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On-site IT-BPM work arrangements boosted productivity.

MANILA, Philippines — Senator Leila de Lima on Tuesday backed the call for the on-site work arrangements to be suspended by the Information Technology and Business Process Management (IT-BPM) businesses.

De Lima stated in a statement that the Fiscal Incentives Review Board (FIRB) should follow IT-BPM firms’ plea to temporarily halt the RTO ruling.

“IT-BPM companies put money into WFH (work-from-home) arrangements for their staff, and it paid off for everyone. They were able to watch the IATF’s health protocols in action. Their employees were able to keep their jobs. “And the economy survived another day,” she added.

According to De Lima, the suspension of RTOs can help with traffic congestion.

“Productivity is boosted under a WFH setup of an IT-BPM organization because inefficiencies caused by horrible traffic circumstances are removed,” De Lima stated.

According to her, approving IT-BPM enterprises’ demands will protect their employees and their families from the ongoing threat of Covid-19 infections, as the pandemic is still ongoing.

“We’re in the midst of a transportation emergency. The price of petroleum goods is at all-time highs, and several of our transportation service providers are considering reducing back or ceasing operations completely since the costs are unsustainable,” she noted.

The RTO ruling, according to De Lima, “would result in a net positive gain for the country’s economy.”

“If the working conditions are abruptly changed, the industry risks losing resources and trained people.” “There’s no guarantee that other enterprises in the eco-zones will succeed in the short term during an ill-planned transition,” she warned.

De Lima also mentioned that the WFH permitted IT-BPM enterprises to hire more Filipinos than their physical headquarters could accommodate.

“It’s something we can look at to help our country create more meaningful jobs,” she continued.

The FIRB issued Resolution No. 19-21 on Aug. 2, 2021, authorizing the WFH arrangement “not exceeding 90 percent of the total workforce” of registered IT-BPM firms until March 31, only, in order to revive the Philippine economy, which has been struck severely by the current health crisis.

The ruling also permitted registered IT-BPM businesses to continue employing WFH arrangements without jeopardizing their tax incentives under the CREATE law (Corporate Recovery and Tax Incentives for Enterprises).

Various business process outsourcing (BPO) organizations affiliated with the Alliance of Call Center Workers (ACW) said on Thursday that they are willing to forego government tax breaks in exchange for continuing to use the WFH arrangement for its employees.

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