Labor policy in the Philippines

They cover 38 million Filipinos who belong to the labor force and to some extent, as well as overseas workers.

They aim to address Filipino workers’ legal rights and their limitations with regard to the hiring process, working conditions, benefits, policymaking on labor within the company, activities, and relations with employees.

With this large pool of available workers, the Philippines has more than 38 million people that belong to the labor force which is one of the largest in the world almost making it to the top ten notwithstanding a relatively mediocre participation rate of 64.5%.

[4] As of 2020[update], the labor force participation rate was 57%,[3] a relatively large percentage that belongs to the upper-third in the world ranking.

The Philippines ranks relatively low in its employed worker-to-GDP ratio with only $8,260[5] which hints about the country's productivity issues.

This decline in agricultural employment emphasizes the movement of labor toward service and industry-based jobs, alongside a reduction in rural-based work opportunities.

Out of this unemployed group of workers, 88% is roughly split between people who at least had a high school or a college education.

[11] Labor groups have called for the raising of the minimum daily wage mandated by the government.

[12][13] Estimates from the Japanese External Trade Organization state that as of 2023 manufacturing sector wages in the Philippines is lower than that in Singapore, Malaysia, Thailand, Indonesia, and Vietnam, while non-manufacturing sector wages is lower than that in Singapore, Malaysia, Thailand, Indonesia, Vietnam, and Cambodia.

[14] Some businesses argue that having policies that are biased on workers’ welfare and protection may hinder employment creation.

They argue that a rigid labor market due to government intervention may result in lower investments and thus, slower growth.

[15] A substantial number of workers in the Philippines are exposed to hazardous working conditions and are not provided sufficient safety equipment and training.

Workers in construction and manufacturing, for example, tend to work with electrical equipment and other dangerous tools and machinery, while those in agriculture are frequently exposed to toxic pesticides and fertilizers.

[19] The Philippine government has labeled labor union members as communists or terrorists, an accusation that puts groups and individuals at risk of violence and harassment.

[23][24] Labor and peasant leaders, activists, Indigenous peoples, religious workers, and environmentalists have been victims of extrajudicial killings in the Philippines.

[25] In 2023, the International Labour Organization (ILO) pushed for government action on the killing of 70 labor union organizers, abductions, and other possible violations of ILO Convention 87 on the protection of workers rights to freedom of association and collective bargaining.

[15] With the declining earnings, people are looking for additional hours of work (underemployed), or going abroad (overseas employment) or choose to be self-employed.

[15] This makes them, together with the unpaid family workers, part of the vulnerable employment and its earnings is weak compared to the wage one.

For purposes of this Article, "health personnel" shall include resident physicians, nurses, nutritionists, dietitians, pharmacists, social workers, laboratory technicians, paramedical technicians, psychologists, midwives, attendants and all other hospital or clinic personnel.

– Subject to such regulations as the Secretary of Labor may prescribe, it shall be the duty of every employer to give his employees not less than sixty (60) minutes time-off for their regular meals.

However, the employer may require an employee to work during his/her rest day in cases of emergencies, special circumstances at work in which employees are seriously needed, to prevent losses or damage to any goods or to the employer, and other cases that have reasonable grounds.

On top of that, employers are required to provide food, sanitary lodging, and just treatment to the household helper.

It plays a role in job creation through generating a formidable environment for investment; in ensuring the workers’ welfare through policies like the Labor Code; in improving the education of the labor; in informing regarding the jobs available to match the skills of the people; in implementing expansionary fiscal and monetary policies to reduce unemployment rate.

Trade unions aim to promote enlightenment among Filipino workers concerning their wages, hour of work, and other legal rights.

Trade unions are granted with a right to go on a strike,[28] a temporary stoppage of work by the employees when there is a labor dispute.

Labor disputes are defined as situation when there are controversies surrounding negotiations and arranging of the terms and condition of employment.

But when a strike or lockout is deemed to compromise national interests or interests of the Filipino public (for instance, the case of health workers), the Secretary of Labor and Employment has the authority to prohibit it and deliberately enforce resumption of regular operations.