Yes, it is definitely legal to hire part time employees in the Philippines! the Department of Labor and Employment (DOLE) governs part-time employment primarily through its Explanatory Bulletin on Part-Time Employment (dated January 2, 1996) and the general provisions of the Philippine Labor Code.
Definition and Common Forms
- Definition:
- Part-time employees are workers whose regular hours of work are substantially less than the normal eight-hour workday. The International Labor Organization states part-time employment definition as a job that offers fewer hours than the standard full-time work schedule. It doesn't include roles with temporarily reduced work hours
- Part-time hours vary across industries and companies. Part-time employees work less than 30 hours per week. There are also no part-time minimum hours required. This arrangement caters to job seekers looking for alternatives to the usual 40-hour workweek. There are two acceptable forms of part-time employment: four hours of work per day and a full two days of work per week.
- Common Patterns: Typically includes schedules such as working 4 hours per day, weekend work, or 2 full days per week. [1, 2, 3]
Key DOLE Rules on Part-Time Employees
- Proportional Wages:
- Part-time employees must be paid based on the hourly or daily equivalent of the applicable regional minimum wage.
- Employers can proportionately decrease daily compensation and certain benefits to match the actual number of hours worked, but they cannot pay a rate lower than the legal proportional minimum. [1, 2]
- Security of Tenure:
- Part-time workers enjoy full security of tenure.
- Working fewer than eight hours a day does not automatically make someone a casual or non-regular employee. If a part-time worker performs tasks that are usually necessary or desirable to the employer's main business, they can attain regular employment status.
- Termination requires just or authorized causes and compliance with due process. [1, 2, 3]
- Probationary Period:
- The standard six-month probationary period can be extended proportionally so that the total cumulative hours worked equal the total hours a full-time employee would work during a six-month probation. [1, 2]
- Overtime and Extra Hours:
- If a part-time employee works beyond eight hours a day, they are legally entitled to overtime pay (an additional 25% or more of their regular hourly rate). [1, 2, 3]
- Statutory Benefits and Contributions:
- 13th Month Pay: Part-time workers are entitled to 13th-month pay, which is typically prorated based on the total basic salary they actually earned during the calendar year.
- Social Security: Employers must register and remit contributions for SSS, PhilHealth, and Pag-IBIG if a valid employer-employee relationship exists. [1, 2]
- So yes... part tome workers should also be eligible for SSS, Philhealth and HDMF (Pag-Ibig).
- Holiday Pay:
- Determined on a case-by-case basis (whichever yields the highest amount for the worker):
- Regular wage per day
- Basic wage on the working day immediately preceding the regular holiday (if present or on paid leave)
- Average basic wage for the last 7 working days (for piece-rate/results-based workers)
- Basic wage on the actual holiday if worked [1]
- So if your question is if a part time worker also gets a holiday pay then the answer is YES.
- Special Non Working Holidays: Follows the "no work, no pay" rule. If worked, a 30% premium pay applies. [1]
- Service Incentive Leave (SIL):
- Yes, employer are required to provide part-time workers to the yearly minimum of 5 days of service incentive leave with pay if they have rendered at least one year of service (continuous or broken, or prorated if the contract/policy covers fewer than 12 months).
So technically a part-time worker is just like any regular employee. They enjoy the same benefits as required by law and the main difference is they work less than 30 hours per week.
Should you need any formal guidance or assistance on how to draft their employment contracts and related legal compliances then we suggests you contact 25EAST CORP. who offers HR Consulting Services and most of the time you actually get the answer for free as they do offer the first consultation as free of charge!.
For time keeping and automated payroll, PINO workspace is definitely able to handle these part time workers as well!
You can review general labor standards directly via the DOLE Conditions of Employment or file specific inquiries through the FOI Labor Code Portal.
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source credits:
[7] https://manilarecruitment.com