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June 1, 2022

Business Law and Labor Law Updates

The topics below may be relevant to your daily activities, especially those which involve business law, labor law, and other legal areas of your business.

 

 


Telecommuting as An Alternative Work Arrangement


REPUBLIC ACT No. 11165 or “Telecommuting Act” has been approved since December 20, 2018. Initially, this law was enacted to mitigate the adverse effects of traffic congestion in Metro Manila and other urban areas and, at the same time, take advantage of the advances in digital technology. However, with the COVID-19 outbreak, many employers also resorted to Telecommuting as an alternative work arrangement in order to thwart any possible COVID 19 transmission in the workplace, without compromising the continuous workflow.

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WHAT TO EXPECT IN AREAS UNDER MODIFIED GENERAL COMMUNITY QUARANTINE


Some parts of the Philippines are already under Modified General Community Quarantine (MGCQ) since June 01, 2020 while the National Capital Region were among those areas under General Community Quarantine. What is MGCQ? According to the Omnibus Guidelines on the Implementation of Community Quarantine in the Philippines issued by Inter-Agency Task Force, MGCQ refers to the transition phase between General Community Quarantine (GCQ) and New Normal, when temporary measures are relaxed. The measures on limiting the movement and transportation, the regulation of operating industries, and the presence of uniformed personnel to enforce community quarantine protocols become less necessary.

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HIGHLIGHTS OF THE GUIDELINES FOR AREAS PLACED UNDER GENERAL COMMUNITY QUARANTINE (GCQ)


The National Capital Region and some parts of the Philippines were placed under General Community Quarantine (GCQ) last June 01, 2020. GCQ refers to the implementation of temporary measures limiting movement and transportation, regulation of operating industries, and presence of uniformed personnel to enforce community quarantine protocols.

Few days after GCQ, evident problems such as those relating to insufficient or lack of public transportation to attend to the traveling needs of citizens have emerged. It seems that some of us are not aware of with the developments under GCQ. What now should we expect in areas under GCQ?

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Tax Exemption for Nonstock Nonprofit Corporation


A nonstock corporation is one where no part of its income is distributable as dividends to its members, trustees, or officers. It may be exempted from paying income tax, if it falls to any of the following:

  1. Labor, agricultural or horticultural organization not organized principally for profit.
  2. Mutual savings bank not having a capital stock represented by shares, and cooperative bank without capital stock organized and operated for mutual purposes and without profit;

 

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