Incoming Trade and Industry Secretary Alfredo Pascual has expressed his openness on the application of hybrid work arrangement for business process outsourcing (BPO) firms registered with the Philippine Economic Zone Authority (PEZA) through some guidelines, but not to regulate work arrangement.
In his first media interview over a television program, Pascual said that a guideline could be issued to implement the current hybrid work arrangement of 70 percent onsite and 30 percent offsite or work from home (WFH) being allowed by PEZA for its export-oriented BPO companies.
“It could be a guideline, but I don’t think we can force application of that to all types of business,” said Pascual.
But Pascual was firm against regulating work arrangement stressing that companies know what works best to ensure viability of their businesses.
“My position there is we leave it up to the management of the company to decide what's best for them, and I think they will pick the best decision because their decisions will be anchored on the viability of their business. So it's something that I don't think we can regulate. And we should not,” he said.
He noted that manufacturing companies will definitely have to be on site as they have to operate the machines. But for work that requires more mental inputs, then that work can be done anywhere the worker lives.
Pascual, who is president of the Management Association of the Philippines when President-elect Ferdinand Marcos Jr. named him his DTI Secretary, explained that the reason the government wants companies to return to their physical offices is to stimulate consumption and help revive the economy.
“Because if you keep them at home, what will happen to the restaurants that have been set up around offices, then what about the transport companies, there will be no riders. So, to the extent that can be supported without being heavy handed,” he pointed out noting, “There are some dictating how to manage the modality of work.”
It could be recalled that during the pandemic, PEZA-registered firms were allowed by the government to operate 90 percent. The privilege expired on March 30, 2022.
However, PEZA companies had sought for an extension or until Sept. 30 this year when the declaration of State of National Health Emergency expires. Already, PEZA has been issuing Letter of Authority for its export-oriented BPOs allowing them to work 70 percent onsite and 30 percent WFH without diminution of their tax incentives.
PEZA said the 70-30 hybrid work arrangement is based on its existing rules that allow its export-oriented firms to sell 30 percent of their production to the domestic market. PEZA also invoked the Telecommuting Act, which allows remote work or offsite operation for companies.
But the Department of Finance, which oversees the Bureau of Internal Revenue, said PEZA firms will have to return 100 percent to their physical offices based on their approved economic zones/IT Centers-Parks-Buildings based on their registration otherwise they will lose their tax incentives.