compliance issues

Quisumbing Torres is a member firm of Baker & McKenzie International, a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a "partner" means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an "office" means an office of any such law firm.© 2013 Quisumbing Torres

COMPLIANCE ISSUES

Understanding the New Domestic Workers Act or Batas Kasambahay

Catherine Franco, Associate

BCCP

25 June 2013

© 2013 Quisumbing Torres

Effective date

R.A. No. 10361 took effect on

9 February 2013

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Transitory provision; non-diminution of benefits

– All existing arrangements shall be adjusted to conform to the minimum standards set by R.A. No. 10361 within 60 days after effectivity of the law.

– The law prohibits diminution or substitution of benefits and privileges already being enjoyed by domestic workers.

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Who are covered

Domestic worker or “kasambahay”

Any person engaged in domestic work within an employment relationship such as, but not limited to:

general househelp,

–nursemaid / nanny or “yaya”,

–cook,

–gardener, or

–laundry person.

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Who are not covered?

– any person who performs domestic work only occasionally or sporadically and not on an occupational basis (e.g., a student doing baby-sitting job on weekends)

– children who are under foster family arrangement and are provided access to education and given an allowance incidental to education, i.e., “baon” for transportation, school projects and school activities

– service providers

– family drivers

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Prohibited acts

It shall be unlawful for the employer:

• to require a domestic worker to make deposits from which deductions shall be made for the reimbursement of loss or damage to tools, materials, furniture and equipment in the household.

• to employ any person below 15 years of age as a domestic worker.

• to interfere with the freedom of any domestic worker to dispose of the latter’s wages.

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Prohibited acts (continued)

• to withhold the wages of the domestic worker.

• to charge any amount from the other household where the domestic worker was temporarily assigned to work.

• to place the domestic worker under "debt bondage".

“Debt bondage” means rendering of service by the domestic worker as security or payment for a debt where the length and nature of service is not clearly defined or when the value of the service is not reasonably applied in the payment of the debt.

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Penalty

– Commission of acts declared unlawful is punishable with fine of not less than PhP10,000 but not more than PhP40,000

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Settlement of disputes

– Labor-related disputes shall be elevated to the regional office of the Department of Labor and Employment (“DOLE”) having jurisdiction over the workplace.

– The DOLE shall exhaust all conciliation and mediation efforts.

– If unsettled, case will be referred for mandatory conference.

– The DOLE Regional Director shall issue a Compliance Order.

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Settlement of disputes (continued)

– Aggrieved party may file a motion for reconsideration of the Compliance Order within 10 days from receipt.

– The resolution on the motion for consideration may be appealed to the DOLE Secretary within 10 days from receipt.

– The Order of the DOLE Secretary shall be final and executory.

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Rights of domestic workers

– Privacy: Respect for the privacy of the domestic worker shall be guaranteed at all times and shall extend to all forms of communication and personal effects.

– Education and training: Employer shall adjust the work schedule of domestic worker to allow access to education and training without hampering the services required by the employer.

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Employment Practice Group Profile–Quisumbing Torres (“QT”), member firm of Baker & McKenzie International, is one of the consistently top-ranked law firms in the Philippines to this day. Our lawyers are among the country’s prominent legal counsels in the areas of Banking & Finance, Corporate & Commercial, Dispute Resolution, Employment, Intellectual Property & Information Technology, and Tax. Fluent in the nuances of the country's legal, social and political systems, our lawyers have helped draft laws resulting in meaningful changes in the Philippine labor and tax codes, regulations covering the mining, media and communications, and oil and gas industries, rules on clean air and hazardous waste management, and IP law enforcement.

–We present our Employment Practice Group in detail below.

–Employment Practice Group–Foreign and domestic employers are primarily concerned with responsible practices in their Philippine businesses. Toward this end, QT assists clients on various employment matters ranging from local contracts, benefits, and pensions to global equity services.–Specifically, we help clients with

–General employment law advice

–Employment contract review and development

–Workmen’s compensation

–Employee benefits

–Executive compensation and transfer

–Collective employee terminations

–Collective bargaining agreements

–Discrimination and sexual harassment laws

–Trade union recognition procedures

–Executive terminations

–Employment litigation


Employment Practice Group ProfileWhat they say about QT…

“The (Employment) Team is known for their ‘very prompt response times and excellent quality of legal service. They are flexible and easy to work with and make clients feel that they are being given prompt attention and priority’. The ‘excellent’ team is recommended for labour relations and litigation, and advice on transactional and outsourcing-related issues.”

– The Legal 500 Asia Pacific 2012

Sources say, “They (Employment Team) give good-quality advice.” – Chambers Asia Pacific 2013

“Quisumbing Torres is a standout firm in many practice areas, but its labour and employment practice garners exceptional praise.” – Asialaw Profiles 2012

“The ‘very professional’ Kenneth Chua leads the ‘excellent’ employment team at Quisumbing Torres, which is ‘very accessible’, ‘very responsive’, and ‘tries to deeply research cases before providing a legal opinion’. It acts for an impressive range of international clients on both contentious and non-contentious matters. The practice also has deep bench strength, with highly rated partners including Gil Roberto Zerrudo and Eliseo Zuñiga.” – The Legal 500 Asia Pacific 2013

Awards and recognition

Tier 1 in Employment for seven consecutive years (2007-2013)

– The Legal 500 Asia Pacific

Tier 1 for Immigration for seven consecutive years (2007-2013)

– The Legal 500 Asia Pacific

Leading firm for Employment – Chambers Asia Pacific 2012-2013


Thank you!

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