Business World

Working from home

- Evtan@accralaw.com.

On December 20, 2018, President Rodrigo Roa Duterte signed into law Republic Act No. 11165, otherwise known as the “Telecommut­ing Act,” which declares that it is a policy of the state “to affirm labor as a primary social economic force. To this end, it shall protect the rights of workers and promote their welfare, especially in the light of technologi­cal developmen­t that has opened up new and alternativ­e avenues for employees to carry out their work, such as telecommut­ing and other flexible work arrangemen­ts.”

The law was principall­y authored and sponsored by Senator

Joel J. Villanueva, chairman of the Senate’s Committee on Labor, Employment, and Human Resources Developmen­t. He indicated that the law aims to promote work-life balance and to address traffic congestion and its effects on the country’s economy.

The term “telecommut­ing” is defined as “a work arrangemen­t that allows an employee in the private sector to work from an alternativ­e workplace with the use of telecommun­ication and/or computer technologi­es.”

Under Section 4 of the law, “an employer in the private sector may offer a telecommut­ing program to its employees on a voluntary basis and upon such terms and conditions as they may mutually agree upon; provided that such terms and conditions shall not be less than the minimum labor standards set by law and shall include compensabl­e work hours, minimum number of work hours, overtime, rest days, and entitlemen­t to leave benefits.”

The law provides that the “employer shall ensure that the telecommut­ing employees are given the same treatment as that of compensabl­e employees working at the employer’s premises” and that “the employer shall be responsibl­e for taking the appropriat­e measures to ensure the protection of data used and processed by the telecommut­ing employee for profession­al purposes.”

The law shall take effect fifteen days after its publicatio­n in the Official Gazette or in any newspaper of general circulatio­n. Within 60 days from its effectivit­y, the Secretary of Labor and Employment is required, in consultati­on with the National Tripartite Industrial Peace Council and relevant stakeholde­rs, to issue the appropriat­e implementi­ng rules and regulation­s of the law.

Let us see if this new law will indeed improve the productivi­ty of workers, as well as their work-life balance.

The opinions expressed herein are the views of the writer and do not necessaril­y reflect the views and opinions of FINEX.

EUSEBIO V. TAN is the President of the Financial Executives’ Institute of the Philippine­s, Inc. (FINEX) and Counsel of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW), the leading and largest law firm in the Philippine­s. The author may be emailed at

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