“Kasambahay” or household employee refers to persons who render services at home and are compensated for their services. They are your:
- laundry person or labandera
- general househelp
or any other person who regularly performs domestic work in your home. “Family drivers” and other persons who perform work occasionally and not on a regular basis at home are NOT considered “kasambahay” for purposes of the Kasambahay Law.
Employment contract: This law seeks to standardize employment terms of employment by requiring the employer to issue an employment contract to the Kasambahay and to provide the office of the punong barangay a copy of the contract– employers are required to make 3 copies. The terms and conditions must follow the form of the Employment Contract that the Department of Labor prescribed. You can find the standard format at the DOLE site or click HERE for a free copy.
Payment of certain benefits: In addition to the kasambahay’s monthly salary, the employer is also required to pay the kasambahay’s contribution in SSS, Pag-ibig fund and PhilHealth (if the kasambahay’s monthly salary does not exceed Php 5,000.) The kasambahay is also entitled to 13th month pay and service incentive leave of 5 days.
Other features of the kasambahay law include:
- Issuance of a payslip (click here for DOLE prescribed form)
- Right to a certificate of employment (click here for DOLE prescribed form)
- 20% limit on amount to be deducted for repayment of kasambahay’s loan, debt or salary cash advance
- Prohibition on debt bondage
- Valid and invalid grounds for termination
The law (RA 10361) and its implementing rules contain other important provisions that every household employer must know in order to avoid legal labor problems. If you’re interested in knowing more about the Kasambahay Law and what your rights and obligations are as an employer, you may want to check out the latest book “Batas Kasambahay” written by lawyer, author and Philippine labor law speaker Atty. Elvin Villanueva. Available at National Book Store outlets and Fully Booked Stores.