ECOP on WFH: Follow incentive rules on ecozone locators

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The Employers Confederation of the Philippines (ECOP) has expressed apprehension over the continued enjoyment of incentives of  companies which implement work from home (WFH), saying the law on economic zones should be strictly followed.

Sergio Ortiz-Luis, president of the Employers Confederation of the Philippines (ECOP), yesterday said the wisdom of granting incentives to locators in ecozones is that operations are done onsite and thus incentives should accrue to companies operating on ground.

Ortiz-Luis said bills have been filed in Congress granting incentives to hybrid or WFH operations.

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He added companies implementing hybrid work at present are being tolerated because “there’s just a few of them.”

“Those (employees) working from home have the advantage than those working on site. They  can spend more time with their families, are not subjected to traffic, incur no transportation and meal costs nor do they need to  wake up early,” Ortiz-Luis said.

Ortiz-Luis said under the PEZA law, companies that choose to have workers operate outside these ecozones have to give up the perks.

“I’m not saying they should be stripped of incentives altogether but if it is the rule, then follow the law. If they want to enjoy incentives, then work onsite,” he said.

He added if the interpretation of the law is wrong, “then go to the court not in the court of public opinion,” referring to the groundswell of support generated from all fronts of WFH, especially for the information technology-business process management (IT-BPM) industry.

In a separate statement yesterday, the Information Technology Business Process Association of the Philippines (IBPAP)  belied claims of the Fiscal Incentives Review Board (FIRB) the extension by the PEZA of the 30-percent WFH arrangement till March has no legal basis.

IBPAP president and chief executive officer Jack Madrid said the group stands by PEZA and its power to enable hybrid work for registered business enterprises (RBEs), providing  as a  legal basis for the continuance of the 30 percent WFH arrangement for IT-BPM companies.

Madrid said IBPAP’s push to have WFH/hybrid work arrangements goes beyond business continuity plans related to the  pandemic but more to adopt to global work trends for business flexibility that investors look for and to strengthen our country’s competitiveness in retaining existing and attracting new IT-BPM investors.

“The fact that there is a clamor for and an overwhelming preference for WFH/hybrid work expressed by employees due to many other justifiable reasons that also have gained tremendous public attention should make government’s decision to consider allowing said work setup even more compelling,” Madrid said.

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