New Rules and Regulations under Telecommuting Act

The Department of Labour and Employment (DOLE) on 1 April 2019 issued the Implementing Rules and Regulations (IRR) of the Republic Act No. 11165, otherwise also known as the “Telecommuting Act”.

Under Section 3 of the Implementing Rules Regulation (IRR), employers can offer “work-from-home” facility on a voluntary basis, or as a result of collective bargaining. Section 4 of the act provides details of pay, rights, and holidays for employees opting for this scheme.

Companies who adopt the telecommuting work arrangement must notify the Department of Labour and Employment (DOLE) in the prescribed report form. These reports must be submitted by all the branches of the company separately to the nearest DOLE field, or provincial office as per their jurisdiction, depending where the principal office is located.

To read further on this subject please refer to the following link: https://www.dole.gov.ph/wp-content/uploads/2019/04/DO-202-19-Implementing-Rules-and-Reulations-of-Republic-Act-No.-11165-otherwise-known-as-the-Telecommuting-Act.pdf.

Pagtutulungan sa Kinabukasan (Pag-IBIG) fund to exempt expatriate from making contribution

In 2018 as per Circular No.274, Pag-IBIG fund contribution was made mandatory for an expatriate who is not more than 60 years of age, regardless of their citizenship, nature and duration of employment.

However, recently the above circular was revoked, and as per the change it is not mandatory for expatriates to make this contribution anymore. In line with the revocation, all affected employers should stop deducting contributions from all expatriates under their employment. The refund of expatriates' respective contributions and accrued dividends shall be processed upon filing of corresponding applications for claim by any such Pag-IBIG member.

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