References

Philippine legal updates on COVID-19 as of 30 April 2020 (Part 2 of 2)

(NOTE: This advisory was written by Atty. Jay-r C. Ipac and was originally published at the website of Legalink, an international association of independent law firms which includes DivinaLaw as a member.)

Continuing actions from the President

Changing its earlier position, on 1 April 2020[1] the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) adopted the policy of mandatory wearing of face masks, or such other protective equipment that can effectively lessen the transmission of COVID-19 in areas that are under Enhanced Community Quarantine (ECQ). 

On 7 April 2020, the President extended the period of ECQ in Luzon until 30 April 2020 based on the recommendation of the IATF-EID. The President also issued an Executive Order of even date creating a Comprehensive Social Benefits Program for the police, military, their supporting units and their beneficiaries, most of whom are deployed to implement the ECQ.[2] Under an administrative order,[3] the President also suspended the periods for filing of petitions, motions, and other pleadings in administrative cases filed against local government officials and presidential appointees.

Pursuant to Republic Act (RA) No. 11469, known as Bayanihan to Heal as One Act of 2020, the President authorized national government agencies, government corporations, and local government units to grant a one-time COVID-19 Special Risk Allowance.[4]

On 24 April 2020, the President announced the extension anew of the ECQ until 15 May 2020, but only for selected areas that are considered as “high-risk” while other areas will continue to be placed under general community quarantine (a more relaxed version of the community quarantine) effective May 1, 2020. The IATF also categorized workers and industries for purposes of partially easing up the ECQ and recommended among others that (i) only workers and sectors belonging to specified categories may continue to work or operate in phases; (ii) the general population may go out of their homes only for purposes of accessing basic necessities; (iii) non-leisure stores in malls and shopping centers may partially open; (iv) priority and essential construction projects may resume in accordance with guidelines as may be issued; (v) public transportation may operate at a reduced capacity in accordance with guidelines as may be issued, and (vi) airports and seaports may operate insofar as the unhampered movement of good is concerned.

Trade

Pursuant to RA No. 11469, directing public and private financial institutions to implement a minimum of a 30-day grace period of all loans falling due within the period of ECQ without incurring penalties, fees, and charges, the country’s trade and industry department issued Guidelines on the Concession on Residential Rents; Commercial Rents of Micro, Small and Medium Enterprises[5] to provide MSMEs economic relief during the public health emergency. For MSMEs that have temporarily ceased operations during the period of the ECQ, the cumulative amount of their commercial rents falling due within the ECQ shall be equally amortized in the six months following the end of the ECQ. The Guidelines also prohibit eviction within the thirty-day period following the lifting of the ECQ.

The trade department also issued Guidelines to facilitate the enhanced operations of BPO companies, export enterprises and their support service providers even during the period of the ECQ by allowing the movement of their personnel under specific circumstances provided thereunder.[6] It also allowed supermarkets, groceries, agri-fisheries store, public markets, pharmaceuticals, drugstores and retailers of basic necessities and prime commodities to operate up to a maximum of 12 hours.[7]

The department, together with the labor department also issued a joint Interim Guidelines on Workplace Prevention and Control of Covid 19, requiring employers and employees to follow total precautionary measures, including the wearing of facemasks at all times, accomplishment of daily health symptoms form, establishment of alternative work arrangements, and observance at all times of physical distancing, proper respiratory etiquette and disinfection protocols, among others.

Judiciary and the Prosecution Service

Meanwhile, pursuant to Administrative Circular 32-2020 issued by the Philippine Supreme Court (which allowed the filing of criminal complaints and informations, and posting of bail through “electronic transmission or email”), the Office of the Court Administrator issued Circular No. 89-2020 directing clerks of courts to  create their respective email addresses which will serve as the official email addresses of the respective court stations where criminal complaints, informations, and other related court pleadings or submissions may be electronically transmitted. The submissions that may be electronically submitted include the requirements for posting of bail.[8]

In view of the second extension of the ECQ until 15 May 2020, the Philippine Supreme Court reiterated that all courts in the ECQ areas are to remain physically closed and all hearing remain suspended until 15 May 2020.[9]

Securities

The country’s securities department issued an Advisory[10] and Notice[11] instructing financing companies (FCs) and lending companies (LCs) to comply with the mandatory provision of a  thirty (30)-day grace period for all loans with principal and/or interest falling due within the ECQ period. 

Central bank

The country’s central bank urged banks to suspend the fees they charge for their fund transfer services and interbank ATM transactions.[12] Also, the central bank suspended the charging of filing, processing and licensing /registration fees related to the grant of Type A and B Electronic Payments and Financial Services (EPFS) license as additional relief to BSP Supervised Financial Institutions (BSFIs) affected by COVID-19 situation.[13] It also reminded BSFIs to take precautionary measures against ongoing “illegal schemes that exploit the changes in the working arrangements, lifestyles or behavior of the public due to the COVID-19 pandemic” as these schemes “usually involve financial transactions, such as funds/wire transfers, or use deposit or other transaction accounts.”[14]

[1] Resolution No. 18 Series of 2020.

[2] Executive Order No. 110.

[3] Administrative Order No. 29.

[4] Administrative Order No. 28. (April 6, 2020).

[5] Memorandum Circular 20-12 (April 4, 2020).

[6] Memorandum Circular 20-14 (April 11, 2020).

[7] Memorandum Circular 20-15 (April 11, 2020).

[8] April 3, 2020.

[9] Administrative Circular 35 -2020.

[10] April 16, 2020.

[11] April 16, 2020.

[12] Memorandum No. M-2020-031 (April 25, 2020) Subject: Fees on Interbank Fund Transfer and ATM transactions.

[13] Memorandum No. M-2020-033 (April 27, 2020).

[14] Memorandum NO. M-2020-036 (April 29, 2020).

 Philippine legal updates on COVID-19 (As of 31 March 2020)

(NOTE: This advisory was written by Atty. Jay-r C. Ipac and was originally published at the website of Legalink, an international association of independent law firms which includes DivinaLaw as a member.)

As the COVID 19 pandemic continues to sweep most parts of the world, the responses of governments worldwide have not been limited to the medical or scientific realm but have likewise included legal measures. The Philippine government and its agencies are no exception.

Initial Actions

On 8 March 2020, the President issued Proclamation No. 922, declaring a State of Public Health Emergency throughout the Philippines due to COVID 19. On 12 March 2020, the Vice President urged companies to begin implementing a work-from-home scheme for its employees now that the novel coronavirus outbreak has turned into a pandemic. Later in the evening of March 12, upon advised of the Inter-Agency Task Force on Emerging Infectious Diseases (IATF), the President raised Code Red Sublevel 2 and significantly limited travel in and out of the National Capital Region (NCR) as a form of quarantine for 30 days starting March 15 until April 14. He also ordered the suspension of classes across Metro Manila until April 12, 2020.

With the raising of Code Red to the highest level, the President also announced the following measures, among others:

(i)            banning of planned or spontaneous mass gatherings;

(ii)          suspension of work in the Executive department during the quarantine period without prejudice to the formation of skeletal workforces. On the other hand, the President encouraged Congress and the Judiciary to adopt the same policy. On the other hand, law enforcement agencies, including the Armed Forces of the Philippines and the Philippine National Police, as well as health and emergency frontline services shall continue in full operation;

(iii)         flexible work arrangements are encouraged in the private sector, following guidelines from the Department of Labor and Employment and the Department of Trade and Industry designed to safeguard the welfare of the workers. On the other hand, all manufacturing, retail and service establishments shall remain in operation during the same period, provided that strict social distancing measures are observed;

(iv)         the Department of Transportation should issue guidelines to ensure social distancing in public transportation, which remains operational;

(v)           Land, domestic air, and domestic sea travel to and from Metro Manila shall be suspended until April 14, 2020 

All the above measures shall be subject to daily monitoring and reassessment by the IATF. Finally, entry travel restrictions shall be imposed upon those traveling from countries with localized COVID-19 transmissions, except for Filipino citizens including their foreign spouse and children, if any, holders of permanent resident visa, and holders of diplomatic visas issued by the Philippine Government.[1] 

In a Memorandum dated 13 March 2020 issued by the Executive Secretary, it provided further guidelines on the imposition of Stringent Social Distancing Measures in the NCR starting 15 March 2020 until 14 April 2020. It also provided that community quarantine are two types: (i) general community quarantine, where movement of people are limited to accessing basic necessities and work; and uniformed personnel and quarantine officers shall be present at border points; (ii) enhanced community quarantine, where strict home quarantine are implemented in all households; transportation is suspended; provision for food and essential health services is regulated, and heightened presence of uniformed personnel to enforce quarantine procedures are implemented.

On 16 March 2020, the President made an announcement, placing the entire island of Luzon (where NCR is situated) under an enhanced community quarantine. This meant strict home confinement in all households, suspended transportation lines, regulated provision for food and essential health services, and heightened presence of uniformed personnel to enforce isolation procedures.[2]

On March 17 2020, the President signed Proclamation No. 929 placing the entire Philippines under the state of calamity on account of COVID-19 for a period of six months unless earlier lifted or suspended.

On March 22, 2020 the President asked Congress to declare a national emergency and grant the President emergency powers on account of COVID-19. On March 23, 2020, the House of Representatives approved HB 6616 or "Bayanihan Act" declaring a national emergency due to the coronavirus pandemic and authorizing the President “for a limited period and subject to restrictions, to exercise powers necessary and proper to carry out the declared national policy.”[3] On March 24, 2020 the Senate approved Senate Bill 1481 or "We Heal As One" that will grant President Duterte additional powers to handle COVID-19.

National Legislation

On March 25, 2020 the President signed into law Republic Act 11469, known as Bayanihan to Heal as One Act of 2020,[4] which declared the existence of a national emergency arising from the coronavirus disease 2019 (covid-19). This law among others authorized the President to adopt the following emergency measures, among others, (i) provide public health workers with “COVID-19 Special Risk Allowance” in addition to their hazard pay under existing law; (ii) provide emergency subsidy to 18 million low-income households that have lost their sources of income amid the pandemic in the minimum amount of Php5,000 and maximum amount of P8,000 a month for 2 months; (iii) direct the operation of any privately owned hospitals, medical and health facilities, including passenger vessels, and other establishments to house health workers, serve as quarantine areas, quarantine centers, medical relief and aid distribution locations, or other temporary medical facilities; (iv) undertake the procurement of the necessary goods and services as exemptions from the existing procurement law; (v) engage temporary Human Resources for Health to complement/supplement current health work force; (vi) liberalize the grant of incentives for the manufacture or importation of critical or needed equipment or supplies, and exempting the importation thereof from taxes, duties, and other fees; (vii) regulate and limit the operation of all sectors of transportation; (viii) move statutory deadlines and  timelines for the filing and submission of document, payment of taxes, fees and other charges, and the grant of any benefit; (ix) direct public and private financial institutions to implement a minimum of a 30-day grace period of all loans falling due within the period of enhanced community quarantine without incurring penalties, fees, charges.

The law also penalized certain acts including the act of “creating, perpetrating or spreading false information regarding the COVID-19 crisis on social media and other platforms”  when the information has no “beneficial effect on the population” and are “clearly geared to promote chaos, panic, anarchy, fear or confusion.” It also punishes those “participating in cyber incidents that make use or take advantage of the current crisis situation to prey on the public through scams, phishing, fraudulent emails, or other similar acts.”    

Tax issuances

A day before or on 23 March 2020, the country’s tax agency, the Bureau of Internal Revenue (BIR), also clarified the extension of the deadline of the filing of the annual Income Tax Return (ITR) from 15 April 2020 to 15 May 2020[5] The deadline to avail of the tax amnesty on delinquency was also extended from 23 April 2020 to 23 May 2020.[6] Other tax related deadlines were also extended.[7] The BIR also clarified that the running of the Statute of Limitations in the assessment and collection of taxes is also suspended.[8]

Judiciary and the Prosecution Service

Meanwhile, the country’s justice department authorized the conduct of an “alternative” and “optional” “e-inquest” proceeding. Inquest is an informal and summary investigation conducted by a public prosecutor in criminal cases involving persons arrested and detained without the benefit of a warrant of arrest issued by the court for the purpose of determining whether said persons should remain under custody and correspondingly be charged in court.[9]

On the other hand, on March 16, 2020 the Philippine Supreme Court issued Administrative Circular 32-2020 which, among others, suspended all hearings nationwide except “urgent matters.” A few days later, citing “the unabated rise of COVID 19” the Supreme Court issued Administrative Circular 32-2020 directing the physical closure of all courts nationwide.

On 31 March 2020, the Philippine Supreme Court allowed the electronic filing of criminal complaint or information. Other pleadings or motions in relation to the criminal case may likewise be filed electronically.[10] It also authorizes the electronic transmission of the court’s order granting bail and the corresponding release order to the appropriate law enforcement authorities. This procedure is made effective only during the period of the public health emergency.[11]

Trade

The country’s trade and industry department meanwhile issued a Memorandum Circular 20-04 dated 15 March 2020, applicable to business establishments in Metro Manila. It provides that all manufacturing, retail and service establishments shall remain in operation subject to social distancing measures among other safety and health measures; mass gatherings are restricted in all business establishments; limited the operations of mall to establishments offering basic necessities. The rentals and other charges of stores closed during the quarantine period are also waived. On the other hand, businesses offering leisure and entertainment, gathering crowds are prohibited from operating during the quarantine period.

Retail establishments may operate provided that the number of people at any given time should be limited to one person per one square meter of vacant space in the establishment.  They are also directed to (i) educate their employees on social distancing, (ii) observe precautionary measures to prevent spread of COVID19 by regulating entry of people; (iii) remind buying public to observe social distancing, (iv) implement sanitary measures; (v) inform public health authorities of staff/employees who show symptoms of COVID 19. They are also directed to strengthen online commerce.

Non-retail businesses in agriculture, manufacturing, and service may continue to operate provided that they observe social distancing and other safety and health measures.

Since the terms of Memorandum Circular 20-04 is broad, a few establishments implemented a “no-mask no entry” policy. The government (IATF) has taken the position that this is not a valid policy.[12] 

The trade and industry department also issued Memorandum Circular 20-07 which provides for measures to prevent unreasonable increase in the prices of all basic necessities and to ensure availability of vital and essential commodities especially during the duration of Public Health Emergency.[13] 

Meanwhile, some local governments have responded creatively to implement social distancing by employing technology. At least two local governments have employed drones equipped with cameras that are deployed in public places to track people’s compliance with social distancing.

The trade and industry department also announced that the SB Corporation, an agency under it, is setting up a P1 billion Enterprise Rehabilitation Financing facility which will be implemented once the community quarantine declaration is lifted. Micro enterprises with asset size of not more than P3 million may borrow P10,000 up to P200,000 and small enterprises with asset size of not more than P10 million may borrow a higher loan amount but will not exceed P500,000. The loan shall be used to help the enterprise stabilize or recover from its losses due to COVID19.[14] 

Securities body

The country’s securities body, the Securities and Exchange Commission (SEC), also  issued Guidelines on the Attendance and Participation of Directors, Trustees, Stockholders, Members, and Other Persons of Corporations in Regular and Special Meetings Through Teleconferencing, Video Conferencing and Other Remote or Electronic Means of Communication.[15] Under the Guidelines, directors or trustees who cannot physically attend or vote at board meetings can participate and vote through remote communication such as videoconferencing, teleconferencing, or other alternative modes of communication that allow them reasonable opportunities to participate. In this regard, the Corporate Secretary is tasked to among others “ensure that the visual and audio recordings of the meeting are secured” and “to safe-keep and perpetuate” the same “in updated data storage equipment or facility.

Apart from this, the SEC also issued Guidelines[16] for the Filing of General Information Sheet (GIS) during the COVID-19 Outbreak and Enhanced Community Quarantine. Under the Guidelines, if the election of directors, trustees or officers is conducted, the GIS may be submitted by email to the SEC but within 30 days of the election. If the annual meetings or elections, due to be held between 1 March 2020 and 31 May 2020, are not held due to COVID-19 and there are no facilities for remote communication, the corporation should report the matter to the SEC within 30 days from the scheduled meeting and this can be done by email as well. However, the report should contain a proposed new date which must be within 60 days of the original date.

Labor

Lastly, as early as 4 March 2020, the labor department issued an Advisory[17] encouraging the adoption of flexible work arrangements as “better alternatives” to outright termination of services of employees or closure of the establishment. The labor department also later issued Guidelines on the Adjustment Measures Program for the Affected Workers due to Coronavirus Disease 2019,[18] which apply to employees whose employers have implemented flexible work arrangements or temporary closure due to COVID 19 and have duly complied with the documentary requirements of the labor department. Under the Guidelines, these employees, regardless of employment status, would receive from the government, through bank transfer, a “non-conditional” one-time financial assistance of Php5,000.00.

COVID 19 as Force majeure or Fortuitous event

Acts of God or force majeure, by definition, are extraordinary events that could not be foreseen, or which, though foreseen, are inevitable.[19] To exempt the obligor from liability for a breach of an obligation by reason of force majeure or fortuitous event, the following requisites must concur: (a) the cause of the breach of the obligation must be independent of the will of the debtor; (b) the event must be either unforeseeable or even if foreseeable is unavoidable; (c) the event must be such as to render it impossible for the debtor to fulfill his obligation in a normal manner; and (d) the debtor must be free from any participation in, or aggravation of the injury to the creditor.

The exempting effect of force majeure or fortuitous event however is subject to exceptions. Under the law, these exceptions are: (1) when the law expressly so specifies; (2) when it is otherwise declared by the parties; and (3) when the nature of the obligation requires the assumption of risks.

Considering that the requisites for applicability of force majeure or fortuitous event, and the exceptions to it are heavily factual in nature, whether force majeure or fortuitous event may or may not be applied must be resolved on a case-to-case basis.

Impossibility and Doctrine of Unforeseen Events

Apart from force majeure or fortuitous event, Philippine law also recognizes legal or physical impossibility as a ground to release a debtor from obligation: “The debtor in obligations to do shall be released when the prestation becomes legally or physically impossible without the fault of the obligor.” Thus, it is required that (i) the obligation is an obligation to do; (ii) the obligation becomes legally or physically impossible; and (iii) the physical or legal impossibility arose without fault of the debtor.

Legal or physical impossibility is an exception to the principle of obligatory force of contracts[20], such that, when it is clearly shown that legal or physical impossibility exists in complying with one’s contractual obligations, for equity considerations, the law itself relieves the debtor from responsibility. Similar with fortuitous event and force majeure, the factual circumstances of each case should be carefully evaluated to determine the existence of the requirements of legal or physical impossibility.

Another legal construct that could exempt the debtor from liability is the doctrine of unforeseen events. Under Philippine law, “when the service has become so difficult as to be manifestly beyond the contemplation of the parties, the obligor may also be released therefrom, in whole or in part.” The doctrine is based on the discredited theory of rebus sic stantibus in public international law; under this theory, when the parties stipulate in the light of certain prevailing conditions, the cessation of these conditions would cause the cessation of the contract entered into between the parties. Unlike cases on fortuitous events or, to a certain extent, on legal or physical impossibility, cases applying the doctrine of unforeseen events are far fewer and rarer because parties are assumed to know all the circumstances and assumed all business risks concomitant to a specific contractual undertaking.

[1] https://pcoo.gov.ph/OPS-content/on-code-red-sublevel-2/

[2] Memorandum from Executive Secretary dated 16 March 2020. The Enhanced Community Quarantine and Stringent Social Distancing Measures is set from 17 March 2020 to 13 April 2020 while classes are suspended until 14 April 2020; https://news.abs-cbn.com/news/03/16/20/duterte-places-luzon-under-enhanced-community-quarantine-to-fight-covid-19

[3] https://newsinfo.inquirer.net/1246872/house-approves-bill-declaring-national-emergency-due-to-coronavirus

[4]https://www.rappler.com/nation/255718-duterte-signs-law-granting-special-powers-coronavirus-outbreak

[5] Revenue MC. 30-2020 (23 March 2020)

[6] Revenue MC. 33-2020 (24 March 2020)

[7] E.g. Memorandum Circular 27-2020 (17 March 2020); Memorandum Circular 32-2020 (20 March 2020); Memorandum Circular 31-2020 (23 March 2020); Revenue Regulation 7-2020 (27 March 2020).

[8] Memorandum Circular 34-2020 (27 March 2020).

[9] Office Order dated March 27, 2020.

[10] Administrative Circular 33-2020.

[11] Administrative Circular 33-2020 (Online Filing of Complaint or Information and Posting of Bail Due to the Rising Cases of COVID-19 Infection

[12]https://www.philstar.com/headlines/2020/03/23/2002941/iatf-no-mask-no-entry-not-quarantine-guidelines

[13] https://www.dti.gov.ph/advisories/mc20-07/

[14] https://www.dti.gov.ph/news/sbcorp-loan-facility-covid-affected-msmes/

[15] Memorandum Circular No. 6.

[16] Memorandum Circular No. 9.

[17] Labor Advisory No. 9, Series of 2020

[18] Department Order No. 209, Series of 2020 (March 17, 2020).

[19] National Power Corporation v Court of Appeals, G.R. No. 96410 July 3, 1992.

[20] G.R. No. 116896, 05 May 1997.

CLIENT ADVISORY : DivinaLaw at your service!

Our modes of communication with you may be different during the COVID-19 Enhanced Community Quarantine, but our promise of dynamic lawyering remains the same.

We will send regular legal advisories and status updates on cases and matters referred to us. We trust that you will find these useful. Although we prefer to meet with you in person, we must respect current regulations to help ensure the safety of our communities.

Fortunately, we have the necessary technology to meet you through video conferencing to help us prepare important documents and urgent pleadings. We continue to operate even if office is closed due to the lockdown. Our lawyers and staff are working remotely to continue to work on your case and monitor the status of court proceedings.

You could still reach us via our usual channels—mobile phone and email. Should you have other concerns, kindly send an email to our Corporate Affairs and Business Development Office [ cabdo@divinalaw.com ].

We appreciate your trust in us. Thank you for choosing DivinaLaw.

Please stay safe!

NPC PHE Bulletin No. 12: Protecting Personal Data in a Work From Home Arrangement (May 15, 2020)

As the country transitions to Modified Enhanced Community Quarantine, for Metro Manila and a few other areas, and General Community Quarantine for the rest, alternative work arrangements would still continue for extended periods of time. As a supplement to our earlier advisory on the privacy implications of a work-from-home arrangement (WFH), the following are NPC’s suggestions to those implementing the same:

Authorized Information Communication Technology (ICT) Assets. Organizations are responsible for making sure telecommuting employees are provided the proper ICT assets. In return, employees are accountable and responsible for the physical care of those assets.

1. Computers and other ICT peripherals. Employers should issue their staff with appropriate ICT resources to adequately perform their duties. Personal devices may be used if provision of organization-owned ICT resources is impractical. Such practice, however, must be governed by the organization’s Bring Your Own Devices (BYOD) policy.

2. Removable Devices. Personnel are encouraged to only use organization-issued ICT peripherals (such as USB flash drives, USB mouse, USB keyboard, etc.) When using portable media, (such as disks or USB flash drives) to store or transfer data, the use of data encryption must be ensured.

3. Software. Only softwares authorized by the organization must be used and only for official purposes. Avoid storing the organization’s digital files, including those with personal data, on external services and softwares.

4. Proper configuration and security updates. Install security patches prior to and while WFH is enforced to prevent cyber security exploits and malicious damage, including the following:
o Automatic update & installation of operating system security patches
o Periodic scheduling & scanning of authorized antivirus software
o Automatic update, installation & configuration of web browser and its preferences
o Automatic update & installation of personal productivity softwares (i.e., word processor, spreadsheet processor, presentation software, etc.)
o Update and configuration of video conferencing software / platform

5. Web Browser Hardening. Ensure that your browser is up to date & properly configured.

6. Video conferencing. If available, only use video conferencing platforms contracted by your organization, which should pass its privacy and security standards.

When availing of free platforms, use only an up-to-date version, one that offers adequate privacy & security features, and is properly configured:
• Set your meeting ‘private’ by default. Do not reveal meeting IDs in public domains
• Require meeting participants a password upon joining
• Make sure the meeting host is notified when people join and verifies identity of each
• Carefully control screen sharing & recording
• Keep cameras & microphones turned off, unless when speaking
• Avoid transferring files

Acceptable Use. Organizations must have an Acceptable Use Policy (AUP) that defines allowable personal uses of ICT assets. This may include:
• Personal emails
• Browsing of news and articles
• Social media/networking (can be defined in a separate organizational policy)
• Video streaming

While organization ICT assets should only be used for authorized purposes, the AUP must acknowledge that occasional personal use by employees may occur without adverse effect to the organization’s interests. The AUP should also define unacceptable and unauthorized uses

Access Control. Personnel access to organization data must only be on a “need-to-know-basis”, anchored on pre-defined user profiles and controlled via a systems management tool.

User Authentication. Require strong passwords to access personnel credentials and accounts. Passwords must be at least eight (8) characters long, comprising of upper- and lower-case letters, numbers and symbols. Prohibit sharing of passwords. Set up multifactor authentication for all accounts to deny threat actors immediate control of an account with a compromised password.

Network Security. When organization ICT assets are connected to personal hotspots and/or home Wi-Fis, observe the following:
• Don’t visit malicious webpages. Always look for the “https” prefix on the URL to ensure it is encrypted. Also, inspect the site’s certificate manually to validate owner identity.
• As much as possible, ensure high availability and reliability of internet connection.
• Configure the WiFi Modem or Router. Review and configure the following:
o Current devices connected;
o Encryption/Security: Wi-Fi Protected Access 2 (WPA2) Advanced Encryption Standard (AES) with a strong password.
• Avoid connecting office computers to public networks, such as coffee shop Wi-Fis. If left with no choice, use a reliable Virtual Private Network (VPN) when connecting.

Records and File Security. Set up policies to ensure sensitive data is processed in a protected and confidential manner to prevent unauthorized access, including:
• A records management policy
• A policy against posting sensitive documents in unauthorized channels, such as social media sites
• A policy imposing the use of a file’s digital version instead of physical records, whenever possible
• A retention policy for processing sensitive data in personal devices.

Emails. When transferring sensitive data via email, encryption of files and attachments should be done. Also, ensure that personnel always use the proper “TO, CC and BCC” fields to avoid sending to wrong recipients or needlessly expose other people’s email addresses to all recipients.

Physical security. Create workspaces in private areas of the home, or angle work computers in a way that minimizes unauthorized or accidental viewing by others.
• Lock away work devices and physical files in secure storage when not in use. Should there be a need to print documents, the personnel must ensure that physical and digital documents are properly handled and disposed of – in accordance with office policy.
• Never leave physical documents with sensitive data just lying around, nor use them as a “scratch paper”.

Security Incident Management. Personnel must immediately notify his or her immediate supervisor in case of a potential or actual personal data breach while working from home. The organization’s Data Protection Officer and/or Data Breach Response Team should immediately be alerted.

Extension of Tax Filing Deadlines

Dear Valued Clients,

Pursuant to Republic Act No. 11469, or the Bayanihan to Heal as One Act, the Department of Finance and the Bureau of Internal Revenue (“BIR”) extended deadlines of tax filings and payments affected by the Enhanced Community Quarantine (“ECQ”) without imposition of interest and penalties.

In view of the further extension of the ECQ until 15 May 2020, the BIR issued Revenue Regulations No. 11-2020 to modify the extended statutory deadlines, which we summarize and outline as follows:

Withholding Tax Remittance Return for Onerous Transfer of Real Property Other Than Capital Asset (BIR Form 1606);Regarding One-Time Transaction (“ONETT”), if the date for payment will fall due within the period of ECQ starting 16 March 2020, the extended period to file and pay the corresponding taxes due thereon is thirty (30) days from the lifting of the ECQ. The following are considered as ONETT transactions:

1. Capital Gains Tax Return for Onerous Transfer of Real Property Classified as Capital Asset (BIR Form 1706);
2. Capital Gains Tax Return for Onerous Transfer of Shares of Stocks Not Traded Through the Local Stock Exchange (BIR Form 1707);
3. Donor’s Tax Return (BIR Form 1800); and
4. Estate Tax Return (BIR Form 1801).

If the new extended due dates will fall on a holiday or non-working day, then the filing and/or payment of taxes shall be the next working day.

Attached is a copy of RR 11- 2020 for immediate reference.

Best regards,

Divina Law Offices

Department Circular No. 002-2020

Dear Valued Clients,

Please be informed that the Department of Finance (“DOF”) has issued Department Circular No. 002-2020 (“DOF Circular”) pursuant to Section 4(z) of Republic Act No. 11469 (the “Bayanihan to Heal as One Act”), in order to ease the tax burden on individuals under community quarantine.

Under Section 4 of the DOF Circular, the deadlines and timelines for the payment of taxes, fees, and other charges imposed and collected by local government units (“LGU”) as of 25 March 2020 shall be extended until 25 June 2020. If the LGU had already extended the deadline prior to the effectivity of the Bayanihan to Heal as One Act, such deadline shall be adjusted in accordance with the period set forth under the DOF Circular. Further, the counting of the period within which to pay local taxes, fees and charges shall likewise be suspended during the said period.

The DOF Circular also clarified that no interest, surcharge or any form of penalty shall be applied on account of the extension of the payment deadlines and the suspension of the counting of the period of payment. Nonetheless, all local tax delinquencies prior to the effectivity of the Bayanihan to Heal as One Act shall remain and shall be due and demandable following the expiration of the deadline 25 June 2020 (unless further extension is authorized in accordance with Republic Act No. 7160 or the Local Government Code). Further, the applicable interests, penalties and surcharges on the delinquency shall begin to run again and shall be due and demandable after the lapse of the effectivity of the Bayanihan to Heal as One Act.

For reference, attached is a copy of the DOF Circular.

We continue to pray for the health and safety of you, your families, and your workforce.

GUIDELINES FOR LGUs IN THE PROVISION OF SOCIAL AMELIORATION MEASURES BY THE NATIONAL GOVERNMENT TO THE MOST AFFECTED RESIDENTS OF THE AREAS UNDER ENHANCED COMMUNITY QUARANTINE

(DILG MC No. 2020-065)

BACKGROUND/BASIS:

1. Article II, Sections 4, 5, 9, and 15 of the 1987 Constitution.
2. Republic Act (RA) No. 11469 (Bayanihan to Heal as One Act), declaring a State of National Emergency throughout the Philippines and, declaring the urgent need to immediately mobilize assistance in the provision of basic necessities to families and individuals affected by the imposition of community quarantine, especially indigents and families, among others.
3. Presidential Proclamation No. 922, issued on March 8, 2020, declaring a State of Public Health Emergency throughout the Philippines and enjoining local government units to render full assistance and cooperation and mobilize the necessary resources to undertake critical, urgent, and appropriate response and measures to curtail the COVID-19.
4. Joint Memorandum Circular (JMC) No. 1, series of 2020 by DILG, DBM, DOLE, DSWD, DOA, DTI, and DOF, outlining guidelines for the provision of social amelioration programs to the most affected residents of the areas under the enhanced community quarantine due to the COVID-19 pandemic.

GUIDELINES:

1. All local government units shall identify all target beneficiaries of the social amelioration measures within their area of jurisdiction as defined and provided for in JMC No. 1, and to provide to the implementing national government agency (NGA) a master list of the said target beneficiaries not later than April 3, 2020. To ensure their expeditious submission, LGUs shall course the list through the Regional or Field Offices of the applicable NGA.

i. No local government unit may require that only voting residents in their area of jurisdiction shall be recognized as target beneficiaries. Non-residents that were stranded due to the community quarantine may be listed as beneficiaries, provided that they meet the qualifications defined in JMC No. 1.

2. All local government units, including the barangays, shall issue the necessary clearances or certifications to applicable target beneficiaries as defined and provided for in JMC No. 1, subject to the strict observance of home quarantine prohibition of mass gatherings.

3. All local government units shall coordinate with the concerned NGA, the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP) in the distribution of the grants to its target beneficiaries.

i. The distribution of the grants is subject to the strict observance of home quarantine and prohibition of mass gatherings.

ii. The LGU shall identify suitable drop-off points for food and non-food items prior to their distribution to the target beneficiaries.

iii. The LGU shall, in close coordination with the implementing agencies, lead the door-to-door distribution of grants to their target beneficiaries, subject to distribution or prioritization guidelines set by the concerned NGA.

iv. LGUs shall not install or cause to install any form of signage or appendage crediting any local government official, or bearing his/her image, for the distribution of any of the social amelioration measures under JMC No. 1.

4. Failure of the LGUs to comply shall be dealt with in accordance with Section 6 of the RA 11469 and other relevant national laws and policies.
5. All DILG Regional Directors and the BARMM Minister of Local Government are hereby directed to cause the widest dissemination of this Memorandum Circular within their respective areas of jurisdiction.

IMPLEMENTATION OF TEMPORARY EMERGENCY MEASURES: BAYANIHAN TO HEAL AS ONE ACT

To achieve our aim of overcoming this present threat, the simultaneous government efforts on different fronts must be cohesive and harmonious. Thus, the whole of government must work together towards the following objectives:

• protect and support our health workers and front liners;
• provide the supplies and equipment necessary for detecting the disease and caring for those infected;
• ensure that community quarantines are effectively implemented;
• deliver essential necessities such as food and medicine to the most vulnerable;
• keep essential and critical utilities and businesses running and their processes uninterrupted;
• provide temporary economic relief to Filipinos and businesses; and,
• mobilize all state assets to sustain the operations of the government.

As such, President Rodrigo Roa Duterte hereby authorizes the following officials to do the following acts:

DOH SECRETARY (Department of Health)

1. Following World Health Organization guidelines and best practices, adopt and implement measures to prevent or suppress further transmission and spread of COVID-19 through effective education, detection, protection, and treatment. He may consult the Presidential Communications Operations Office, the Department of the Interior and Local Government (DILG), and the Department of Information and Communications Technology as he deems fit to craft the details of or implement the measures.
2. Expedite and streamline the accreditation of testing kits and facilitate prompt testing by public and designated private institutions of PUIs (Persons Under Investigation) and PUMs (Persons Under Monitoring), and the compulsory and immediate isolation and treatment of patients.
3. In coordination with the Secretary of the Department of Budget and Management (DBM), ensure that all public health workers are protected by providing them with a “COVID-19 special risk allowance,” in addition to the hazard pay granted under the Magna Carta of Public Health Workers or RA No. 7305;
4. Provide compensation of One Hundred Thousand Pesos (PHP100,000.00) to public and private health workers who may contract severe COVID-19 infection while in the line of duty, and a compensation of One Million Pesos (PHP1,000,000) to the families of public and private health workers, who may die while fighting the COVID-19 pandemic. This benefit has a retroactive application from 01 February 2020. In implementing this, he must coordinate with the DBM and may also seek the assistance of the Department of Labor and Employment (DOLE) to verify the qualifications of any beneficiary;
5. In allocating and distributing goods, supplies, and other resources procured under the authority granted in RA No. 11469, he must prioritize the following:

1. public health facilities in the regions, provinces, or cities, that are designated as COVID-19 referral hospitals, such as but not limited to the Philippine General Hospital, Lung Center of the Philippines, and Dr. Jose N. Rodriguez Memorial Hospital;
2. private hospitals which have existing capacities to provide support care and treatment to COVID-19 patients;
3. public and private laboratories that have existing capacities to test suspected COVID-19 patients

6. Engage temporary Human Resources for Health (HRH) such as medical and allied medical staff to complement or supplement the current health workforce or to man the temporary medical facilities to be established in accordance with Section 4 k(4) of RA No. 11469. The HRH to be hired on temporary basis shall receive the appropriate compensation and allowances and those of them serving at the front lines during the state of calamity due to COVID-19 shall receive an actual hazard duty pay from the government. In crafting the details of and implementing this measure, he shall coordinate with the DBM.

DSWD SECRETARY (Department of  Social Welfare and Development)

1. Provide an emergency subsidy to around eighteen (18) million low income households in the amount not lower than Five Thousand Pesos (PHP5,000.00) or higher than Eight thousand pesos (PHP8,000.00) a month for two (2) months, computed based on the prevailing regional minimum wage rates. The subsidy received from the current conditional cash transfer program and rice subsidy shall be taken into consideration in the computation of this emergency subsidy. In crafting the details of and implementing the measure, he may consult the DOLE and the DILG; and
2. Implement an expanded and enhanced Pantawid Pamilya Pilipino Program, responsive to the need brought about by the crisis, and provision of an assistance program, whether in cash or non-cash, whichever is more practicable, where he or the DOLE Secretary, when relevant, shall transfer cash, cash voucher, or goods through the local government units or directly to households who have no incomes or savings to draw from, including households working in the informal economy and those who are not currently recipients of the current Pantawid Pamilya Pilipino Program, of an amount adequate to restore capacity to purchase basic food and other essential items during the duration of the quarantine. To carry out this subsection, he may approve the temporary emergency standards of eligibility and level of benefits upon concurrence of the DOLE Secretary.

DBM SECRETARY (Department of Budget and Management)

1. Notwithstanding any law to the contrary, direct the discontinuance of appropriated programs, projects or activities (P/A/P) of any agency of the Executive Department in the FYs 2019 and 2020 General Appropriations Act (GAA), whether released or unreleased, the allotments for which remain unobligated. In coordination with the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF), the DBM shall use the savings generated from the foregoing to augment the allocation for any item directly related to support operations and response measures, which are necessary or beneficial in order to address the COVID-19 emergency. The discontinued program, activity or project may be revived at any time after the national emergency has ceased, notwithstanding Section 67 of RA No. 11465 or the “General Appropriations Act of 2020”. The following items in the budget shall be prioritized for augmentation:

1. operational budgets of government hospitals, primarily those identified for treatment of COVID-19; prevention and control of other infectious diseases; emergency preparedness and response; quick response fund;
2. operational budget of the Philippine General Hospital;
3. National Disaster Risk Reduction Fund or calamity fund;
4. programs of the DOLE, such as but not limited to Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers and COVID-19 Adjustment Measures Program;
5. Livelihood Seeding Program and Negosyo Serbisyo sa Barangay;
6. Rice Farmers Financial Assistance Program;
7. School-Based Feeding Program;
8. various DSWD programs, such as but not limited to Assistance to Individuals in Crisis Situations (AICS), distribution of food and nonfood items, livelihood assistance grants, and supplemental feeding program for day care children;
9. allocations to LGUs
10. Quick Response Funds lodged in the various relevant departments, such as, but not limited to the DOH and the DSWD;

2. Consider any unutilized or unreleased balance in the special purpose funds of agencies excluding GOCCs, as of the date of declaration of a State of Emergency, as having their purpose abandoned for the duration of the State of Emergency. All such unspent, unutilized or unreleased money or funds sourced from collections or receipts, including future collections and receipts, shall be utilized for such measures to address the COVID-19 situation as may be determined by the IATF, to accomplish the declared national policy under RA No. 11469;
3. Notwithstanding any law to the contrary, and in coordination with the IATF, reprogram, reallocate, and realign from savings on other items of appropriations in the FY 2020 GAA, of national government agencies in the Executive Department, as may be necessary and beneficial to fund measures that address and respond to the COVID-19 emergency, including social amelioration for affected communities, and the recovery of areas, sectors and industries severely affected;
4. Notwithstanding any law to the contrary, allocate cash, funds, investments, including unutilized or unreleased subsidies and transfers, held by any national government agency in order to address the COVID19 emergency, as declared in Section 3 of RA No. 11469;
5. Craft guidelines for procurement activities that are entirely exempt from RA No. 9184 or the “Government Procurement Reform Act”, with clear and simple rules on liquidation, a liberal procedure in determining the price most advantageous to the government considering the urgency of the present situation, and measures to reasonably prevent abuses and corruption but not too restrictive as to delay the process. In crafting the guidelines, he must consult with the Commission on Audit (COA) and may seek advice from the following agencies corresponding to the good or service being procured, to wit:

1. The DOH with respect to goods, which may include personal protective equipment such as gloves, gowns, masks, goggles, face shields; surgical equipment and supplies; laboratory equipment and its reagents; medical equipment and devices; support and maintenance for laboratory and medical equipment, surgical equipment and supplies; medical supplies, tools, and consumables such as alcohol, sanitizers, tissue, thermometers, hand soap, detergent, sodium hydrochloride, cleaning materials, povidone iodine, common medicines (e.g., paracetamol tablet and suspension, mefenamic acid, vitamins tablet and suspension, hyoscine tablet and suspension, oral rehydration solution, and cetirizine tablet and suspension); testing kits, and such other supplies or equipment as may be determined by the DOH and other relevant government agencies, as well as ancillary services related thereto;
2. The DSWD with respect to goods and services for social amelioration measures in favor of affected communities, as well as ancillary services related thereto;
3. The DOH, the Office of Civil Defense (OCD), and the DILG with respect to lease of real property or venue for use to house health workers or serve as quarantine centers, medical relief and aid distribution locations, or temporary medical facilities, as well as ancillary services related thereto;
4. The DOH and the Department of Public Works and Highways (DPWH) with respect to establishment, construction, and operation of temporary medical facilities;
5. The DOH and the National Telecommunications Commission with respect to utilities, telecommunications, and other critical services in relation to operation of quarantine centers, medical relief and aid distribution centers and temporary medical facilities, as well as ancillary services related thereto.

DOF SECRETARY (Department of Finance)

1. In partnership with the Bangko Sentral ng Pilipinas (BSP), ensure the availability of credit to the productive sectors of the economy especially in the countryside through measures such as, but not limited to, lowering the effective lending rates of interest and reserve requirements of lending institutions;
2. Consider any unutilized or unreleased balance in the special purpose funds of GOCCs, as of the date of declaration of a State of Emergency, as having their purpose abandoned for the duration of the State of Emergency. All such unspent, unutilized or unreleased money or funds sourced from collections or receipts, including future collections and receipts, shall be utilized for such measures to address the COVID-19 situation as may be determined by the IATF, to accomplish the declared national policy under RA No. 11469;
3. Notwithstanding any law to the contrary, allocate cash, funds, investments, including unutilized or unreleased subsidies and transfers held by any GOCC, in order to address the COVID-19 emergency, as declared in Section 3 of RA No. 11469;
4. Move statutory deadlines and timelines for the filing and submission of any document, the payment of taxes, fees, and other charges required by law, and the grant of any benefit, in order to ease the burden on individuals under Community Quarantine;
5. In partnership with the BSP, direct all banks, quasi-banks, financing companies, lending companies, and other financial institutions, public and private, including the Government Service Insurance System, Social Security System and Pag-ibig Fund, to implement a minimum of a thirty (30)-day grace period for the payment of all loans, including but not limited to salary, personal, housing, and motor vehicle loans, as well as credit card payments, falling due within the period of the enhanced community quarantine, without incurring interests, penalties, fees, or other charges. Persons with multiple loans shall likewise be given the minimum thirty (30)-day grace period for every loan;
6. Facilitate, in the most expeditious manner possible: (a) the grant of exemption of importation of critical or needed equipment or supplies from import duties, taxes and other fees; and (b) the simplified release of said imported goods. In this regard, he may require the incentive granting bodies of the National Government, in coordination with the DOH, to issue a master list of manufacturers or importers of equipment or supplies which have been granted incentives.

DTI SECRETARY (Department of Trade and Industry)

1. Continue to enforce measures to protect the people from hoarding, profiteering, injurious speculations, manipulation of prices, product deceptions, and cartels, monopolies or other combinations in restraint of trade, or other pernicious practices affecting the supply, distribution and movement of food, clothing, hygiene and sanitation products, medicine and medical supplies, fuel, fertilizers, chemicals, building materials, implements, machinery equipment and spare parts required in agriculture, industry and other essential services, and other articles of prime necessity, whether imported or locally produced or manufactured. In crafting the details of this measure, he must coordinate with the Secretary of the Department of Agriculture (DA) and the Secretary of the Department of Energy (DOE) in matters falling within their respective jurisdictions. In implementing these measures, the DTI Secretary must coordinate with the Department of Justice, the DILG, and the Philippine National Police (PNP);
2. In coordination with the DOF Secretary, liberalize the grant of incentives for the manufacture or importation of critical or needed equipment or supplies for the carrying-out of the policy declared herein, including healthcare equipment and supplies. The importation of these equipment and supplies shall be exempt from import duties, taxes and other fees; and
3. In coordination with the Secretaries of the DOH and the DA, ensure the availability of essential goods, in particular food and medicine, by adopting measures as may reasonably be necessary to facilitate and/or minimize disruption to the supply chain, especially for basic commodities and services, to the maximum extent possible. The DTI Secretary shall seek the assistance of the DILG and the PNP to implement these measures;
4. Provide for a minimum of thirty (30)-day grace period on residential rents falling due within the period of the enhanced community quarantine, without incurring interests, penalties, fees, and other charges.

DILG SECRETARY (Department of the Interior and Local Government)

1. Ensure that all LGUs are acting within the letter and spirit of all the rules, regulations, and directives issued by the National Government pursuant to RA No. 11469; are implementing standards of community quarantine consistent with what the National Government has laid down for the subject area, while allowing LGUs to continue exercising their autonomy in matters undefined by the National Government or are within the parameters it has set; and are fully cooperating towards a unified, cohesive and orderly implementation of the national policy to address COVID-19. In implementing this measure, the DILG Secretary is strictly required to report to the Office of the President, within three (3) days from receiving notice of the violation, (a) any LGU official who is disobeying the rules, regulations, and directives issued by the National Government, especially the standards  of community quarantine set by the IATF for the subject area, (b) the action taken to address the violation, and (3) recommendations on any further action that the President may need to take; and
2. Supervise the LGUs in moving statutory deadlines and timelines for the filing and submission of any document, the payment of taxes, fees, and other charges required by law, and the grant of any benefit, in order to ease the burden on individuals under Community Quarantine.

DOLE SECRETARY (Department of Labor and Employment)

1. Continue to authorize alternative working arrangements in the private sector; and
2. Coordinate with the Secretary of the DSWD in implementing an expanded and enhanced Pantawid Pamilya Pilipino Program.

DOTr SECRETARY (Department of Transportation)

In coordination with the IATF, to craft a plan to regulate and limit the operation of all sectors of transportation through land, sea or air, whether private or public; regulate traffic on all roads, streets, and bridges, and access thereto; prohibit the putting up of encroachments or obstacles; and perform all other related acts.

DPWH SECRETARY (Department of Public Works and Highways)

Remove encroachments and illegal constructions in public places and perform all other related acts. In implementing these measures in the National Capital Region, he may seek the assistance of the Metro Manila Development Authority and the concerned LGUs.

DOE SECRETARY (Department of Energy)

Develop a plan to conserve and regulate the distribution and use of power, fuel, energy, and ensure adequate supply of the same during the period of this national emergency.

Philhealth Board of Directors (Philippine Health Insurance Corporation)

1. Cover cost of treatment for COVID-19 patients under the National Health Insurance Program of the Philhealth; and
2. Shoulder all medical expenses of public and private health workers in case of exposure to COVID-19 or any work-related injury or disease during the duration of the emergency.

NWBR administrator (National Water Resources Board)

In coordination with the Local Water Utilities Administration and Metropolitan Waterworks and Sewerage System, to conserve and regulate the distribution and use of and water, and ensure adequate supply of the same.

OCD Administrator (Office of Civil Defense)

Ensure that donation, acceptance and distribution of health products intended to address the COVID-19 public health emergency are not unnecessarily delayed and that health products for donation duly certified by the regulatory agency or their accredited third party from countries with established regulation shall automatically be cleared. In crafting the details of and implementing this measure, he may coordinate with the Department of Transportation (DOTr), the Department of Foreign Affairs, the DOF, the Bureau of Customs, and the Food and Drug Administration.

NDRMMC (National Disaster Risk Reduction and Management Council)

Lift the thirty percent (30%) cap on the amount appropriated for the Quick Response Fund, as provided for in Republic Act No. 10121 or the “Philippine Disaster Risk Reduction and Management Act of 2010,” during the existence of the state of national emergency due to COVID-19”.

All LGUs (Local Government Units)

Now authorized to utilize more than five percent (5%) of the amount allocated for their calamity fund subject to additional funding and support as may be provided by the National Government.

For purposes of implementing the authority of the President to direct the operation of any privately-owned hospitals and medical and health facilities including passenger vessels and, other establishments, to house health workers, serve as quarantine areas, quarantine centers, medical relief and aid distribution locations, or other temporary medical facilities; and public transportation to ferry health, emergency, and frontline personnel and other persons, or take over the operations of the foregoing enterprises, the DOH (Department of Health), the DOTr (Department of Transportation), the DOT (Department of Tourism), and the OCD (Office of Civil Defense) are directed to submit to the Office of the President an inventory of all available or potential assets, and proposed guidelines to exercise such power. Such guidelines must conform with the relevant limits enshrined in Section 17, Article XII of the Constitution.

For purposes of exercising the power to require businesses to prioritize and accept contracts, subject to fair and reasonable terms, for materials and services necessary to promote the declared national policy in RA No. 11469, all relevant agencies and members of the private sector are urged to first negotiate in good faith. Should any contracting party for contracts over such materials or services refuse to give such contract a priority, anyone who has personal knowledge of the contract and the acts of the offending party is enjoined to report the same to the Office of the President to enable the President to exercise the foregoing power.

All departments, agencies, offices, and instrumentalities of the government, GOCCs, GFIs, and LGUs are directed to submit any recommended measure within their respective mandates that may enable the President to more effectively and prudently exercise the temporary authority granted to him under RA No. 11469, with complete details and draft issuance, copy furnished the departments/agencies identified above as may be relevant to the subject measure.

To assist the President in the submission of reports to the Oversight Committee of Congress in compliance with Section 5 of RA No. 11469, all the responsible departments, agencies, offices, and instrumentalities of the government, GOCCs, GFIs, and LGUs are likewise hereby directed to prepare a daily summary of acts performed to implement the foregoing, including the amount and corresponding utilization of the funds used, augmented, reprogrammed, reallocated, and realigned pursuant to RA No. 11469.

The exercise of the foregoing authorities by the departments and agencies concerned shall be without prejudice to the direct exercise thereof by the President at any time, pursuant to his power of control.

Data Privacy, Information Security and Work-from-Home Arrangements

Since the COVID-19 alert level was raised to Code Red Sublevel 2 on 12 March 2020, the government has strongly encouraged flexible work arrangements in the private sector. Flexible work arrangements can take various forms, which, broadly speaking, include telecommuting.

What is telecommuting? It is a work arrangement[1] wherein the employee works from an alternative workplace with the use of telecommunications and/or computer technologies.[2]

How can this be adopted? An employer in the private sector may offer a telecommuting program to its employees on a voluntary basis, (or as a result of collective bargaining), and upon such terms and conditions as they may mutually agree upon provided that the same shall not be less than the minimum labor standards set by law.[3]

What is a telecommuting agreement? It is the agreement between the employer and the employee in the implementation of a telecommuting work arrangement based on the telecommuting program of the company, CBA, and/or company rules and regulations.[4] The agreement should include the duration thereof, and the rights, duties, and responsibilities of the employee.[5] It should also include provisions on observance of data privacy policy[6]

What should the company do if it enters into a telecommuting agreement? The company should the notify the Department of Labor and Employment (DOLE) of the adoption of a telecommuting arrangement.

From a data privacy perspective, what are the obligations of the employer and the employee under a telecommuting agreement? 

• The employer must (i) take appropriate measures to ensure the protection of data used and processed by the telecommuting employee for professional purposes; (ii) inform the telecommuting employee of all relevant laws and company rules concerning data protection.
• The employee must: (i) commit to the company’s data privacy policy; (ii) ensure that confidential and proprietary information are protected at all times; (iii) ensure that confidential and proprietary information are only utilized in accordance with the requirements of the employer.[7]

 Thus, for future reference, companies are advised to document their compliance with their employer obligations under a telecommuting agreement, as part of their overall data privacy compliance program.

In light of the enhanced community quarantine in effect, work-from-home arrangements have now become the norm. As the adverse effects of COVID-19 could very well extend even after the declaration of community quarantine is lifted, companies are advised to take further steps by advising or reminding their employees working from home:   

• to be wary of unverified and/or unproven COVID-19 websites or applications that require them to give their personal data, as these websites or application might contain cyber threat intrusions that may compromise (i) the data privacy not just of the employee but also of other individuals (including the company’s customers/clients) and (ii) the security of the company’s confidential/proprietary information
• not to open messages or attachments from unknown sources, and to take time to review the authenticity of the email or message.
• to be wary of fake news by reviewing and confirming the information/sources.[8]
• to follow the protocols that the employer has implemented considering that the “home is now an extension of [the employer’s] office.”[9] For instance, employees should use their company-supplied laptops and/or mobile devices (which often come with security features) when working and not their personal devices.[10] However, if the company allows its employees to use their own devices to work remotely, then the employees should strictly comply with the company’s bring-your-own-device (BYOD) policy.[11]

As added security, employees should be advised not to use public wi-fi when accessing for instance, confidential or proprietary company or personal information, and to use Virtual Private Network when possible.

As the enhanced community quarantine forces employees to spend more time online, this also exposes them to various sites that may contain suspicious links, pop-ups and downloadable files, resulting in a ransomware infection that locks them out of their devices, thereby defeating the purpose of telecommuting. Hence, the above measures, among others, should serve to complement the company’s existing data privacy policy.

On videoconferencing:

While videoconferencing platforms have now become commonplace, the company should review the Privacy Policy of these platforms before using them and take time to understand its basic features, in coordination with the company’s IT department, to ensure that these features are set consistent with the company’s data privacy policy and IT security policy.

What if the company already has an existing work from home arrangement? If there is an existing company policy or practice allowing work from home or similar arrangements providing substantially similar or higher benefits prior to effectivity of the telecommuting rules (in early 2019), then the same shall apply provided that (i) the DOLE is duly notified thereof[12] and (ii) the same is compliant with the data privacy law, regulations, and the company’s data privacy policies.   

SOURCES:
[1] Section 1, D.O. No. 202 (Series of 2019), IRR of RA 11165.
[2] Section 3, RA No. 11165.
[3] Section 4, RA No. 11165.
[4] Section 2(c), D.O. No. 202 (Series of 2019), IRR of RA 11165.
[5] Section 3 par. 1, D.O. No. 202 (Series of 2019), IRR of RA 11165.
[6] Section 3 par. 2, D.O. No. 202 (Series of 2019), IRR of RA 11165.
[7] Section 5, D.O. No. 202 (Series of 2019), IRR of RA 11165.
[8] https://dict.gov.ph/cybersafety-during-the-covid-19-situation/https://www.privacy.gov.ph/2020/03/npc-phebulletin-no-4-protecting-personal-data-in-thetime-of-covid-19/
[9] https://www.consumer.ftc.gov/blog/2020/03/online-security-tips-working-home
[10] https://us.norton.com/internetsecurity-emerging-threats-working-from-home-due-to-coronavirus.html
[11] See https://www.ncsc.gov.uk/guidance/home-working
[12]Section 9, D.O. No. 202 (Series of 2019), IRR of RA 11165.

NATIONAL PRIVACY COMMISSION PUBLIC HEALTH EMERGENCY

NPC PHE Bulletin No. 3

Recognizing that trusted and verified information is vital in defeating the ongoing battle against the COVID-19 pandemic, the National Privacy Commission (NPC) issued NPC Public Health Emergency (PHE) Bulletin No.3 which lays down the guidelines on the collection and processing of personal data amidst the ongoing global pandemic.

With this, stakeholders, including employers, are guided on how to go about the processing of personal data.

SALIENT POINTS OF THE FOREGOING ISSUANCE WITH RESPECT TO LABOR:

1. Employers may ask their employees to submit declaration forms that provide personal data – for instance, (a) whether they have travelled to or been in close contact with persons who have gone to regions affected by COVID-19; (b) whether they are experiencing symptoms, and other personal data that may be necessary, observing the general data privacy principle of proportionality. Once collected, reasonable and appropriate safeguards should ensure the security of the forms and personal data contained therein.

2. The specific data elements to be collected should be coordinated with the Department of Health (DOH) as these would depend on what the latter needs in order to facilitate contact tracing.

Further Information: https://www.doh.gov.ph/sites/default/files/
Contact Tracing: https://www.doh.gov.ph/sites/default/files/health-update/DC2020-0048-Reiteration-of-DM2020-0068-Interim-Guidelines-on-Contact-Tracing-for-Confirmed-2019-nCoV-ARD-Cases.pdf

3. Disclosure of such employee data to third parties in this crisis is limited. The employer is allowed to disclose only to the DOH and other appropriate government agencies while following all existing protocols on the matter.

4. No consent form from the employees is needed because the basis for the disclosure and other processing rests on the mandate of the DOH, given the declaration of the state of public health emergency in response to the COVID-19 pandemic.

It is advisable, though, to provide a privacy notice informing the employees of the purpose and basis of the processing of such personal data. Reasonable and appropriate safeguards must ensure the security of the forms and personal data contained therein.

5. While the employer need not ask for the consent of an employee who is a Person Under Investigation (PUI) for COVID-19 when disclosing the PUI’s data for purposes of contact tracing, the same should be done only upon the authority, guidance, and instruction of the DOH.

6. If an employee/PUI has been proven to be positive of COVID-19, the employer may not freely disclose the identity of the said employee to everyone, even if within the company only.

If the purpose is to inform those who may have had contact with the said employee so they can be tested and monitored as well, the employer may instead make the necessary notices internally without disclosing the identity of the person who is COVID-19 positive.

Employers should only disclose such personal information as may be necessary to enable other employees to assess their health and potential exposure. Revealing the identity of the COVID-19 patient offers no benefit to the patient nor any advantage to other employees in assessing their exposure. If an employee tests positive, protocols, and guidelines for PUMs/PUIs would apply and, generally, would cover everyone.

7. The proper authority that does contact tracing is the DOH. It follows that the disclosure of the identity of the patient shall be limited to DOH personnel only, following the PUM/PUI protocol.

8. Announcements relating to an employee who is COVID-19 positive should come from the DOH or other appropriate government agencies. Thus, anyone, including employers, with relevant information, should immediately relay it to the DOH for proper handling.

It is well to note that the Department of Health (DOH) is empowered to require mandatory reporting of “emerging infectious diseases” as well as perform quarantine and isolation under the Republic Act 11332 or the “Law on Reporting of Communicable Diseases” to effectively centralize the processing of reported Covid-19 cases in the country.

RA 11332 was signed into law by the President in April 2019.

REPUBLIC ACT 11332, Section 9

Section 9 of the law prohibits:

1. the unauthorized disclosure of private and confidential information pertaining to a patient’s medical condition or treatment
2. tampering of records or intentionally providing misinformation;
3. non-operation of the disease surveillance and response systems;
4. non-cooperation of persons and entities that should report and/or respond to notifiable diseases or health events of public concern; and
5. non-cooperation of the person or entities identified as having the notifiable disease or affected by the health event of public concern.

REPUBLIC ACT 11332, Section 10

Any person or entity found to have violated Section 9 of this Act shall be penalized with:

1. a fine of not less than Twenty thousand pesos (PHP 20,000.00) but not more than Fifty thousand pesos (PHP 50,000.00)
2. or imprisonment of not less than one (1) month but not more than six (6) months,
3. or both such fine and imprisonment, at the discretion of the proper court

If the offense is committed by a public or private health facility, institution, agency, corporation, school, or other juridical entity duly organized in accordance with law, the chief executive officer, president, general manager, or such other officer in charge shall be held liable. In addition, the business permit and license to operate of the concerned facility, institution, agency, corporation, school, or legal entity shall be cancelled.

Hence, employers should adopt measures and policies which will comply with existing laws and regulations governing the collection and processing of personal data of their employees especially those who may be found infected with COVID-19.

Read the full text of NPC PHE Bulletin No. 3 here: https://www.privacy.gov.ph/2020/03/npc-phe-bulletin-no-3-collect-what-is-necessary-disclose-only-to-the-proper-authority/

EXTENSION OF ENHANCED COMMUNITY QUARANTINE OVER LUZON UNTIL 30 APRIL 2020

Administrative Circular No. 34 - 2020

ATTN: ALL LITIGANTS, JUSTICES, JUDGES AND COURT PERSONNEL OF THE JUDICIARY, AND MEMBERS OF THE BAR

In view of the extension of the Enhanced Community Quarantine over Luzon until 30 April 2020, with many other provinces and cities in Visayas and Mindanao either on "lockdown" or "quarantine" in various levels or degrees, the following are hereby provided:

1. All courts nationwide shall remain physically closed to all court users until 30 April 2020, and may be reached only through their respective hotline numbers, email addresses and/or Facebook accounts as posted on the website of the Supreme Court.
2. While the courts shall remain physically closed to all court users, the courts shall continue to operate from 9:00am to 3:00pm, Monday to Friday, until 30 April 2020. All electronic communications however must be transmitted by court users from 8:30am to 2:00pm.
3. The online filing of criminal complaints and informations, posting of bail, and submission of other urgent pleadings shall continue to be in effect until 30 April 2020.
4. The scheduling of justices - and judges-on-duty, together with the skeleton-staff, shall continue until 30 April 2020, so that urgent matters may be addressed.
5. Night courts and Saturday courts shall remain suspended until 30 April 2020.
6. All hearings nationwide, except on urgent matters, shall remain suspended until 30 April 2020.
7. The filing of petitions and appeals, complaints, motions, pleadings and other court submissions that fall due up to 30 April 2020 is extended for 30 calendar days, counted from 1 May 2020, but pleadings and other court submissions may still be filed by the parties within the reglementary period on or before 30 April 2020 through electronic means, if available.
8. All court actions on non-urgent matters, scheduled until 30 April 2020 are likewise suspended.
9. The periods for court actions with prescribed periods are also extended for 30 calendar days counted from 1 May 2020.
10. All justices and judges shall continue to draft decisions and orders in their respective residences until 30 April 2020, which decisions and orders shall be promulgated or issued once the courts are fully operational.
11. All official meetings, seminars, trainings and other functions in the Judiciary are deferred until after 30 April 2020, except those that may be called or authorized by the Chief Justice or by the Judiciary Task Force on COVID-19.
12. Flag raising and retreat ceremonies are likewise suspended until 30 April 2020.

All previously issued circulars and their respective provisions which are not consistent herewith shall remain valid and in effect.

Issued 8 April 2020

Securities & Exchange Commission
Memorandum Circular No. 6 Series of 2020

COVID-19 Adjustment Measures Program (CAMP)
DOLE Department Order No. 209 Series of 2020

In light of the present state of calamity throughout the Philippines, the Department of Foreign Affairs (DFA) issued Foreign Service Circular No. 29-2020 which temporarily suspends visa issuance in all its Foreign Service Posts effective immediately. The suspension is effective until further notice.

With the suspension, all visa-free privileges including those based on Visa Waiver Agreements, those under Executive Order 408, s.1960, and for holders of Hong Kong and Macau SAR passports, Macau-Portuguese passports, and British National Overseas passports, are likewise temporarily suspended, effective 22 March 2020. 

The temporary suspension of visa issuance will deem all previously issued visas canceled, and foreigners with visas issued by Philippine Foreign Service Posts (primarily 9a Temporary Visitor/Tourist visas) will not be allowed entry into the country starting 22 March 2020. 

EXCEPT:

1. Visas previously issued to accredited Foreign Government and International Organization officials and their dependents. 

2. Previously issued visas to foreign spouses and children of Filipino nationals.

This temporary suspension has no impact on foreign nationals that are already in the country or on holders of visas issued by other government agencies (like the Bureau of Immigration).  

Read the full text of the DFA Circular here.

Are you a foreigner receiving passive income from the Philippines? We bear some good news!
The Bureau of Internal Revenue recently issued RMO No. 08-2017, which simplifies the documentation to immediately apply tax treaty rates on dividends, interests, and royalties earning from the Philippines.

In the RMO, tax treaty benefits are applied outright by the withholding agent (instead of going through the rigorous application and waiting process), upon submission of the Certificate of Residence for Tax Treaty Relief or CORTT.

Read the full text of the memorandum here:

Click on the image to view PDF or click here to download PDF.

Implementing Rules and Regulations on the Data Privacy Act of 2012

Click on the image to view PDF or click here to download PDF.

A Primer on Doing Business in the Philippines