Philippine labor law applies to work performed here
The recurring BGC question is whether a contract signed with a foreign parent, denominated in dollars, and governed by a foreign choice-of-law clause escapes Philippine labor law. Generally it does not. Where the work is performed in the Philippines and the four-fold test points to an employment relationship, our labor standards and security of tenure apply, and a stipulation cannot waive rights the law grants. Contractual labels do not control — the substance of the relationship does, which is why 'consultant' and 'independent contractor' engagements in shared service centres are frequently found to be employment.
Foreign nationals working in BGC
A foreign national employed here generally needs an Alien Employment Permit from DOLE, alongside the appropriate work visa from the Bureau of Immigration. The AEP process includes a publication and understudy or skills-transfer dimension reflecting the policy that the position could not be filled by a Filipino. Employing a foreign national without the required permit exposes the employer to fines and the worker to immigration consequences — but note that the absence of a permit does not erase the employment relationship or defeat the worker's claim for wages already earned.
Remote and hybrid arrangements
Shared service centres run the most hybrid arrangements in the country. Under the Telecommuting Act the arrangement must be voluntary and mutually agreed — it cannot be imposed as a demotion — and telecommuting employees are entitled to the same pay, overtime, night shift differential, rest days, workload standards, training access, and union rights as on-site staff. Night differential in particular is frequently under-paid in follow-the-sun operations.
Where to file
A Request for Assistance under SEnA at the DOLE field office covering the workplace, then the Labor Arbiter of the NLRC National Capital Region branch serving Taguig. Note the deadlines: money claims in three years, illegal dismissal in four.
Frequently asked
My contract says it is governed by foreign law. Does Philippine labor law still apply?
Generally yes where the work is performed in the Philippines and an employment relationship exists. A stipulation cannot waive rights that Philippine labor law grants.
I am labelled a consultant but work like an employee. What am I?
The label does not control. Where the four-fold test, particularly the employer's control over the means and methods of the work, points to employment, you are an employee regardless of the contract's title.
Does a foreign national need a permit to work in BGC?
Generally an Alien Employment Permit from DOLE plus the appropriate work visa. Employing without one exposes the employer to penalties, but it does not erase the employment relationship or defeat a claim for wages earned.
Can my employer force me back on-site?
Telecommuting under RA 11165 is voluntary and mutually agreed, so it cannot be unilaterally imposed, and telecommuting employees must receive the same pay and benefits as comparable on-site staff.