Rajah & Tann Regional Round-Up
your snapshot of key legal developments in Asia
Issue 1 - Jan/Feb/Mar 2017
 

Philippines Accedes to the Paris Agreement

President Rodrigo Duterte has signed the landmark Paris Agreement, an international pact that builds upon and implements the objectives of the UN Framework Convention on Climate Change to combat climate change. This calls for the reduction of carbon emissions, which have been linked to the occurrence of natural disasters and extreme weather conditions.

The Philippine accession to the Paris Agreement entails coming up with programs and strategies to fulfil the country's commitments set out in its Nationally-Determined Contributions ("
NDCs"). The NDCs, formulated pursuant to Paragraph 2, Article 4 of the Paris Agreement, contain each member state's proposal and commitment to a set of environmental targets to be met within the relevant timeframe. The Philippines promised to reduce carbon emission by 70% by 2030, among others. In addition, being a signatory to the Paris Agreement allows the Philippines access to an international climate fund (of about USD$100 billion a year) as financial support from developed countries to help the Philippines adapt to climate change, and to assist in technological developments, risk assessments, management tools, and others.

On March 14, 2017, the Senate of the Philippines unanimously ratified the accession to the Paris Agreement, making the Philippines officially a signatory to the historic international agreement.


Senate Proposes Increase in Maternity Leave from 60 days to 120 Days

On 6 March 2017, the Senate approved, on third and final reading, Senate Bill No. 1305, or the "Expanded Maternity Leave Law" ("Senate Bill"). Under the Senate Bill, all female workers, regardless of civil status or legitimacy of their children, shall be granted 120 days paid maternity leave and an option to extend for another 30 days without pay. Solo parents will be granted 150 days paid maternity. The measure also grants 30 days leave to fathers and alternate caregivers.

The current maternity leave law for both the public and private sectors only provides for 60 days paid leave, or 38 days short of the 98 days prescribed under the International Labor Organization's Convention 183.

The Senate Bill has yet to be approved by the Philippine House of Representatives or signed by the President into law.


DICT Sees Need for Third Major Player in Telco Industry

The Secretary of the Department of Information and Communications Technology ("DICT") has said that the Philippines needs to have a third core player in the telecommunications ("Telco") industry. The DICT Secretary welcomed local and foreign telco firms which have the capability to establish mobile communication facilities that can provide quality service to the consumers. This invitation has come in a bid to open up the competition in the Telco industry in the country, as the industry is presently dominated by only two firms.

Speaking on whether there is a need for more competition in the Philippines, the DICT Secretary confirms that "we need more competition in the telecommunications market to improve the level of service. The soonest the best for the consumers in terms of better service, greater coverage, and more affordable pricings."

In connection with the effort to open up the industry to more participants, the DICT has ordered the National Telecommunications Commission ("
NTC") to start its legal proceedings for the recovery of unused and unpaid mobile frequencies. An audit by the NTC revealed that a number of establishments have not been using or paying the required fees for their frequency spectrums. These mobile frequencies will then be reassigned to new Telco firms which they may use for public service. The Secretary has assured that the availability of frequencies will be enough for a third player.

It should be noted that the Telco industry, being a public utility, is constitutionally limited to Philippine companies at least 60% of the capital stock of which are owned by Filipinos.


Department of Labor and Employment Releases New Policy on Contractualization

On March 19, 2017, the Department of Labor and Employment ("DOLE") recently released Department Order No. 174, series of 2017 ("DO 174"), laying down new rules governing contracting and subcontracting arrangements. DO 174 does not prohibit all forms of contractualization but merely regulates contracting and sub-contracting.

Among its other features, DO 174 modified the definition of "labor-only" contracting, which is absolutely prohibited. "Labor-only" contracting refers to an arrangement (a) when the contractor does not exercise control over the performance of the work of the employee, and (b) where the contractor who supplies workers to a principal does not have substantial capital or investment, and the workers recruited and placed by such person are performing activities which are directly related to the main business operation of the principal.  Unlike the previous policy, DO 174 did not include in this definition an arrangement where the contractor's workers are performing activities which are usually necessary and desirable to the business of the principal. DO 174 also removed "good faith and exigencies of the business" as grounds for justifying otherwise prohibited acts in contracting arrangements, such as contracting out of work due to a strike or lockout, and requiring contractor's employees to perform jobs that are being done by regular employees of the principal company.




Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.

 

Gatmaytan Yap Patacsil Gutierrez
& Protacio (C&G Law)
30/F 88 Corporate Center
SedeƱo cor. Valero Streets
Salcedo Village, Makati City 1227
Philippines
http://www.cagatlaw.com


Contacts:

Jaime Renato B Gatmaytan
Partner
D +632 8894 0377
F +632 8552 1978
jrbgatmaytan@cagatlaw.com

Ben Dominic R Yap
Managing Partner
D +632 8894 0377
F +632 8552 1978
bdryap@cagatlaw.com

Norma Margarita B Patacsil
Partner
D +632 8894 0377
F +632 8552 1978
nmbpatacsil@cagatlaw.com

Anthony Mark A Gutierrez
Partner
D +632 8894 0377
F +632 8552 1978
amgutierrez@cagatlaw.com

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