DOLE New Labor Laws: Overview of Recent Amendments 2025

February 26, 2025

The Department of Labor and Employment (DOLE) in the Philippines has recently implemented significant changes to labor laws to enhance worker protections and clarify employer obligations. This article analyzes these developments in depth, focusing on key areas such as service charge entitlements for non-regular employees, employment regulations for foreign nationals, and updated wage guidelines for holidays and special days.

In response to the evolving labor landscape, DOLE New Labor Laws have introduced a series of reforms designed to address contemporary employment challenges. These reforms reflect the government’s commitment to ensuring fair treatment for all workers and maintaining a balanced relationship between employers and employees. Notably, the DOLE New Labor Laws encompass a broader inclusion of non-regular employees in service charge distributions, revised procedures for hiring foreign nationals, and updated compensation structures for work performed during holidays.

Non-Regular Employees Entitled to Service Charge

Traditionally, service charges collected by hotels and restaurants were distributed exclusively among regular employees. However, recent directives from DOLE have expanded this entitlement to include non-regular employees, recognizing their contributions to service delivery.

Key Provisions:

Inclusive Distribution: Service charges are now to be equitably shared among all employees, regardless of their employment status. This move aims to promote inclusivity and acknowledge the efforts of probationary, contractual, and agency-hired workers.
Proportional Allocation: The distribution is based on the actual hours worked, ensuring that both full-time and part-time employees receive a fair share corresponding to their contributions.
Transparency Measures: Employers must establish a clear and transparent system for service charge distribution, with records accessible to all employees. This fosters trust and accountability within the workplace.

This policy shift underscores DOLE’s dedication to equitable labor practices, ensuring all employees benefit from the service charges collected through their collective efforts.

DOLE Issues New Rules on Employment of Foreign Nationals in the Philippines

In January 2025, DOLE released Department Order No. 248, introducing comprehensive guidelines governing the employment of foreign nationals. These regulations aim to streamline the hiring process while safeguarding opportunities for the local workforce.

Key Changes:

Pre-Employment AEP Applications: Employers can now file for an Alien Employment Permit (AEP) on behalf of a foreign candidate before they arrive in the Philippines. The permit, however, will only be issued once the individual has entered the country, ensuring compliance with immigration protocols.
Enhanced Labor Market Test: To prioritize Filipino workers, employers are required to advertise job vacancies on multiple platforms, including newspapers of general circulation, the PhilJobNet (the government’s official job portal), and the Public Employment Service Office (PESO) in the locality where the job is based. This expanded advertising aims to ascertain the unavailability of qualified local candidates before considering foreign applicants.
Understudy and Skills Development Programs: Certain positions filled by foreign nationals now necessitate the implementation of structured training programs. These initiatives are designed to transfer knowledge and skills from foreign employees to Filipino understudies, promoting local talent development and reducing dependency on foreign labor over time.

These regulations reflect a balanced approach, facilitating the employment of foreign experts where necessary while reinforcing the development and prioritization of the local workforce.

DOLE Releases 2025 Wage Guidelines for Holidays and Special Days

DOLE has issued updated guidelines detailing the computation of wages for work performed on regular holidays, special non-working days, and special working days in 2025. These guidelines aim to ensure fair compensation and provide clarity to both employers and employees regarding their rights and obligations. (Inquirer)

Regular Holidays:

Non-Working Employees: Employees who do not work on regular holidays are entitled to 100% of their daily wage, provided they are present or on authorized leave on the workday immediately preceding the holiday.
Working Employees: Those who work on regular holidays are entitled to 200% of their daily wage for the first eight hours. Overtime work warrants an additional 30% of the hourly rate. If the holiday coincides with the employee’s rest day, 30% is added to the 200% wage.

Special Non-Working Days:

Non-Working Employees: The “no work, no pay” principle applies unless there is a favorable company policy or collective bargaining agreement.
Working Employees: Employees on special non-working days receive an additional 30% of their daily wage for the first eight hours. Overtime hours are compensated with an extra 30% of the hourly rate. If the day falls on a rest day, the premium increases to 50% of the daily wage for the first eight hours.

Special Working Days:

All Employees: Work performed on special working days is compensated as a regular working day, with no additional premium. The “no work, no pay” policy applies to those who do not work unless otherwise stipulated by company policies or agreements.

These guidelines ensure that employees are justly compensated for work during holidays, reflecting DOLE’s commitment to upholding fair labor standards. (Global Compliance News)

Is Assistance Available?

Yes, Triple i Consulting can help businesses navigate and comply with the latest labor laws in the Philippines. Our services ensure compliance with DOLE regulations, making business operations seamless and legally sound.

Need help? Contact us today to schedule an initial consultation with one of our experts: