Recruitment Agency in the Philippines: Executive Search & Headhunter

The Labor Code of the Philippines governs employment practices and labor relations in the Philippines. The Code is notoriously complex, has seen numerous amendments since being enacted, and contains several provisions extremely beneficial to labor. For example, employees have a right to self-organize, a union can insist on a closed shop, and unions can be powerful in some sectors. 

All employees employed for at least one month should have something in writing (in English and Tagalog) documenting agreed-upon key employment terms. Without a written statement or contract, employees can go to an employment tribunal, seek a declaration of employment terms, and claim pay (subject to the statutory maximum weekly payment) in compensation. 

Unless an employee is employed under a specific hiring agreement (such as an apprenticeship agreement stipulating a longer period), the probationary employment period is six months. When employment continues after this period, the employee is considered a regular employee under the eyes of the law. 

Legally terminating employees beyond the six-month probation period is tricky as the Labor Code prohibits the termination of employment except for just cause (due to employee actions), authorized cause (redundancy, closure, etc.), or serious diseases or health conditions. Each process requires due notice (including to the Department of Labor and Employment (DOLE) for authorized causes), and separation pay is required (for the last two reasons). Any failure to follow proper procedures can result in legal repercussions. 

The Philippines has a 13th-month pay mandated by law that gets paid before Christmas, and it can be hard to convince candidates to start a new job before they receive it. Many candidates will wait until after the hectic holiday season and at the start of the year to either quit or seek to change jobs – meaning the first half of the year can be a busy hiring season for employers. 

For foreign employees, obtaining Alien Employment Permits (AEP), Provisional Work Permits, and 9(g) work visas can be an intricate process taking two to three months and will require several documents. Foreign employers should use reputable channels (e.g. specialized immigration lawyers, etc.) to ensure proper procedures are followed. 

Corruption, especially involving certain government agencies, is perceived to be a problem in the Philippines. However, corruption typically does not impact foreign businesses, expats from Western countries, or businesses operating in the IT, call center, and BPO outsourcing sectors. 

Personal relationships play a significant role in Philippine business culture, and Filipinos prefer to do business or work with people they trust. This means verbal agreements can be made based on personal trust. 

Filipino business culture is also hierarchical, and final decisions are made at the top once there is consensus. In addition, Filipinos will avoid directly saying no – meaning close attention must be paid to any hints of hesitation.