Philippine Laws on OutsourcingPhilippine Laws on OutsourcingPhilippine Laws on OutsourcingPhilippine Laws on Outsourcing
  • Inbound Calling
    • 24 7 Answering Service
    • Virtual Receptionist Service
    • Phone Answering Service
    • Customer Support Outsourcing
    • Outsourced Technical Support
    • Omnichannel Contact Center
    • Multilingual Call Center Services
  • Outbound Calling
    • Telemarketing Services
    • Lead Generation Services
    • Appointment Setting Services
    • Cold Calling Services
    • Outsource Telesales
    • Market Research Services
    • Survey Processing Services
  • BPO Services
    • Accounts Receivable Services
    • Accounts Payable Services
    • Back Office Services
    • Call Center Outsourcing Services
    • Certificate Intelligent Document Processing
    • Community Moderation Services
    • Data Management Services
    • Debt Collection Services
    • Loan Processing Call Center
    • Outsource Form Processing Services
    • Recruitment Process Outsourcing
    • Staff Leasing Services
    • Virtual Assistant Services
  • Industry
    • Healthcare BPO Support Services
    • Legal Outsourcing Services
    • BPO Real Estate Services
    • Insurance BPO Services
    • Retail Outsourcing Services
    • eCommerce Outsourcing Service
    • Mobile App Customer Support
    • HR Outsourcing Services
    • 3D Rendering Services
    • Travel Outsourcing Services
    • Telecom BPO Services
    • Education Process Outsourcing
    • eServices Call Center
  • Content Hub
    • Blog
    • Resources
  • About Us
    • Facilities
    • Sample Recordings
    • Message From The CEO
    • Management Team
  • Contact Us
  • #1 SME Call Center Services and BPO Outsourcing Provider in the Philippines
    • Board of Directors
    • Company Overview
    • 24/7 Reservations Call Center
    • Accounting and Finance Operations
    • Applied Engineering
    • Computer Aided Drafting Service (CAD)
  • About Us
    • Application Sent
    • Blog
    • BPO Solutions
    • Accounts Payable Processing
✕
companies that outsource live chat
10 Companies That Outsource Live Chat Support
essential checklist for first timer banner
Essential Checklist When You Outsource the First Time

Philippine Laws on Outsourcing

Balance Scale in Philippines Law on Outsourcing

Balance Scale in Philippines Law on Outsourcing

Philippine Laws on Outsourcing – Here’s What You Need To Know

The Philippines is one of the largest and most well-known places in the world where people outsource work. Many businesses all over the world can attest to that. Because of this, the Philippine laws on outsourcing are very important.

Because of the high demand for Philippine-based outsourcing providers over the years, business process outsourcing (BPOs) has since helped increase the country’s income and stabilize the Philippine economy. Due to this, the Philippine government developed initiatives to protect and promote the BPO industry, in accordance with Philippine law. 

As a business owner, you need to make sure that everything you do is legal. Both your country’s laws and the laws of the country you are sourcing from.

If you are about to outsource to the Philippines, you have to know the different laws there. To protect both the employees and the BPO companies and the industry.

Man with Headphones in Philippine Laws for the BPO Sector

Philippine Laws for the BPO Sector

Trade and labor laws need to be updated to protect the industry and the people who work in it. This was important for the Philippines because a lot of outsourcing companies were growing there.

The BPO industry did a lot to help the economy of the Philippines. It gave many skilled Filipinos jobs and increased the country’s total income. Because of these benefits. The BPO laws in the Philippines not only protect the industry, but also help it grow.

 

Republic Act 10844: The Department of Information and Communications Technology Act of 2015

The Department of Information and Communications Technology is a government agency. It oversees and controls the development and use of information and communication technology in the country.

It is in charge of making sure all businesses in the information and communication field complies with laws on trade and safety. 

In 2015, the DICT drafted the Republic Act 10844, which grants “universal access to quality, reliable and secure ICT services” allowing BPOs and outsourcing providers legal and lawful use of local ICT resources in their operations, with the help and support of the agency itself.  

This made BPO/outsourcing operations more convenient in the country, with the intention of growing the industry while helping maintain the quality of its services. 

 

Republic Act of 10173: The Data Privacy Act of 2012

Data breach is a serious issue, especially for outsourcing providers that handle confidential information, especially for clients in healthcare, financial services industries.

In fact, one of the reasons why many business owners are still wary about outsourcing is because they can’t afford to risk accidentally leaking information from their own clients. 

In an effort to assure BPO clients (and the BPO companies themselves), the Philippine government created the Data Privacy Act of 2012, which safeguards all data collected and processed by both public and private companies, outsourcing providers included. This mandates all businesses to comply with international standards in data security. 

Due to the global nature of outsourcing, the Data Privacy Act also makes sure that local data security laws are also in accordance with data privacy laws in the countries they service. This assures clients that all their data is secure and would never be compromised, or else companies risk legal action. 

 

Republic Act No. 7916: Special Economic Zone Act

The call center boom in the Philippines has significantly helped stabilize the Philippine economy. Apart from the revenue generated from outsourcing, many businesses that support the outsourcing industry enjoyed growth as well. 

Many BPO company sites were developed into recreational districts, with restaurants, cafes, stores and nightlife that cater to BPO employees. This, in turn, created more opportunities for the hospitality industry. 

Due to the high revenue, the Philippine Economic and Zoning Authority (PEZA) recognizes the contributions of the BPO industry to the economy. This is to promote and support the BPO industry, along with other companies and industries that thrive because of them. 

The Special Economic Zone Act promotes businesses that raise the real estate quality of their location. Since BPO companies encourage the development of areas around their sites they are included in this privilege, along with other companies that do the same. 

 

Labor Laws for BPO Employees

People who work for BPOs are known to have different schedules. It all depends on the culture and time zones of the countries they serve.

For safety and legal reasons, the Department of Labor and Employment added some rules to help protect their right to fair work practices.

 

Republic Act No. 11165: Telecommuting Act

The Telecommuting Act is created specifically to support and protect BPO employees. This republic act grants them the right to a fair, reasonable pay rate, considering the nature of their working schedule.

This includes adjustment and incentives such as night differentials and overtime pay. Aside from this, the provision also guarantees that they receive the right to paid leaves and the option to either work or take a leave on public holidays. 

This also covers employees that work offsite; BPO employees who work remotely are required to comply with the same performance standards as those who work onsite. 

 

Department Circular No. 1, Series of 2008: Policy and Guidelines Governing the Safety and Health of Workers in the Call Center Industry

Due to the increasing number of BPO employees in the local labor sector, the Department of Labor and Employment (DOLE) made amendments to the labor code in order to cover the rights and benefits of BPO workers, specific to their working conditions. 

This clarifies the responsibilities of the employers in maintaining the health and safety of the employees and their working environment, and requires employees to comply with the Occupational Safety and Health Standards mandated by DOLE. 

 

Department Advisory No. 4, Series of 2010: Guidelines on the Implementation of Flexible Work Arrangements and the Exemption from the Nightwork Prohibition for Women Employees in the Business Process Outsourcing Industry 

As an equal opportunity industry, a number of BPO employees are women. But for safety reasons, the Philippine Labor Code initially prohibited women from working in the graveyard shift.

Due to their shifting schedules, DOLE amended the labor code. This allows female BPO employees to work in the late hours in order to deliver to their assigned schedules. 

Furthermore, the amendment was also careful to consider women who are pregnant and nursing. Only allowing them to work once they submit a medical clearance from a trusted physician. 

Employers, on the other hand, are required to provide female employees (and employees, as a whole) with safe and clean facilities like sleeping quarters and rest areas to encourage better health and safety. Violation of these provisions can be grounds for revocation of this exemption.  

 

Safe, Legal Outsourcing in the Philippines

The Philippines is a big player in outsourcing, and for good reason. The country goes above and beyond to promote and protect the industry. They do this by making changes to all of these Philippine laws and supporting them.

Outsourcing to the Philippines is your best bet if you want safe, high-quality work that can grow with your business.

 

Magellan Solutions Provides Stellar Outsourcing Services For SMEs

Now that you know these Philippine laws, it’s time to reach out to a reliable partner!

Magellan Solutions provides top level outsourcing that is proudly Filipino. One of the first in the country to cater to small and medium sized enterprises (SMEs), we continue to grow and globalize, expanding to businesses of all size 

We are an ISO-certified and HIPAA-compliant provider. That means we can assure that our services are consistent with global standards in quality and confidentiality. 

Build your business with quality outsourcing. Let’s talk about it today. 

TALK TO US!

Contact us today for more information.

    You can also contact our numbers:

    Toll Free:1 800 371 6224
    US:+1 650 204 3191

    UK:+44 8082 803 175,
    AU:+61 1800 247 724

    Share this:

    • Click to share on Twitter (Opens in new window)
    • Click to share on Facebook (Opens in new window)
    • Click to share on LinkedIn (Opens in new window)
    • Click to share on Skype (Opens in new window)
    • Click to share on WhatsApp (Opens in new window)
    Justine Key
    Justine Key

    Related posts

    Advantages of Different Set Up Outsourcing Philippines
    January 2, 2023

    Advantages of Different Outsourcing Set Ups


    Read more - Advantages of Different Outsourcing Set Ups
    Where is the Industry's Top Outsource Staffing Locations? banner
    September 22, 2022

    The Key Similarities and Differences of The Industry’s Top Outsource Staffing Locations


    Read more - The Key Similarities and Differences of The Industry’s Top Outsource Staffing Locations
    Close 90% of Your Sales with These Tried and Tested Discovery Questions for Sales Banner
    September 20, 2022

    Close 90% of Your Sales with These Tried and Tested Discovery Questions for Sales


    Read more - Close 90% of Your Sales with These Tried and Tested Discovery Questions for Sales
    Customer Service Outsourcing
    September 6, 2022

    The Complete Guide to Outsourcing Customer Service


    Read more - The Complete Guide to Outsourcing Customer Service
    essential checklist for first timer banner
    August 5, 2022

    Essential Checklist When You Outsource the First Time


    Read more - Essential Checklist When You Outsource the First Time
    companies that outsource live chat
    June 13, 2022

    10 Companies That Outsource Live Chat Support


    Read more - 10 Companies That Outsource Live Chat Support

    Magellan Solutions Outsourcing, Inc

    California – USA (West Coast)
    100 Old Country Road Suite H, Brisbane, CA 94005, United States

    Florida – USA (East Coast)
    1900 South Harbor City Blvd, (East Coast Division) Suite 300 Box 48, Melbourne, FL 32901

    Philippines – APAC
    PB Mezzanine Floor, Summit One Tower 530 Shaw Boulevard, Mandaluyong City,
    Metro Manila 1552

    Philippines – APAC
    8th flr, Centris Cyberpod 5
    ETON Loop A, Diliman,
    Quezon City,
    Metro Manila 1103

     

    US: +1 650 204 3191
    UK: +44 8082 803 175
    AU: +61 1800 247 724
    hello@magellan-solutions.com

    INDUSTRIES


    Outsourcing for Legal Process BPO

    Outsourcing for HR Services BPO

    Outsourcing for eCommerce BPO

    Outsourcing for Real Estate BPO

    Outsourcing for 3D Service BPO

    Outsourcing for Mobile App BPO

    Outsourcing for Healthcare BPO

    Outsourcing for eServices BPO

    Outsourcing for Education BPO

    Outsourcing for Insurance BPO

    Outsourcing for Telecom BPO

    Outsourcing for Retail BPO

    Outsourcing for Travel BPO

    CALL CENTER OUTSOURCING & BPO SERVICES


    24 7 Answering Service

    Omnichannel Contact Center

    Customer Support Outsourcing

    Multilingual Call Center Services

    Lead Generation Services

    Cold Calling Services

    Interactive Voice Response System

    Staff Leasing

    Back Office Services

    Community Moderation Services

    Virtual Assistant Services

    QUICK LINKS

    About Us
    Sample Call Recordings
    News & Blog
    Resources
    Our BPO & Call Center Facilities
    Message from the CEO
    Privacy Policy

    ASSOCIATIONS

    Black and white Supplier Clearinghouse CPUC Certification Logo
    black and white philcall logo
    black and white Philippine Australia Business Council logo
    Black and white IBPAPlogo
    Black and white CCAP logo

    We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
    .
    SettingsI ACCEPT
    Privacy & Cookies Policy

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
    Functional
    Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
    Performance
    Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
    Analytics
    Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
    CookieDurationDescription
    _ga2 yearsThe _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.
    _ga_EL2X6L0QDM2 yearsThis cookie is installed by Google Analytics.
    _gat_gtag_UA_6034499_11 minuteSet by Google to distinguish users.
    _gcl_au3 monthsProvided by Google Tag Manager to experiment advertisement efficiency of websites using their services.
    _gid1 dayInstalled by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.
    Advertisement
    Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
    CookieDurationDescription
    test_cookie15 minutesThe test_cookie is set by doubleclick.net and is used to determine if the user's browser supports cookies.
    Others
    Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
    SAVE & ACCEPT
    Powered by CookieYes Logo