Special Groups of Employees

The law recognizes these special groups of employees: A-L-W-M-H-H-H-N apprentices,

learners, women, minor, househelper, non-resident alien, handicapped and homeworker.
Accordingly, there are special rules which govern them

Homeworker
A homeworker is one who processes or fabricates any goods, articles, or materials in or about
a home. An employer of a homeworker includes any person, whether natural or artificial who, for
his account or benefit, or on behalf of any person residing outside the country, directly or
indirectly, or through an employee, agent contractor, or sub-contractor or any other person either
to:
1. Deliver or cause to be delivered, any goods, articles or materials to be processed or
fabricated in or about a home and thereafter to be returned or to be disposed of or
distributed in accordance with his directions; or
2. Sell any goods, articles or materials to be processed or fabricated in or about a home and
then rebuys them after such processing, either by himself or through some other person.
Ordinarily, homeworkers are those who make handicrafts or handiworks such as rattan bags,
souvenir items, printed shirts, and the like. They are ordinarily a small group and sometimes a
cooperative who produce these commodities. , most homeworkers are considered low skilled labour.
With the rise of the Internet, there are many who work online from the comforts of their home.
Some of these include freelance writers, bloggers, photographers, computer programmers,
and designers. So long as they process or fabricate goods, articles, or materials, they may be
considered homeworkers. For instance, writers can sell their articles or photographer can trade
their photos.
However, those working from home who offer services cannot be considered as homeworker as
they are not included in the definition. For example, those who offer services as a virtual secretary
or staff are in the service industry. They do not primarily manufacture any good, article, or
material.
Homeworkers or home workers are defined by the International Labour Organization as
people working from their homes or from other premises of their choosing other than the
workplace, for payment, which results of a product or service specified by the employer.
There are an estimated 300 million homeworkers in the world, though because these workers
generally function in the informal economy, and are seldom registered and often not contracted,
exact numbers are difficult to come by. Recently, the phenomenon of homework has grown with
increased communication technology, as well as changes in supply chains, particularly the
development of Just In Time inventory systems.
Homeworkers are often employed in piece work.
Homeworkers differ from entrepreneurs, or self-employed, or family business, in that they are
hired by companies for specific activities or services to be done from their homes.
Homeworkers do not own or operate the business they work for.
Employment of Homeworkers
SECTION 1. General statement on coverage. — This Rule shall apply to any homeworker who
performs in or about his home any processing of goods or materials, in whole or in part, which
have been furnished directly or indirectly by an employer and thereafter to be returned to the
latter.

Definitions
"Home" means any room, house, apartment, or other premises used regularly, in whole or in part,
as a dwelling place.

"Employer" means any natural or artificial person who, for his own account or benefit, or on
behalf of any person residing outside the Philippines, directly or indirectly, or through any
employee, agent, contractor, sub-contractor; or any other person:

(1) Delivers or causes to be delivered any goods or articles to be processed in or about a

home and thereafter to be returned or to be disposed of or distributed in accordance with
his direction; or
(2) Sells any goods or articles for the purpose of having such goods or articles processed in
or about a home and then repurchases them himself or through another after such
processing.
 "Contractor" or "sub-contractor" any person who, for the account or benefit of an employer,
delivers or caused to be delivered to a homeworker goods or articles to be processed in or
about his home and thereafter to be returned, disposed of or distributed in accordance with the
direction of the employer.

"Processing" means M-F-F-R-A-P-W-H manufacturing, fabricating, finishing, repairing,

altering, packing, wrapping or handling any material.

Payment for work

(a) Immediately upon receipt of the finished goods or articles, the employer shall pay
the homeworker or the contractor or sub-contractor, for the work performed; Provided,
However, that where payment is made to a contractor or sub-contractor, the
homeworker shall be paid within the week after the contractor or sub-contractor has
collected the goods or articles from the homeworkers.

(b) The Secretary of Labor and Employment shall from time to time establish the
standard minimum piece or output rate in appropriate orders for the particular work or
processing to be performed by the homeworkers.

The standard output rates or piece rates shall be determined through:

1. Time and Motion Studies
2. An agreement between the employer and workers as approved by the Secretary.
3. Consultation with representative of employers in a tripartite conference called by
the Secretary
Deductions
No employee, contractor, or sub-contractor shall make any deduction from the homeworker's
earnings for the value of materials which have been lost, destroyed, soiled or otherwise damaged
unless the following conditions are met:

(a) The homeworker concerned is clearly shown to be responsible for the loss or damage;

(b) The employee is given reasonable opportunity to show cause why deductions should not be
made;

(c) The amount of such deduction is fair and reasonable and shall not exceed the actual loss or
damages; and

(d) The deduction is made at such rate that the amount deducted does not exceed 20% of the
homeworker's earnings in a week.

Conditions for payment of work.

(a) The employer may require the homeworker to re-do work which has been improperly
executed without having to pay the stipulated rate more than once.

(b) An employer, contractor, or sub-contractor need not pay the homeworker for any work
which has been done on goods and articles which have been returned for reasons attributable
to the fault of the homeworker.

Disagreement between homeworkers and employer

In cases of disagreement between the homeworker and the employer, contractor or
sub-contractor, either party may refer the case to the Regional Office having jurisdiction over
the homeworker.
The Regional Office shall decide the case within ten (10) working days from receipt of
the case. Its decision shall be final and unappealable.