In the Philippines, a new government order that puts an end to remote work arrangements caused by an epidemic in the Business Process Outsourcing (BPO) sector is forcing many workers to quit their jobs. According to the Alliance of Call Center Workers (ACW), one-fifth of its members indicated they would resign or leave the BPO industry if a return order to the office was passed. The order is due to take effect on April 1.
The policy will affect about 1.4 million workers who entered into home-based work arrangements (WFH) with their employers in March 2020, when the government began implementing lengthy COVID-19 closures. These employees include IT professionals, digital content creators, non-voice service providers and customer service representatives in call centers and other BPO companies. According to the Treasury Department, companies in the $ 29 billion BPO industry will lose their tax incentives if they do not enforce the return order to the ministry.
No protest
as per CNN Philippines, The ACW clarified that the mass resignation of its members is not a protest but a proof that returning to the office will not be easy for employees. Many BPO workers who were allowed to work off-site returned to their hometowns outside of Metro Manila during the plague. For these workers, returning to the city will be difficult and expensive.
For the rest, it will be a difficult choice between employment and the remote work benefits to which they have become accustomed. Working from home means being able to spend time with families, avoid long hours of travel on the busy roads of Manila, spend less on rent and transportation, and improve productivity.
While the deadline for enforcing a restraining order, employees turn to further remote work arrangements or a hybrid approach, where they do not have to be in place every work week.
The Philippine government wants workers to return to offices
The directive to return to office comes at a time when the state is seeking to re-energize an economy hit by the COVID-19 epidemic. When BPO employees return to the office, government officials expect profits for the commercial real estate industry as call center companies renew leases. The presence of employees in city centers can also breathe life into businesses like malls, restaurants, bars and cafes.
In a statementFinance Minister Carlos Dominguez, who heads the country’s Fiscal Incentives Review Board, said, “The return of workers to the ministry will provide more opportunities and pave the way for the recovery of local micro, small and medium-sized enterprises dependent on IT-BPM (business process management) workers for a living.” .
But a return order to the office is a mystery to BPO companies. On the one hand, stopping work plans from home may require higher taxes to be paid, which will affect their ability to grow. On the other hand, requiring employees to return to the office can result in a variety of resignations, which will lead to operational disruption.
In an interview with Nike Asia, One HR manager admitted that their company is preparing for high burnout rates. “We have been told to increase recruitment because many may leave as soon as we return to the office,” the principal said. “There are a lot of virtual home assistant jobs where they can move.”
