Doing business is not just about operations and sales. It is not only about working on thriving to be successful. It also has a responsibility on making sure that no one and nothing will be harmed while working. For a business owner like you, before getting into one you must know what laws you should comply with and what violations you should not commit. Because ultimately, before knowing how to be successful, you must know how to follow ordinances first.
Millions of Filipinos are working in the industry of Philippines BPO. The BPO industry gives its helping hand to society as it gives more jobs and helps the economy grow. It is without a doubt, the BPO industry in the Philippines is a huge part of our growing country. As this industry grows, the responsibility of safeguarding its companies and employees also arises. It is why there should be laws that would uphold the welfare and foster this field. Hence, here are Philippines BPO laws enforced to protect this sector.
BPO stands for “Business Process Outsourcing”, it is the practice of passing on your non-primary business activities and work functions to a third party. BPO services mainly include human resources (HR) tasks, customer/call center relations, payroll, etc.
The BPO industry, in general, has become a saving grace for all businesses. It has solely become a significant part of almost every business in today’s world. It is also mainly responsible for providing cost-effective quality services to many businesses of all types and sizes. The wide set of BPO solutions being offered by different outsourcing companies may also include the following:
- Call center services: Outbound and Inbound call centers, email/chat support, telemarketing, technical support, etc.
- IT/ITES: Helpdesk services, IT support, Software development, etc.
- Financial services: Payroll, Bookkeeping, etc.
- Healthcare services: Medical transcription services, Healthcare claims adjudication, etc.
- Manufacturing: Order processing, Help services, etc.
- Retail services: Order status checking, order processing, etc.
- Travel industry: Online bookings, cancellations, refunds, etc.
- E-commerce sites: online orders, refunds, canceling processes, etc.
Growth of BPO Industry in the Philippines
The growth market of the Philippines BPO is continuously shaping the country’s economic state. The rise of this type of industry has indeed helped the country to improve economically. More so, it has also helped millions of Filipinos, even the ones who are not able to finish college to earn a living.
The Philippines has rapidly become the go-to destination of foreign companies when it comes to outsourcing. The BPO industry has been seen to be one of the most successful and fastest-growing sectors in the country. A great future ahead lies in the industry. According to experts, since the country is one of the countries with a wide range of people who can speak the English language fluently, more countries are attracted to outsourcing in the Philippines.
The BPO Industry in the Philippines has pertained as the “sunshine industry” of the country. In the past, India has always been the top competitor of the country when it comes to outsourcing. Over time, the Philippines has succeeded in surpassing India due to the following reasons:
- The Philippines focused on the growth of voice and non-voice sectors in global in-house centers (CGIs), animation, healthcare info management, and gaming. These have greatly ensured the proliferation of the BPO industry in the country.
- Investors in the BPO industry have invested a considerable amount of incentives, taxes, holidays, tax exemptions on foreign equipment, import procedures, and also the freedom to employ foreign nationals.
- Compared to Indian nationals, Filipinos are not just fluent in the English language, they are also patient and have a deeper value for work ethics. These characteristics are crucial in handling irate customers. Plus, Filipino’s adaptation to western culture combined with high levels of problem-solving skills is what sets them apart from others.
- The Philippine government supports the BPO industry. Legislative changes favoring global organizations looking to outsource in the country are created to help support the rising industry. One example is the Data Privacy Act which aims to protect sensitive information being handled by such services daily.
Importance of the BPO Industry in the Philippines
The Industry of Philippines BPO has contributed $30 billion to the country’s economy annually. 1.3 million Filipinos are employed in over 1000 BPO companies, with that figure growing at an annual rate of 8-10%.
The contribution of BPO to Filipinos’ lives is priceless. It has helped the unemployment rate to decrease, it has provided food for every family of BPO employees, and provided the country to grow economically.
Its continued growth will help more people start their careers, and in response to this expanding industry, the government implemented laws to protect everything associated with it.
Philippine’s Data Privacy Act
The Data Privacy Act of 2012 (RA 10173) applies to all processing of personal data such as natural and juridical persons involved in processing personal information. This law seeks to protect all forms of data given, be it personal, private, or sensitive. It also includes those who, while not found or established in the Philippines, use equipment or maintain an office, branch, or agency in the country.
In an article Liboro wrote for Manila Bulletin he says that “We have an entire industry that has been a pillar of our emerging economy, and that needs our protection and support as well.” He highlights the importance of the Data Protection Act and why it is important to the Philippines ‘ BPO industry.
“The existence of law clearly defines the responsibilities of entities such as BPOs in ensuring the protection of personal data. This is beneficial, as it minimizes the potential for finger-pointing in case of a data breach, and it allows industry players to plan and institute processes, assured that there is a clear structure that must be followed in the form of a law.” Liboro continued to elaborate.
The Philippines indeed is one of the top countries’ businesses for outsourcing hence it makes sense that we protect their data privacy. The NPC does its best to raise awareness on the issue of data privacy and why the Data Protection Act is Important.
During the Data Privacy Asia 2017 Liboro, he advised the BPO companies that they are not excepted by the law. That even though the NPC is keen on building a relationship with the Philippines BPO Industry, the law will be the pillar that will make that partnership strong.
Laws for the Philippines BPO Sector
Aside from Data Privacy Act, the Philippine government has passed other laws that aim to strengthen the BPO Industry, to protect and help them. Here are the following laws:
According to the law, The Department of Information and Communications Technology (DICT) is a government agency that supervises and controls the country’s information and communication technology development and use.
It is the primary policy, planning, coordinating, implementing, and administrative entity of the Executive Branch of government responsible for planning, developing, and promoting the national ICT development agenda.
It ensures that all businesses in the information and communication fields follow trade and safety laws.
Intending to expand the sector while assisting in maintaining the quality of its services, this made Philippines BPO activities more convenient. They are also responsible for regulating BPO Association of the Philippines.
Through the creation of designated economic zones known as Ecozones, the law is designed to promote economic growth. It founded Philippine Economic Zone Authority (PEZA) under a director general who oversees its operation. Its goal is to aid in the national initiative to hasten the creation of jobs, particularly in rural areas.
The development of BPO call center Philippines has contributed to economic stability there. Many companies that serve the outsourcing industry saw growth in addition to the money earned by outsourcing.
In recognition of its contribution to the country’s Growth domestic product (GDP), they create PEZA to promote and support the industry where this law seeks to encourage businesses to improve their real state quality. Philippines BPO companies are granted this privilege together with other businesses who supports similar development in the areas surrounding their sites.
It is an Act Establishing Telecommuting as an Alternative Work Arrangement for Employees in the Private Sector. It aims to support and protect employees working in Philippines BPO companies. This republic act gives them the right to a fair and reasonable wage, given the nature of their work schedule.
It covers compensation and rewards like nighttime differentials and overtime pay. Along with these rights, the law also ensures that they have choice of working on public holidays or take leave of absence, both of which are paid leave.
Employees of BPOs who operate remotely are subject to the same performance criteria as those who work onsite; this also applies to employees who works onsite.
This labor code is a response to the growing number of Philippines BPO workers in the local labor sector. The Department of Labor and Employment (DOLE) amended the labor code to cover the rights and benefits of BPO workers addressing their working conditions.
Furthermore, it give highlights the employers’ responsibilities for ensuring the health and safety of their employees and their working environment, and it requires employees to follow the Occupational Safety and Health Standards mandated by the DOLE.
Before this provision, women are prohibited on working graveyard shifts which disallowed women to work in Philippines BPO companies as this industry often works at night, but to provide equal opportunities, DOLE has amended the labor code. It enables female BPO employees to work into the night to meet their deadlines.
Also carefully taken into account in the amendment were breastfeeding and pregnant women. It mandates them to submit a medical clearance from a reliable doctor before permitting them to work.
To promote improved health and safety, employers must provide female employees (and all employees) with secure and hygienic accommodations. It includes sleeping spaces and rest places. This exemption may be revoked if any of these conditions are violated.
Prime Outsourcing and Data Privacy
While there may be a wide array of best BPO companies in the Philippines, here at Prime Outsourcing, we make sure none of our clients nor our employees are harmed by any kind of data breach. We ensure top-notch services while providing strict and professional security for all of your provided information. The company operates under the Data Privacy Act of 2012, guaranteeing that all of your data are solely used as a requirement to make the best out of our offered services. Visit our Privacy Policy and Terms of Use for more details. Rest assured that the company follows all the provisions promulgated for Philippines BPO.
For any kind of outsourcing needs or BPO Solutions, Prime Outsourcing has it all for you. To know more about our company and the services we offer, you can proceed to our Services page. Allow us to help you scale your business and reach all your business goals while making sure there are no laws violated!
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