Protection of Wages Convention, 1949 (No. 95) - Philippines (Ratification: 1953)

Individual Case (CAS) - Discussion: 1990, Publication: 77th ILC session (1990)

The Government has communicated the following information:

The formal review of the Philippines-Iraq Bilateral Labour Agreement has been scheduled for July 1990. The members of the Government panel have been meeting since the first week of June 1990 to strengthen its position on the proposed improvements to the current Agreement. Among the items included in the agenda of the Government panel are: (a) a clear reference in the revised Agreement that wages shall be paid in accordance with the terms of this Convention, specifically Article 3 thereof; (b) arrangements between the Philippine Central Bank and the Iraqi Central Bank to facilitate foreigh exchange remittances by workers in Iraq to their dependents in the Philippines. The Philippine panel foresee no difficulty in the adoption of both proposals in the forthcoming talks since Iraq and the Philippines have both ratified the Convention. Moreover, a reference to Article 3 of the Convention merely affirms the existing practice between the two countries as reflected in the current Bilateral Labour Agreement. The Government gives the assurance that a copy of the revised Agreement will be transmitted to the ILO as soon as available.

In addition, a Government representative noted that his Government had been called before the present Committee to reply to the concern that the Governments of Iraq and of the Philippines might agree upon a scheme whereby Filipino workers in Iraq would be paid partly in legal tender and partly in dollar-denominated promissary notes, which would be contrary to Article 3, paragraph (1), of the Convention. He reiterated that, if there ever had been a proposal, it had not been adopted and that this was evident from the 1982 "Memorandum of Agreement Relating to Mobilization of Manpower between the Republic of the Philippines and the Republic of Iraq". This agreement was still in force. In its last report, the Philippines Government had explained the arrangements presently in force between the two countries concerning the payment of workers' wages. By virtue of the Memorandum of Agreement, all Filipino workers in Iraq were paid fully in legal tender, in conformity with the provision of the Convention. During the discussion before this Committee in 1989, reference had been made to a review of this agreement by both Governments so as to improve the labour ties between Iraq and the Philippines. A negotiating panel had considered including the Committee of Experts' observations on the implementation of this Convention on the agenda of the forthcoming review. It was not improbable, therefore, that a clear reference would be made to the terms of the Convention in the revised agreement, thus affirming the existing arrangements between Iraq and the Philippines as concerned workers' wages. As soon as this formal review, scheduled for July 1990, had been concluded, a copy of the relevant text would be communicated to the Office.

The Employers' members noted that the information provided by the Government representative was somewhat different to the information provided earlier by the Government representative of Iraq. The Government representative of the Philippines had referred to a 1982 "Memorandum of Agreement" and to the formal review of this agreement to take place in July 1990 so as to resolve the question of wages for Filipino workers in Iraq. For the moment, therefore, the situation was unsatisfactory because wages were not paid fully in legal tender, but were rather given in part by promissory notes. The Government should introduce the necessary changes for the full application of the Convention. Both Governments had the obligation to ensure conformity with the Convention: the Philippines Government should ensure conformity because the situation concerned their citizens working abroad, and the Iraqi Government had the obligation to treat all workers in its country according to the law. The Government representative of Iraq had already indicated that everyone was treated equally, but it must also be ensured that workers receive their full wages. The Employers' members requested the Government representative of the Philippines to communicate the results of the forthcoming negotiations as soon as possible. This case had been discussed several times and should be resolved rapidly as the current income of the workers was at stake.

The Workers' members noted that this case still seemed to cause some confusion. They noted that the written information provided by the Government of the Philippines indicated the desire on the part of both Governments to resolve the problem. The Governments should, therefore, take into account the comments made by the Committee of Experts when revising their agreement, so as to bring it into conformity with the Convention. The Office should be informed of the results of this revision.

The Government representative explained that both in the past and at present Filipino workers in Iraq were paid only in legal tender and not with promissory notes. There had been a misunderstanding in this regard before this Committee in the past which the Government now wished to rectify. The formal review of the agreement scheduled for July 1990 would hopefully clarify the whole situation by including in the agreement a specific reference to the provisions of the Convention as concerned the workers' wages.

A Government member of the United Arab Emirates indicated that, after having discussed the matter with the Governments of both Iraq and the Philippines, he understood that both of them had previously expressed the desire that wages be paid partly in cash and partly in another form. The Committee of Experts had requested the Governments not to take any steps to materialise this desire as it would be inconsistent with the Convention. Therefore, the payment of wages partly in cash and partly in promissory notes never took place. The misunderstanding was based on an expressed desire which had never been implemented. The joint meeting to be held in July 1990 would take place in different circumstances and would enable both Governments to ensure the full application of the Convention.

A Government member of Iraq indicated that the statement made by the Government representative of the Philippines confirmed his earlier statement that Filipino workers in Iraq received their full wages in legal tender. He added that requests made by Filipino workers to transfer part of their wages was fully consistent with banking practices in Iraq with respect to wage transfers for all workers. The joint meeting would permit both Governments to ensure full implementation of the agreement in accordance with the Convention.

The Employers' members pointed out that, in the past, there had been some discrepancies between the position taken by the Philippines and that taken by Iraq as concerned the existence of the agreement in question. Now both Governments seemed to be in agreement that wages were paid normally and that there were no problems. As this Committee was not a commission of inquiry, both Governments should be requested to submit written reports explaining once again the situation and to provide a copy of the 1982 Memorandum of Agreement. The Governments' indication that a new agreement would be elaborated in order to reflect the provisions of the Convention logically led to the presumption that this Convention had not been fully complied with in the past. Both Governments should, therefore, provide information concerning not only the old and the new agreement but also on the practical implementation. Information from the banks might be useful in this regard.

The Government representative once again confirmed that there was no provision in the Memorandum of Agreement providing for partial payment of wages in legal tender and partial payment in promissory notes. He added that the Office had just been supplied with a copy of this agreement.

The Committee noted the information supplied by the Government. The Committee hoped that, in view of the previous information supplied, the Government would be in a position to provide further information and full particulars, including the texts of existing agreements and or any agreements under consideration so that a full assessment could be made of the situation of Filipino workers in Iraq.

Individual Case (CAS) - Discussion: 1989, Publication: 76th ILC session (1989)

The Government representative informed the present Committee that at this point in time the Governments of Iraq and the Philippines involved in this case were still pursuing the discussion and review of the existing arrangements. A Filipino mission was currently in Baghdad as part of the follow-up efforts of his Government. As soon as the negotiations were concluded, his Government would provide the ILO with the details of the arrangements; in any case, however, it would send a report on application of the present Convention for the period ending 30 June 1989 right after the said date as requested by the Committee of Experts.

The Workers' members recalled that the present Committee had discussed the same question in relation to the application of Convention 95 by the Government of Iraq at its present session. They thought that it was good to deal with both sides of the question because the two countries were concerned with this Convention. Iraq had stated its willingness to give full implementation to the Convention and, although there was no agreement between the two countries, according to the Government representative of Iraq, Filipino workers were paid in the same way as Iraqi workers were paid in Iraq. If this was the case, then it appeared that there was an accord eliminating the problem. But as long as even a rumour existed to the effect that part of the Filipino workers' salary was being withheld, thereby depriving workers of the benefit of part of their salary, there was cause for concern. They noted that the ongoing negotiations would take account of the requirements of the Convention. If technical assistance of the Office was required, the Workers' members recommended that it be provided. They hoped that the Philippines and Iraq would pay workers normally and apply a decent and acceptable system, including, where appropriate, savings where the workers themselves asked for this to be taken out of their salary.

The Employers' members considered that the situation was neither clear nor satisfactory. For some time there had been talk of arrangements between the countries concerned, but Iraq had stated that no arrangements existed at all. This partial payment of wages was a problem not only because many workers were affected, but also because a good share of the wages was involved. The question involved not only workers going to work in Iraq, but also in other states in the region. A solution had to be found; if necessary the ILO's assistance should be drawn upon through an explicit request. In such an unclear situation, it was necessary to uncover the real facts and the Government representative's intervention was not really sufficient. A request from the Government for ILO assistance would be in the interests of its own workers.

The Government representative expressed his appreciation for the offer of assistance of the ILO which his Government would consider in the event that it should be needed.

The Committee took note of the information provided by the Government representative. It recalled the comments of the Committee of Experts according to which proposals to pay the salaries of Filipino workers working in Iraq were contrary to the provisions of the Convention. The Committee considered that the Government of the Philippines would provide detailed information about arrangements in force and that the agreement to be signed with the Government in Iraq would conform with the provisions of the Convention. The Committee wished to record that the assistance of the ILO might be useful as appropriate.

Direct Request (CEACR) - adopted 2023, published 112nd ILC session (2024)

Previous comment

Article 6 of the Convention. Workers’ freedom to dispose of their wages. Further to its previous request on the need to ensure that the national legislation does not impose mandatory remittances on Filipino migrant workers, the Committee notes that in its report, the Government indicates that the “mandatory remittance” is imposed to protect the welfare of families, dependents and beneficiaries of Filipino migrant workers and to ensure that the foreign exchange earnings of these workers are remitted through authorized financial institutions of the Philippine Government in line with the country’s economic development programme, aimed at alleviating poverty. While noting the information provided by the Government on the reasons for such practices, the Committee recalls that “the system of compulsory remittance occasionally imposed on workers employed abroad serves as a vivid reminder of the real risk of abuse to which the most vulnerable categories of workers may be subjected, and of the need to forcefully reaffirm the inalienable character of the right of workers to receive their wages directly and in full, and to spend them as they please” (2003 General Survey on protection of wages, paragraph 210). The Committee once again requests the Government to take the necessary measures to bring its legislation into conformity with Article 6 of the Convention and to keep the Office informed of progress achieved in this respect.

Direct Request (CEACR) - adopted 2019, published 109th ILC session (2021)

Article 6 of the Convention. Workers’ freedom to dispose of their wages. Further to its previous request on the need to ensure that remittances by overseas workers were made on a purely voluntary basis, the Committee notes that in its report the Government states that Filipino migrant workers have discretion as to how to use their salary and that the Government simply provides a mechanism to make it easier for them should they wish to remit a portion of their salary to their families in the Philippines. At the same time, the Committee notes that section 22 of the Labor Code provides that it shall be mandatory for all Filipino workers abroad to remit a portion of their foreign exchange earnings to their families in the country in accordance with rules and regulations prescribed by the Secretary of Labor. It further notes that, according to sections 2 and 3 of Rule XIII of Book I of the Omnibus Rules implementing the Labor Code, the amount of foreign exchange remittances shall be a minimum of 70 per cent of the overseas workers’ basic salary in the case of construction and sea-based workers, and a minimum of 50 per cent in the case of other workers. Having duly noted the Government’s statement that remittances were made on a voluntary basis, the Committee requests the Government to indicate the measures taken or envisaged to ensure that the national legislation does not impose mandatory remittances on Filipino migrant workers.

Direct Request (CEACR) - adopted 2012, published 102nd ILC session (2013)

Articles 6 and 12 of the Convention. Workers’ freedom to dispose of their wages and regular payment of wages. Further to its previous comments concerning the reparation claims, including claims for unpaid wages, filed by Filipino workers employed in Iraq in the aftermath of the 1990 Gulf War, the Committee notes the Government’s indications that the Philippine Claims and Compensation Committee Secretariat (PCCC) has successfully completed its mission after 16 years of operation during which it received claims from 42,000 individuals and corporations and remitted US$158 million to Filipino claimants affected by the 1990 Gulf War.

In addition, the Committee recalls that it has been drawing the Government’s attention for a number of years to the need to guarantee the freedom of workers to dispose of their wages in relation to initiatives concerning agreements with certain countries designed to regulate the transfer of the wages of Filipino overseas workers. In its last report, the Government indicates that the Philippine Overseas Employment Administration (POEA) is adopting an employment contract for various skills which provides that the employer shall assist the employee in remitting a percentage of his/her salary through the proper banking channel or other means authorized by law. It also indicates that in recent negotiations with countries such as Jordan and Lebanon concerning a standard employment contact for household workers, it was proposed that the employer should help the household worker to remit the salary to his/her designated beneficiary in the Philippines through proper banking channels. The Committee again stresses the importance of ensuring in those agreements that the discretion of the workers concerned as to the use they wish to make of their wages is not restricted in any form or manner. The Committee recalls, in this respect, that any legislation requiring mandatory remittances to the country of a portion of the wages earned by Filipino workers abroad would be inconsistent with the requirements of Article 6 of the Convention. Recalling the Government’s assurances in earlier reports that discussions on similar agreements would address only matters relating to employment opportunities, terms and conditions of employment and not the manner by which wages may be disposed, the Committee requests the Government to take all appropriate steps to ensure that the proposed POEA employment contract and the standard employment contract for household workers currently negotiated with migrant-receiving countries provide for remittances by overseas workers on a purely voluntary basis.

Direct Request (CEACR) - adopted 2008, published 98th ILC session (2009)

Articles 6 and 12 of the Convention and Part V of the report form. Workers’ freedom to dispose of their wages and regular payment of wages. The Committee notes that according to the latest statistical information provided by the Government, as of 30 June 2007, the Philippine Claims and Compensation Committee Secretariat (PNCC) had already disbursed Gulf War compensations to 33,656 claimants amounting to approximately US$168 million. The Government indicates that most of the recipients are mostly poor from remote areas, particularly Mindanao, which makes the release of those funds even more significant. The Committee requests the Government to keep the Office informed of any further progress made in this regard.

In addition, the Committee recalls that in earlier reports, reference was made to negotiations undertaken by the Government concerning agreements with a number of countries with a view to regulating the transfer of wages of Filipino migrant workers employed in these countries. In this regard, the Committee had expressed its concern that any such agreements should not limit, directly or indirectly, the workers’ freedom to dispose of their wages, as required by Article 6 of the Convention. The Committee would be grateful if the Government would provide all available information on the outcome of such negotiations, including copies of any agreements that may have been concluded with migrant-receiving countries.

Direct Request (CEACR) - adopted 2001, published 90th ILC session (2002)

The Committee takes note of the information supplied by the Government in reply to its previous comments concerning war reparation claims filed by Filipino workers employed in Iraq. The Committee notes that initially only Filipino workers who came from Iraq and Kuwait were qualified to submit their application forms for war reparation claims, whereas later the United Nations Compensation Commission (UNCC) decided to receive applications for Gulf War damages of Filipino workers coming from the eastern province of Saudi Arabia. The Committee also notes the statistical data concerning Gulf War reparation claims filed with the UNCC, including those related to unpaid wages of overseas contract workers. The Committee notes in this connection the Government’s indication that in February 1996 the UNCC, through the Philippine Claims and Compensation Committee (PCCC) secretariat, started releasing the funds for the payment of claims for serious physical injury or death relative to the Gulf War.

With respect to the suspended negotiations concerning possible agreements with the governments of a number of countries to regulate the transfer of wages of Filipino workers employed in these countries, the Committee again stresses the importance of guaranteeing in those agreements the principle of free disposal of wages in conformity with Article 6 of the Convention. The Committee requests the Government to continue to supply detailed information on any progress achieved regarding the above questions.

Observation (CEACR) - adopted 1995, published 82nd ILC session (1995)

1. With reference to its previous comments on Article 2(1) of the Convention, the Committee takes note of the explanation by the Government on the applicability of legislative provisions concerning wages to the homeworkers, as well as the attached texts of Rule XIV, Book III of the Rules Implementing the Labour Code (Department Order No. 5 of 4 February 1992), and the Explanatory Bulletin on Employment of Homeworkers. It notes with satisfaction that the provisions of the Labour Code and its Implementing Regulations on the protection of wages apply to homeworkers.

2. The Committee has been commenting on the application of the Convention in respect of Filipino workers employed in Iraq. In this connection, the Committee notes that the Governing Body approved the report of the Committee set up to examine the representation made by the Egyptian Trade Union Federation, under article 24 of the ILO Constitution, alleging non-observance by Iraq, inter alia, of Convention No. 95, with regard to non-payment of wages to Egyptian workers employed in Iraq. The Committee notes the Government's indication that the Philippines has filed reparation claims, including that of unpaid wages owed to workers, with the UN Compensation Committee. With regard to agreements with the governments of countries where Filipino workers are employed, the Committee also notes the Government's indication that, although a meeting of the Philippine-Iraq Commission is tentatively scheduled for October 1994, the Philippine Government cannot take up the wage issue until the embargo on Iraq is lifted. It would be grateful if the Government would continue to supply information on any development on these issues.

The Committee further notes the Government's assurance in response to its direct request concerning Article 6 of the Convention that future discussions of such agreements will take into consideration only matters relating to employment opportunities and conditions, and not the manner by which wages may be disposed. The Committee requests the Government to bear in mind not only that such agreements must not directly limit the workers' freedom to dispose of their wages, but also that they should be free of any provisions that would indirectly have a similar effect, for instance, the limitation on the remittance of wages or savings to the workers' home country.

Direct Request (CEACR) - adopted 1991, published 78th ILC session (1991)

The Committee notes the information supplied in the Government's report and at the Conference Committee (June 1990).

With reference to its previous comments, the Committee notes the information concerning the functions and composition of the National Wages and Productivity Commission and the Regional Tripartite Boards established pursuant to Act No. 6727 of 1988. The Committee also notes the information on the practical application of the Convention.

Article 2, paragraph 1, of the Convention. The Committee notes the explanations provided by the Government concerning the applicability of the provisions of the Labour Code and its implementing regulations to homeworkers (whose conditions of employment, including wages, are to be governed, in accordance with section 153 of the Labour Code, by appropriate regulations adopted by the Labour Secretary). The Government indicated that, in the past, the Ministry of Labour submitted to the National Congress a proposal to include the above workers, particularly those engaged in needlework, in the national regulations dealing with general welfare and protection. In its last report, the Government indicates that homeworkers, in view of their characteristics, are not covered by the provisions of Act No. 6727 of 1988.

The Committee recalls that the Labour Code contains provisions on homeworkers (sections 153-155), and on the regulation of payment of wages by results (section 101). These provisions specify that appropriate regulations shall be adopted by the Ministry of Labour. The Committee therefore requests once again the Government to indicate the measures that have been taken or that are envisaged to ensure that the regulations provided for in the above sections are adopted, and to state whether the proposal mentioned by the Government in its 1987 report, entitled "Inclusion of homeworkers, particularly those engaged in needlework in government regulations to ensure general welfare and protection" is still being examined by the National Congress and, if so, to inform it of the measures that have been taken or are envisaged to ensure the adoption of this proposal. In this connection, the Committee recalls that, whatever form the measures may take, homeworkers are covered by the Convention, and that the Government is therefore required to apply it to them.

Article 6. With reference to its previous comments, the Committee notes that the Government's initiatives concerning agreements with a number of countries, particularly Jordan and Iraq, designed to regulate the transfer of the wages of Filipino workers employed in these countries, have been suspended as a result of the situation prevailing in the region. The Committee takes note of these explanations. It recalls that under this Article of the Convention, workers must be able to dispose of their wages freely, and therefore asks the Government to continue to supply information on any negotiations that might be resumed with governments of countries where Filipino workers are employed.

Observation (CEACR) - adopted 1991, published 78th ILC session (1991)

With reference to its previous comments, the Committee notes the information transmitted by the Government to the Conference Committee in June 1990, the discussion that took place within that Committee and the information contained in the Government's last report.

The Committee recalls its previous observation and the discussion that took place at the Conference concerning the application of the Convention in respect of Filipino workers employed in Iraq. In this connection, the Committee notes that a representation has been made by the Egyptian Trade Union Federation, under article 24 of the ILO Constitution, alleging, inter alia, non-observance by Iraq of Convention No. 95. Consequently, and in accordance with the established practice, the Committee will resume its examination of the questions outstanding concerning the application of the provisions of this Convention once the above-mentioned representation has been dealt with by the competent bodies.

The Committee asks the Government also to refer to its direct request.

Direct Request (CEACR) - adopted 1990, published 77th ILC session (1990)

1. The Committee takes note of the information provided by the Government in its reports received in August and October 1989 and at the Conference Committee (in June 1989), and notes with interest that under Act No. 6727 of 1988, a tripartite National Wages and Productivity Commission has been created, whose responsibilities include the formulation and implementation of government wage policy, in co-operation with Regional Tripartite Wages and Productivity Boards whose establishment is also provided for in the above Act. The Committee hopes that the Government will be able to keep it informed of the activities of the above bodies.

2. With regard to its previous direct requests, the Committee wishes to point out the following:

Article 2, paragraph 1, of the Convention. In reply to the Committee's comments concerning the application of the provisions of the Labour Code and of the regulations implementing the Code to homeworkers (whose conditions of employment, including wages, are to be regulated through appropriate regulations provided for in article 153 of the Labour Code), the Government indicated in its previous reports that the Ministry of Labour had submitted to the National Congress a proposal to include the above workers, particularly those engaged in needlework, in the national regulations concerning general welfare and protection.

In its last report, the Government states that the matter is still under review by both the Legislative Committee of Congress and the Ministry of Labour. The Committee takes note of this statement and again expresses the hope that measures will be taken very shortly to ensure that full effect is given to the above-mentioned provision of the Convention, which applies to all persons to whom wages are paid or payable and provides for no exceptions with regard to homeworkers. The Committee asks the Government to report on progress made in this matter.

Article 6. The Committee noted that Executive Order No. 857 which provided for the compulsory remittance to the Philippines of wages earned by Filipino workers abroad and the creation of an Inter-Agency Committee on Contract Workers' Remittances, had been repealed by Executive Order No. 1021 of 1 May 1985, and asked the Government to indicate the measures taken to ensure that such remittances are now made on a voluntary basis. In its last report, the Government indicates that the provisions of Executive Order No. 1021 are self-executory and are sufficient to ensure that the remittances are now made on a "purely voluntary" basis. It adds, however, that, as regards countries that do not allow currency and, hence, wages to be exported, (such as Iraq), it is trying to open negotiations with a view to concluding bilateral agreements enabling the workers concerned to transfer the whole of their wage to the Philippines. The Committee notes this information and, while recalling that under Article 6 of the Convention workers must be able to dispose of their wages freely, it requests the Government to continue providing information on any agreements concluded on this subject with countries employing Filipino workers.

Observation (CEACR) - adopted 1990, published 77th ILC session (1990)

In its previous comments, the Committee referred to the discussions between the Governments of Iraq and the Philippines concerning the payment of Filipino workers employed in Iraq. The Committee learned of a proposal that these workers be paid 40 per cent of their wages in Iraqi dinars, with the balance to be paid in dollar-denominated promissory notes payable in two years, and accordingly pointed out to the governments concerned that such a proposal, if accepted, would be contrary to Article 3, paragraph 1, of the Convention (ratified by the two countries in question) which prohibits the payment of wages in the form of promissory notes, vouchers or coupons, or in any other form alleged to represent legal tender.

In reply to these comments, the Government had stated in the past that the proposal in question had not been accepted by the Philippines, and that as the Government of Iraq also wished to review the former arrangements concerning the general conditions of employment of Filipino workers, further discussions had been initiated and, as regards the payments of wages, arrangements were being negotiated by the Central Bank of the Philippines and the Iraqi Government for full payment of the Filipino workers in legal tender. The Committee took note of these statements and asked the Government to provide information on the former arrangements still in force, pending the conclusion of the above discussions and negotiations.

In its statements to the Conference Committee in June 1989, the Government indicated that the two governments involved in this case were still pursuing discussions on the review of existing arrangements, and that the ILO would be informed of the arrangements adopted following the discussions. However, it has still not provided information on the substance of the arrangements presently in force, in answer to the request that the Committee has been making for some years.

In a communication addressed to the Director-General of the Office, in August 1989, and in its last report, received in October 1989, the Government indicates for the first time that under the existing arrangements, the payment of Filipino workers and remittances are regulated by the employment contracts of the persons concerned, the terms of which are verified by the Labour Attaché of the Embassy of the Philippines in Iraq to ensure that these workers are paid in legal tender and that their contracts are consistent with the laws of the receiving country. The Government adds that workers who agree to be paid in a particular form, do so voluntarily. The Government also refers to a memorandum of agreement between the Philippines and Iraq, which provides that Filipino workers have the same rights, obligations and privileges as national workers of the receiving country and adds that, since Iraq has ratified the Convention, it is assumed that Filipino workers in Iraq are paid in legal tender.

The Committee takes due note of these statements and requests the Government to keep it informed of the results of the current discussions and negotiations to review existing arrangements, and hopes that the agreement to be concluded on this subject will take into account the provisions of Article 3 of the Convention, as regards the payment of wages. (Please furnish a copy of the relevant text as soon as it is adopted.)