Expanded Maternity Leave Law

New Regulation or Official Guidance

Author: Emerico O. De Guzman, Managing Partner - Angara Abello Concepcion Regala & Cruz Law Office (ACCRALAW)

Pursuant to Section 19 of Republic Act No. 11210, also known as the “105-Day Expanded Maternity Leave Law,” the Department of Labor and Employment issued the Implementing Rules and Regulations (IRR) of the law, which paved the way for its full implementation. Significantly, the IRR clarifies the amount of the Maternity Benefit to be received by the female worker, which refers to her “full pay” or her actual remuneration or earnings paid by her employer for services rendered on normal work days, which should not be lower than the minimum wage rate fixed by law.

Guidelines on the Payment of Maternity Benefit

New Regulation or Official Guidance

Author: Emerico O. De Guzman, Managing Partner - Angara Abello Concepcion Regala & Cruz Law Office (ACCRALAW)

The Social Security System (SSS) recently issued Circular No. 2019-009, which provides for, among others, the amount of Maternity Leave Benefit to be received by the female worker/member. In particular, the Circular provides that employed female workers shall receive their full pay which consists of their: (1) SSS maternity benefit computed based on their average daily salary credit; and (2) salary differential to be paid by the employer, if any. Female workers, however, who are otherwise employed by exempt establishments and enterprises, shall not be entitled to the salary differential and shall only be entitled to receive their SSS maternity benefits.

Imposition of Double Indemnity Against an Employer

New Regulation or Official Guidance

Author: Emerico O. De Guzman, Managing Partner - Angara Abello Concepcion Regala & Cruz Law Office (ACCRALAW)

The National Labor Relations Commission (NLRC) recently issued En Banc Resolution 01, Series of 2019, which provides for the guidelines in the imposition of double indemnity against the employer for underpayment of wages. The subject Resolution provides that in the event Philippine labor tribunals (i.e., Labor Arbiter and NLRC) finds the employer liable for such underpayment, the employer is given a period of five (5) days from receipt of the decision to pay the wage differential, otherwise double indemnity would be imposed during the execution of the judgement award in favor of the employee.

Implementing Rules and Regulations of Telecommuting Act

New Regulation or Official Guidance

Author: Emerico O. De Guzman, Managing Partner - Angara Abello Concepcion Regala & Cruz Law Office (ACCRALAW)

Pursuant to the “Telecommuting Act,” the Department of Labor and Employment (DOLE) issued the Implementing Rules and Regulations (IRR) of the law, which paved the way for its full implementation. Under the IRR, a telecommuting work arrangement or program may be offered by private sector employers to their employees, on a voluntary basis, upon such terms and conditions as they may be mutually agreed upon. In this regard, a “telecommuting agreement” refers to the mutual consent of the parties, based on the company’s telecommuting program, collective bargaining agreement (if any), and other company rules and regulations. Under the IRR, the telecommuting program should stipulate specific guidelines and rules governing the arrangement, including, eligibility; code of conduct; performance evaluation and assessment; use and cost of equipment; work days and/or hours; conditions of employment, compensation, benefits and particularly those unique to telecommuting employees; etc.

Bill, Prohibiting Labor-Only Contracting, Expected to Be Signed into Law

Proposed Bill or Initiative

Author: Emerico O. De Guzman, Managing Partner - Angara Abello Concepcion Regala & Cruz Law Office (ACCRALAW)

The Senate Bill on the Security of Tenure and End of Endo Act of 2018, which is expected to be approved by President Rodrigo Duterte soon, proposes significant changes to the provisions of the Labor Code of the Philippines on contracting arrangements, among others. Particularly, the Bill has expressly prohibited “Labor-Only Contracting,” which occurs when: (1) the job contractor, who merely recruits and supplies or places workers to a contractee, has no substantial capital or investment in the form of tools, equipment, machineries, work premises, among others; or (2) the workers recruited and supplied or placed by such person are performing activities which are directly related to the principal business of such contractee or are under the direct control and supervision of the contractee.