Chapter 7 - Understanding the Legal Codes

Employment of Foreigners | Employing Filipino Workers | Recorking the Genie
Labor Disputes | Labor-Only Contracting

In many western companies it is an axiom of management to devolve decision-making to the lowest practicable level. More often than not this means empowering locally engaged employees. While the concept is laudable, it is an unfortunate fact of life that in the Philippines this practice can - and has - produced horrific results for a number of companies and especially where financial empowerment of the ability to sign contracts or otherwise commit the company and its resources are concerned.

While the use of local staff in decision-making may seem to be a practical way of cutting down the expense of an expatriate employee, it can be a false economy. Before embarking on this practice it would be well to take some informal soundings among other expatriates as to the wisdom of such a move. In the context of the Philippines labor law, empowering a local employee is one thing but then taking away that power can be something different altogether. There are instances where even where cases of fraudulent dealings were clear, retrenchment of the employee could not be considered automatic and resulted in claims for damages against the company before the DOLE. It should not happen but it does.

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