PHILIPPINES Law and Practice Contributed by: Kerwin K. Tan, Veronica S. Balbin and Jose Maria B. Buenagua, Tan Hassani and Counsels
tem. Telecommuting employees (ie, remote working employees) shall be covered by the same applicable company policies and afforded the same set of ben - efits under the law and existing collective bargaining agreement, if any. In other words, there should be no discrimination against those working remotely. Second, BPO companies located in economic zones or tax-free zones are not allowed to have 100% remote working arrangements as it will negatively affect what - ever fiscal and non-fiscal incentives they may have under existing laws. In 2022, the Fiscal Incentives Review Board (FIRB) of the Department of Finance rejected the requests for extending work-from-home arrangements, and mandated BPOs located in eco - nomic zones or tax-free zones to return to on-site duties beginning 1 April 2022. Given the foregoing, BPO companies that continue to implement work- from-home arrangements may encounter greater costs, which can be passed onto their customers.
Third, BPO companies that register with the Board of Investments (rather than with the economic zone authority) are still allowed to have 100% of their employees work remotely. Remote work remains a highly valued benefit among BPO employees and can be a key factor in attracting and retaining talent. However, maintaining a secure environment for handling customer data is critical. Ensuring strong data privacy compliance, in accord - ance with Philippine laws, becomes essential for BPOs adopting remote work arrangements, balancing the interests of employees and the security expecta - tions of customers.
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