Philippines urged to review labor laws for remote work, outsourcing

MANILA, PHILIPPINES — An employers’ group urged the Philippine government to review its labor laws as more companies adopt remote work and outsourcing.

In an interview on ANC’s Insight, Perry Ferrer of the Employers Confederation of the Philippines (ECOP) said the COVID-19 pandemic has placed a lot of emphasis on flexibility from both employers and employees.

Ferrer explained that many employees now demand flexibility and the ability to work remotely. At the same time, companies are outsourcing more tasks to “find ways to be competitive” and reduce costs. He cited business process outsourcing (BPO), IT services, payroll, accounting, and human resources as examples.

“Companies here in the Philippines are not totally embracing it yet. When you look at the Western world, it is a common thing,” Ferrer said.

Ferrer warned that existing Philippine labor laws have ambiguities around remote work and outsourcing. For instance, regulations limit BPO companies to only 30% remote workers.

He suggested clarifying the rules to provide “both the employers and the employees the flexibility to work based on market conditions.”

ECOP also wants closer collaboration with the government to align policies around upskilling workers for the digital economy. Ferrer cited training programs focused on “green and digital skills” as examples.

The Philippines has an opportunity to position itself as a progressive location for global companies to invest and outsource, but Ferrer says it needs proactive policies that reduce barriers to remote work while protecting employee rights.