2 Cebu BPOs face shutdown, probe over quake disaster plan violations
CEBU, PHILIPPINES — Two Cebu-based business process outsourcing (BPO) companies are under government scrutiny after the Philippine Department of Labor and Employment in Central Visayas region (DOLE VII) issued one a work stoppage order and another a notice of conference for violating disaster preparedness and safety regulations following the recent magnitude 6.9 earthquake.
Authorities crack down on unsafe practices
In a decisive move, DOLE VII issued a work stoppage order to a BPO firm found to have “no established Emergency and Disaster Preparedness and Response Plan” under its Occupational Safety and Health (OSH) Program, as required under Department Order No. 252, Series of 2025.
Inspectors discovered that the company’s hazard identification and risk assessment failed to include calamity-related risks, while its Safety and Health Committee operations were inconsistent. Moreover, the firm had no Construction Safety and Health Program for ongoing fit-out work
“The noted deficiencies taken together are indicative of the respondent’s laxity in implementing Safety and Health Rules within the worksite which clearly exposed the workers to imminent danger,” the order stated.
Under the same directive, DOLE warned that if the company fails to address these violations, it will face penalties of up to PHP100,000 (US$1,723.48) per day from the date of notice, in accordance with Section 42 of Department Order No. 252. The company must also pay affected workers during the stoppage period if the suspension resulted from its own fault.
DOLE VII likewise issued a Notice of Conference to a second BPO firm, directing it to present proof of corrective measures to resolve its safety deficiencies. Regional Director Roy Buenafe warned, “This is just the initial shot. More and more vigorous inspections will happen onward,” emphasizing that employers and building administrators must prioritize workplace safety before operations resume.
Post-quake violations spark industry-wide scrutiny
The crackdown follows allegations from the BPO Industry Employees Network (BIEN) that some firms forced employees to report to work after the earthquake, with others allegedly offering double pay to continue despite safety risks.
In a message sent exclusively to Outsource Accelerator, Kyle Enero, spokesperson of BIEN Pilipinas, stated, “It’s high time OSH violations are criminalized. “OSH standards were violated and OSH measures are not set in place as provided by law.”
Buenafe reiterated that natural disasters like earthquakes carry a “presumptive imminent danger,” warning that employers cannot penalize workers who choose safety, citing Labor Advisory 17, Series of 2022. The agency is set to inspect six more BPO companies in the coming days.
Contrasting responses in BPO sector
The incident highlights a growing divide within the outsourcing industry, between firms that neglect safety standards and those that have demonstrated proactive crisis management.
Companies such as Cloudstaff and StaffOutsourcing showcased robust business continuity and disaster response plans, ensuring orderly evacuations and full wage protection for staff.
This episode serves as a stark reminder that the BPO sector’s long-term success hinges not only on operational efficiency but also on its commitment to human welfare and responsible governance. The Cebu probe may well be the catalyst for a broader industry shift one that places worker safety at the heart of sustainable outsourcing growth.
