Contracts in the Philippines

Overview by

The Active Population in Figures

Main Indicators 2008 (June) 2007 (July)
Labor Force 57 700 000 56 857 000
Labor Force (Annual Growth, %) - -
Rate of Activity (%) 63.2 63.6
Unemployment Rate (%) 8.0 8.0

Source: Institute of Statistics, Quickstat September 2008

Employed Persons, by Occupation (% of Total Labor Force) 2007
Officials of government and organizations of special interest, senior management in companies, managers, supervisors and managing owners 13.0%
Professionals 4.4%
Technicians and associated professionals 2.6%
Office workers 4.9%
Workers in the services sector, in sales in shops and on markets 9.9%
Workers in the agricultural, forestry and fishing sectors 17.7%
Marketing personnel 8.1%
Factory workers, machinists and assemblers 6.5%
Workers and unskilled workers 32.4%
Special functions 0.5%

Source: National Institute of Statistics

For Further Statistics
Philippine Labor Market Information.
For Further Information About the Labor Market
Department of Labor and Employment

Management of Human Resources



Method of Recruitment
Internet is used more and more, and an interview is generally planned.
Recruitment Agencies
A list of recruitment agencies is available on PhilRecruit Online.
Recruitment Websites

The Contract

Type of Contract
Employment contracts are regulated by legal clauses and to a lesser degree by collective agreements and individual negotiations.
The terms of employment contracts are extremely rigid.
Breach of Contracts
  • Retirement
Retirement age appears in the collective agreement or the hiring contract.
  • Dismissals
Dismissal can be decided if it is justified by: serious misconduct or a refusal to obey the orders of a superior, growing habitual negligence towards the employee's responsibilities, fraud or voluntary breach of the established contract of trust, a crime or offense against one's employer, his family or his representatives. Redundancy is also allowed (staff restrictions, etc.).
  • Other Possible Methods
A contract can be terminated if it arrives at term, if the employee resigns, or retires.
Labor Laws
Labor Code

Dispute Settlement


Conciliation Process

Cases of Dispute
Not observing the minimum wage, not paying social contributions, or bonuses and overtime, dangerous working conditions, forced labor
  • Legal Framework
The Constitution and the Philippine Labor Code.
  • Procedure
The parties can have recourse to mediation, conciliation or arbitration provided for in the Labor Code, or submit a written request for intervention ( AIDA) to the office of the  Secretary of Labor and Employment.

Judicial Structures

  • Legal Framework
The Constitution and the Philippine Labor Code.
  • Competent Legal Body
The National Labor Relations Commission, attached to the Ministry of Labor

Social Partners

Social Dialogue and Involvement of Social Partners
The two main groups of trade unions are TUCP and FFW. They are affiliated to the international Confederation of Free Trade Unions (ICFTU ) and to the Worldwide Confederation of Labour ( WCL).
Unionization Rate
5% of workers are unionized.
Federation of Free Workers.
Kilusang Mayo Uno
Regulation Bodies
Bureau of Labor and Employment Statistics (BLES)
Department of Labor and Employment

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