Key Definitions
- Industrial Homework: Production system carried out at home with little supervision; materials may or may not be furnished.
- Industrial Homeworker: Worker engaged in industrial homework.
- Home: Regular dwelling place excluding premises under employer’s direct supervision.
- Employer: Person who delivers materials to be processed at home or sells materials for processing then repurchases them.
- Contractor/Subcontractor: Person delivering goods to homeworkers for processing under employer's direction.
- Processing: Manufacturing, fabricating, finishing, repairing, packing, or handling connected with production.
- Cooperative: Registered association under the Cooperative Code.
- Department: Department of Labor and Employment (DOLE).
Right to Self-Organization
- Homeworkers can freely form, join, or assist any organization in accordance with the law.
Registration of Homeworkers' Organizations
- Requirements include payment of a P55 fee, officer and member lists, meeting minutes, financial reports, and constitution/by-laws.
- Organizations must have at least 20% membership of the bargaining unit.
Registration of Employers, Contractors, and Subcontractors
- DOLE will coordinate with other agencies to align registration requirements and possibly adopt a common registration form.
Payment Procedures
- Employer must pay homeworker or contractor immediately upon receiving finished goods.
- Contributions for SSS, MEDICARE, and ECC premiums are deducted from homeworkers’ pay and remitted accordingly.
Establishment of Standard Rates
- DOLE can set standard output or minimum rates via time and motion studies, agreements, or tripartite consultations.
- Regional offices conduct studies; results are enforceable.
- Non-compliance can be subject of complaints.
Wage Deductions
- Deductions for lost/damaged materials allowed only if homeworker responsible, given chance to explain, amount reasonable and capped at 20% of weekly earnings.
Conditions on Payment
- Employers may require one redo of improperly done work without additional pay.
- No payment for work on returned goods due to homeworker's fault.
Enforcement Powers and Dispute Resolution
- Regional Director can order compliance and resolve money claims up to P5,000.
- Larger claims forwarded to National Labor Relations Commission.
- Decisions of Regional Office are final.
- Non-compliance subject to prosecution under Labor Code.
Duties and Liabilities of Employers, Contractors, and Subcontractors
- Contracts must ensure payment according to this Rule.
- Employers are jointly liable if contractors/subcontractors fail to pay.
- Required to assist homeworkers in maintaining safe and healthful work conditions.
Employment of Minor Homeworkers
- Governed by applicable provisions of the Labor Code and Child and Youth Welfare Code.
Prohibited Homework
- No homework involving explosives, drugs/poisons, or toxic substances.
Technical Assistance Provided
- DOLE Regional Office to assist homeworkers and employers on:
- Wage information
- Time and motion studies
- Skills training
- Workplace safety and health
- Social security and compensation benefits
- Loan facilitation
- Housing program information
Relation to Other Regulations
- This Rule does not reduce or withdraw existing benefits under any law, order, or policy.
Effectivity
- Effective 15 days after publication in two newspapers of general circulation.