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FIRB should evaluate on-site work for BPOs, according to Solon.

MANILA, Philippines — On Thursday, a party-list representative advocated for the work-from-home arrangement for employees of business process outsourcing (BPO) enterprises in special economic zones to be maintained.

ACT-CIS Rep. Nia Taduran has asked the Fiscal Incentives Review Board (FIRB) to rethink its deadline of April 1 for BPO workers to physically report to work.

Although BPOs in special economic zones are covered by Republic Act 7916, or the Special Economic Zone Act of 1995, which requires all registered companies to operate within the ecozones to benefit from tax incentives, Taduran pointed out that incentives must still be available as long as a BPO firm’s head office remains within a PEZA-administered building or facility.

“In addition, we have a Telecommuting Law that applies to the entire country, including special economic zones,” she added.

The “Telecommuting Act,” or Republic Act 11165, refers to a “work arrangement that allows a private sector employee to work from a remote location using telecommunication and/or computer technologies.”

“Moreover, with the soaring prices of petroleum products, which translates to rises in fares, basic foodstuffs, and so on,” Taduran said, “it is actually more practical to retain the work-from-home program.”

“We must accept that things have not yet returned to normal. As a result, the administration should not cling to the pre-pandemic terms. We fear losing these investors to our neighboring countries if BPOs are obliged to do so,” she noted.

The work from home (WFH) arrangement, according to Deputy Speaker Loren Legarda, has proven to be effective in reducing health risks and preventing the spread of the coronavirus illness (Covid-19) without harming the economy.

“Despite the WFH arrangement, the Philippine economy has been able to survive over the past two years, and our economic activity is currently more active than ever thanks to the growing number of micro, small, and medium companies (MSMEs) in the country. We believe the WFH partnership can keep this momentum going “she stated

This remote setup, according to Legarda, will also help about 1.3 million BPO workers cope with growing gasoline and transportation expenses by providing them with the same mitigating chances as other industries hit by the current crisis.

“Unfortunately, we now have other factors to consider aside from Covid-19: the unexpected rise in oil prices caused by the Russo-Ukrainian crisis, which is now affecting the prices of our basic commodities, and the climate crisis, which is expected to worsen unless we take drastic measures such as reducing our total carbon footprint,” she said.

On August 2, 2021, the FIRB published Resolution No. 19-21, permitting WFH arrangements “not exceeding 90% of the whole workforce” of registered IT-BPM firms until March 31 only.

The resolution also allowed registered commercial firms in the Information Technology and Business Process Management (IT-BPM) sector to continue using WFH arrangements without jeopardizing their CREATE tax benefits.

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

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