DOLE — the Department of Labor and Employment — is the Philippine government body that oversees employment standards, worker welfare, and labor disputes. If you hire Filipino workers, DOLE’s rules apply to you. Yes, even if your company is based in Australia, the US, or the UK.
Here’s what you actually need to know, broken down by setup type.
If You’re Using a Contractor Setup
Your key obligation is to avoid misclassification (see our separate guide on the four-fold test). Beyond that, there’s no formal DOLE registration required for a foreign employer paying a self-employed Philippine contractor. However:
- You should have a written service agreement on file
- Your contractor should have an active BIR registration and issue Official Receipts for each payment
- If you set any work-from-home arrangements (even informally), document them
Contractors don’t fall under DOLE’s employment standards — no mandatory leave, no 13th month, no overtime rules. But if the relationship is challenged and reclassified, all of those become due retroactively.
If You’re Employing Workers (via EOR or Corporate Setup)
These are the DOLE obligations that apply the moment you have an employment relationship:
Before the First Day
- Issue a written employment contract on or before the start date
- Agree on salary at or above DOLE regional minimum wage (Metro Manila: ₱610/day as of 2025)
- Complete SSS, PhilHealth, and Pag-IBIG registration
For Remote / WFH Staff — The Telecommuting Act (RA 11165)
The Philippines passed the Telecommuting Act in 2018, and DOLE Department Order 149-16 covers WFH arrangements. Key requirements:
- A written Telecommuting or WFH Agreement must supplement the employment contract if the worker is home-based more than 50% of the time
- Remote workers must receive the same compensation, benefits, and workload as on-site counterparts
- You must establish a WFH policy covering availability hours, data security, output targets, and equipment
- Working hours must not exceed 8 hours/day without overtime pay at 125% of the regular rate
- Night shift differential (10pm–6am) applies: an additional 10% of the hourly rate
Mandatory Benefits — Quick Reference
For employed workers, the following are non-negotiable regardless of whether they work from home:
- 13th Month Pay — 1/12 of annual basic salary, paid on or before December 24
- Service Incentive Leave — 5 paid days per year (for employees with at least 1 year of service)
- Maternity Leave — 105 days paid (funded by SSS; employer facilitates)
- Paternity Leave — 7 paid days (employer-funded)
- SSS, PhilHealth, Pag-IBIG — both employee and employer shares remitted monthly
DOLE Registration
If you hire through a Philippine entity, you must file a DOLE Establishment Report (Form DOLE-BWC-IP-3) within 30 days of business commencement. For EOR clients, the EOR handles this on your behalf.
DOLE may conduct inspections. For remote setups, this typically means they’ll request your records — employment contracts, payslips, benefits remittance receipts, and leave records. Keep 201 files for every employee, maintained for at least 3 years.
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