Philippines Rushes to Remote as Energy Crisis Accelerates

The Philippines is urging BPO employees to transition to remote work as the nation grapples with severe fuel and electricity shortages triggered by the war in Iran.

While the government pushes for this shift, resistance remains among certain workers and BPO firms due to significant concerns regarding cybersecurity and frequent power outages.

“Remote work brings its own challenges,” says Tim Mobley, president of Connext Global, a Honolulu, Hawaii-based BPO and offshore staffing company with significant operations in the Philippines.

He emphasizes that “It only works well when companies have clear processes, strong communication and the right tools in place to help teams stay productive and maintain quality.”

Connext, according to Mobley, increased transportation subsidies by 50% (at no cost to clients) and arranged shuttle services for employees. Mobley further clarified, “For remote employees, we’re also monitoring any increase in home electricity costs and will step in where support is needed.”

In major Filipino cities, daily commutes often stretch between one to two hours each way, especially for those living on the outskirts where housing is more affordable.

Many workers rely on a mix of jeepneys, buses, and trains, which adds transfer time and unpredictability.

This temporary extension of the work-from-home limit took effect retroactively on March 24 and will remain in force for one year unless the President lifts or extends it.

The Philippines stands as one of the economies most exposed to oil shocks, as it imports 98% of its oil primarily from the Middle East.

At the peak of the current crisis, the country held only 40-50 days of fuel reserves. As the conflict persisted, between 300-400 fuel stations temporarily closed because of supply disruptions, while diesel prices doubled within weeks to exceed triple-digit pesos per liter.

The Government’s Decree

Senator Joel Villanueva, who authored the country’s work-from-home law, stated that the policy benefits more than just employees. He described it as a practical way to lower fuel consumption. “This is especially important as gas and diesel prices are expected to rise further,” he warned.

Most BPO employees have welcomed the expanded work-from-home arrangements, largely convinced that the government will maintain tax and other benefits regardless of their remote status.

However, the government decree includes specific mandates: all BPOs must maintain their employee headcount and are prohibited from reducing jobs as remote work eases their operations.

Additionally, firms cannot dismiss employees on suspicion of ignoring data security issues. Despite these protections, some workers remain skeptical because many are forced to equip their home offices using their own funds, repeating the financial burden felt during the COVID-19 pandemic.

Renso Bajala, Secretary General of the BPO Industry Employees Network (BIEN) in the Philippines, told People Matters recently “WFH is not free. While companies cut costs, workers absorb rising expenses for electricity, internet, and home office needs.”

He added, “There must be additional allowances for WFH. We refuse to subsidize corporate profits with our own wages.”

BIEN has also warned BPOs against firing, transferring, or placing employees on floating status upon their eventual return to the office.

Remote work has historically been a contentious issue in the Philippines. The country’s special economic zone (SEZ) law originally disallowed the practice. However, the COVID-19 pandemic made remote work inevitable.

Although the national government temporarily relaxed these rules due to the health crisis, pressure to tax work-from-home setups returned as the pandemic eased. Seeing the BPOs continuing the practice, the local SEZ authority, known as PEZA, threatened to revoke tax and other incentives.

Companies were eventually informed they could avoid these taxes by registering as business service enterprises, yet many policymakers acknowledge that formal amendments to the PEZA Act are required for a permanent resolution.