Littler Global Guide - Philippines - Q4 2020

Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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Amendment of the Labor Code on Suspension of Employment Relationship

New Order or Decree

Authors: Emerico O. de Guzman, Managing Partner and Rhett D. Gaerlan, Associate - Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW)

On October 23, 2020, the Department of Labor and Employment (DOLE) issued Department Order No. 215, series of 2020, amending Rule I, Section 12 of the Omnibus Rules Implementing the Labor Code, on the suspension of the employer-employee relationship, originally for a period not exceeding six months. With the issuance of Department Order No. 215, the employer and the employees (through the union, if any, or with the assistance of the DOLE) shall meet in good faith for the purpose of extending the suspension of employment for a period not exceeding six months. Ten days prior to the effectivity thereof, the employer shall report to the DOLE the extension of suspension of employment. The employees shall not lose employment if they find alternative employment during the extended suspension of employment, except in cases of voluntary resignation.

Should retrenchment be necessary before or after the expiration of the extension of suspension of employment, the affected employee/s shall be entitled to separation pay as prescribed by the Labor Code; provided, that the retrenched employees shall have priority in rehiring if they indicate their desire to resume their work not later than one (1) month from the resumption of operations. By mutual agreement of the employer and the employees, the latter may be recalled to work or retrenched subject to the requirement of notice and separation pay, any time before the expiration of the extension of suspension of employment.

Guidelines on Payment of Deferred Holiday Pay

New Regulation or Official Guidance

Authors: Emerico O. de Guzman, Managing Partner and Rhett D. Gaerlan, Associate - Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW)

On November 25, 2020, the Department of Labor and Employment (DOLE) issued Labor Advisory No. 31, series of 2020, in relation to the payment of deferred holiday pay pursuant to various Labor Advisories. The Advisory applies to all employers in the private sector that deferred payment of holiday pay based on the national emergency relating to COVID-19. In particular, the employers who were allowed to defer payment of the holiday pay of their employees are required to pay all covered employees equivalent to 100% of their daily wage on or before December 31, 2020.

Guidelines for Processing Personal Data for COVID-19 Contact Tracing

New Regulation or Official Guidance

Authors: Emerico O. de Guzman, Managing Partner and Rhett D. Gaerlan, Associate - Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW)

On October 23 and November 26, 2020, the National Privacy Commission issued Advisory Nos. 2020-03 and 2020-03-A on the guidelines for workplaces and establishments processing personal data contained in COVID-19 health declaration and contact tracing forms. Establishments shall collect personal data only for COVID-19 prevention and control and shall be limited to the following: (a) Employee Health Declaration Form; (b) Visitor Contact Tracing Form; and (c) Customer Information and Health Checklist. Establishments must provide a privacy notice to employees, clients, and visitors, informing them of the details of the processing of their personal data for COVID-19 prevention and control.

Repurposing the personal data collected for direct marketing, profiling, or any other use or purpose, whether commercial or noncommercial is prohibited. Personal data and other information may be collected manually through paper-based forms or electronically through digital or online forms subject to the implementation of reasonable and appropriate safeguards in the processing thereof. Moreover, personal data collected shall be retained only for as long as necessary for the fulfillment of the purpose/s for which such personal data was obtained.

Financial Assistance and Cash-for-Work Program for Displaced Workers in the Tourism Sector

New Regulation or Official Guidance

Authors: Emerico O. de Guzman, Managing Partner and Rhett D. Gaerlan, Associate - Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW)

On December 7, 2020, the Department of Labor and Employment (DOLE) and Department of Tourism (DOT) jointly issued Advisory No. 1, series of 2020, on the implementation of a financial assistance and cash-for-work program (for a short-term period, granted in accordance with the TUPAD Program of the DOLE) for displaced workers in the tourism sector. Affected establishments under the tourism sector in DOT-Accredited Primary and Secondary Tourism Enterprises, including those that implemented Flexible Work Arrangements (FWAs) or Alternative Work Schemes (AWS) that resulted in a decrease or loss of regular income or wages for its employees for the duration of the community quarantine, may apply for their workers’ financial assistance. Community-Based Tourism Organizations and local Government Unit (LGU)-licensed Primary and Secondary Tourism Enterprises that have implemented permanent or temporary closure, retrenchment, and FWAs/AWS may likewise apply for their employees’ financial assistance.

Philippines: Entry Requirements for Foreign Nationals with Residences in the Philippines

New Regulation or Official Guidance

Authors: Emerico O. de Guzman, Managing Partner and Rhett D. Gaerlan, Associate - Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW)

On December 17, 2020, the Inter-Agency Task Force issued a new Resolution on the re-entry of foreign nationals with valid and existing visas under Section 9(e) and 9(g) of Commonwealth Act No. 613, as amended. Those who leave starting December 17, 2020, may be allowed entry into the Philippines subject to the following conditions: (a) they have valid and existing visas on the date of arrival; (b) with prebooked quarantine facility; (c) with prebooked COVID-19 testing at a laboratory operating at the airport; and (d) subject to the maximum capacity of inbound passengers at the port and date of entry. It should be noted, however, that the foregoing is without prejudice to immigration laws, rules, and regulations such that the Commissioner of Immigration shall have the exclusive prerogative to decide on waiver or recall of exclusion orders for the aforementioned foreign nationals.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.