Work from Home but Make it Work

The sharp rise in global petroleum prices driven by tensions involving the United States, Israel, and Iran has once again forced governments and businesses to rethink energy consumption. In the Philippines, the public sector has responded with temporary compressed four-day workweek arrangements to reduce commuting and energy use. In the private sector, however, the main legal tool for achieving similar savings is the Telecommuting Act of 2018 (Republic Act No. 11165). While progressive when enacted, current economic pressures reveal weaknesses in its design and implementation. If telecommuting is to become a meaningful strategy for energy conservation and productivity, the law must be strengthened.

One major weakness of the Telecommuting Act is its voluntary nature. The law allows employers to offer telecommuting programs on mutually agreed terms, leaving adoption largely to managerial discretion. In practice, many firms simply choose not to implement remote work even when technology makes it feasible. As a result, the law functions more as an option than as a policy instrument capable of driving systemic change. At a time of rising fuel prices and growing concern for energy conservation, this permissive framework is inadequate. A stronger approach would establish a presumption in favor of telecommuting for jobs that can reasonably be performed remotely, requiring employers who decline to provide a reasonable justification.

Another weakness is the lack of clear and uniform eligibility standards. The law allows employers to determine eligibility through their own telecommuting programs, leading to uneven implementation across industries. Some companies limit telecommuting to managerial staff, while others exclude departments even when the work can be done remotely. The 2022 Revised IRR lists examples of functions suitable for telecommuting, such as research, marketing, finance, administrative work, and information technology, but these remain illustrative rather than mandatory. As a result, access often depends more on company policy than on the nature of the job. Establishing baseline eligibility standards and authorizing the Department of Labor and Employment (DOLE) to issue sector-specific guidelines could promote greater consistency.

A third concern involves the allocation of remote work costs. The Revised IRR clarifies that facilities, equipment, and supplies necessary for telecommuting are ordinary business costs of the employer. However, the rules remain unclear on recurring expenses such as internet connectivity, electricity, and workspace maintenance. In practice, these costs often fall on employees unless addressed in telecommuting agreements. Without clearer cost-sharing mechanisms, telecommuting risks becoming a cost-transfer arrangement from employer to worker. Legislative reforms could require employers to provide a modest telecommuting allowance or equipment subsidy.

The law also does little to address the growing problem of digital overwork. While it recognizes compensable working hours, it provides no safeguards against constant connectivity expectations that often accompany remote work. Telecommuting employees may end up responding to emails and messages beyond regular working hours. Several countries have adopted “right to disconnect” policies to address this issue. Incorporating similar safeguards into Philippine labor policy would help ensure that telecommuting promotes productivity without undermining work-life balance.

Enforcement mechanisms present another limitation. The Telecommuting Act relies primarily on company-level grievance procedures, with the DOLE intervening only when internal processes fail. This assumes that employees have sufficient bargaining power to challenge employer policies, which is not always realistic. Moreover, government oversight remains largely reactive rather than regulatory. A stronger framework would include clearer reporting requirements and more proactive monitoring of telecommuting programs.

The law also remains narrowly framed as a labor policy rather than part of a broader economic or environmental strategy. Telecommuting can reduce fuel consumption, ease traffic congestion, and improve urban mobility, yet the current framework does little to connect it with national energy or transportation policies. Future reforms could align telecommuting with broader development goals, encouraging businesses to adopt remote work during periods of fuel volatility or transportation disruption.

The Telecommuting Act of 2018 was an important step toward modernizing Philippine labor policy. But today’s energy-constrained environment calls for a stronger framework. Updating the law to address its voluntary nature, uneven implementation, cost allocation issues, worker protections, and enforcement gaps would not only improve working conditions but also transform telecommuting into a valuable tool for national resilience in an era of volatile energy markets.

Severo C. Madrona Jr. is a Professional Lecturer at the Department of Commercial Law, RVR College of Business, De La Salle University. With a public policy and business development background, he writes about strategic leadership, labor economics, and fiscal policy.