Starting up a business in Manila, Philippines may be challenging, especially amid the competitive market in the country. Not to mention that the beginning of the business is crucial since it would determine the company’s direction in the future. This where going to a law office in Manila is important.
Are you planning to grow a startup business in the Philippines? Then you may consult legal assistance from a law office in Manila, Philippines.
For beginners, you should particularly define your target market, the products or services that you would provide, your business operations, finances, and location. But prior to all of these things, you should first check into business registration and legalities.
On top of that, business owners need to know that in order to grow a business, it should abide by the regulations and ensure that every business functions has to be in line on the legal side.
How Can A Law Office in Manila Help You Learn Labor Laws in the Philippines?
For startups, it’s typical to not have a legal background or have minimal knowledge on labor laws in Manila. This is why there is a need for seeking assistance from a law office in the Philippines. Lawyers are the ones who have the right expertise to ensure that your startup complies with the business laws.
While you can also read on key rules that can affect your business, specifically the labor law, visiting a law office in Manila is the best way to not miss on important details (which can result to grave consequences).
The Labor Code in the country is comprised of legal guidelines for both employees and employers. For a startup that is set to grow as a business, it is best to know that ignorance of the law excuses no one, in case of violation.
The country’s labor laws express the rights and benefits of workers, besides, it additionally sets conditions such as the day offs, government mandated contributions, and more.
The basic knowledge of law codes and abiding to it gives your business the security as it can spare your business from potential charges or lawsuits.
What are the Essential Labor Laws You Should Be Familiar With?
- EMPLOYMENT ARRANGEMENTS.
For the first step, you need to choose which kind of business course that you and your business needs. In the Philippines, we recognize that there are five types of employment arrangements relying upon the nature of work.
The work classifications are regular, probationary, project-based, fixed period or term-based employment, and seasonal employment.
If you have now determined your organizational needs, it is time to create a job contract for your company. For the most part, the contracts are set up in English, in any case, if the employee is a Filipino citizen, the business is required to give a contract in the Filipino language.
With this, they are able to understand more what the contract is trying to convey on the specific terms of the agreement of the contract. Likewise, each contract shall explicitly state the provisions of work suitable to the employee to avoid disputes not limited to:
- Job position, description, and employment status
- Salary (including overtime pay, holiday, etc.) and Compensations
- Length and condition of the probationary period (if applicable)
- The company’s code of conduct and policies
Securing a clear and straightforward contract can also help on securing the employee and employer relationship.
- WORKING HOURS AND OVERTIME.
Establishing the work contracts also portrays a company’s humane working conditions among employees. A full shift often requires 8 hours a day or 48 hours a week with a daily 1 hour of unpaid break or a paid break of 20 minutes.
Moreover, employees should have at least one whole day off (or a complete 24 hours) every week. If the employee extends beyond the paid 8-hour shift, they are entitled to an overtime (OT) pay, which is 125% of their hourly rate in a regular full-time shift.
On the other hand, holiday and rest day overtime (RDOT) pays come at higher rates. Another thing to note, especially when you’re planning to grow your business globally, is the business working hours.
If the employees would need to render anytime from 10:00 PM to 6:00 AM, this falls under a Night Shift, which then qualifies for a Night Shift Differential (NSD). For this, employees can get an additional 10% of their rate. However, there are exclusions from OT pays, such as:
- Government employees
- Managerial employees (officers or members of the managerial staff)
- Field personnel
- Domestic helpers and individuals in the private service of another person
- Employees who are paid by results
- GOVERNMENT-MANDATED CONTRIBUTIONS AND BENEFITS.
As an employer, you are required to give your employees at least 12 paid regular holidays/leaves annually, although sick leaves are not necessarily required. Additional leaves for more than the 12 every year is for the company’s discretion. Moreover, paid maternity and paternity leaves are also required by the labor code.
The country’s social legislation requires both the employees and employers to contribute to the following:
- Social Security System (SSS) – 11% of the employee’s monthly salary shouldered both by the employee and the employer
- National Health Insurance Program, and the Home Development Mutual Fund that covers sickness, maternity, disability, retirement, deaths and funerals, health insurance, and housing loans.
These contribution rates are based on the employee’s monthly income. Additionally, failure to pay the monthly dues within the given period may result in not only financial liability, but also hefty penalties against the company.
These are only a couple of things to know before hiring employees. Labor law is essential to growing your startup business in the Philippines, otherwise, violating it could heavily cost you.
Managing your startup business is challenging enough, that’s why it is recommended to visit a law office in Manila for the protection of your business in the Philippines.
Looking for one of the leading law offices in the country? Yap, Kung, Ching & Associates Law Office in Manila, Philippines can make the legal matters simpler for you.