Home Is Where the Wifi Is: Work-from-Home and the Telecommuting Act
by: Atty. Gerard Ceasar S. Baguio, CPA
The year 2020 witnessed a significant shift in work dynamics as businesses and employees worldwide embraced work-from-home setups due to the COVID-19 pandemic. What was once considered a luxury or perk became the new norm for professionals. However, it is important to note that work-from-home arrangements were already acknowledged and regulated by the Telecommuting Act (Republic Act No. 11165) enacted in 2018 in the Philippines.
The Department of Labor and Employment (DOLE) updated the implementing rules and regulations (IRR) of the Telecommuting Act through Department Order (DO) No. 237-2022 to address the WFH arrangements during the pandemic. These rules apply to employers and employees who voluntarily opted for telecommuting agreements.
Telecommuting refers to a work arrangement where employees can work from an alternative workplace using telecommunication and computer technologies. The IRR ensures that the terms and conditions of telecommuting arrangements do not violate minimum labor standards, including rights related to hours worked, overtime, night differential, leaves, and holiday premium.
The telecommuting arrangement must be voluntarily agreed upon by the employer and the employees and shall be embodied in a telecommuting program. Under the IRR, the telecommuting program should include mandatory provisions regarding eligibility, acceptable alternative workplaces, telecommunication and computer technology requirements, occupational safety and health standards, performance evaluation, code of conduct, data protection, confidentiality and security, emergency protocols, duration, and dispute resolution.
Telecommuting employees are entitled to the same treatment, benefits, and rights as those working in the employer’s workplace. They should receive fair pay not lower than those provided by applicable laws, a right to rest days and holidays, and have the same or equivalent workloads and performance standards as employees working in the employer’s workspace. Employers must provide access to training and career development opportunities and technical equipment training without any additional costs on the part of the telecommuting employees. Telecommuting employees shall also have the same collective rights as employees working in the employer’s workspace.
While the Telecommuting Act and its IRR do not explicitly outline employers’ rights, existing rights under other laws, rules, and regulations are not diminished. Employers have the prerogative to set reasonable rules and regulations for the proper conduct of their business, including disciplinary measures, as long as they do not circumvent employees’ rights under special laws or valid agreements.
In the implementation of the telecommuting agreement, facilities, equipment, and supplies necessary for telecommuting are considered ordinary and necessary costs of the employer’s business. Employers cannot require telecommuting employees to acquire these resources or pass on the related expenses to them.
Employers implementing telecommuting arrangements must notify the DOLE through the Establishment Report System and maintain documents that prove the voluntary adoption of telecommuting.
The Telecommuting Act and its updated IRR aim to ensure fair treatment for telecommuting employees and provide guidelines for successful work-from-home arrangements.
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Gerard is a Junior Associate and a member of the Taxation, Litigation, and Real Estate Departments of the Firm.
Gerard’s practice includes assisting and representing clients in tax assessment cases, sale, and transfer of property, and estate settlement. Gerard’s recent engagements include the preparation and filing of estate tax amnesty applications, and representing clients before the Court of Tax Appeals and the Bureau of Internal Revenue in tax assessment cases.
