Labor Law philippines HR professional code

5 Key Labor Laws Every HR Professional in the Philippines Should Know

Published on December 04, 2024 | Updated on December 04, 2024
Reviewed by Attorney Raymond Rodis

Hannah Louise Lee linkedin profile

As an HR professional in the Philippines, understanding labor laws isn't just important—it's essential. These laws are the framework that ensures fair treatment of employees and protects both workers and employers. 

But which labour laws are the most important?

Here are five key labor laws you should be well-versed in to create a compliant, fair, and harmonious workplace that promotes a healthy atmosphere of growth.

 

Understanding the Labor Code of the Philippines

At the heart of Philippine labor laws lies the Labor Code of the Philippines (Presidential Decree No. 442), enacted in 1974. This comprehensive code serves as the backbone of employment standards, outlining everything from recruitment practices to working conditions and employee benefits. 

Familiarity with this code is crucial for HR professionals to avoid legal pitfalls and promote a positive work environment.

To provide a clear and concise overview, we’ve created a chart that highlights the five essential labor laws every HR professional should prioritize.

 

 

Here’s a granular break-down for each of them with actionable insights, tips, and guidance.

 

1. Employees Have a Right to Job Security

Security of tenure is a cornerstone of Philippine labor law. In simple terms, employees cannot be dismissed without just cause, and they have the right to job security. 

This principle is designed to protect employees from arbitrary or unfair dismissals.

  • Just causes for termination include serious misconduct, gross neglect of duty, or criminal actions.

  • Due process must always be followed, which involves giving employees the chance to defend themselves before any termination.

  • For HR, this means you must have clear procedures in place for investigations and terminations.

 

Practical Tip: Make sure all employees know their rights and that the company's policies around dismissals are transparent and consistently applied.

 

2. Fair Treatment for All Employees

The law guarantees equal work opportunities for all employees, regardless of gender, age, race, religion, or disability. This principle is key in promoting a fair, inclusive, and respectful work environment.

  • Equal pay for equal work is a must. Employees doing the same job should receive the same salary, regardless of their personal characteristics.

  • Hiring practices should be free from discrimination. Ensure that your recruitment process is merit-based and open to all qualified candidates.

  • Training programs are a great way to raise awareness about discrimination and to encourage inclusivity in the workplace.


By promoting equality and fairness in your organization, you attract a diverse range of talent and build a stronger, more inclusive company culture.

 

3. Protecting Employee Well-being

Philippine labor laws set clear rules around working hours and rest days to protect employee welfare.  These rules are not just about legal compliance—they’re essential for maintaining a healthy work-life balance.

Here’s a better explanation with examples:

  • The standard workday is 8 hours, with a mandatory 1-hour meal break.

  • Employees are entitled to at least 24 consecutive hours of rest after working for six consecutive days.

  • Overtime work should be compensated at a higher rate (usually 1.25 times the regular pay).


Ensuring compliance with working hours and rest days doesn’t just avoid legal issues—it helps keep employees healthy, motivated, and productive. HR should clearly communicate working hours and overtime rules in the company policy.

 

4. Fair Compensation - A Non-negotiable

Ensuring employees receive fair wages and benefits is one of the most important aspects of HR compliance. The law mandates minimum wages and a range of benefits, all of which are designed to protect workers and ensure they’re compensated fairly for their work.

Ensure to keep-up with these:

  • Minimum wage differs from region to region, so HR professionals must stay updated on the specific rates in your area.

  • Mandatory benefits like Social Security System (SSS), PhilHealth, and Pag-IBIG contributions are required by law. These benefits are not optional.

  • Overtime and other forms of compensation (like holiday pay) must be paid according to the rates set in the Labor Code.

 

What does this mean for you?
Keeping up-to-date with wage laws and benefits ensures that employees are paid fairly and on time. It also helps build a loyal, motivated workforce and prevents costly disputes.

 

5. Let Employees Have a Voice

Philippine labor laws protect an employee’s right to organize and participate in collective bargaining. This ensures that employees have a say in the terms and conditions of their work.

  • Employees are allowed to join or form unions without the fear of retaliation.

  • Collective bargaining agreements (CBAs) between unions and employers must be honored. These agreements can cover a wide range of issues, including wages, benefits, working conditions, and more.


Any HR professional should facilitate open communication between employees and management. It is a key to building a harmonious workplace. Support your employees’ right to organize and ensure CBAs are respected.

 

What Happens If You Don’t Comply?

Failing to comply with labor laws can result in significant penalties, financial losses, and damage to your company’s reputation. 

Here are some of the penalties you could face:

  • General Violations: Penalties can range from PHP 20,000 to PHP 50,000 per violation.

  • Safety Violations: If you fail to meet Occupational Safety and Health Standards, fines can be as high as PHP 100,000 per day until compliance is achieved.

  • Repeated Violations: If the same violation occurs repeatedly, the penalty could increase by 50% for each instance of non-compliance.

 

Takeaway: It’s crucial to stay on top of labor law changes to avoid these costly fines and to maintain your company’s good standing with both employees and regulatory authorities.

 

How Technology Can Help HR Stay Compliant

The good news? Technology is here to help HR professionals manage compliance and reduce the risk of errors.

 

Here are three efficient ways:

HR Management Systems (HRMS)

Cloud-based systems can automate essential HR tasks like payroll, attendance, and benefits management. 

These systems also help ensure that your processes stay up to date with changing labor laws. If your organization is not yet using one, you can explore some popular HR software options in the Philippines and decide which works for you.

 

Integration of Training Modules

Online training platforms can ensure that your HR team and employees are continually educated on labor laws, rights, and responsibilities. This helps keep everyone informed and compliant.

 

Data Analytics for Informed Decisions

With data analytics tools, HR can monitor key metrics like turnover rates, wage discrepancies, and employee complaints. By identifying trends early, you can prevent issues before they become legal problems.

You can use these free tools:

 

Using technology to streamline HR processes saves time, reduces errors, and ensures you’re always compliant with the latest labor laws.

 

Wrapping up

Understanding the fundamental labor laws is key to being a successful HR professional in the Philippines. Not only will this help avoid legal headaches, but it will also contribute to higher employee satisfaction, loyalty, and productivity.

Keep these laws in mind, stay compliant, and you’ll be on your way to fostering a great company culture.

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