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The Republic of the Philippines is an island nation located in Asia in the Pacific Ocean. The country is comprised of more than 7,500 islands in three divisions. Tagalog and English are the official languages although there are more than 180 different languages spoken regionally throughout the nation. The main exports are semiconductors and electronic products. Recently, the country has taken transformative steps to turn away from a primarily agriculture-based economy to a more diversified one.

Employment contracts in the Philippines must be written. Contracts generally include:

  • name of the parties,

  • job position, description, and status,

  • pay, and

  • benefits.

Most full-time employees are on indefinite contracts, while employees hired in a project-based capacity are on fixed-term contract. Background checks and investigations are not regulated by law; however, any background checks cannot violate any data privacy laws.

The standard work period in the Philippines is 40 hours over five days. Overtime is paid at percentages of the basic wage, which varies for a Sunday or paid holiday unless a collective bargaining agreement or employment contract says otherwise. Employees receive at least 24 hours rest after every six consecutive days of work. Evening work performed between 10 p.m. and 6 a.m. is compensated at a percentage of the basic rate. Employment of women during overnight hours is prohibited.

Employers in the Philippines are not required to provide employees with sick leave. Employees may be eligible for benefits under the Philippines social security program.

Female employees in the Philippines receive up to 105 days of fully paid maternity leave for each pregnancy while employed. To be eligible for this maternity leave, the employee must have made at least three months of contributions to social security in the 12 months immediately preceding the six-month period of the birth. Single mothers can request a 15-day extension of leave with pay. Employees can extend their leave by an additional 30 days without pay. Employers must give employees seven calendar days of paid paternity leave if they are married and living with their spouse when the baby is born.

The minimum wage in the Philippines is set by the Regional Tripartite Wages and Productivity Board. The Philippines has 16 regions, each with their own boards that determine what the local minimum wage will be. Employees receive a 13th-month bonus and some employers offer an additional Christmas bonus or 14th month pay.

Employees in the Philippines receive five days of paid leave after one year of service, but many employers offer 15 days of paid leave for professional or executive level employees.

In the Philippines, the public holidays are:

  • New Year’s Day

  • Maundy Thursday

  • Good Friday

  • Araw ng Kagitingan

  • Labor Day

  • Independence Day

  • National Heroes Day

  • Bonifacio Day

  • Christmas Day

  • Rizal Day

The Philippines provides compulsory universal healthcare funded by employers and employees. The contribution rate is a percentage of covered pay, which is split equally between employers and employees. Private healthcare is also available.

An employment contract in the Philippines may be terminated by the employer or the employee.

The procedure for dismissal varies according to whether such dismissal is due to just or authorized cause. Dismissal due to just cause requires written notice specifying the grounds of dismissal, and the employee must be given at least five days to provide an explanation. Terminations for just cause includes:

  • serious misconduct,

  • willful disobedience,

  • fraud,

  • breach of trust, or

  • commission of a crime.

An employee terminated for just cause is not entitled to separation pay.

  • Local Laws & Regulations

    We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.

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