Philippines (PH)
The Philippines is a Southeast Asian archipelago of 7,641 islands, the third-largest English-speaking country in the world, and one of the most welcoming destinations for expats.
Employment Rights
Sick leave, dismissal protection and red flags in Philippines.
Philippine labour law is governed by the Labor Code of the Philippines (Presidential Decree 442) as amended. The law strongly favours employees — the principle of "social justice" and "constitutional mandate to afford full protection to labour" guide all interpretations in favour of workers. DOLE (Department of Labor and Employment) is the primary enforcement agency. The National Labor Relations Commission (NLRC) adjudicates labour disputes. Foreign workers must have AEP (Alien Employment Permit) before working — employers face penalties for hiring undocumented foreigners.
Sick leave
Rules: 5 days of Service Incentive Leave (SIL) per year mandatory under Labour Code Art. 95 — this may be used as sick or vacation leave. Most companies provide separate sick leave (10–15 days/year) above the statutory minimum as part of competitive benefit packages. Unused SIL must be monetised (converted to cash) by law if not used by year end unless company policy provides for carry-over.
Doctor note: Medical certificate may be required by employer — typically for absences of 2+ consecutive days or when AWOL (absent without leave) concerns arise. No strict national rule specifying exact threshold — company policy governs.
Employer pay: 100% of regular wage during sick leave days. SSS provides Sickness Benefit if member is hospitalized or unable to work for 4+ days consecutively — equals 90% of average daily salary credit for the confinement period (up to 120 days).
Long-term: SSS Sickness Benefit: up to 120 days per year, paid by SSS (not employer after SSS reimbursement claim period). SSS Disability Benefit for permanent conditions. ECC (Employees' Compensation Commission) covers work-related injuries/diseases — employer contributes to ECC fund.
Dismissal protection
Law: Security of tenure: regular employees can only be terminated for just causes (AWOL, wilful disobedience, gross misconduct, fraud, commission of a crime, neglect of duty) or authorised causes (redundancy, retrenchment, disease, installation of labour-saving devices). Supreme Court has consistently ruled in favour of employees in ambiguous termination cases.
Deadline to sue: Illegal dismissal cases must be filed at NLRC within 4 years from date of dismissal (prescription period under Civil Code — recent SC rulings). Practically: file as soon as possible. NLRC mediation proceedings typically within 30 days of filing.
Probation
Standard 6-month probationary period (Labour Code Art. 296). Must be stated in employment contract. Company must notify employee in writing of performance standards before or at start of probation. Failure to give written standards can invalidate probationary dismissal. After 6 months without termination notice: employee becomes regular/permanent automatically. Extension beyond 6 months requires valid written agreement and valid reason (e.g., apprenticeship program).
Notice periods
Just cause dismissal: Two-notice rule mandatory — (1) notice of charges (notice to explain/show cause memo) + opportunity to be heard (written explanation + informal hearing); (2) notice of decision. Authorised cause dismissal: 30 days notice to employee AND to DOLE; separation pay required. Employee resignation: minimum 30 days written notice under Labour Code. Company may allow earlier release.
Working time
Max hours: 8 hours per day, 48 hours per week (Labour Code Art. 83). Normal work day: 8 hours. Overtime: entitled to at least 25% additional pay for OT on regular days; 30% on special non-working holidays; 30% on rest days.
Min rest: 24 consecutive hours rest day per week (Art. 91). Minimum 1-hour meal break (unpaid) — no paid meal break requirement. Night shift differential: additional 10% of regular wage for hours worked from 10pm to 6am.
Overtime: OT work is compensated at base rate + 25% premium (regular day OT). Holiday OT: base rate × 200% (rest day holiday) + 30% premium on top. OT cannot be compelled for hazardous work. OT pay is a right — employers who require OT must pay it regardless of contract language.
Vacation
5 days minimum SIL per year (combinedVL/SL). Most professional employers offer 10–15 days vacation leave separate from 10–15 days sick leave. Philippine holidays (22 per year: 12 regular + 10 special) are paid. 13th Month Pay is mandatory (PD 851) — equivalent to 1/12 of total basic salary earned during the year; paid on or before December 24; first ₱90,000 is tax-exempt.
Anti-discrimination
Multiple laws protect workers: RA 7877 (Anti-Sexual Harassment Act); RA 11313 (Safe Spaces Act / Bawal Bastos Law); RA 10911 (Anti-Age Discrimination in Employment Act — prohibits age requirements in job ads except when rationally justified); Magna Carta of Women (RA 9710). LGBTQI+ employees: no specific anti-discrimination law nationally, but some LGUs (Quezon City, Cebu City, Manila) have local ordinances. File complaints at DOLE or EEOC (Equal Employment Opportunity Commission being established).
Contract red flags
- !"No contract" or verbal-only arrangement — illegal for regular employment; exposes employer to labour disputes
- !Fixed-term contracts for regular work — jurisprudence holds that repeated renewals create regular employment status
- !Confidentiality agreements that prevent you from filing NLRC complaints — void as against public policy
- !Mandatory company bond or training bonds exceeding reasonable amounts — courts scrutinise these
- !"Off-book" salary split (part official, part cash) — illegal; creates BIR liability and reduces SSS/PhilHealth/Pag-IBIG benefits
- !Automatic salary deduction for damages or losses without NLRC finding — illegal
- !Probation longer than 6 months without valid educational/apprenticeship justification
- !Salary below the applicable regional minimum wage — in NCR/Metro Manila the daily minimum wage is ₱695/day (Wage Order NCR-26); rates vary significantly by region and are set by Regional Tripartite Wages and Productivity Boards; check NWPC (nwpc.dole.gov.ph) for the current rate in your work location
Employment Rights
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