The Republic Act No. 10361, otherwise known as the "Batas Kasambahay" (Domestic Workers Act), provides a comprehensive regulatory framework to protect the rights of domestic workers in the Philippines. This legislation elevates domestic work to the status of formal employment, ensuring that kasambahays are entitled to specific benefits and protections analogous to those in the private sector.

I. Mandatory Statutory Benefits

Under the law, a kasambahay is entitled to several mandatory benefits that the employer must provide. Failure to comply with these constitutes a violation of labor standards.

1. Minimum Wage and Payment

Minimum Wage: Domestic workers must receive a wage not lower than the minimum rate set by the Regional Tripartite Wages and Productivity Board (RTWPB). These rates vary depending on the region (e.g., NCR vs. provincial areas).
Mode of Payment: Wages must be paid in cash at least once a month. Payment by vouchers, coupons, or tokens is strictly prohibited.
Pay Slip: Employers are required to provide a written pay slip containing the amount paid and any authorized deductions.

2. Statutory Contributions

If the kasambahay has rendered at least one (1) month of service, the employer is mandated to enroll them in and pay the employer’s share of contributions for:

Social Security System (SSS)
Philippine Health Insurance Corporation (PhilHealth)
Pag-IBIG Fund (Home Development Mutual Fund)

Note: If the kasambahay earns less than ₱5,000.00 per month, the employer pays the entire premium. If they earn ₱5,000.00 or more, the worker pays their proportionate share.

3. 13th Month Pay

The kasambahay is entitled to a 13th-month pay, which must be paid no later than December 24 of every year. It consists of 1/12 of the total basic salary earned by the employee within a calendar year.

4. Service Incentive Leave (SIL)

A domestic worker who has rendered at least one year of service is entitled to an annual service incentive leave of five (5) days with pay. Unused leaves are generally not commutable to cash at the end of the year unless stipulated in the employment contract.

II. Working Conditions and Rest Periods

To ensure the well-being of the domestic worker, the law mandates specific rest periods:

Daily Rest: An aggregate daily rest period of eight (8) hours per day.
Weekly Rest: At least twenty-four (24) consecutive hours of rest in a week. The schedule is agreed upon by both parties.
Board and Lodging: The employer must provide free board and lodging (three adequate meals a day) and basic medical assistance (first-aid medicines). These cannot be deducted from the worker's salary.

III. Separation Pay and Termination

The rules regarding separation pay depend heavily on the circumstances of the termination—specifically, whether the termination was for a "just cause" or if the contract was breached.

1. Termination by the Employer

For Just Cause: If the employer terminates the worker for valid reasons (e.g., misconduct, gross negligence, fraud, or violation of contract), the employer is not required to pay separation pay.
Without Just Cause: If the worker is terminated before the expiration of the contract without a valid reason, the employer must pay:

Earned wages; and
An indemnity equivalent to fifteen (15) days’ work.

2. Termination by the Domestic Worker

For Just Cause: If the worker leaves due to verbal/emotional abuse, inhuman treatment, or commission of a crime by the employer, they are entitled to earned wages plus an indemnity of fifteen (15) days’ work.
Without Just Cause: If the worker leaves without cause, they forfeit any entitlement to separation pay and may be liable for any deployment expenses incurred by the employer if the departure occurs within six months of employment.

3. Mutual Agreement or Expiration

If the employment ends because the contract period has expired or by mutual agreement, the employer is only required to pay the earned wages and the pro-rated 13th-month pay. Separation pay is not legally required in these instances unless it was specifically granted in the written employment contract.

IV. The Requirement of a Written Contract

For any of these benefits and separation terms to be enforceable and clear, the law requires a Written Employment Contract in a language or dialect understood by both the employer and the kasambahay. This contract must be registered with the Barangay and should detail the:

Duties and responsibilities.
Period of employment.
Compensation and authorized deductions.
Hours of work and rest days.
Allowable leaves.