To be or not to be in Compliance with the Philippine Labour Laws, that is the question

The sad truth is, there are plenty of companies out there that are more reactive than proactive when it comes to complying with the local labor laws. Meaning, many would only take action to properly adhere to regulation when the spotlight of the authorities are on them, and not anytime before.

In the past few months, the Philippine government took on a crusade to bring down (or fine heavily) employers who chose to ignore local laws on statutory deductions, taxes, and illegal contractualization, regardless if the employer is a small company or big corporation.

While many employers purposely neglect the law to swindle their employees out of their hard-earned wages, there are those who simply do not know that they are non-compliant with the local labour laws.

Whether the employers know that they are abiding by the local labor code or not, it is the responsibility and moral duty of each company to understand and adhere to the Philippine regulations, in which are made to promote fair labor practices.

Nowadays, conformity to the local labor laws is getting to be more relevant than it ever was. With more employees reaching their boiling point and the government chasing down erring employers, the time to be virtuous and compliant is now, and here are the reasons why:

Fines and/or Imprisonment

Depending on which government department the Philippine labor code violation is applicable to, the penalty amount or punishment may vary. For the Social Security System of the Philippines, the violation may lead to the seizure of personal estates, bank accounts, and others.

In worst case scenario, employers may even face imprisonment for not paying the withholding taxes of their employees properly.

High Employee Attrition

More so with Millennials and Gen Z’ers, employees who were subjected to unfair treatment and wages are not afraid to leave and find work elsewhere. With more job opportunities currently opening, bouncing to another employer is easier than it was before.

Having a big number of employees leaving is not only costly, but it also damages the morale of the remaining employees and the reputation of the company.

Propagate Mal-practices for the Next Generation

For every activity that is deemed “normal” or accepted by this generation, there is high chance that it will be carried over to the next generation, and possibly the generation after them.

The more wicked consequence that comes out of this is that each wrongful act makes room for more wrongful activities to propagate, much like the quote “evil begets evil.”

When it comes to abiding by the employment laws of the Philippines, being proactive is a better choice. Not only would it be fair for employees, but it also encourages the success of the business. 


While adhering to the different aspects of the Philippine labor code could get complicated, being compliant on the part that affects the company’s payroll doesn’t have to be… After all, it’s JustPayroll.

We offer enterprise-grade payroll software, premium biometric devices, and superior outsourced payroll services.

Discover how easy payroll can be by choosing us, simply give us a call at +63 (02) 808-4707 or fill out the form below to get in touch with our payroll customer care.


About the JustPayroll.ph Writer - Rayan Ramos

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