Current Legal Landscape:

Employment law in the Philippines is pro-labour, with the Constitution mandating the protection of workers’ rights. Employees enjoy security of tenure, meaning they can only be terminated for legally defined just or authorized causes. Filing employment disputes is simple and cost-free, making it easy for employees to sue employers.

Advice for Employers:

• Management Rights: Employers still have broad control over workplace policies and practices despite the pro-labour stance.
• Litigation Awareness: Employers should maintain meticulous records and exercise caution in communications to minimize legal risk.
• Preventive Legal Guidance: Seeking legal advice early helps mitigate risks before disputes arise.

Threats & Opportunities in the Next 12 Months:

• Labour Dispute Intervention: The government may prevent strikes or enforce settlements, which could either support stability or pressure employers into unfavourable agreements.
• AI Regulation: Proposed legislation could increase employer burdens by restricting AI-driven workforce augmentation.

Client Satisfaction Strategies:

• Expertise in complex labour litigation attracts both local and foreign clients.
• Timely and tailored legal advice ensures practical solutions aligned with business needs.
• Regular legal updates via a quarterly Human Resources Advisor keep clients informed of employment law developments.

Technological Advancements in Employment Law:

• The digitization of labour agencies is improving efficiency, reducing legal costs, and facilitating virtual hearings.
• Employers benefit from online regulatory submissions, enhanced record-keeping, and easier access to labour law resources.

What is the current legal landscape for employment law in your jurisdiction?

The best way to describe employment law in the Philippines is that it is pro-labour.

In fact, the Philippines’ very own Constitution provides that it is the state’s policy to protect the rights of workers and promote their welfare. It is likewise recognized in both law and the

Supreme Court’s decisions that all doubts in the interpretation of laws, contracts, workplace policies, and evidence should be resolved in favour of labour.

Relatedly, it must be emphasized that at-will employment is prohibited in the Philippines. Here, employees enjoy the right to security of tenure. As such, workers may only be terminated from employment for just or authorized causes provided under the law. Given these concessions hoarded to workers, it’s very easy for them to sue employers.

Before labour courts in the Philippines, workers need only fill out a complaint form, and in doing so, they’re not required to engage the services of a lawyer or pay filing fees.

What three essential pieces of advice would you give to clients involved in employment matters?

Even though we are a pro-labour country, we should not deter local and foreign investors from doing business here because employers in the Philippines are generally free to regulate all aspects of employment. Aloy is widely known as an advocate of management rights and has extensive experience in assisting clients on how to properly exercise these rights and prerogatives.

Second, in dealing with employees, we advise our clients to always be conscious of potential litigation. We remind our clients to be meticulous in their records, keeping efforts, and to be very careful and deliberate about their representations to their employees.

Finally, at Accra Law, we believe that prevention is better than cure. As a result, we always recommend that our clients seek legal guidance even before employment-related issues arise. In this way, we can help the clients at the earliest opportunity eliminate or at the very least minimize legal risk.

What are the greatest threats and opportunities in employment in the next 12 months?

In the next 12 months, employers should be aware that the current administration under President Forin and Marcus Jr. has made it a point to ensure that labour disputes between management and labour do not result in strikes or lockouts. Under the law, the Secretary of the Department of Labor and Employment has the power to assume jurisdiction over these labour disputes and enjoin parties from holding strikes or lockouts.

For the employer, this may either be an opportunity or a threat. It can be an opportunity because it is unlikely that the government will step in and stop the strike. At the same time, it can be a threat because the government can force a settlement between the parties in a labour dispute.

Similarly, in the next 12 months, employers should closely monitor the developments concerning the proposed legislation that seeks to regulate the use of artificial intelligence in the workplace. As currently worded, the proposed law appears to be a threat as it will generally make it more burdensome for employers to augment manpower complement as a result of the introduction of AI.

How do you ensure high client satisfaction levels are maintained by your practice?

Accra’s prowess in labour-related litigation makes it a top choice for companies who need legal representation in all stages of the dispute resolution process. We are usually engaged by both local and foreign companies to handle highly complex cases where a lot is at stake. Because we have a known track record for coming up with the best and most practical legal solutions to

employment-related problems, our clients are also very appreciative of our general labour advisory work.

Here, not only do we give legal advice in a timely manner, but the advisory we render is also tailored to our clients’ varying business needs.

Finally, one of the things that sets us apart from other practitioners is that we regularly update our clients about significant legal developments in the field of employment law. We do this by sending our clients a quarterly pamphlet called the Human Resources Advisor.

What technological advancements are reshaping employment, and how can clients benefit from them?

Insofar as the field of labour and employment is concerned, the Philippine government is investing heavily in the digitization and modernization of the Department of Labor and Employment, including the various bureaus and agencies that are connected to it.

While progress appears to be slow, we are already experiencing firsthand the fruits of the government’s efforts through the online submission of repertory requirements, the availability of infrastructure that enables the holding of virtual hearings before labour courts, and the improved websites of the relevant government agencies engaged in the enforcement and regulation of all things related to labour and employment.

Our clients benefit from these advancements through the reduction in the cost of legal and operational fees, more efficient and environmentally friendly record-keeping capabilities, and easier access to relevant information and documents.