To be honest, the most reliable answer to this question is actually: it depends on the situation. Mandatory overtime may be considered illegal unless it meets at least one of the five (5) requirements of Section 89 of the Philippine Labor Code, which sets out the rules for emergency overtime, or the only circumstances in which an employer may require its employees to work overtime. These conditions are as follows: unions are granted the right to strike,[14] a temporary stoppage of work by workers in the event of industrial action. Labour disputes are defined as situations in which there is controversy over the negotiation and design of terms and conditions of employment. However, the union must file a strike notice or the employer must file a lockout notice with the Ministry of Labour and Employment. However, if a strike or lockout is deemed detrimental to national interests or the interests of the Filipino public (for example, in the case of health care workers), the Secretary of Labor and Employment has the authority to prohibit it and deliberately impose the resumption of regular activities. According to a former Secretary of Labor, more than 80 out of every 100 employers lose their jobs in the Philippines. The main reason for this is that they have actually violated labor standards and laws, such as illegal dismissals, unfair labor practices, and unpaid wages and benefits. Employers also lose records because they do not keep records and process documents properly. After all, it`s because they made the wrong choice of lawyer to handle the case – which is most regrettable and can easily be avoided if proper research has been done. The Philippines` GDP grew steadily from 2001 to 2004.
Although there was a slowdown in 2005-2006, 2006 again experienced strong growth, interrupted only by the onset of the 2008-2009 global financial crisis. [9] During these periods of growth, employment growth has been slower. This “delay” may be due to the extreme weather disturbances the country has experienced. Considering that a large part of the workforce is employed in agriculture, this is valid. Another reason is the difference between GDP and employment in terms of sectoral structures. Agriculture, forestry and fisheries accounted for less than one-fifth (16.8%) of the country`s GDP in 2010, considering that a third (33.2%) of all employees work in this sector. This gap could also be taken into account by distinguishing between full-time and part-time employment. “In 2009, for example, employment increased from 2.9% to 1.1% despite the slowdown in GDP. But employment growth was almost exclusively among part-time workers (8.4%), while full-time employment actually declined (-0.5%). [10] In recent decades, the Philippines has learned that policies focused on worker welfare and protection can hinder job creation. It would be preferable to have a sensible policy that improves the conditions of employment and the well-being of workers without leading to excessive increases in labour costs. The consequences of a rigid labour market due to inappropriate intervention can lead to lower investment and thus slower growth.
[11] The Labor Code and other statutory labor laws are primarily implemented by government agencies, namely the Department of Labor and Employment and the Philippine Overseas Employment Agency. Non-governmental organizations such as trade unions and employers also play a role in the country`s work. With falling incomes, people are looking for extra hours (underemployed) or going abroad (overseas employment) or opting for self-employment. It also shows that they are not satisfied with the quality of employment. Self-employed workers are in fact indifferent between payroll employment and the self-employment they have chosen. [11] As a result, along with unpaid caregivers, they are part of precarious jobs, whose incomes are low relative to wages. On the other hand, they may be Filipino workers abroad. In 2009, it was reported that 1.423 million Filipinos were deployed abroad. [12] This alleviates the problem of unemployment, but also raises moral hazard issues and reduces labour force participation in the family. [11] The Philippine government strongly influences the labor market through its policies and interventions. It plays a role in job creation by creating an excellent environment for investment; ensuring the well-being of workers through measures such as the Labour Code; improving workforce training; provide information on available jobs that match people`s abilities; the implementation of expansionary fiscal and monetary policies to reduce the unemployment rate.
However, caution should be exercised in the application of fiscal and monetary policies, as this can lead to high inflation rates in the long run. [11] Here are some government agencies that deal with the labour market. The Ministry of Labour and Employment states that employers must protect work, provide equal work, promote employment regardless of race, sex or creed, and regulate relations with their employees. This law applies to situations where a person is paid less because of an injury. Total factor productivity (TFP), the efficiency in the use of labor and capital, is important because labor income depends on labor productivity growth. This growth is the average work product that correlates with the contribution of labor to the company`s turnover and profit. Improvements in workers` wages and real incomes are linked to labour productivity growth, not specifically to employment growth. Improving real wages improves the incidence of poverty and thus contributes to poverty reduction.
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