The bill's author cited the benefits the setup made for the country
A new bill in the Philippines wants businesses in ecozones and freeports to adopt work-from-home (WFH) arrangements for employees without losing their incentives.
In the Philippines, the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act states that projects or activities under an Investment Promotion Agency shall be "exclusively" conducted or operated within the zone or freeport. Those conducted outside will not be entitled to the tax and fiscal incentives provided by the law.
Companies in the Information Technology- Business Process Management (IT-BPM) sector that are operating in ecozones have been temporarily permitted to adopt WFH arrangements for 30% of employees due to the COVID-19 pandemic.
However, this permission is set to expire on September 12, with more employees expected to be back in the workplace soon.
Senate Bill No. 135, otherwise known as the "Work-from-Home in Ecozones" bill, wants to amend a section of the CREATE Act to give businesses the option to offer a WFH arrangements on a voluntary basis.
"This bill seeks to allow entities registered with Investment Promotion Agencies, such the Philippine Economic Zone Authority (PEZA) to enter into voluntary work-from-home arrangements with their employees, without losing their tax incentives," said author Senator Joel Villanueva in the bill's explanatory note.
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Villanueva pointed out that WFH has been "instrumental" for the IT-BPO sector in ensuring business continuity despite nationwide lockdowns. He cited that the arrangement helped generate 23,000 new jobs in 2020 and another 100,000 new jobs in 2021, without laying off workers amid the pandemic.
But with the WFH deadline coming up, Villanueva said that those who experienced the set-up will choose to resign because of the cost in time, money, and effort if they are forced to work on-site.
"Indeed, adaptability has helped our country survive this pandemic, and we must ensure that flexibility emanates from our laws in light of the rapid technological developments and global best practices," said Villanueva.
