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“CALL CENTER” INDUSTRY AND ITS IMPACT ON PHILIPPINE LEGISLATION

Labor Law Provisions: Reea!e" !aws in re!a#ion #o #$e Ca!! Cen#er In"%s#r&

In Philippines, where call center is a major industry contributor in terms of

revenues and employment generation which according to the Business Processing

Association Philippines (BPAP), under the industry's roadmap, by !"# the BP$

industry is e%pected to grow to & billion in annual revenue and employ " million

*he Philippines has rapidly overta+en India as orth America and the -.'s

favorite call center outsourcing destination According to the /verest 0esearch

Institute, the Philippines has become the ac+nowledged leader for voice1based customer

support and sales to become the call center capital of the world 2owever, where most

of the call centers are outsourced, offshore and non1unioni3ed4 certainly they need the

support and protection of government through appropriate legislation

*he government should ensure the implementation of our labor code, which aims

to protect our wor+ers and guarantee their right to organi3ation and humane wor+ing

conditions As the demand for call center evolves, the need to address the protection of

the call center labor force demands new legislations *he table below will show the new

legislations and repealed provisions in the labor code5

Republic Act No. 10151: “ An Act Allowing the Employment of Night Workers, hereby

Repe!ling Articles 1"0 !n# 1"1 $f %resi#enti!l &ecree Number 'our (un#re# 'orty)

wo, As Amen#e#, $therwise *nown As he +!bor o#e $f he %hilippines”



NE' PRO(ISION

RA)*+*,*

REPEALED PRO(ISIONS

PD)--.

/C$a#er (

/E0!o&0en# o1 Ni2$# 'or3ers

/Ar#i4!e *,-) 6overage 1 *his chapter'

shall apply to all persons, who shall be

employed or permitted or suffered to

wor+ at night, e%cept those employed in

agriculture, stoc+ raising, fishing,

maritime transport and inland

navigation, during a period of not less

than seven (7) consecutive hours,

including the interval from midnight to

five o'cloc+ in the morning, to be

determined by the 8ecretary of 9abor and

/mployment, after consulting the

wor+ers' representatives:labor

organi3ations and employers

;'ight wor+er' means any employed

person whose wor+ re<uires performance

of a substantial number of hours of night

wor+ which e%ceeds a specified limit *his

limit shall be fi%ed by the 8ecretary of

Ar#) *5+) Ni2$# wor3 ro$ibi#ion)

o woman, regardless of age, shall be

employed or permitted or suffered to

wor+, with or without compensation5

" In any industrial underta+ing or

branch thereof between ten o6cloc+

at night and si% o6cloc+ in the

morning of the following day4 or

In any commercial or non1

industrial underta+ing or branch

thereof, other than agricultural,

between midnight and si% o6cloc+

in the morning of the following

day4 or

In any agricultural underta+ing at

night time unless she is given a

period of rest of not less than nine



9abor after consulting the wor+ers'

representatives:labor organi3ations and

employers;

/Ar#i4!e *,,) 2ealth Assessment 1 At

their re<uest, wor+ers shall have the right

to undergo a health assessment without

charge and to receive advice on how to

reduce or avoid health problems

associated with their wor+5

;(a) Before ta+ing up an

assignment as a night wor+er4

;(b) At regular intervals during

such an assignment4 and

;(c) If they e%perience health

problems during such, an

assignment which are not caused

by factors other than the

performance of night wor+

;=ith the e%ception of a finding of

unfitness for night wor+, the findings of

such assessments shall not be transmitted

(>) consecutive hours

?

Ar#) *5*) E74e#ions) *he prohibitions

prescribed by the preceding Article shall

not apply in any of the following cases5

" In cases of actual or impending

emergencies caused by serious

accident, fire, flood, typhoon,

earth<ua+e, epidemic or other

disasters or calamity, to prevent

loss of life or property, or in cases

of force majeure or imminent

danger to public safety4

In case of urgent wor+ to be

performed on machineries,

e<uipment or installation, to avoid

serious loss which the employer

would otherwise suffer4

=here the wor+ is necessary to

prevent serious loss of perishable

goods4



to others without the wor+ers' consent

and shall not be used to their detriment;

/Ar#i4!e *,8) @andatory acilities 1

8uitable first aid facilities shall be made

available for wor+ers performing night

wor+, including arrangements where such

wor+ers, where necessary, can be ta+en

immediately to a place for appropriate

treatment *he employers are li+ewise

re<uired to provide safe and healthful

wor+ing conditions and ade<uate or

reasonable facilities such as sleeping or

resting <uarters in the establishment and

transportation from the wor+ premises to

the nearest point of their residence

subject to e%ceptions and guidelines to be

provided by the $9/;

/Ar#i4!e *,9) *ransfer 1 ight wor+ers

who are certified as unfit for night wor+,

due to health reasons, shall be

transferred, whenever practicable, to a

? =here the woman employee holds

a responsible position of

managerial or technical nature, or

where the woman employee has

been engaged to provide health

and welfare services4

=here the nature of the wor+

re<uires the manual s+ill and

de%terity of women wor+ers and

the same cannot be performed

with e<ual efficiency by male

wor+ers4

# =here the women employees are

immediate members of the family

operating the establishment or

underta+ing4 and

7 -nder other analogous cases

e%empted by the 8ecretary of

9abor and /mployment in



similar job for which they are fit to wor+

;If such transfer to a similar job is not

practicable, these wor+ers shall be

granted the same benefits as other

wor+ers who are unable to wor+, or to

secure employment during such period

;A night wor+er certified as temporarily

unfit for night wor+ shall be given the

same protection against dismissal or

notice of dismissal as other wor+ers who

are prevented from wor+ing for reasons of

health;

/Ar#i4!e *,) =omen ight =or+ers 1

@easures shall be ta+en to ensure that an

alternative to night wor+ is available to

women wor+ers who would otherwise be

called upon to perform such wor+5

;(a) Before and after childbirth, for a

period of at least si%teen ("#) wee+s,

which shall be divided between the time

before and after childbirth4

appropriate regulations



;(b) or additional periods, in respect of

winch a medical certificate I8 produced

stating that said additional periods are

necessary for the health of the mother or

child5

;(") uring pregnancy4

;() uring a specified time beyond the

period, after childbirth is fi%ed pursuant

to subparagraph (a) above, the length of

which shall be determined by the $9/

after consulting the labor organi3ations

and employers

;uring the periods referred to in this

article5

;(i) A woman wor+er shall not be

dismissed or given notice of dismissal,

e%cept for just or authori3ed causes

provided for in this 6ode that are not

connected with pregnancy, childbirth and

childcare responsibilities

;(ii) A woman wor+er shall not lose the



benefits regarding her status, seniority,

and access to promotion which may

attach to her regular night wor+ position

;Pregnant women and nursing mothers

may be allowed to wor+ at night only if a

competent physician, other than the

company physician, shall certify their

fitness to render night wor+, and specify,

in the case of pregnant employees, the

period of the pregnancy that they can

safely wor+

;*he measures referred to in this article

may include transfer to day wor+ where

this is possible, the provision of social

security benefits or an e%tension of

maternity leave

;*he provisions of this article shall not

leave the effect of reducing the protection

and benefits connected with maternity

leave under e%isting laws;

/Ar#i4!e *,;) 6ompensation *he

compensation for night wor+ers in the



form of wor+ing time, pay or similar

benefits shall recogni3e the e%ceptional

nature of night wor+;

/Ar#i4!e *8+) 8ocial 8ervices 1

Appropriate social services shall be

provided for night wor+ers and, where

necessary, for wor+ers performing night

wor+;

/Ar#i4!e *8*) ight =or+ 8chedules 1

Before introducing wor+ schedules

re<uiring the services of night wor+ers,

the employer shall consult the wor+ers'

representatives:labor organi3ations

concerned on the details of such

schedules and the forms of organi3ation

of night wor+ that are best adapted to the

establishment and its personnel, as well

as on the occupational health measures

and social services which are re<uired In

establishments employing night wor+ers,

consultation shall ta+e place regularly;



0epublic Act o "!"" originated from 8enate Bill 7"! and passed into law last

Cune !"" *he rationali3ation of night wor+ prohibition for women wor+ers co1

authored by 8en Cinggoy “/jercito” /strada and 8en rancis Pangilinan, and is listed

as one of the priority bills of President Benigno A<uino III during the 9egislative1

/%ecutive evelopment Advisory 6ouncil (9/A6)

ue to the recent boom of call centers in the country, which operate on a ?1hour

shift demand, necessitates an e%pansion of the e%ceptions that allow women to wor+ on

night shifts and given the importance of the 6onstitutional mandate providing for e<ual

opportunities for all, which will increase women participation in wor+ and enhance

employment generation, e%ceptions from night wor+ prohibition for women under

Article "" should be e%panded and further stipulates that employers should provide an

enabling environment whereby both men and women will be able to perform their wor+

confidently and effectively without fear of danger or violence in relation with wor+ing at

night

Proose" Sena#e an" Ho%se <i!!s re!a#e" #o #$e Ca!! Cen#er In"%s#r&:

An Act Ensuring The Occupational Health, Safety And Welfare Of Business

Process Outsourcing (BPO) Workers And Others Siilarly Eployed!

(House Bill "#"$%):



*he bill authored by *eddy A 6asi=o see+s to promote occupational health and

safety in the BP$ industry through the formulation of $ccupational 2ealth and 8afety

standards for BP$ wor+ *he bill provides that such standards shall adhere to the

prevailing standards of health and safety for BP$ wor+ and other similar employment

and that the minimum provisions in the standards meet the International 9abor's

recommendations

*he measure also creates $ccupational 2ealth and 8afety ($28) wor+place

representatives to monitor the wor+ environment in BP$ firms *he bill provides

mechanism for compensation for wor+1related injuries and illnesses and considers

night1shift wor+ as ha3ardous

;It is the moral duty of the BP$ industry to ensure that our relatively young

wor+force do not succumb to illnesses of unusual wor+ caused by the unnatural wor+

environment 6ompliance to $28 standards is a must for limiting the adverse effects of

night1shift and call center wor+ to employees' health,; 6asi=o said

*he status of the bill is still pending with the 6ommittee on 9abor and

employment since !"1!1!D

“ &agna 'arta for 'all 'enter Workers Act "” (House Bill *+)



*he bill authored by Pampanga 0ep Eloria @acapagal1Arroyo and her son,

6amarines 8ur 0ep iosdado Arroyo enumerates the rights of offshore staff in the

Philippines such as call center agents and protect the interest and welfare of its wor+ers

If approved, the law mandates the following5

" All call center companies to provide their employees a one1hour continuous meal

brea+ for every eight1hour shift

Provide a “comfortable resting area within the employer6s premises” where

employees wor+ing in the night shift can stay until daybrea+ to ensure their safety

Prohibits BP$ industries from monitoring personal phone calls of their employees

? Allowing call center wor+ers to organi3e and join labor unions to ensure that all their

rights are being protected

6reate a BP$ 2elp es+ in all national and regional offices of the epartment of

9abor and /mployment ($9/) to advise employees on the terms of their contracts


employment since since !""1!>1!#



Title “ An Act Ensuring The Welfare Protection Of Business Process

Outsourcing (BPO) Workers And The -ecognition Of Their -ights As

Pro.ided /or 0n The 1a2or 'ode Of The Philippines” (House Bill *3)

*he above 2ouse Bill was authored by 6ongressman 0aymond F Palatino which

sought to assert the prescribed labor standards set forth in the 9abor 6ode and

institutionali3e additional benefits that would hopefully address specific wor+1related

problems and issues peculiar to the nature of BP$ wor+

*hough bigger BP$ companies offer relatively competitive compensation

pac+ages, among other benefits, there are many other smaller BP$ companies which do

not address the peculiar problems of their employees arising from the very nature of

their wor+ Among the problems noticed from the feedbac+ received, is that BP$

companies devise mechanisms to prevent many of their employees from becoming

regulari3ed despite having been employed as probationary wor+ers or trainees for more

than si% months *his mechanism effectively divests many BP$ wor+ers of the benefits

that should be granted to them for all the time they have spent serving the company,

from the right to money claims and security of tenure, to the right to regular medical

chec+1ups

*his brings another problem faced by BP$ employees>the health and

psychological ris+s attendant to the nature of their wor+ In many BP$ companies,

employees are not allowed to ta+e restroom brea+s for hours on end in order to satisfy

<uotas or demands It is thus no wonder why many BP$ employees complain of urinary

tract infections and other such complications after their employment in BP$



wor+places Because of the nature of their wor+, BP$ wor+ers, more than half of whom

wor+ in night shifts have greater ris+ of health problems

*o address these problems, two new provisions in this new bill for BP$ wor+ers

were incorporated, one for mandatory regulari3ation of all employees who have wor+ed

for at least si% months in the company, and one for the standardi3ation of restroom

brea+s, aside from the standardi3ation of the medical chec+1up benefits for all wor+ers

Aside from these provisions, the rights and benefits that we have incorporated in our

first bill for BP$ wor+ers6 welfare and protection were retained, from asserting their

right to organi3e and establish formations and unions, to asserting their right to due

process in administrative proceedings


employment since since since !"!1!D1?

!&agna 'arta for 'all 'enter Workers Act of ""! ( Senate Bill No. 2604 )

;@agna 6arta for 6all 6enter =or+ers Act of !"!;, filed by 8en @iriam

efensor 8antiago filed, to protect thousands of call center employees in the country It

also see+s to guarantee call center employees the following rights5 the right to organi3e

and join labor organi3ations4 the right to a safe and healthy wor+ing environment4 the

right to at least a one hour continuous meal brea+ in the middle of every eight hour

shift4 the right to privacy4 safety for nightshift employees4 and the right to be informed

of the terms and conditions of their contract




employment since since ovember , !"!

“ BPO Workers’ Welfare and Protection Act of ""3” ( House Bill 6921 )

“BP$ =or+ers6 =elfare and Protection Act of !!>” Introduced by .ABA*AA

Party1list 0ep 0aymond F Palatino which sets the standard of treatment of BP$

wor+ers by the employers and supervisors and mandates that the rights and benefits of

these wor+ers be accorded them as mandated by the Philippine 9abor 6ode

According to Palatino, behind the offer of above1average salaries, signing bonus

and incentives for good wor+ performance lies tales of e%ploitation, false hope and dim

wor+ing conditions inside the call center ;A call center agent receives a salary higher

than the average wor+er but in reality, foreign companies are e%ploiting our cheap labor,

ensuring profits for the call center,; Palatino said

Govern0en# Assis#an4e

*he government has earmar+ed a P!!1million fund to provide short1term

training for the voice, software development, animation and health1care services to

ensure the continued supply of <ualified labor for the industry and to boost the



development of the BP$ industry *he training program includes not only voice or call

center training but also covers important segments of on1Foice BP$ such as legal,

health care addition, it will be implemented nationwide

*he project aims to <uic+ly convert thousands of ear 2ire I*1BP$ job

applicants and hopefuls to full1fledged <ualified I*1BP$ full1time wor+ers, in as rapidly

as 1 months “ear 2ire” applicants are those who have applied for an I*1BP$ job

but still re<uire additional training to raise their s+ill levels to meet the full

re<uirements of an I*1BP$ job $nly trainees who have been certified as <ualified ear

2ires by members of BPAP and its partner associations are eligible to avail of the

scholarships

Based on BPAP data, the BP$ industry earned -8&"" billion in !"" In the same

year, the I*1BP$ industry employed #D,!!! full1time employees which represents a

percent increase from !"!



U"a#e o1 Re!a#e" Iss%es in Ca!! Cen#er In"%s#r& in #$e P$i!iines

De0an"s 1or Re1or0

6all center wor+ers are no longer voiceless in a voice industry As the Inter16all

6enter Association of =or+ers (I66A=) a newly formed association of call center

wor+ers today demanded reforms in the business process outsourcing (BP$) industry to

protect labor rights According to I66A= spo+esperson 0uben Cosol there is lac+ of

strong state regulation in BP$ industry and they aim to be a voice and advocate for call

center and BP$ wor+ers so that the #!!,!!! employees in the industry who are entirely

unorgani3ed can enjoy protection

I66A= is also calling for industry1wide standards for wages, benefits and

entitlements that must be well above the minimum mandated by law and commensurate

to the profitable dollar1earning nature of the call center industry

O44%a#iona! Hea!#$ an" Sa1e#&

In a study, entitled “$ff shoring and =or+ing 6onditions in 0emote =or+,;

written by Con @essenger, a senior researcher with the 6onditions of =or+ and



/mployment Programme of the I9$ said that wor+ing conditions and pay remain of

“good <uality; for BP$ wor+ers in the Philippines 2owever, it also reveals that ?#

percent of BP$ employees in the Philippines wor+ the night shift, is associated with

occupational safety and health concerns *he study said ?77 percent of ilipino BP$

wor+ers surveyed are suffering from insomnia, while ? percent are suffering from

fatigue4 it also indicated that BP$ wor+ers have less freedom, and are constantly under

“high levels; of stress

According to an e%pert in occupational health and safety advocates, in his more

than ten years with the BP$ sector, r 0ico 8ebastian believes that there is a need for a

health care organi3ation to address the ris+s involved wor+ing in a call center “I have

come to understand the special needs of the industry *he medical profession, the call

center companies, human resource organi3ations and the epartment of 9abor must

come together to understand and design a comprehensive health care program that is

attuned to the nature and lifestyle of call center agents*here are not enough doctors

who are familiar with the ha3ards that call center agents are e%posed to everyday; 2e

said

*he disease that a call center agent suffers is often cumulative and sometimes

unnoticed It is often psycho1emotional and physical $ver time, he or she develops a

disease ;which could have been prevented and handled by a more competent

professional in this field” r 0ico 8ebastian adds



Cust very recently, reports came out that women are li+ely to develop breast cancer due

to night1time sleep deprivation which is a +nown hormonal promoter of breast cancer

8aid oel 6olina, e%ecutive director at the Institute for $ccupational 2ealth and 8afety

evelopment4 Another study also showed that the ris+ of developing the cancer

increased by as much as #! percent, according to -81based red 2utchinson 6ancer

0esearch 6enter

Among the health ha3ards suffered by call center agents are as follows5 Insomnia

and sleep disorders, fatigue, nec+, shoulder and bac+ pains, eye strain, voice problems,

lung disease and 8tress in general4 it is about time that we further reinforce our

competitive edge by strengthening the health and wellness side of our human capital

US An#i?So%r4in2 <i!!

@any companies send call center business to the Philippines, one of the “favorite

call center outsourcing destination” because of comprehensible accent and attractive

pac+age by the Philippine government to attract BP$ investors in the country which

will cut costs in call center businesses because of cheaper labor mar+et

2owever, when the -8 legislation ;-8 6all 6enter =or+er and 6onsumer

Protection Act” authored by 0ep *im Bishop (emocrat, ew Gor+), avid @c+inly

(0epublican, =est Firginia), @i+e @ichaud (emocrat, @aine), Eene Ereen (emocrat,

*e%as) and supported by *he 6ommunications =or+ers of America (6=A) pushed the

bill that would protect -8 jobs and consumers by punishing companies that send the



call center jobs abroad *he future of the Philippine call center industry was robustly

threatened by the outcome of the legislation

According to 0ep *im Bishop ;$utsourcing is one of the scourges of our

economy and one of the reasons we are struggling to +noc+ down the unemployment

rate and reduce the number of Americans who are out of wor+ =e can't prohibit it,

but we can certainly discourage it;

*he Bill supports -8 wor+ers and consumers in three ways, by5

H enying ta%payer cash to off1shorers5 by creating a bad actor list that would stop

companies that ship jobs abroad from getting ederal loans and grants and send

them to the bac+ of the line for government contracts

H Eiving the right to +now5 re<uires call center agents to tell where they are from

H Eiving the right to transfer to a -8 operator5 so that when callers don6t want a

foreign call center, they have the right to be transferred to a -81based operator

In !", -8 8enate jun+ed and *he Business Processing Association of the

Philippines (BPAP) welcomed the rejection of an anti1outsourcing bill by the -nited

8tates 8enate “$utsourcing business services to the Philippines helps ma+e American

companies more competitive and profitable,” said Benedict 2ernande3, BPAP president

and chief e%ecutive officer in a statement

6ebu /ducational evelopment oundation for Information *echnology (6edf1it)

e%ecutive director Cun 8a1a supported Gu’s statement, saying that “outsourcing remains



to be the logical decision in a global economy*he rejection is e%pected because the

bottomline is still competitiveness and profitability of their business,” and according to

6ebu Business 6lub president ondi Coseph5 “ Gou can’t stop outsourcing because it

ma+es good business sense,”



<PO an" @orei2n E%i#&

/$ D? or the oreign Investment egative 9ist (I9) sanctions foreign

investments in the country -nder the law, investing in BP$ may involve foreign

investment in a domestic enterprise to the e%tent of "!! percent in its capital *his is in

contrast with other industries in the negative list such as agriculture or fisheries, where

constitutional and statutory restrictions prescribe e<uities of less than "!! percent "

=hen total e<uity is relin<uished in favor of foreign investments, foreign investors

are less apprehensive and inhibitions are mitigated in establishing their business in the

Philippines -nder 0epublic Act 7!?, BP$ is deemed included as an ;e%port

enterprise; and precluded from the restriction of I9 *hus, the e<uity of foreign

investment does not have any ceiling and it may be up the e%tent of "!! percent in its

capital provided there6s a compliance with certain legal re<uirements such as5

a 0egistration with 8ecurities and /%change 6ommission to ac<uire corporate or

juridical personality and:or license to transact business within the Philippines

1 /%ecutive $rder number D? Promulgating the 8eventh 0egular oreign Investment egative 9ist5

http5::dtigovph:dti:uploads:file:oreign!Investment!egative!9ists!or!/$!D?pdf

2 0epublic Act 7!? http5::wwwlawphilnet:statutes:repacts:ra">>":raJ7!?J">>"html

*he term ;e%port enterprise; shall mean an enterprise which produces goods for sale, or renders services to the domesticmar+et entirely or if e%porting a portion of its output fails to consistently e%port at least si%ty percent (#!) thereof4

Se4#ion 8) /oreign 0n.estents in E4port Enterprises5 1 oreign investment in e%port enterprises whose productsand services do not fall within 9ists A and B of the oreign Investment egative 9ist provided under 8ection D hereof isallowed up to one hundred percent ("!!) ownership

/%port enterprises which are non1Philippine nationals shall register with B$I and submit the reports that may be re<uiredto ensure continuing compliance of the e%port enterprise with its e%port re<uirement B$I shall advise 8/6 or B*06P, asthe case may be, of any e%port enterprise that fails to meet the e%port ratio re<uirement *he 8/6 or B*06P shallthereupon order the non1complying e%port enterprise to reduce its sales to the domestic mar+et to not more than fortypercent (?!) of its total production4 failure to comply with such 8/6 or B*06P order, without justifiable reason, shallsubject the enterprise to cancellation of 8/6 or B*06P registration, and:or the penalties provided in 8ection "? hereof

http://www.lawphil.net/statutes/repacts/ra1991/ra_7042_1991.html





b the applicant’s country or state allows ilipino citi3ens and corporations to do

business therein

c paid in capital of at least &!!,!!! if the e%porting less than #! percent of its

output4 no minimum paid in capital if e%portation is more than #! percent of its

output

DATA PRI(ACY LA' O@ .+**5

ata Privacy Act of !"" established a set of privacy rules to protect the security

and confidentially of private and sensitive information of an individual

“Personal information” is anything, recorded or not, that identifies a person or

ma+es one6s identity apparent or ascertained 8ensitive information, on the other hand,

is more specific such as one6s race, gender, political affiliation and those other

enumerated under the law @ere implied consent is sufficient to process any personal

information while processing of sensitive information is only allowed when e%press

consent is given

3 (0epublic Act o "!"7 A A6* P0$*/6*IE IIFI-A9 P/08$A9 I$0@A*I$ I I$0@A*I$ A

6$@@-I6A*I$8 8G8*/@8 I *2/ E$F/0@/* A *2/ P0IFA*/ 8/6*$0, 60/A*IE $0 *2I8 P-0P$8/ AA*I$A9 P0IFA6G 6$@@I88I$, A $0 $*2/0 P-0P$8/8)



*he personal information controller which may be an individual or organi3ation

can be held liable for any contravention set forth in the Act e%cluding the controller6s

subcontrators

Prior to the enactment of the law, the cause of action based on a privacy tort may

only be hinged to Article # of 6ivil 6ode assuring the inviolability of privacy 2owever,

favorable judgment does not warrant e%emplary damages absent any bad faith on the

part of the defendant? ow, aggrieved parties are afforded with greater protection

against privacy torts as the new law provides for concrete measures such as the

re<uirements of consent pertaining to personal information and e%press consent for

sensitive information It also laid down clear cut penalties of imprisonment and fine

depending on how the violation of privacy is committed ranging from violations through

negligence to intentional and malicious disclosure of information

*his law was patterned from the statutes of /uropean -nion and India Both

e%perienced e%ponential economic growth considerably attributed to their respective

privacy laws *he outsourcing industry of the country will reap benefits as the new law

would attract more investors into the country *he ata Privacy Act of !"" e%plicitly

recogni3es foreign privacy laws or the absence thereof to information pertaining to

foreign entities *his assures a new level of independence of local and foreign

corporations aligned primarily in the outsourcing business away from the ambit of

restrictive domestic policies and laws

4 Manaloto v. Castro G.R. 171365

5 @analoto v Feloso, G)R) No) *9*58,



Aside from speculation of growth, the new privacy law may obviate the possibility

of misusing collated information as a tool of oppression and harassment such as in the

case of aeldonia vs 6ivil 8ervice 6ommission where a postmaster, without consent,

opened an envelope addressed to a widow containing the benefits of the deceased to pay

for the latter6s obligation to postal office#

IN(ESTMENT PRIORITIES PLAN BIPP9

President A<uino approved @emorandum ?! or Investment Priorities Plan of

!" (IPP) on " Cune !" It ac+nowledges the importance of BP$ as “enablers” and

“triggers” to sustainable and progressive economy *he preferred activities cover the

creative industries or +nowledge1based services which includes BP$ activities, I* and

I*1enabled services, and film and performing arts production

In fact, an e%amination of past Investment Priorities PlansD reveals that BP$ has

been considered preferred activities since !"! BP$ enterprise is one of the priority

investment areas identified to support the current priority programs of the government

*o be entitled to incentives, an application for registration and entitlement of

incentives must be duly approved by the Board of Investments If a BP$ enterprise is

not listed in IPP, they may still avail the incentives provided that at least ! of the

production is for e%port and at least #! of the enterprise is ilipino1owned $r, at

6 F aeldonia v. CSC, G.R. No. 143474

7 Memorandum Order 40 : Arovin! "#e $01$ %nve&"men" 'riori"ie& 'lan

( )O* + %nve&"men" 'riori" 'lan -#"":///.doe.!ov.#%'O$0/ei.#"m2



least 7! of the production is for e%port and at least ?! of the enterprise is ilipino1

owned

Pioneer an" Non Pioneer En#errises:

It is imperative that the classification of a BP$ enterprise is determined since

incentives vary depending on the classification of a BP$ enterprise BP$ enterprise

under IPP is classified into two5 pioneer and non1pioneer

BP$ enterprise covers business:+nowledge processing which includes non1voice

business processing operations, creative and +nowledge1based services on1voice

business process operations include the underta+ing of outsourced services such as

administrative and business services, transcription services, engineering and

architectural services

IPP of !" provides the criteria to be classified as pioneer Accordingly, creative

industries:+nowledge1based services with original content such as but not limited to

software development, animation, engineering and architectural design, product design,

game and applications development and software development4 may be granted pioneer

status provided that the project cost is at least the Philippine Peso e<uivalent of

-8&!!,!!! (e%cluding cost of land and building) to be put up during the first year of

operationsAll I6* projects shall install internal security system compliant with B8 77>>

or its e<uivalent



@ISCAL INCENTI(ES UNDER IPP .+*.;:

In4o0e #a7 $o!i"a&

A registered BP$ is e%empt from paying income ta%es depending on its classification

If the enterprise is classified as pioneer, then the ta% e%emption from the start of its

commercial operations for si% years on1pioneer enterprise shall be ta% e%empt for only

four years Pioneer enterprise shall not enjoy such e%emption for more than eight years

E7e0#ion 1ro0 #a7es an" "%#ies on i0or#e" sare ar#s)

A registered enterprise with a bonded manufacturing warehouse shall be e%empt

from customs duties and national internal revenue ta%es on its importation of re<uired

supplies:spare parts for consigned e<uipment or those imported with incentives

E7e0#ion 1ro0 w$ar1 "%es an" e7or# #a7 "%#& i0os# an" 1ees

=hether the enterprise is a pioneer or not, it shall enjoy for a period of ten ("!)

years from date of registration to avail of the e%emption from wharf dues and any e%port

ta%, impost and fees on its non1traditional e%port products

Ta7 Cre"i#

%nen"ive or %nve&"or& )%

-#"":///.d"i.!ov.#uload&)o/nloadaleForm&%nen"ive&.d2



A ta% credit e<uivalent to the national internal revenue ta%es and duties paid on

raw materials, supplies and semi1manufacture of e%port products and forming part

thereof shall be granted to a registered enterprise

Additional Deductions 1ro0 Ta7ab!e In4o0e

or the first five () years from registration, a registered enterprise shall be

allowed an additional deduction from ta%able income e<uivalent to fifty percent (!)

of the wages of additional s+illed and uns+illed wor+ers in the direct labor force *he

incentive shall be granted only if the enterprise meets a prescribed capital to labor ratio

and shall not be availed of simultaneously with the income ta% holiday *his additional

deduction shall be doubled if the activity is located in less developed area (9A)

0egistered enterprises locating in 9As or in areas deficient in infrastructure,

public utilities and other facilities may deduct from their ta%able income an amount

e<uivalent to the e%penses incurred in the development of necessary and major

infrastructure wor+s *he privilege, however, is not granted to mining and forestry1

related projects, as they would naturally be located in certain areas to be near their

sources of raw materials

NON?@ISCAL INCENTI(ES UNDER IPP .+*.*+

A registered BP$ may employ foreign nationals in supervisory, technical or

advisory positions from the date of registration but the duration of such employment

shall not e%ceed five years unless an e%tension is given by B$I *he foregoing limitation

10 %nen"ive or %nve&"or&, Ibid



is not applicable to the positions of President, Eeneral @anager and *reasurer

employed in at least ?! foreign1owned registered enterprise or their e<uivalent

*he eligible BP$ shall also enjoy simplified customs procedures, if applicable, for

the importation of e<uipment, spare parts, raw materials and supplies and e%ports of

processed products Additionally, it shall enjoy Importation of consigned e<uipment for

a period of "! years from date of registration, subject to posting of a re1e%port bond

e<uivalent to "!! of the estimated ta%es and duties

In Culy of !", 8enator @iriam efensor 8antiago introduced Bill 7 in the

ifteenth 6ongress It is otherwise +nown as “@agna 6arta for 6all 6enters =or+ers

Act” It does not only e%tend to call centers, per se, but to other BP$6s

Ri2$#s o1 E0!o&ees in #$e Ca!! Cen#er In"%s#ries

*he bill reinforces the labor standards such as the rights to information of terms

and standards of labor, against wor+place ha3ards, meal time and reasonable privacy of

personal communication of an employee wor+ing in call center industry

*he bill emphasi3es the health ha3ards and hurdles wor+ing in a call center

environment particularly the perils at graveyard shift and stressful nature of wor+

*he bill provides strict compliance with one1hour meal brea+ rule when such wor+

schedule involves continuous eight hour shift

otably, the 9abor 6ode and recent jurisprudence allow fle%ible meal periods Art

D of the 9abor 6ode reads5

Art D @eal periods 8ubject to such regulations as the 8ecretary of



9abor may prescribe, it shall be the duty of every employer to give his

employees not less than si%ty (#!) minutes time1off for their regular

meals

otably, this is reiterated in cases decided upon the 8upreme 6ourt where the

meal period may be curtailed when such urgency arises In the cases of5

*he aforementioned echoes the rights already afforded and enjoyed by

employees under the 9abor 6ode evertheless, it e%pands and innovates an employee6s

right to e%pect reasonable privacy, to wit5

he right to pri-!cy of c!ll center employees sh!ll be respecte#. he monitoring

of person!l phone c!lls sh!ll not be !llowe#, !n# in the e-ent th!t their offici!l phone

con-ers!tions !re monitore#, they must be informe# of this !t !ll times prior to the

st!rt of the monitoring process.

Interestingly, the basis of such right to privacy is nowhere to be found in the

e%planatory note of the bill or the sa+e of discussion, save the true intent of the

proviso, such inclusion is to deter the ris+ of contravening the basic right to privacy due

to the peculiar nature of wor+ in the call center industry

*he author of this paper is gainfully employed in the same industry and the

nature of wor+s involves constant monitoring and recording of phone calls with

customers 2owever, the recording of phone calls may be done indiscriminately that

there6s a ris+ of inadvertently recording and monitoring of personal phone calls of an



employee

2owever, the author believes that such right should be e%panded to e%tend its

protection to personal electronic correspondence or interactions of an employee such as

emails and chat *here is a prevailing dichotomous nature of wor+ in the call center

industry It6s either voice or non1voice wor+ which has been e%haustedly described in

the preceding section of this page 8uffice to say, the popular term“call center” is a

misnomer as significant numbers of positions involve non1voice interactions such as

emails and chat oes it not entitle the same right to privacy afforded by employees who

interacts via the telephony or Foice $ver Internet Protocol (F$IP) systemsK

D%#ies o1 E0!o&ers in #$e Ca!! Cen#er In"%s#r&

*he bill mentions monitoring software, to wit5

b/ onitoring softw!re shoul# not be use# to un#uly pressure employees !n# shoul#

not impose !n oppressi-e working en-ironment

*he bill highlights the importance of humane wor+ing conditions in the call center

industry such as the following5

" /stablish and maintain a safe and healthy wor+ing environment which will

facilitate optimal physical and mental health in relation to the wor+ of call center

employees4



@onitoring software should not be used to unduly pressure employees and

should not impose an oppressive wor+ing environment4

/mployers should incorporate regular rest brea+s and changes in activity for all

display screen e<uipment users4

Es#ab!is$in2 <PO He!"es3

$ne of the duties of call center employers as provided in section (e) of the bill

provides the establishment of BP$ 2elpdes+ under the auspice of epartment of 9abor

and /mployment 0egional and ational offices shall facilitate and run their respective

BP$ helpdes+s to address the concerns and answer the in<uiries of the call center

employees and prospective recruits pertaining to the terms, conditions and stipulations

of their contract *he service is intended to be free of charge

Grievan4e Me4$anis0

*he bill mentioned in passing that the one of the hurdles faced by call center

employees is the apparent absence of unions, which are disturbingly discouraged by call

center employers -nder the bill, such absence must not hamper the resolution of

disputes and employment contracts particularly its interpretation and enforcement



*his is true even in the absence of previous collective bargaining agreement providing

such grievance mechanism

Re1eren4es:

H 6all 6enter Industry – 6ontact 6enter Association of the Philippines (66AP) 1

http5::ccaponlineorg:

H BP$ Industry 1 http5::wwwbpaporg:about1us:it1bpo1road1map1!""1!"#

H 6all 6enter Industry in Philippines

1http5::enwi+ipediaorg:wi+i:6allJcenterJindustryJinJtheJPhilippines

H 0/P-B9I6 A6* $ "!""1

http5::wwwlawphilnet:statutes:repacts:ra!"":raJ"!""J!""html

H http5::senategovph

H http5::wwwcongressgovph

H http5::wwwcwa1unionorg:issues:entry:c:callJcenterJbill:L-*>Mf0"N/<@

http://ccaponline.org/

http://www.bpap.org/about-us/it-bpo-road-map-2011-2016


http://senate.gov.ph/

http://www.cwa-union.org/issues/entry/c/call_center_bill/#.UT9XfR1QEqM

http://ccaponline.org/


http://senate.gov.ph/

http://www.cwa-union.org/issues/entry/c/call_center_bill/#.UT9XfR1QEqM

bpo paper 2013.docx

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