor secretary can send the case to the National Labor Relations Commission for compulsory arbitration. No strike or lockout is allowed in such cases; any strike or lockout that has already begun is automatically ended.

Unions may picket an employer if they are nonviolent, do not use coercion or intimidation and do not block public facilities.

Successorship Clauses

The Labor Code does not address successorship clauses.

Reference Citations

Right to Organize: Labor Code, 1974 (as amended), arts. 243-246

Dispute Resolution: Labor Code, 1974 (as amended), arts. 247-248

Strikes and Lockouts: Labor Code, 1974 (as amended), arts. 263-264

Safety, Health and Security

In General

Employers are required to keep the workplace free of hazardous conditions and to give workers instruction in job safety. The employer must have supervisors or technical personnel trained in safety and establish safety committees of managers, safety personnel and workers to make plans and policies involving safety. Employers must provide a range of free medical services that vary depending on the size of the employer and in some cases the type of work.

Workplace Safety and Health

On Aug. 17, 2018, the government implemented a new safety law that requires employers to:

• furnish a workplace free from hazards;
• provide thorough job safety instructions;
• inform workers about the hazards associated with their work;
• use only approved devices and equipment; and
• provide workers with free protective equipment such as safety belts and gas or dust respirators.

The law allows workers to refuse to work if hazards arise in their workplace. It also requires employers to establish a committee to implement and monitor the company’s safety and health program. The committee must be led by an employee and composed of a safety officer, medical personnel, and union representatives.

The Labor Department is authorized to inspect workplaces to ensure compliance with the law. Employers can be fined up to 100,000 pesos per day until violations are corrected.

The Labor Code requires employers to provide a range of free medical services that vary depending on the size of the employer and in some cases the type of work:

• For employers with 50 to 200 workers: If the workplace is considered hazardous—i.e., workers are exposed to potential hazards such as fire or chemicals; they have jobs that involve things like construction work, logging, firefighting, mining, blasting, dock work, deep-sea fishing or mechanized farming; they use or are exposed to heavy machinery or equipment; they make or handle explosive materials or they are exposed to biological agents—a full-time registered nurse must be provided. If the workplace is not considered hazardous, the employer must provide only a person trained to provide first aid.
• For employers with 201 to 300 workers: The employer must provide a full-time registered nurse, a part-time physician and dentist and an emergency clinic.
• For employers with more than 300 workers: The employer must provide a full-time registered nurse, physician and dentist, as well a dental clinic and an infirmary or emergency hospital with capacity of one bed for every 100 employees. If an outside emergency hospital or dental clinic is accessible from the workplace, the employer can make arrangements for use of these facilities instead of providing its own.

In workplaces where a clinic or infirmary is required, free family-planning services must be provided. In addition, the Department of Labor provides incentives to encourage family planning among female workers.

Every employer must provide first-aid treatment as the nature of the work requires. Additionally, the employer must train a sufficient number of employees in first aid.

Anyone who works at night must receive free, confidential health assessments and guidance to avoid health problems related to night work. A night shift differential of at least 10 percent is paid for work performed between 10 p.m. and 6 a.m.

Pregnant women and any employee deemed unfit for night work should be given the option of transferring to a daytime position. Pregnant women may not work at night during the eight weeks before and the eight weeks after childbirth, longer if a medical certificate is provided. In these cases, the Labor Code requires that the employee not be dismissed or lose employment status because of the inability to work at night.

An employer must provide proper seating for women and establish separate bathrooms for men and women, a dressing room for women and a workplace nursery.

Drug and Alcohol Use

Employees who handle pesticides and fertilizers that react strongly to alcohol are required to abstain from alcoholic drinks at least 10 hours before and 12 hours after any operation where these substances are used.

Reference Citations

Workplace Safety and Health: Occupational Safety and Health Standards, 1989 (as amended), §§ 1041-1042; Act Strengthening Compliance with Safety and Health Standards and Providing Penalties for Violations Thereof, 2018, §§ 2-22

Drug and Alcohol Use: Occupational Safety and Health Standards, 1989 (as amended), § 1953

100 Termination

Termination by Employer

Termination by an employer generally requires just cause and due process. Termination is justified for any of the following causes:

• serious misconduct or willful disobedience connected to work-related duties;
• gross and habitual neglect of work duties;
• fraud or willful breach of trust;
• commission of a crime or offense against the employer, an immediate member of the employer’s family or employer representatives and
• similar types of behavior.

Employees are entitled to one month’s notification with an explanation prior to the intended date of dismissal and to a chance—accompanied by representatives—to defend themselves.

If a conflict over termination occurs and the dispute cannot be resolved by conciliation or mediation, it can be taken to labor arbiters with the National Labor Relations Commission. If the employee prevails—even pending appeal—he or she must be returned to the same position, receiving the same benefits, privileges and status as prior to the incident, as well as full back pay for any lost wages. If reinstatement is impossible due to hostile working conditions, some form of compensation must be made.

In addition to just cause and termination of workers on probation, the Labor Code allows for dismissal in cases of redundancy, the closure of a business or if an employer learns that an employee has a disease that makes his or her continued employment unlawful or harmful to the worker’s own health or the health of co-workers.

Termination by Employee

An employee is required to give one month’s advance notice in writing to terminate employment without just cause. If the employee fails to provide notice, the employer may hold the employee liable for damages. An employee may terminate employment without notice with just cause, which includes:

• serious insult by the employer or its representative to the honor or person of the employee,
• inhuman and unbearable treatment by the employer and
• commission of a crime or offense by the employer against the employee or any of the immediate members of the employee’s family.

Plant Closings and Mass Layoffs

The Labor Code requires an employer to provide one month’s written notification of termination due to installation of labor-saving devices, redundancy, retrenchment to prevent losses or the closing of a business. Affected employees are entitled to separation pay; the amount of such pay is determined by the reason for termination.

Payment on Termination

Under the Labor Code, separation pay is required only in cases of layoffs, business closure or termination because of a disease.

Employees terminated because of redundancy are entitled to one month’s pay for every year of service. If an employer is restructuring to prevent losses or is closing a business, terminated employees are entitled to one month’s pay or one-half month’s pay for every year of service, whichever is higher. If an employer terminates an employee for reason of disease, the employee is entitled to one month’s pay or one-half month’s pay for every year of service, whichever is higher.

Unemployment Insurance

There is no private-sector unemployment insurance program in the Philippines.

Reference Citations

Termination by Employer: Labor Code, 1974 (as amended), arts. 279-282

Termination by Employee: Labor Code, 1974 (as amended), art. 285

Plant Closings and Mass Layoffs: Labor Code, 1974 (as amended), art. 283

Payment on Termination: Labor Code, 1974 (as amended), art. 283-284

Personal Taxes

Residency Requirements

For income tax purposes, a resident alien is one who:

• is not a mere transient,
• has no definite intention as to the length of stay in the Philippines or
• is in the Philippines for a reason requiring an extended stay and making it necessary for the alien to make his or her home temporarily in the country.

A nonresident alien may be classified as engaged in trade or business if his or her stay in the Philippines exceeds 180 days during any calendar year.

Taxable Income

Philippine residents are taxed on their worldwide income. Resident and nonresident aliens are taxed only on Philippine-sourced income.

Taxable income includes compensation for services, fees, salaries, wages, commissions and annuities.

Tax Rates

Income tax rates in the Philippines vary progressively from zero to 35% depending on an individual’s income.

Employees of regional or area headquarters and regional operating headquarters of multinational companies and employees of offshore banking units and petroleum service contractors/subcontractors enjoy a preferential tax rate of 15 percent on gross income.

Reference Citations

Residency Requirements: Tax Code, 1997 (as amended), § 22

Taxable Income: Tax Code, 1997 (as amended), § 23

Web References

Law and Regulation

Anti-Sexual Harassment Act of 1995

Constitution of the Republic of the Philippines

Expanded Senior Citizens Act

Labor Code

National Internal Revenue Code of the Philippines (Tax Reform Act of 1977)

Republic Act No. 9849 (amendment to holidays executive order of 1987)

Solo Parents’ Welfare Act

Government Websites and Publications

Department of Labor and Employment

Department of Labor and Employment, Bureau of Working Conditions

Department of Labor and Employment, Occupational Safety and Health Standards

Philippine Social Security System

Republic of the Philippines, Official Government Portal