Labor law
in the Philippines.

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Philippines

Labor law in the Philippines – Overview

Labor laws in the Philippines are governed by the Labor Code of the Philippines, which was enacted on Labor Day, May 1, 1974. This comprehensive law covers various aspects of employment, including employee rights, working conditions, benefits, termination, and other employment-related matters.

Here is an overview of key labor requireements in the Philippines:

Employment Contracts. All employers are required to provide a written employment contract to their employees. The contract should include essential details such as the terms and conditions of employment, job description, compensation, benefits, working hours, and other pertinent information.
Working Hours. The standard working hours in the Philippines are eight hours per day and 48 hours per week. Overtime work is allowed but, under the Labor Code, should not exceed eight hours per week. Overtime pay is typically at least 125% of the regular hourly rate.
Rest Days and Holidays. Employees are entitled to at least one rest day per week. In addition, employees are entitled to paid days off due to public holidays throughout the year. If an employee works on a holiday, they should receive additional compensation, often referred to as “premium pay.”
Leave. Employees are entitled to various types of leave, including annual leave (vacation leave), sick leave, and special leave. Maternity and paternity leave are also provided for employees who qualify.
Employee Benefits. Employers are required to provide benefits such as social security, health insurance, and retirement benefits to their employees.
Termination and Severance Pay. Termination of employment in the Philippines must comply with specific legal requirements. An employer can only terminate an employee for just cause or authorized reasons, and due process must be observed. In cases of termination without just cause, employees are entitled to separation pay.
Employee Organizations. Workers in the Philippines have the right to form and join labor unions and employee associations. These organizations can negotiate with employers on behalf of their members.
Occupational Health and Safety. Employers are required to provide a safe and healthy working environment for their employees. There are specific regulations and standards in place to ensure workplace safety.

It is essential for both employers and employees to be aware of their rights and responsibilities under the labor laws of the Philippines. The Department of Labor and Employment (DOLE) in the Philippines is a good source for labor law inquires.

Notice period laws in the Philippines

Dismissals in the Philippines

In the Philippines the notice period typically depends on what is stated in the employment contract. In practice, a common notice period for employees who want to resign is usually 30 days. This means that an employee should inform their employer at least 30 days in advance before the intended date of resignation.

Severance laws in the Philippines

The Philippines does not have a general law that mandates severance pay for all employees. However, a minimum of 1 month of pay per year of service by the terminated employee is highly recommended to avoid any legal implications. Employers should ensure that they follow due process and comply with the relevant laws when terminating employees to avoid legal issues.

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FAQs

What are the most relevant legal documents related to employment law in the Philippines?

In the Philippines, employment laws are primarily governed by the Labor Code of the Philippines, which serves as the comprehensive statute covering various aspects of labor and employment. However, there are other relevant legal documents and regulations that complement and further define employment rights and obligations. Some of the most important legal documents other than the Labor Code of the Philippines related to employment law in the Philippines include:

Social Security Act of 2018 (Republic Act No. 11199): This law establishes the Philippine Social Security System and provides for social security benefits for employees, including retirement, disability, sickness, maternity, and death benefits.
Republic Act No. 10361 (RA 10361) or the Domestic Workers Act: This law, also known as the “Batas Kasambahay,” provides special protection and benefits for domestic workers, defining their rights.

Can I terminate an employee during their probationary period in the Philippines? How much notice do I need to give?

Yes, an employer can terminate an employee during their probationary period. The amount of notice to give can be stipulated in the employment contract. However, 30 days’ notice is the standard.

Can the employee terminate employment during their probationary period in the Philippines? How much notice do they need to give?

Yes, an employee can terminate an employment contract during their probationary period. The amount of notice to give can be stipulated in the employment contract. However, 30 days’ notice is the standard.

After the probationary period, what is the process to terminate employment in the Philippines?

In the Philippines, employment termination can occur for various reasons. However, employers must follow due process and adhere to the provisions set forth in the Labor Code to ensure that the termination is legally valid. Some of the authorized causes for termination in the Philippines include:

Just Causes:

a. Serious misconduct or wilful disobedience to lawful orders.
b. Gross and habitual neglect of duties.
c. Fraud or wilful breach of trust.
d. Commission of a crime or offense against the employer or a co-worker.
e. Loss of trust and confidence due to a legitimate reason, such as unauthorized disclosure of company trade secrets or confidential information.

Authorized Causes:

a. Retrenchment or downsizing to prevent losses.
b. Closure or cessation of operations due to business reasons.
c. Disease or illness that renders the employee unfit for continued employment.

If the employer has one of the above reasons to terminate employment then the process is to give written notice 30 days’ prior to going into effect, hold a hearing with the employee so they know the reason, and last, hold an exit interview.

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