PHL score drops in Labor Rights Index

The Philippines’ score in the global Labor Rights Index worsened this year, largely due to an environment that restricts unions, strikes, and collective bargaining deals.

A study by the Amsterdam-based WageIndicator Foundation and the Center for Labor Research showed the Philippines logged a score of 68 out of 100 in the global Labor Rights Index this year, falling 2.5 points from a 70.5 score in 2022.

According to the scale, a score of 60.5 to 70 means there is limited access to decent work.

However, the Philippines’ score was below the global average of 74.

The Labor Rights Index scored economies based on labor laws only, discounting the actual working conditions or labor law compliance in workplaces, the Dutch organization said in a statement.

The biennial report showed that the country maintained its 2022 scores in nine of the 10 indicators in the study, except for Freedom of Association, where it scored zero out of 100.

“The Philippines saw a negative score adjustment in the Freedom of Association Indicator,” it said. It cited the provision in the Labor Code that a trade union “must demonstrate majority support in a bargaining unit for engaging in collective bargaining.”

University of the Philippines-Diliman School of Labor and Industrial Relations Assistant Professor Benjamin B. Velasco said the score on the rights of association and collective bargaining was “not surprising” due to the labor-related killings in the country and the unimplemented recommendations of the International Labor Organization High-Level Mission last year.

“The challenge for [the country] is how to improve its institutions (Department of Labor and Employment, labor inspectors, Philippine Economic Zone Authority, police, and military) so that laws (labor-related or otherwise) are implemented fairly and judiciously. Unfortunately, this is easier said than done,” he added.

The Philippines posted a score of 100 for the Maternity at Work indicator, which is attributed to policies supporting maternity leave, benefits, and job protection for pregnant workers.

Philippine laws mandate at least 14 weeks of paid maternity leave, with cash benefits covering a substantial portion of a worker’s wages.

The Philippines had a score of 80 in four indicators: Fair Wages, Employment Security, Social Security, and Fair Treatment.

For Fair Wages, it cited Philippine laws on minimum wages and overtime compensation but noted the lack of a law requiring additional compensation for working on a weekly rest day.

For Employment Security, it cited laws that require written employment contracts and severance of at least two weeks’ wages for every year of service. However, there is no law that limits the probationary period to three months.

Bukluran ng Manggagawang Pilipino National President Renecio “Luke” S. Espiritu called the scores for Fair Wages and Employment Security as “absurd,” noting that the minimum wage in the country (P7,531) is only a third of the living wage (P21,494).

“We in the labor movement will not stop in our fight to abolish all manpower agencies, a legislated wage increase of P750 plus, and guaranteeing union rights,” he said in a Facebook Messenger chat.

Meanwhile, the country scored 75 in both Safe Work and Child and Forced Labor as there is a lack of law restricting work that is prejudicial to the health of the mother or the child, and the lack of law setting employment entry age equal to or higher than the compulsory schooling age.

The Philippines scored 60 on Decent Working Hours, since it lacks laws restricting maximum working hours, including overtime, to 56 hours per week and requiring at least three working weeks of paid annual leave.

It also scored 50 on Family Responsibilities as there is no law requiring four-month parental leave for parents and flexible working arrangements for workers with family responsibilities.

“Comparing with other [Southeast Asian] countries. [The Philippines scored] higher than average. But this is because the ranking is based on legislation, not implementation,” Mr. Velasco said. “If enforcement is taken into consideration, I believe the Philippines will [score] lower.”

The Labor Rights Index 2024 is a de-jure index covering 145 economies and structured around the working lifespan of a worker.

In total, 46 questions or evaluation criteria are scored across 10 indicators. The overall score is calculated by taking the average of each indicator, with 100 being the highest possible score.

Greece and Hungary are among the top scorers, with 96 points each, while Nigeria is the worst with 37 points.

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Source: Business World

Who are compulsory heirs under Philippine law?

 Introduction

In the Philippines, the law of succession is governed by the Civil Code of the Philippines, specifically its provisions on the distribution of a deceased person’s estate. A significant element of this law is the concept of compulsory heirs—individuals who are entitled to a portion of the decedent's estate, known as the legitime, by operation of law. These heirs have a protected right to inherit, and a testator (the person who leaves a will) cannot disinherit them without just cause.

This article explores the legal framework surrounding compulsory heirs in the Philippines, focusing on who they are, their rights, and how the estate is divided among them.

 Definition of Compulsory Heirs

Compulsory heirs are individuals who are entitled to a fixed portion of the deceased’s estate, regardless of the testator’s wishes. They have a legal right to a share of the estate, and this share is called the legitime. This portion of the estate is reserved by law and cannot be freely disposed of by the testator in their will.

Under Article 887 of the Civil Code of the Philippines, compulsory heirs include:

1. Legitimate children and their descendants.

2. Legitimate parents and ascendants.

3. The surviving spouse.

4. Illegitimate children.

 Categories of Compulsory Heirs

Compulsory heirs are categorized into primary, secondary, and concurring heirs based on their relationship to the deceased and their entitlement to the legitime.

1. Primary Compulsory Heirs:

   - These heirs take precedence over all other heirs in inheritance. They include:

     - Legitimate children and descendants: Legitimate children are the first in line to inherit. If the legitimate children predecease the testator, their descendants (grandchildren) inherit by representation.

     - Illegitimate children: Although they have fewer rights than legitimate children, illegitimate children are still entitled to inherit. However, their share is smaller compared to that of legitimate children.

2. Secondary Compulsory Heirs:

   - These heirs inherit if the primary compulsory heirs do not exist or have already passed away. They include:

     - Legitimate parents and ascendants: If the decedent has no legitimate children or descendants, the legitimate parents or ascendants (e.g., grandparents) inherit as compulsory heirs.

3. Concurring Compulsory Heirs:

   - These heirs inherit alongside the primary or secondary heirs. They include:

     - The surviving spouse: The surviving spouse always inherits a share of the estate, regardless of the existence of legitimate or illegitimate children or ascendants. The surviving spouse’s share is discussed further below.

 Legitimate and Illegitimate Children: Their Rights and Shares

Legitimate children are those born within a valid marriage, while illegitimate children are born outside of wedlock. Both have the right to inherit, but their shares differ:

- Legitimate Children: Under Article 888 of the Civil Code, legitimate children are entitled to half of the total estate as their legitime. This portion is divided equally among all legitimate children.

- Illegitimate Children: As per Article 895, illegitimate children are entitled to one-half of the share that a legitimate child would receive. Although they are recognized as heirs, their right to inherit is limited compared to that of legitimate children.

 Share of the Surviving Spouse

The surviving spouse always has a right to inherit, but the size of their share depends on the presence of other compulsory heirs:

1. If there are legitimate children: The surviving spouse is entitled to the same share as each of the legitimate children.

2. If there are no legitimate children but there are illegitimate children: The surviving spouse is entitled to one-third of the estate, while the illegitimate children are entitled to two-thirds, divided among them.

3. If there are no children (legitimate or illegitimate): The surviving spouse shares the estate with the legitimate parents or ascendants, receiving half of the estate, with the other half going to the legitimate parents or ascendants.

 Share of Legitimate Parents or Ascendants

Legitimate parents or ascendants inherit only in the absence of legitimate children or descendants. If they inherit alongside the surviving spouse, they are entitled to one-half of the estate, while the other half goes to the surviving spouse.

If there are no other heirs (legitimate or illegitimate children and surviving spouse), legitimate ascendants inherit the entire estate.

 Order of Preference Among Compulsory Heirs

The distribution of the estate follows a specific order of preference, depending on which compulsory heirs survive the decedent:

1. Legitimate children and descendants are prioritized over all other heirs.

2. In the absence of legitimate children or descendants, legitimate parents and ascendants inherit.

3. The surviving spouse always inherits, regardless of the existence of other heirs, but their share varies.

4. Illegitimate children inherit a portion but always receive less than legitimate children.

 The Legitime: Protected Share of Compulsory Heirs

The legitime refers to the portion of the estate that must go to the compulsory heirs, as prescribed by law. The testator cannot freely dispose of this portion in their will. If the testator fails to provide for the compulsory heirs in the will or reduces their legitime, the law will enforce the compulsory heirs’ right to claim their share.

The computation of the legitime varies depending on the combination of heirs who survive the decedent. For example:

- If the decedent is survived by legitimate children, half of the estate is reserved as their legitime.

- If the decedent is survived by the surviving spouse and legitimate parents, each is entitled to half of the estate, to be divided equally.

 Rights of Compulsory Heirs

The rights of compulsory heirs are protected by the Civil Code, and these rights include:

1. Right to the Legitime: Compulsory heirs cannot be deprived of their legitime unless there is a valid ground for disinheritance. Even if the testator fails to mention them in the will, they are entitled to their share by law.

2. Right to Representation: If a compulsory heir predeceases the testator, their descendants can inherit in their place through representation. For example, if a legitimate child dies before the testator, their children (the decedent’s grandchildren) inherit the share of the deceased child.

3. Right to Contest the Will: If a compulsory heir believes that their legitime has been unjustly diminished or omitted, they have the right to contest the will in court to claim their rightful share.

 Disinheritance of Compulsory Heirs

While compulsory heirs generally cannot be deprived of their inheritance, they may be disinherited under certain circumstances, as outlined in Articles 915 to 922 of the Civil Code. Disinheritance must be based on legally prescribed grounds, such as serious insults, refusal to provide support, or acts of violence against the testator. The disinheritance must also be expressly stated in a valid will.

 Conclusion

Compulsory heirs in the Philippines have a legally protected right to inherit a portion of the deceased’s estate. These heirs include legitimate and illegitimate children, legitimate parents or ascendants, and the surviving spouse. Their share, known as the legitime, is reserved by law and cannot be freely disposed of by the testator. The law of succession provides a clear order of preference and rules for the distribution of the estate among these heirs, ensuring their protection.

Understanding the rights of compulsory heirs is crucial for both estate planning and in the resolution of inheritance disputes, as the law seeks to balance the interests of surviving family members while respecting the testator’s wishes within legal bounds

Source: Ziggurat Real Estate

Manila still 3rd cheapest for prime office rent in Asia-Pacific

Manila remained the third most affordable city for prime office rents in the Asia-Pacific region in the third quarter, according to real estate consultancy Knight Frank.

On an annual basis, Manila’s occupancy cost fell by 1.7%, slightly below the average 2.5% decline in the region, a Knight Frank Asia report released on Oct. 22 showed.

The average prime office cost in Manila was $29.64 per square foot (sq.ft.) in the July-to-September period.

“Prime rents in the region fell just 0.1% on a quarter-on-quarter basis, signaling that rents could be bottoming out, supported by growth in Indian markets,” Knight Frank said.

Kuala Lumpur had the lowest average prime office rent in the region at $20.57 per sq.ft., followed by Jakarta with ($26.75), Phnom Penh ($34.13), Guangzhou ($35.60), and Bengaluru ($36.17).

The most expensive rent for prime office space was in Hong Kong SAR ($155.52), followed by Singapore ($125.66), and Sydney ($99.75).

Knight Frank expects Manila to see a decline in rents in the next 12 months, along with Bangkok, Beijing, Guangzhou, Hong Kong, Shenzhen, and Shanghai.

Cities that will see higher rents in the next 12 months include Brisbane, Perth, Ho Chi Minh City, Singapore, Taipei, Seoul and Sydney.

The average prime office vacancy rate in the Asia-Pacific region slipped by 0.2% quarter on quarter to 14.8% in the third quarter, ending consecutive quarterly increases since the second quarter of 2022.

Manila had the 11th highest prime office vacancy rate in the region at 14%. Kuala Lumpur had the highest at 27%, followed by Shenzhen (25.1%), Jakarta (24.9%), Bangkok (24%) and Shanghai (21.1%).

Knight Frank said companies across the region are keeping a close eye on costs amid slower economic growth and geopolitical risks. It noted that leasing sentiment will likely take a hit as firms curb spending.

“Global economic uncertainties have led to more cautious capital expenditure strategies among occupiers, favoring renewals and consolidating office footprints,” Tim Armstrong, Global Head of Occupier Strategy and Solutions said.

Companies that relocate their offices usually opt for smaller spaces, “aligning with cost mitigation needs and the growing acceptance of hybrid work models,” he added.

“While the business sentiment may improve as the Fed eases monetary policy, demand will continue to be tempered by prudent spending and workplace strategies focused on maximizing space utilization,” Mr. Armstrong said.

Knight Frank said the Asia-Pacific prime office sector will still be “tenant favorable” this year. With the delivery of around 12 million square meters (sq.m.) this year, the pipeline supply next year will likely drop by about one-fifth.

“However, as the development peak in the region subsides, any significant uptick in leasing activity could rapidly tighten the availability of prime spaces. This scenario may accelerate the flight-to-quality trend as tenants seek to upgrade their portfolios in a potentially more competitive market,” Mr. Armstrong said.

Source: Business World