Telecommuting Act

Senate Office of the Sortietary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES FEB -2 P4:33 ) First Regular Session SENATE RECEIVED BY: S. No. 1739 Introduced by Senator JV Ejercito AN ACT EXPANDING THE COVERAGE OF THE TELECOMMUTING ACT AND PROVIDING INCENTIVES FOR TELECOMMUTING EMPLOYEES, AMENDING FOR THE PURPOSE, REPUBLIC ACT NO. 11165, OTHERWISE KNOWN AS "THE TELECOMMUTING ACT" AND FOR OTHER PURPOSES EXPLANATORY NOTE The COVID-19 pandemic has changed our lives forever. We were told by medical experts to practice and maintain social or physical distancing to stop the spread of the deadly virus. Lockdowns were implemented and for the moment, everything was put to a standstill. But somehow, out of the crisis, emerged the realization that telecommuting was not just possible but transformative. We had to live with the "new normal" as we collectively brave through the pandemic. Out of necessity, workers across our country were forced to shift to remote work. For many, the drastic change in routine was grueling and the adjustment was very difficult. However, from such tragedy came some positive discoveries. Over time, it has become apparent that flexible work arrangements brought unexpected benefits. Somehow, at some point, there was an improved work-life balance. Less time was consumed in heavy traffic and more quality time was spent with loved ones. Transportation costs of workers were reduced and a greater amount of resources became savings for many. As the changes in daily routine began, it was apparent that productivity did not dwindle. A certain truth was revealed: work does not need to always happen in the office. Employees can be effective and efficient at home. The COVID-19 experience proved that remote work is no longer an exception. It is a viable, sustainable, and essential work arrangement in the digital age. Let this be the

new normal where Filipino workers have more control over their time; more access to opportunity; and more dignity in their daily lives. This bill aims to amend the Telecommuting Act to further strengthen and institutionalize telecommuting as a mainstream work option in the Philippines and not as a mere contingency plan. It proposes clear guidelines and safeguards to ensure that both employers and employees benefit fairly from flexible working arrangements. It promotes equity, protection and productivity in a modernized labor environment. In view of the foregoing, the approval of this bill is earnestly sought. JV EJERCITO

Senate Office of the Secretarp TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES FEB -2 P4:33 First Regular Session SENATE RECEIVED BY S. No. 1739 Introduced by Senator JV Ejercito AN ACT EXPANDING THE COVERAGE OF THE TELECOMMUTING ACT AND PROVIDING INCENTIVES FOR TELECOMMUTING EMPLOYEES, AMENDING FOR THE PURPOSE, REPUBLIC ACT NO. 11165, OTHERWISE KNOWN AS "THE TELECOMMUTING ACT" AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Section 3 of Republic Act No. 11165 or the "Telecommuting Act" is

2 hereby amended to read as follows: "Sec. 3. Telecommuting Defined. - As used in this Act, the term "telecommuting" refers to [a] AN OUTPUT-ORIENTED WOrK arrangement that allows an employee in the private OR PUBLIC sector to work from an alternative workplace with the use of telecommunication and/or computer technologies."

Sec. 2. Section 4 of Republic Act No. 11165 or the "Telecommuting Act" is

9 hereby amended to read as follows: "Sec. 4. Telecommuting Program. - An employer in the private OR PUBLIC sector may offer a telecommuting program to its employees on a voluntary basis, WHOSE PHYSICAL PRESENCE IN THE WORKPLACE IS NOT NECESSARY FOR THE PERFORMANCE OR COMPLETION OF THEIR JOB, and upon such terms and conditions as they may mutually agree upon: Provided, That such terms and conditions shall not be less than the minimum labor standards set by law, and shall include compensable work hours,

minimum number of work hours, overtime, rest days, and entitlement • to leave benefits. In all cases, the employer shall provide the telecommuting employee with relevant written information in order to adequately apprise the individual of the terms and conditions of the telecommuting program, and the responsibilities of the employee."

Sec. 3. Section 7 (b) of Republic Act No. 11165 or the "Telecommuting Act" is

hereby amended to read as follows: "Sec. 7. Administration. - The parties to a telecommuting work arrangement shall be primarily responsible for its administration. In case of differences in interpretation, the following guidelines shall be observed: XXX b) if there is no grievance mechanism or if the mechanism is inadequate, the grievance shall be referred to the regional office of the Department of Labor and Employment (DOLE) OR THE CIVIL SERVICE COMMISSION (CSC) which has jurisdiction over the workplace for conciliation. XXX"

Sec. 4. A new section is hereby inserted after Section 8 of Republic Act No.

11165 or the "Telecommuting Act" which shall read as follows: "SEC. 8-A. INCENTIVES FOR TELECOMMUTING EMPLOYEES. - ALL EMPLOYEES WORKING UNDER A TELECOMMUTING PROGRAM SHALL BE ENTITLED TO A NON- TAXABLE TELECOMMUTING ALLOWANCE OF AT LEAST ONE THOUSAND PESOS (P1,000.00) FOR EVERY MONTH SERVED UNDER SUCH AGREEMENT" PROVIDED, THAT NOTHING IN THIS PROVISION SHALL BE CONSTRUED TO ELIMINATE OR IN ANY WAY DIMINISH SUPPLEMENTS, ALLOWANCES, OR OTHER EMPLOYEE BENEFITS SERVING A SIMILAR PURPOSE BEING ENJOYED AT THE TIME OF THE IMPLEMENTATION OF THIS LAW: PROVIDED, FURTHER, THAT NOTHING IN THIS PROVISION SHALL BE INTERPRETED TO PROHIBIT THE

EMPLOYERS OF THE COLLECTIVE BARGAINING AGREEMENT FROM PROVIDING TERMS HIGHER OR MORE FAVORABLE THAN THE ABOVE-MENTIONED RATE: PROVIDED, FINALLY, THAT ALLOWANCES, GRANTED BY PRIVATE EMPLOYERS UNDER THIS PROVISION SHALL BE DEDUCTIBLE FOR INCOME TAX PURPOSES."

Sec. 5. Implementing Rules and Regulations. - The Department of Labor and

8 Employment (DOLE), the Civil Service Commission (CSC), the Department of Finance 9 (DOF), and the Bureau of Internal Revenue (BIR), shall promulgate the rules and regulations to implement this Act within ninety (90) days from the effectivity of this Act.

Sec. 6. Separability Clause. - If any provision of part hereof is held invalid or

unconstitutional, the remainder of the law or the provision or part not otherwise affected shall remain in full force and effect.

Sec. 7. Repealing Clause. - Any law, presidential decree or issuance, executive

16 order, letter of instruction, rule or regulation inconsistent with the provisions of this 17 Act is hereby repealed or modified accordingly.

Sec. 8. Effectivity. - This Act shall take effect fifteen (15) days after its complete

publication either in the Official Gazette or in a newspaper of general circulation in the Philippines. Approved,