In the Philippines, the Domestic Workers Act, or Republic Act No. 10361 (widely known as the Batas Kasambahay), serves as the primary legal framework protecting the rights and welfare of domestic workers. When a kasambahay reaches a milestone of long-term service, their entitlements transition from basic monthly protections to significant terminal and retirement benefits.
I. Fundamental Rights During Employment
Before discussing long-term benefits, it is essential to establish the baseline rights that must be consistently met throughout the duration of service:
- Standard Minimum Wage: Set by the Regional Tripartite Wages and Productivity Board (RTWPB).
- Rest Periods: At least 8 hours of daily rest and one (1) 24-hour rest period per week.
- Living Conditions: For live-in workers, this includes three adequate meals a day and humane sleeping arrangements.
- Mandatory Social Benefits: After one month of service, the employer must register the worker and pay the employer’s share of contributions for SSS, PhilHealth, and Pag-IBIG.
II. Leave Entitlements for Long-Term Service
As a domestic worker stays longer with an employer, their right to paid leave becomes enforceable:
1. Five-Day Paid Service Incentive Leave (SIL)
A kasambahay who has rendered at least one (1) year of service is entitled to an annual service incentive leave of five (5) days with pay.
- Unlike the Labor Code for commercial employees, unused SIL for domestic workers is generally not required to be converted to cash at the end of the year unless stipulated in the contract, but it remains a mandatory paid break.
2. Maternity and Paternity Leave
Long-term female workers are entitled to 105 days of paid maternity leave under the Expanded Maternity Leave Law, provided they have met the SSS contribution requirements. Male workers are similarly entitled to 7 days of paternity leave.
III. Financial Milestones: The 13th Month Pay
Regardless of the length of service, a kasambahay is entitled to a 13th-month pay, provided they have worked for at least one month. For long-term employees, this is calculated as 1/12 of the total basic salary earned within a calendar year, paid no later than December 24.
IV. Retirement Benefits
The most critical legal protection for long-term domestic workers is the right to retirement pay. Under the law and the SSS guidelines:
- Compulsory Retirement: At age 65.
- Optional Retirement: At age 60 (or as stipulated in the contract).
- Eligibility: To receive a monthly pension from the SSS, the worker must have paid at least 120 monthly contributions.
Note on Private Retirement: If the kasambahay is not covered by the SSS (which would be a violation of law), the employer may be held liable for retirement pay equivalent to at least one-half (1/2) month salary for every year of service, where a fraction of at least six (6) months is considered as one whole year.
V. Separation and Termination
Long-term service creates a "security of tenure" where a worker cannot be dismissed without Just Cause (e.g., misconduct, fraud, or crime) or Authorized Cause.
1. Separation Pay
If the employment is terminated for an authorized cause (such as the death or insolvency of the employer, or if the employer can no longer provide work), the worker is generally entitled to separation pay.
2. Termination without Cause by the Employer
If the employer terminates the worker without a valid reason and without a 15-day notice, the employer must pay the worker the salary earned plus an indemnity equivalent to fifteen (15) days’ work.
3. Termination by the Worker
If a long-term kasambahay decides to leave:
- With Notice: They must give a 5-day notice to the employer.
- Constructive Dismissal: If the worker leaves due to verbal abuse, physical ill-treatment, or a crime committed by the employer, the worker is entitled to all earned wages plus an indemnity equivalent to 15 days of work.
VI. Proof of Service and Clearance
Upon the conclusion of long-term service, the employer is legally obligated to provide a written communication of termination and a Certificate of Employment within five (5) days of the worker's request, stating the period of service and the type of work performed.