The Philippines is the thirteenth most populous country in the world. Its low cost of living appeals to the working class. Manufacturing consistently remains the key sector driving the Philippine’s economy. Other sectors on the rise include private services and transportation, communication and storage sectors. It is expected that the Philippine government’s tax reform agenda and other initiative will facilitate the upcoming economic development of the Philippines. It is also expected that enterprise architects, data scientists, digital marketers, human resources transformation professionals and heads of supply chain will increase in demand moving forward.
Employers need to follow the strict employment guidelines set forth by the local authorities before they could employ in the Philippines. This process can be time-consuming as the company first needs a legal entity in the country and manages payroll, tax, benefits and compliance.
Global payroll solutions make it easy to find and hire top talent in the Philippines. With one seamless integration and local legal entity, we take care of the compliance matters so that you can start your globelizing plan immediately.
Philippines’ worker classification labour and tax laws distinguish between contractors and full timers. If the individual meets the legal definition of an employee but is classified as a contractor, your company will face penalties.
The primary law governing employment relationships in the Philippines is the 1987 Philippine Constitution, which establishes a set of minimum rights and terms for employees who fall under its purview. Employers are compelled to provide equal work opportunities for their employees regardless of sex, racial background, or religion.
Globelise will be able to help you navigate through the employment process and so that you will be able to offer a competitive and compliance offer to attract and retain your employees in the Philippines.
The labour unions in the Philippines consist of the national trade unions, industrial federations and plant-level unions from private and public sectors. Among these are the Federation of Free Workers (FFW), Kilusang Mayo Uno (KMU), Sentro ng mga Nagkakaisa at Progresibong Manggagawa (SENTRO), and the Trade Union Congress of the Philippines (TUCP). They are fighting towards decent work for job seekers and job preservation for the employed.
Employees may seek their unions for help when they feel that they are unfairly treated or have been non-compliant with their employment terms.
Probation is optional in the Philippines. However, some companies do implement a probationary period for their employees, and the maximum probationary period is 6 months.
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