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Palau

Executive Summary

Palau is a constitutional republic. Voters elect the president, vice president, and members of the legislature (House of Delegates) for four-year terms. In 2016 voters re-elected Tommy E. Remengesau, Jr. president for a four-year term in a generally free and fair election.

Civilian authorities maintained effective control over the security forces.

There were no reports of egregious human rights abuses.

The government took steps to prosecute officials who committed abuses, although it did not punish any officials for involvement in human trafficking offenses.

Section 2. Respect for Civil Liberties, Including:

d. Freedom of Movement, Internally Displaced Persons, Protection of Refugees, and Stateless Persons

The law provides for freedom of internal movement, foreign travel, emigration, and repatriation, and the government generally respected these rights. The government cooperated with the Office of the United Nations High Commissioner for Refugees and other humanitarian organizations in providing protection and assistance to internally displaced persons, refugees, returning refugees, asylum seekers, stateless persons, and other persons of concern.

PROTECTION OF REFUGEES

Access to Asylum: The law does not provide for granting asylum or refugee status, and the government has no established system for providing protection to refugees. The government provided some protection against the expulsion or return of refugees to countries where their lives or freedom would be threatened on account of their race, religion, nationality, membership in a particular social group, or political opinion.

Section 7. Worker Rights

a. Freedom of Association and the Right to Collective Bargaining

The law provides for the right of all persons to assemble peacefully and to associate with others for any lawful purpose, including to join and organize labor unions and to bargain collectively; no laws regulate trade union organization. The law neither provides for nor prohibits the right to strike, and the government has not addressed this issue. There is no law concerning antiunion discrimination. The government enforced the laws, and penalties were sufficient to deter violations.

There were no active labor unions or other employee organizations. The majority of businesses were small-scale, family-run enterprises employing relatives and friends.

b. Prohibition of Forced or Compulsory Labor

The law prohibits all forms of forced or compulsory labor. Penalties for forced labor offenses include imprisonment and fines, which were sufficient to deter violations. The Office of the Attorney General, the Bureau of Public Safety, and the Bureau of Labor and Human Resources (all within the Ministry of Justice) are responsible for enforcing the law.

There were reports employers forced some foreign workers, particularly domestic helpers, unskilled construction laborers, and workers in the tourism industry to accept jobs different from those for which they had signed contract, or were paid less than the original agreement. There were also reports of fraudulent recruitment onto fishing boats, with fishermen subsequently facing conditions indicative of forced labor. Employers sometimes verbally threatened or withheld passports and return tickets of foreign workers desiring to leave unfavorable work situations. Abuses most commonly reported included misrepresentation of contract terms and conditions of employment, withholding of pay or benefits, and substandard food and housing. There were also complaints of physical abuse. In several cases local authorities took corrective action when alerted by social service and religious organizations.

See also the Department of State’s Trafficking in Persons Report at www.state.gov/j/tip/rls/tiprpt/.

c. Prohibition of Child Labor and Minimum Age for Employment

The minimum age of employment for citizens is 16 years, and the minimum age for noncitizens is 21 years, excluding entertainers applying for temporary identification certificates. The law requires the government to protect children from exploitation. The Bureau of Labor and Human Resources is responsible for enforcing laws and regulations related to child labor. The government effectively enforced the law, and the penalties were adequate to deter violations.

There were no reports children worked in the formal economy, but some assisted their families with fishing, agriculture, and small-scale family enterprises.

d. Discrimination with Respect to Employment and Occupation

The constitution prohibits discrimination with respect to employment or occupation based on race, sex, marital status, place of origin, religion, disabilities, or political grounds. The law protects women from job discrimination and provides for equal pay for equal work. The Bureau of Aging and Gender, under the Ministry of Community and Cultural Affairs, promotes workplace gender equality. The law does not prohibit discrimination with respect to employment or occupation based on sexual orientation or gender identity, HIV-positive status, or other communicable diseases. There were no reports of employment discrimination.

The government effectively enforced these laws. The Office of the Attorney General and the Bureau of Labor and Human Resources handle cases of workplace discrimination against foreign workers.

e. Acceptable Conditions of Work

The minimum wage by law (which applies only to citizens) is $3.50 per hour. There was no official estimate of the poverty income level. The law does not include informal-sector work, such as domestic work, some categories of agricultural work, nongovernmental organization workers, foreign workers, employees who are students, or temporary or probationary work of students and youths younger than 21 years.

The Bureau of Labor and Human Resources has established some regulations about conditions of employment for foreign workers, who are entitled to one day off per week, consisting of 10 continuous hours without working between 6 a.m. and 6 p.m. The bureau may inspect the conditions of the workplace and employer-provided housing on the specific complaint of an employee, but enforcement was inconsistent, and working conditions varied. There was one major industrial accident during the year in which workers were injured or killed.

Although the law states that employers shall adopt reasonable and adequate occupational safety and health rules, no law protects workers who file complaints about hazardous conditions. Foreign workers may self-censor complaints due to fear they could lose their job if they removed themselves from situations that endangered health or safety.

The Division of Labor had seven labor inspectors responsible for enforcing minimum wage laws, regulations regarding working conditions of foreign employees, and safety standards and laws. The number of inspectors was not sufficient to enforce compliance. According to the law, employers are subject to a civil penalty for noncompliance with minimum wage requirements, in addition to the amount of taxes, social security contributions, and interest on unpaid wages. Penalties for violations related to acceptable conditions of work include a range of monetary fines per violation and imprisonment, which were not sufficient to deter violations.

Wages for domestic helpers employed in private households generally were lower than the minimum wage. The country continued to attract foreign workers from the Philippines, China, Bangladesh, the Republic of Korea, and Japan. An Immigration and Labor Monitoring Task Force established in 2017 resulted in the departure of workers due to overstay, working without permits, or unsolvable disagreements between employee and employer.

There were continuing reports of the mistreatment of foreign workers by their employers. The foreign workers most likely to be abused were those who worked under contracts as domestic helpers, farmers, waitresses, cashiers, beauticians, hostesses in karaoke bars and massage parlors, construction workers, and other semiskilled workers, the majority of whom were from the Philippines, China, and Bangladesh.

Panama

Executive Summary

Panama is a multiparty constitutional democracy. In 2014 voters chose Juan Carlos Varela Rodriguez as president in national elections that international and domestic observers considered generally free and fair.

Civilian authorities maintained effective control over the security forces.

Human rights issues included undue restrictions on free expression, the press, and the internet, including censorship, site blocking, and criminal libel; and widespread corruption.

The Varela administration and the Public Ministry continued investigations into allegations of corruption against public officials.

Section 2. Respect for Civil Liberties, Including:

d. Freedom of Movement, Internally Displaced Persons, Protection of Refugees, and Stateless Persons

The law provides for freedom of internal movement, foreign travel, emigration, and repatriation and the government generally respected these rights. The government generally cooperated with the Office of the UN High Commissioner for Refugees (UNHCR) and other humanitarian organizations in providing protection and assistance to refugees, persons under temporary humanitarian protection, asylum seekers, and other persons of concern.

PROTECTION OF REFUGEES

Access to Asylum: The law provides for the granting of asylum or refugee status, and the government has established a system for providing protection to refugees. In January the Ministry of Government issued an executive decree to regulate the protection of refugees, abolishing the previous decree from 1998. The National Office for the Attention of Refugees (ONPAR) declared the reforms were positive and necessary. The decree increases the frequency of the approval board meetings and reduces wait times for final decisions through improved processing and the implementation of a computerized application process. International organizations and NGOs criticized the new decree because it did not include the Cartagena Declaration definition of refugee, nor did it provide applicants with work permits. The new decree also stipulates a six-month waiting period after entering the country before applying for refugee status, and it establishes a summary proceeding to deny refugees who have “manifestly unfounded claims” as determined by ONPAR. In August the government issued a resolution detailing which claims will be considered “manifestly unfounded.” NGOs believed this would further limit access to refugee status and leave more persons in need of international protection. The process of obtaining refugee status generally took one to two years, during which asylum seekers did not have the right to work and encountered difficulties accessing basic services.

In March the government and UNHCR signed a cooperation agreement to train border personnel in identification and referral of persons needing international protection. The government also signed two protocols for the protection of children who migrate: a protocol for identification, referral, and attention for minors requiring international protection, and an institutional protocol for protecting minors who migrate.

In June the government announced it would deport 70 Cuban migrants sheltered in Darien, on the border with Colombia, and in July the government reported that 37 Cubans were placed in the shelter located on the border with Costa Rica. The government continued to manage camps in the Darien region to provide food, shelter, and medical assistance to the migrants. The government reported continued migrations of persons from South Asia, India, and Africa.

According to UNHCR and its NGO implementing partners, thousands of persons living in the country might be in need of international protection. These included persons in the refugee process, persons denied refugee status, and persons who did not apply for refugee status due to lack of knowledge or fear of deportation.

Employment: Refugees recognized by authorities have the right to work, but recognized refugees complained that they faced discriminatory hiring practices. In an effort to prevent this discriminatory practice, ONPAR removed the word “refugee” from recognized refugees’ identification cards. By law individuals in the process of applying for asylum do not have the right to work.

All foreigners seeking a work contract must initiate the process through a lawyer and pay a government fee of 700 balboas to obtain a work permit that expires upon termination of the labor contract or after one year, whichever comes first.

Access to Basic Services: Education authorities sometimes denied refugees access to education and refused to issue diplomas to others if they could not present school records from their country of origin. The Ministry of Education continued to enforce the government’s 2015 decree requiring schools to accept students in the asylum process at the grade level commensurate with the applicants’ prior studies.

Durable Solutions: The law allows persons legally recognized as refugees or with asylum status who have lived in the country for more than three years to seek permanent residency.

STATELESS PERSONS

The government continued to work with Colombia to recognize approximately 200 stateless persons on the border. The governments of Panama and Costa Rica, with the cooperation of UNHCR, continued to use a mobile registry office on the border with Costa Rica to register indigenous Ngabe and Bugle seasonal workers who travel between Costa Rica and Panama and who had not registered their births in either country.

Section 7. Worker Rights

a. Freedom of Association and the Right to Collective Bargaining

The law provides for private-sector workers to form and join independent unions, bargain collectively, and conduct strikes. By law public-sector employees may strike but may not organize unions. Instead, they may organize an association that can bargain collectively on behalf of members. The employer, however, is not legally obligated to bargain with the association. The law prohibits antiunion discrimination and requires reinstatement of workers terminated for union activity. Despite some restrictions, public- and private-sector employers generally respected freedom of association.

Unions and associations are required to register with government authorities. If the government does not respond to a private-sector union registration application within 15 days, the union automatically gains legal recognition. In the public sector, associations gain legal recognition automatically if the General Directorate for Administrative Public Sector Careers does not respond to registration applications within 30 days. The Varela administration (2013-18) approved 48 union-formation applications, compared with the previous administration’s approval of nine unions during five years.

The Board of Appeals and Conciliation of the Ministry of Labor has the authority to resolve certain labor disagreements, such as internal union disputes, enforcement of the minimum wage, and some dismissal issues. The law allows arbitration by mutual consent, at the request of the employee or the ministry in the case of a collective dispute in a privately held public utility company. It allows either party to appeal if arbitration is mandated during a collective dispute in a public-service company. The board has sole competency for disputes related to domestic employees, some dismissal issues, and claims of less than 1,500 balboas.

Government-regulated union membership policies place some restrictions on freedom of association. The constitution mandates that only citizens may serve on a union’s executive board. In addition the law requires a minimum of 40 persons to form a private-sector union (either by a company across trades or by trade across companies) and allows only one union per business establishment. The ILO criticized the 40-person minimum as too large for workers wanting to form a union within a company. Many domestic labor unions, as well as the public and private sector, reiterated their support for keeping the figure at 40 individuals.

In the public sector, member associations represent workers. The law stipulates only one association may exist per public-sector institution and permits no more than one chapter per province. Forty public servants are required to form an association.

The National Federation of Public Servants (FENASEP), an umbrella federation of 25 public-sector worker associations, advocates for adequate treatment of the public sector as a sector with established rights like that of private-sector unionized groups. FENASEP contended there was no political will to allow public servants within ministries to form unions because this could eliminate space for political appointees. No law protects the jobs of public-sector workers in the event of a strike.

The law prohibits federations and confederations from calling strikes, as well as strikes against the government’s economic and social policy. Individual associations under FENASEP may negotiate on behalf of their members. FENASEP leaders noted that collective bargaining claims were heard and recognized, but they reported a lack of change afterwards, particularly regarding dismissals without cause.

A majority of employees must support a strike, and strikes are permitted only if they are related to the improvement of working conditions, a collective bargaining agreement, or in support of another strike of workers on the same project (solidarity strike). In the event of a strike, at least 20 to 30 percent of the workforce must continue to provide minimum services, particularly public services as defined by law, such as transportation, sanitation, mail delivery, hospital care, telecommunications, and public availability of essential food.

Strikes in essential transportation services are limited to those involving public passenger services. The law prohibits strikes for the Panama Canal Authority’s employees but allows associations to organize and bargain collectively on issues such as schedules and safety and provides arbitration to resolve disputes. (The Panama Canal Authority is an autonomous government entity, with independence from the central government.).

The Conciliation Board in the Ministry of the Presidency hears and resolves public-sector worker complaints. The board refers complaints it cannot resolve to arbitration panel, which consists of representatives from the employer, the workers’ association, and a third member chosen by the first two. If the dispute cannot be resolved, it is referred to a tribunal under the board. Observers, however, said the Ministry of the Presidency had not designated the tribunal judges. The alternative to the board is the civil court system. Cases presented in the courts tended to favor the employer. FENASEP noted one public-sector institution had appealed more than 100 complaints to the Supreme Court, only two of which were ruled in favor of the public-sector employee. Supreme Court decisions are final.

Two major strikes occurred during the year. The Panama Canal Tugboat Union (UCOC) claimed unsafe work conditions led to three collisions in the Panama Canal. Beginning in August the UCOC periodically went on strike, mostly over safety reasons. UCOC representatives asserted that due to a low minimum crew requirement and poor-quality tugboats, crews were overworked, fatigued, and experiencing anxiety. They suggested the Panama Canal Authority was using disciplinary action against UCOC protesters. In May SUNTRACS, the largest union of construction workers in the country, launched a strike demanding better wages. After one month of strikes, they negotiated a 14 percent increase in their salaries.

b. Prohibition of Forced or Compulsory Labor

The law prohibits all forms of forced labor of adults or children. It establishes penalties of 15 to 20 years’ imprisonment for forced labor involving movement (either cross-border or within the country) and six to 10 years’ imprisonment for forced labor not involving movement. Such penalties were sufficiently stringent to deter violations.

There continued to be reports of Central and South American and Chinese men exploited in forced labor in construction, agriculture, mining, restaurants, door-to-door peddling, and other sectors; traffickers reported used debt bondage, false promises, lack of knowledge of the refugee process and irregular status, restrictions on movement, and other means. There also were reports of forced child labor (see section 7.c.).

Also, see the Department of State’s Trafficking in Persons Report at www.state.gov/j/tip/rls/tiprpt/.

c. Prohibition of Child Labor and Minimum Age for Employment

The law prohibits the employment of children younger than age 14, although children who have not completed primary school may not begin work until age 15. The family code permits children ages 12 to 14 to perform domestic and agricultural work with regard to schedule, salary, contract, and type. The law allows children ages 12 to 15 to perform light work in agriculture if the work is outside regular school hours. The law also allows a child older than age 12 to perform light domestic work and stipulates employers must ensure the child attends school through primary school. The law neither limits the total number of hours these children may work nor defines the light work children may perform. The law prohibits children younger than age 18 from engaging in hazardous work but allows children as young as 14 to perform hazardous tasks in a training facility, in violation of international standards.

Youths younger than age 16 may work no more than six hours per day or 36 hours per week, while those ages 16 and 17 may work no more than seven hours per day or 42 hours per week. Children younger than 18 may not work between 6 p.m. and 8 a.m.

In 2017 the government strengthened the penalties for child labor, improved agricultural labor inspections, and increased interagency coordination on labor cases. The government increased fines for child labor law violators, who may be fined up to 700 balboas for a first-time violation. Employers who endanger the physical or mental health of a child may also face two to six years’ imprisonment.

Sixty personnel from the Childhood and Adolescence Police, the National Secretariat for Childhood Adolescence and Family, and other government agencies received training on investigating and sanctioning the commercial sexual exploitation of children. Criminal enforcement agencies subsequently investigated 920 reports of commercial sexual exploitation of children and prosecuted and sanctioned four individuals. The country is a source, transit, and destination for men and women exploited in forced labor. Children were exploited in forced labor, particularly domestic servitude, and sex trafficking. The law includes punishment of up to 12 years’ imprisonment for anyone who recruits children under age 18 or uses them to participate actively in armed hostilities.

Also see the Department of Labor’s Findings on the Worst Forms of Child Labor at www.dol.gov/ilab/reports/child-labor/findings/ .

d. Discrimination with Respect to Employment and Occupation

The law prohibits discrimination regarding race, gender, religion, political opinion, citizenship, disability, social status, and HIV status but not based on sexual orientation or gender identity. Although the Ministry of Labor adopted the UN Development Program’s Gender Equality Seal program, the government had neither developed an implementation strategy nor allocated a national source of funds to promote gender equality in the workplace. In addition, a gender wage gap continued to exist, despite the country being a member of the Equal Pay International Coalition, which promotes pay equality between women and men.

Discrimination in employment and occupation occurred with respect to race, sex, gender, disability, sexual orientation or gender identity, and HIV-positive status. During the job interview process, applicants, both citizens and migrants, must complete medical examinations, including HIV/AIDS testing. The law requires all laboratories to inform applicants an HIV test will be administered, but private-sector laboratories often did not comply. It was common practice for human resources offices in the private sector to terminate the application of a citizen who was HIV positive, usually without informing the applicant. For HIV-positive migrants, private laboratories often informed law enforcement, and the National Immigration Office began deportation procedures. Observers noted that during job interviews, women were often asked if they were married, pregnant, or planned to have children in the future. It was common practice for human resources offices to terminate the applications of women who indicated a possibility of pregnancy in the near future (see section 6).

e. Acceptable Conditions of Work

The law provides for a national minimum wage. Public servants’ monthly minimum wage met the official estimate for the poverty income level. Most workers formally employed in urban areas earned the minimum wage or more. Approximately 41 percent of the working population worked in the informal sector, and some earned well below the minimum wage. The agricultural sector, as well as the maritime and aviation sectors, received the lowest and highest minimum wages, respectively. The Ministry of Labor was less likely to enforce labor laws in most rural areas (see section 6, Indigenous People).

The law establishes a standard workweek of 48 hours, provides for at least one 24-hour rest period weekly, limits the number of hours worked per week, provides for premium pay for overtime, and prohibits compulsory overtime. There is no annual limit on the total number of overtime hours allowed. If employees work more than three hours of overtime in one day or more than nine overtime hours in a week, excess overtime hours must be paid at an additional 75 percent above the normal wage. Workers have the right to 30 days’ paid vacation for every 11 months of continuous work, including those who do not work full time.

The Ministry of Labor is responsible for setting health and safety standards. Standards set were generally current and appropriate for the main industries in the country. The law requires employers to provide a safe workplace environment, including the provision of protective clothing and equipment for workers.

The Ministry of Labor generally enforced these standards in the formal sector. The inspection office comprised two groups: the Panama City-based headquarters group and the regional group. As of September there were 47 inspectors reported within the headquarters. The regional branches had 69 general inspectors and 118 safety inspectors for construction sites. The number of inspectors was insufficient to enforce labor laws adequately. As of July the Ministry of Labor had conducted 9,929 safety inspections nationwide. Fines were low and generally insufficient to deter violations. During the year, however, the government levied fines according to the number of workers affected, resulting in larger overall fines.

Reports of violations relating to hours of work were frequent, especially in the maritime sector, where unions reported shifts of 14 to 24 hours. These long shifts reportedly resulted in fatigue-based occupational safety and health risks. Reports also indicated that neither the Maritime Authority nor the Labor Ministry conducted inspections regarding working conditions in the maritime sector. Canal Zone unions and workers experienced difficulties accessing the justice system to adjudicate complaints due to delays and other deficiencies of the Labor Relations Board, which is the court of first instance on labor matters in the Canal Zone. Reports also indicated violations relating to hours of work for coffee harvest workers, who often lacked formal contracts and were vulnerable to coercion from the employer.

Employers often hired employees under short-term contracts to avoid paying benefits that accrue to long-term employees. Employers in the maritime sector also commonly hired workers continuously on short-term contracts but did not convert them to permanent employees as required by law. The law states that employers have the right to dismiss any employee without justifiable cause before the two-year tenure term. As a result, employers frequently hired workers for one year and 11 months and subsequently laid them off to circumvent laws that make firing employees more difficult after two years of employment. This practice is illegal if the same employee is rehired as a temporary worker after being laid off, although employees rarely reported the practice.

Inspectors from the Ministry of Labor and the occupational health section of the Social Security Administration reported conducting periodic inspections of hazardous employment sites. The law requires the resident engineer and a ministry construction-industry inspector to remain on construction sites, establish fines for noncompliance, and identify a tripartite group composed of the Chamber of Construction, SUNTRACS, and the ministry to regulate adherence.

Some construction workers and their employers were occasionally lax about basic safety measures, frequently due to their perception that it reduced productivity. Equipment was often outdated, broken, or lacking safety devices, due in large part to a fear that the replacement cost would be prohibitive.

Papua New Guinea

Executive Summary

Papua New Guinea is a constitutional, federal, multiparty, parliamentary democracy. Parliamentary elections took place in 2017, and the People’s National Congress party won a majority in the 111-seat unicameral parliament, led by Prime Minister Peter O’Neill. In some parts of the country, electoral contests involved widespread violence, fraud, bribery, voter intimidation, and undue influence.

Civilian authorities at times did not maintain effective control over the security forces.

Human rights issues included unlawful or arbitrary killings by police; torture; government corruption; gender-based violence, including acts committed by police; trafficking in persons; the criminalization of same sex conduct between men, although the law was not enforced; and child labor.

The government frequently failed to prosecute or punish officials who committed abuses, whether in the security services or elsewhere in the government. Impunity was pervasive.

Section 2. Respect for Civil Liberties, Including:

d. Freedom of Movement, Internally Displaced Persons, Protection of Refugees, and Stateless Persons

The constitution provides for freedom of internal movement, foreign travel, emigration, and repatriation, and the government generally respected these rights. The government cooperated with the United Nations High Commissioner for Refugees (UNHCR), the IOM, and other humanitarian organizations in providing protection and assistance to internally displaced persons (IDPs), refugees, returning refugees, asylum seekers, stateless persons, and other persons of concern.

Abuse of Migrants, Refugees, and Stateless Persons: Asylum seekers and refugees were sometimes subjected to abuse by security forces and the local population. In 2017 Australia’s Senate Standing Committees released findings from a seven-month inquiry into allegations of serious abuse in the detention center on Manus Island. The inquiry documented evidence that asylum seekers were exposed to physical violence, sexual assault, and medical neglect leading to death, and collected “indisputable” evidence of correspondingly widespread mental health problems that led to self-harm.

In May Rohingya refugee Salim Kyawning died in an apparent suicide after he jumped from a moving bus in Lorengau on Manus Island. Two refugee men also died from suspected suicides in 2017. Human rights groups alleged that these men all suffered from mental illness, exacerbated by frequent clashes with local police, and that their lives could have been saved had they received proper mental health services. In June a fact-finding mission from the UNHCR observed high levels of anxiety and depression among the refugees, and a lack of psychiatric support.

In February PNGDF personnel assaulted three asylum seekers, injuring all three. Tensions between detainees and local police, soldiers, and residents remained high.

INTERNALLY DISPLACED PERSONS (IDPS)

Natural disasters, including a 7.5 magnitude earthquake in February and volcanic eruptions, caused most displacements, while tribal violence, ethnic clashes, and land disputes were responsible for approximately one-third. Displacement was generally protracted, with families living in temporary situations for more than one year on average. These populations were vulnerable because they lacked access to land, basic services, and protection. Women and children were especially susceptible to abuse. The government had no policy or legislation to address the needs of IDPs, and host communities often reacted with violence to displaced populations.

PROTECTION OF REFUGEES

Access to Asylum: While the law does not formally provide for the granting of asylum or refugee status, legislation provides a refugee status determination process. The law allowed persons from the Indonesian’s Papua Province (formerly Irian Jaya) to apply for Papua New Guinea citizenship without having to pay the usual fee.

The government maintains two agreements with Australia on refugees. The first allows Australia to send asylum seekers to Manus Island (see sections 1.d. and 2.d., Abuse of Migrants, Refugees, and Stateless Persons) for processing only. The second allows asylum seekers to resettle in Papua New Guinea. International organizations, NGOs, and civil society groups in the country raised questions about the constitutionality of the latter agreement.

In 2017 Australian authorities closed the Manus Island RPC and moved refugees to the East Lorengau Refugee Transit Center. As of October the transit center held approximately 400 refugees.

Australian Immigration and Border Protection and UNHCR trained the Immigration and Citizenship Service Authority (ICSA) on how to make refugee status determinations. ICSA officers are responsible for processing refugee claims by those on Manus Island. As of October, 403 persons were determined to be genuine refugees, 124 had their claims denied, and another 598 had accepted the voluntary departure package, which in some cases included as much as $25,000 in cash offered by Australian and Papua New Guinea authorities. The remainder were either deported, sent to Australia for medical treatment, settled in Papua New Guinea or the United States, or had died.

ICSA worked with the support of international organizations and NGOs to provide training, job matching, and temporary financial support to help refugees establish themselves in the country. Resettlement efforts were problematic, however, because several refugees who tried to resettle in the country became victims of crime.

Durable Solutions: The national refugee policy provides a way for Indonesian Papuans to apply for Papua New Guinean citizenship without having to pay the PGK 10,000 ($3,000) citizenship fee. ICSA estimated that between 10,000 and 15,000 Indonesian Papuans lived in Papua New Guinea. Under the policy 1,259 Indonesian Papuans received citizenship certificates in 2017, and during the year through October, another 115 received citizenship.

Temporary Protection: The government provided temporary protection to persons from Papua who may not qualify as refugees. Approximately 3,000 persons, classified by the government as “border crossers,” lived in villages adjacent to the border with Indonesia, and approximately 2,400 lived in urban areas, including Port Moresby.

Section 7. Worker Rights

a. Freedom of Association and the Right to Collective Bargaining

The law provides for the right of workers in the public and private sectors to form and join independent unions, conduct legal strikes, and bargain collectively. The government has limited influence over trade union formation and registration. The law does not cover workers in the informal sector, which accounted for 85 percent of the labor force, most of whom were engaged in small-scale farming.

The law requires unions to register with the Department of Labor and Industrial Relations. An unregistered union has no legal standing and thus cannot operate effectively. Although the law provides for the right to strike, the government may, and often did, intervene in labor disputes, forcing arbitration before workers could legally strike or refusing to grant permission for a secret ballot vote on strike action. Some union leaders complained that the labor department’s refusal to allow for votes on strike action constituted undue government influence. By law the government has discretionary power to intervene in collective bargaining by canceling arbitration awards or declaring wage agreements void when deemed contrary to government policy.

The law prohibits both retaliation against strikers and antiunion discrimination by employers against union leaders, members, and organizers. The law does not provide for reinstatement of workers dismissed for union activity. In cases of retaliation or unlawful dismissal for union activity, the court may fine an employer and may order the reinstatement of the employee and reimbursement of any lost wages. If an employer fails to comply with such directives, the court may order imprisonment or fines until the employer complies.

The labor department is responsible for enforcing the law but did so selectively. Penalties were insufficient to deter violations since the maximum fine was PGK 1,000 ($290). With two labor inspectors per province and inadequate resources, inspectors usually monitored and enforced the law on an ad hoc basis. The labor department did not always act to prevent retaliation against strikers or protect workers from antiunion discrimination, which remained widespread in the logging sector and in state-owned enterprises. Observers attributed its ineffectiveness to a lack of sufficient manpower and resources.

Unions were generally independent of both the government and political parties, whose influence diminished from previous years. Employees of some government-owned enterprises went on strike on several occasions during the year, primarily to protest against privatization policies, terminations, and appointments of managers or board members, or in pay disputes. In most cases the strikes were brief due to temporary agreements reached between the government and workers. In February state-owned Ok Tedi Mine fired 93 employees for participating in a one-day protest demanding better working conditions. The chief executive officer of Ok Tedi said the employees’ decision to stage a protest was not in line with proper protocol for filing grievances. The workers filed a complaint with the labor department but as of October the investigation had not been completed.

Workers in both the public and private sectors engaged in collective bargaining. The labor department and courts were involved in dispute settlement.

b. Prohibition of Forced or Compulsory Labor

The constitution and law prohibit all forms of forced or compulsory labor. Penalties are sufficiently stringent to deter violations, but the government did not effectively enforce the law.

Logging and mining sites primarily operated in remote regions with negligible government oversight, and authorities did not make efforts to identify forced labor victims at these sites. The law allows officials, on order of a judge or magistrate, to apprehend a noncitizen crewmember of a foreign-registered ship who fails to rejoin the crewmember’s ship during its time in the country. The crewmember is placed at the disposal of the diplomatic representative of the country in which the ship is registered (or, if no such representation exists, the ship’s owner or representative) in order to return him to the ship. Observers noted this practice might prevent foreign workers from reporting or escaping situations of forced labor.

There were reports that foreign and local women and children were subjected to forced labor as domestic servants, as beggars or street vendors, and in the tourism sector (also see section 7.c.). Foreign and local men were subjected to forced labor, including through debt bondage, in the logging, mining, and fishing sectors. There also were reports of foreign workers, particularly from China and other Pacific nations, entering the country with fraudulent documents and being subjected to forced labor.

Also see the Department of State’s Trafficking in Persons Report at www.state.gov/j/tip/rls/tiprpt/.

c. Prohibition of Child Labor and Minimum Age for Employment

By law the minimum working age is 16 years. The minimum age for hazardous work is 18, but the government has not identified a list of which occupations are hazardous. Children between 11 and 16 years may be employed in light work in a family business or enterprise, provided they have parental permission, medical clearance, and a work permit from a labor office. This type of employment was rare, except in subsistence agriculture. Work by children between 11 and 16 years must not interfere with school attendance, and children younger than 16 may not be employed in working conditions dangerous to their health. The law does not, however, specify the types of activities in which light work is permitted nor the number of hours per week this work may be undertaken. The labor department is responsible for enforcing child labor law provisions; however, enforcement was not effective due to lack of resources and weak penalties.

There was a high prevalence of child labor in urban and rural areas, including in hazardous occupations. Children were seen directing parking and selling cigarettes, food, and DVDs on the street and in grocery stores throughout the country, sometimes near mining and logging camps. There were reports of boys as young as 12 years being exploited as “market taxis” in urban areas, carrying extremely heavy loads for low pay; some may have been victims of forced labor. There were also reports of children engaging in mining activities, including prospectors forcing children to work in alluvial gold mining.

Children work mainly in subsistence agriculture, cash crop farming, and livestock herding. This included seasonal work in plantations (for coffee, tea, copra, and palm oil) in the formal and informal rural economies.

Some children (primarily girls) worked long hours as domestic servants in private homes, often to repay a family debt to the “host” family, in situations that sometimes constituted domestic servitude. In some cases the host was a relative who informally “adopted” the child. There were reports of commercial sexual exploitation of children (see section 6, Children).

Also see the Department of Labor’s Findings on the Worst Forms of Child Labor at www.dol.gov/ilab/reports/child-labor/findings/ .

d. Discrimination with Respect to Employment and Occupation

No law prohibits discrimination regarding race, language, sexual orientation, gender identity, HIV or other communicable disease status, or social status. The constitution bars discrimination based on disability, but the government did not take measures to protect persons with disabilities from discrimination. The law bans discrimination based on gender for employment and wages in the workplace. The government did not effectively enforce these laws.

The law explicitly precludes women from employment in certain occupations, allows the government to recruit either men or women for certain civil service positions, and discriminates by gender in eligibility for certain job-related allowances.

Discrimination occurred based on the above categories with respect to employment and occupation. For example, the International Labor Organization noted there were concerns regarding discrimination against certain ethnic groups, including Asian workers and entrepreneurs.

e. Acceptable Conditions of Work

The minimum wage was PGK 3.50 ($1.05) per hour for all workers; this was above the official estimate for the poverty income level. The law regulates minimum wage levels, allowances, rest periods, holiday leave, and overtime work. The law limits the workweek to 42 hours per week in urban areas and 44 hours per week in rural areas, and it provides for premium pay for overtime work. Labor laws do not apply to workers in the informal sector.

The labor department is responsible for enforcing the law regarding minimum wage and work hours and occupational safety and health. It sets occupational safety and health standards and is required by law to inspect work sites on a regular basis. Due to a lack of resources, however, inspections took place only when requested by workers or unions. Workers are entitled to wages while the inspection takes place, although the law does not specify further protection for employees who seek to remove themselves from conditions they deem hazardous. The number of occupational health and safety and industrial relations inspectors, 43, was insufficient to enforce compliance. The labor department and the courts were not effective in enforcing the law regarding minimum wage and hours of work, in part because penalties were insufficient to deter violations. In the case of a second or subsequent, continuing offense, the employer is liable for a fine for each day or part of each day for which the offense continued. When an employer fails to obey an order, direction, or requirement, the court may order imprisonment of the offender until the directive is obeyed.

Violations of wage, overtime, and occupational safety and health laws and regulations were common in the logging, mining, agricultural, and construction sectors due to the government’s lack of enforcement capacity. The logging industry in particular was known for extremely low wages and poor working conditions, including cramped and unhygienic worker housing. Workers in the mining sector were also subjected to hazardous and exploitative conditions, including exposure to toxic metals such as mercury.

According to World Bank data, 90 percent of the 2.9 million workers labored in rural areas, where law enforcement and monitoring were weak.

Paraguay

Executive Summary

Paraguay is a multiparty, constitutional republic. In April, Mario Abdo Benitez of the Colorado Party, also known as the National Republican Association (ANR), won the presidency in elections recognized as free and fair. Legislative elections took place at the same time.

Civilian authorities at times did not maintain effective control over the security forces. Critics asserted the government did not deploy or monitor forces effectively, particularly in the northeastern section of the country.

Human rights issues included reports of torture by government officials; harsh and at times life-threatening prison conditions; arbitrary arrest and detention; corruption of prosecutors and judges, and police involvement in criminal activities; violent intimidation of journalists by organized crime groups and government officials; legal impunity and widespread corruption in all branches and all levels of government; widespread and sometimes lethal violence against women and indigenous persons, despite government efforts to curtail such acts, as well as police violence against lesbian, gay, bisexual, transgender, and intersex (LGBTI) persons; and child labor, particularly in domestic service and informal agricultural sectors.

The executive branch took steps to prosecute and punish low- and mid-ranked officials who committed abuses, but general impunity for officials in the police and security forces continued to be widely reported.

Section 2. Respect for Civil Liberties, Including:

d. Freedom of Movement, Internally Displaced Persons, Protection of Refugees, and Stateless Persons

The law provides for freedom of internal movement, foreign travel, emigration, and repatriation and the government generally respected these rights. The government’s National Commission of Refugees cooperated with the Office of the UN High Commissioner for Refugees (UNHCR) and other humanitarian organizations in providing protection and assistance to internally displaced persons, refugees, returning refugees, asylum seekers, stateless persons, and other persons of concern. The NGO Committee of Churches for Emergency Aid acted as the local legal representative of UNHCR.

PROTECTION OF REFUGEES

Access to Asylum: The law provides for the granting of asylum or refugee status, and the government has established a system for providing protection to refugees.

Durable Solutions: Authorities permitted persons whose asylum or refugee status cases were refused to seek other migration options, including obtaining legal permanent residency in the country or returning to the most recent point of embarkation. The government did not assist in the safe, voluntary return of refugees to their homes but rather relied on UNHCR assistance to facilitate such returns.

Section 7. Worker Rights

a. Freedom of Association and the Right to Collective Bargaining

The law, including related regulations and statutory instruments, provides for the right of workers to form and join independent unions (with the exception of the armed forces and police), bargain collectively, and conduct legal strikes. The law prohibits binding arbitration or retribution against union organizers and strikers. There are several restrictions on these rights. The law requires that industrial unions have a minimum of 20 members to register. All unions must register with the Ministry of Labor, Employment, and Social Security, a process that often takes more than a year. The ministry, however, typically issued provisional registrations within weeks of application to allow labor unions to operate. Unions with provisional registrations had the same rights and obligations as other unions. Workers cannot be members of more than one union, even if they have more than one part-time employment contract. Strikes are limited to purposes directly linked to workers’ occupations. Candidates for trade union office must work for a company and be active members of the union.

The Ministry of Labor, Employment, and Social Security is responsible for enforcing labor rights, registering unions, mediating disputes, and overseeing social security and retirement programs. Penalties, fines, and remedies associated with discrimination against unions were generally ineffective. Investigations of antiunion discrimination to protect labor rights were rare, lacked sufficient resources, and reportedly occurred only if requested by an aggrieved party. The ministry does not have jurisdiction to initiate or participate in antiunion litigation. Employers who fail to recognize or to bargain collectively with a registered union face fines of 50 days’ wages, or approximately Gs. 3.5 million ($595). Employers who blacklist employees face fines of only 30 days’ wages, or approximately Gs. 2.1 million ($350). These penalties were insufficient to deter violations. The government often did not prevent retaliation by employers who took action against strikers and union leaders. Administrative and judicial procedures were subject to lengthy delays, mishandling of cases, and corruption.

The government did not always respect unions’ freedom of association and the right to collectively bargain. Employers and professional associations heavily influenced some private-sector unions. The leadership of several unions representing public-sector employees had ties to political parties and the government.

While union workers from the steel and maritime industries were unionized and often received relevant legal protections, most workers, including farmers, ranchers, and informal-sector employees, did not participate in labor unions. Many of these workers were members of farmworker movements.

b. Prohibition of Forced or Compulsory Labor

The law prohibits all forms of forced or compulsory labor. The government did not effectively enforce the law. The Ministry of Labor, Employment, and Social Security lacked adequate resources to conduct inspections, especially in remote areas where forced labor was reportedly more prevalent. The Special Directorate to Fight the Trafficking of Persons and Commercial Sexual Exploitation of Children, however, increased child and forced labor investigations in the Chaco region, where the worst forms of child labor, human trafficking, and debt bondage were most prevalent. Penalties for violations include up to 20 years in prison, but enforcement was minimal and penalties were insufficient to deter violations.

During the year the labor ministry’s regional office in the Chaco received complaints for unjustified firings, nonpayment of wages, and other labor violations. The ministry did not confirm instances of debt bondage in the Chaco but would not dismiss the possibility that it continued to exist. In that region there were reports children worked alongside their parents in debt bondage on cattle ranches, on dairy farms, and in charcoal factories. The government continued antitrafficking law enforcement and training efforts and provided limited protective services to female and child trafficking victims. The labor ministry began an antichild-labor information campaign specific to the Chaco in August.

Child labor and trafficking, particularly in domestic service, was a significant problem (see section 7.c.). Reports of criadazgo continued throughout the year. Criadazgo is the practice where middle- and upper-income families informally “employ” child domestic workers, often from impoverished families, and provide them with shelter, food, some education, and a small stipend. Although not all children in situations of criadazgo were victims of trafficking, it made them more vulnerable. The government did not oversee implementation of the practice nor specifically safeguard the rights of children employed through the criadazgo system. While the practice is not legally prohibited specifically, the National Child and Adolescent Secretariat continued to denounce it as illegal under child labor laws.

See the Department of State’s annual Trafficking in Persons Report at www.state.gov/j/tip/rls/tiprpt/.

c. Prohibition of Child Labor and Minimum Age for Employment

The law prohibits the worst forms of child labor, with the exception of slavery-like practices that do not include trafficking involving physical movement of the victim. The minimum age for full-time employment is 18. Children 14 to 17 years old may work with written parental authorization, if they attend school and do not work more than four hours a day (14-15 years old) or six hours (16-17 years old), and do not work more than a maximum of 24 hours per week.

The government did not effectively enforce laws protecting children from exploitation in the workplace. The maximum administrative penalty for employing a child under age 14 is a fine of Gs. 3.78 million ($640). The law stipulates those who employ adolescents between ages 14 and 17 under hazardous conditions must pay the maximum administrative penalty, serve up to five years in prison, or both, but penalties were insufficient to deter violations due to lax enforcement.

The Ministry of Labor, Employment, and Social Security is responsible for administratively enforcing child labor laws, and the Attorney General’s Office prosecutes violators. The Ombudsman’s Office and the Child Rights Committee receive complaints and refer them to the Attorney General’s Office. In the first nine months of the year, the ministry received 17 complaints regarding child and adolescent workers. Most worked as metalworkers, cashiers, sales clerks, helpers, and in other service jobs.

Child labor continued to occur in retail; sugar, brick, and limestone production; domestic service; and small-scale agricultural sectors. Children, primarily boys, also worked in the manufacturing and agricultural sectors and in the restaurant and other service industries. According to both the government and the NGO community, 45,000-47,000 children, primarily girls, worked as domestic servants and received little or no pay under the criadazgo system. In exchange for work, employers promised child domestic servants room, board, and financial support for school. Some of these children were victims of human trafficking for the purposes of forced child labor, did not receive pay or the promised benefits in exchange for work, suffered from sexual exploitation, and often lacked access to education.

The 2017 case against Rosa Delvalle and Anderson Rios for serious bodily damage, attempted homicide, sexual abuse, and torture for forcing a 15-year-old minor to drink caustic soda while working as a domestic servant under the criadazgo system remained pending as of August 24.

The worst forms of child labor occurred where malnourished, abused, or neglected children worked in unhealthy and hazardous conditions selling goods or services on the street, working in factories, or harvesting crops. Children were used, procured, and offered to third parties for illicit activities, including commercial sexual exploitation (see also section 6, Children), sometimes with the knowledge of parents and guardians, who received remuneration. Some minors were involved in forced criminality, acting as drug smugglers for criminal syndicates along the border with Brazil. Children reportedly work in debt bondage alongside their parents in the Chaco region (see section 7.b.).

See the Department of Labor’s Findings on the Worst Forms of Child Labor at www.dol.gov/ilab/reports/child-labor/findings/ .

d. Discrimination with Respect to Employment and Occupation

The law specifically prohibits discrimination based on race, color, sex, age, religion, political opinion, disability, HIV-positive status, or social origin. The government did not effectively enforce the law, and penalties were insufficient to deter violations. The fines for discrimination range from 10 to 30 daily wages per affected worker.

The press and civil society reported on employment discrimination based on sex, race, disability, age, language, weight, sexual orientation, HIV-positive status, and pregnancy.

e. Acceptable Conditions of Work

The mandatory national minimum wage was Gs. 2.12 million ($355) per month. The mandatory minimum wage for domestic employees is set at 60 percent of the national minimum wage. Both were above the official estimate for the poverty income level. The law stipulates that domestic employees work a maximum of eight hours per day. The law provides for a standard legal workweek of 48 hours (42 hours for night work) with one and one-half days of rest. There are no prohibitions of, or exceptions for, excessive compulsory overtime.

The government sets appropriate occupational health and safety standards stipulating conditions of safety, hygiene, and comfort. Although these standards were current and appropriate for light-manufacturing and construction industries, enforcement was inadequate.

The Ministry of Labor, Employment, and Social Security did not effectively enforce provisions for overtime pay, the minimum wage, or limitations on hours of work in the formal or the informal sector. It launched public awareness campaigns, however, aimed at employers and workers to raise awareness of labor laws and worker rights. The number of labor inspectors was insufficient to enforce compliance with all labor laws, and penalties were insufficient to deter violations.

During the first eight months of the year, the labor ministry’s Department of Mediation of Private Conflicts received 5,571 labor complaints and mediation requests. Men filed the majority of these complaints, which involved illegal dismissals or the failure of employers to pay the legally mandated end-of-year bonuses. Many formal and informal employers violated provisions requiring overtime pay, particularly in the food and agricultural sectors and for domestic services. From January to September 30, the labor ministry received 100 complaints of occupational safety and health violations, some associated with workplace accidents or fatalities. Most workplace accidents or fatalities occurred in the construction and light-manufacturing industries.

Employers are obligated to register workers with the labor ministry. As of October 13, however, approximately 2,160 employers had registered 7,090 workers with the ministry, which was very low compared with the country’s population of approximately 6.7 million.

According to the labor ministry and NGOs, many domestic workers suffered discrimination, routinely worked 12-hour workdays (when eight is the maximum), were not paid for overtime work (as required by law), were allowed to rest less than the 36 hours mandated by law, were not entitled to publicly provided retirement benefits, and did not routinely attain job stability after 10 years, unlike other workers covered by the labor code. Domestic workers were eligible for government-sponsored medical care and retirement programs through small payroll and employer contributions.

Peru

Executive Summary

Peru is a constitutional, multiparty republic. Pursuant to the constitution, in March First Vice President Martin Vizcarra assumed the presidency following the resignation of Pedro Pablo Kuczynski. Kuczynski, leader of the Peruanos Por el Kambio (Peruvians for Change) party, had won the 2016 national elections in a vote widely considered free and fair.

Civilian authorities generally maintained effective control over the security forces.

Human rights issues included isolated cases of torture; government corruption, including in the judiciary; violence against women and girls; and forced labor (human trafficking) at illegal gold mining sites.

The government took steps to investigate and in some cases prosecute or otherwise punish public officials accused of abuses.

Section 2. Respect for Civil Liberties, Including:

d. Freedom of Movement, Internally Displaced Persons, Protection of Refugees, and Stateless Persons

The law provides for freedom of internal movement, foreign travel, emigration, and repatriation, and the government generally respected these rights. The government cooperated with the Office of the UN High Commissioner for Refugees (UNHCR), International Organization for Migration (IOM), and other humanitarian organizations to provide protection and assistance to internally displaced persons, refugees, returning refugees, asylum seekers, stateless persons, or other persons of concern.

In-country Movement: The government maintained an emergency zone in the VRAEM and parts of four regions, where it restricted freedom of movement in an effort to maintain public peace and restore internal order.

Narcotics traffickers and Shining Path members at times interrupted the free movement of persons by establishing roadblocks in sections of the VRAEM emergency zone. Individuals protesting against extractive industry projects also occasionally established roadblocks throughout the country.

INTERNALLY DISPLACED PERSONS (IDPS)

The situation of former IDPs was difficult to assess. According to UNHCR, the number of IDPs was unknown, since officials registered relatively few.

The governmental Reparations Council continued to assist victims of the 1980-2000 internal conflict with the Shining Path and the Tupac Amaru Revolutionary Movement terrorist groups. The Quechua and other Andean indigenous populations were disproportionately represented among IDPs, since the conflict took place primarily within the Andean region. The council continued to compile a registry of victims and identify communities eligible for reparations. Some victims and family members lacking proper identity documents experienced difficulties registering for reparations.

PROTECTION OF REFUGEES

The government, UNHCR, IOM, and civil society organizations estimated nearly 100,000 foreigners, mostly Venezuelans, resided in the country under irregular circumstances. The number of Venezuelans entering the country continued to increase, reaching more than 600,000 as of November, from fewer than 5,000 in 2015. The government created temporary residence permits for Venezuelans, enabling them to reside and work in the country legally. The government had granted temporary residence permits to approximately 92,000 Venezuelans who entered between February 2017 and September 2018. Local authorities reported approximately 694,000 Venezuelans entered from Ecuador between January and October. Of these Venezuelan entrants, 71 percent declared (over 491,000) their final destination was Peru and the remainder (over 202,000) departed for Chile, Argentina, and Uruguay.

Access to Asylum: The law provides for the granting of asylum or refugee status, and the government has established a system for providing protection to refugees. The government cooperated with UNHCR and recognized the Catholic Migration Commission as the official provider of technical assistance to refugees. The commission also advised citizens claiming a fear of persecution who sought asylum. The government provided protection to refugees on a renewable, year-to-year basis, in accordance with commission recommendations. Asylum requests continued to grow, from approximately 400 cases in 2015 to more than 130,000 as of September. Approximately 97 percent of the asylum requests during the year came from Venezuelan citizens.

Durable Solutions: The government does not have a resettlement program, but it received persons recognized as refugees in other nations and provided some administrative support toward their integration. UNHCR provided such refugees humanitarian and emergency aid, legal assistance, documentation, and, in exceptional cases, voluntary return and family reunification.

Temporary Protection: As of September, the government provided temporary protection to more than 130,000 individuals awaiting a decision on their refugee status. The government provided these individuals temporary residence permits and authorization to work.

Section 7. Worker Rights

a. Freedom of Association and the Right to Collective Bargaining

With certain limitations, labor laws and regulations provide freedom of association, the right to strike, and collective bargaining. The law prohibits employer intimidation and other forms of antiunion discrimination and requires reinstatement of workers fired for union activity, unless they opt to receive compensation instead. Regulations allow workers to form unions without seeking prior authorization. The minimum membership required by law to form a union is 20 employees for a workplace-level union and 50 employees for a sector-wide union, which some labor activists viewed as prohibitively high in some instances, particularly for small and medium-sized enterprises. The use of consecutive short-term contracts in some nontraditional export sectors, such as textiles and apparel, made the exercise of freedom of association and collective bargaining difficult.

The law allows unions to declare a strike in accordance with their governing documents. Private-sector workers must give advance notice of at least five working days, and public-sector workers must give at least 10 days’ notice. The law also allows nonunion workers to declare a strike with a majority vote as long as the written voting record is notarized and announced at least five working days prior to a strike. Unions in essential services are permitted to call a strike but must provide 15 working days’ notice, receive the approval of the ministry, obtain approval of a simple majority of workers, and provide a sufficient number of workers during a strike to maintain operations. Private enterprises and the public institutions cannot fire workers who strike legally.

The law requires businesses to monitor their contractors with respect to labor rights and imposes liability on businesses for the actions of their contractors. The law governing the general private-sector labor regime sets out nine categories of short-term employment contracts that companies may use. The law sets time limits for each of the categories and contains a five-year overall limit on the consecutive use of short-term contracts. A sector-specific law covering the textile and apparel nontraditional export sectors exempts employers from this five-year limit and allows employers to hire workers on indefinite short-term contracts, without requiring a conversion to the permanent workforce.

Although the Ministry of Labor and its National Superintendency of Labor Inspection (SUNAFIL) received budget increases in 2017 and 2018, resources remained inadequate to enforce freedom of association, collective bargaining, and other labor laws. In July Congress passed a law to merge the regional labor inspectors and Ministry of Labor inspectors with SUNAFIL. As of September SUNAFIL reported having 636 labor inspectors and to have budgeted for the hiring of an additional 216 inspectors by the end of the year. SUNAFIL opened a new labor inspection office in Puno in May. As of October SUNAIFL had offices in 16 of the 24 regions.

Penalties for violations of freedom of association and collective bargaining range from 7,400 to 74,000 soles ($2,280 to $22,800). Such penalties were insufficient to deter violations and, according to labor experts and union representatives, were rarely enforced. Workers continued to face prolonged judicial processes and lack of enforcement following dismissals resulting from trade union activity.

b. Prohibition of Forced or Compulsory Labor

The law prohibits all forms of forced or compulsory labor, but the government did not effectively enforce the law.

Resources, inspections, and remediation were inadequate for effective enforcement of the law. The law prescribes penalties of eight to 25 years’ imprisonment for labor trafficking, although the government did not report statistics on convictions and sentences for forced labor during the year. Financial penalties for violations range from 7,400 to 74,000 soles ($2,280 to $22,800) but were insufficient to deter violations.

SUNAFIL officials conducted inspections to identify forced labor. The Ministry of Labor and SUNAFIL provided training sessions to SUNAFIL and regional labor inspectors around the country to raise awareness of forced labor and the applicable law. The government continued to implement the 2013-17 national plan to combat forced labor during the year. The government approved a new National Plan of Action against Trafficking in Persons 2017-21 in June 2017. The plan addresses forced labor as human trafficking with an emphasis on the needs of victims through a dedicated Victim Reintegration Plan.

Thousands of persons remained subject to conditions of forced labor, mainly in mining, forestry, agriculture, brick making, and domestic service. There were reports that men and boys were subjected to bonded labor in mining (including gold mining), forestry, and brick making, while women were most often found working under conditions of domestic servitude. Both men and women reportedly worked in bonded labor in agriculture.

In July a court sentenced the husband and wife who operated a workshop to preventive detention. As of October the husband remained in jail, and his wife was under house arrest, pending trial. A fire in June 2017 in downtown Lima exposed the informal counterfeit lightbulb workshop, which allegedly engaged in human trafficking for forced labor exploitation. Two workers were locked in the workshop; one, a 17-year-old minor, died in the fire.

In September the PNP reported it rescued 1,077 human trafficking victims (sexual exploitation and forced labor) during multiple police operations from January to September. The rescued victims included 130 foreign women, mostly Venezuelans with some Ecuadorians and Bolivians. The police conducted the operations in Madre de Dios, Piura, Tumbes, and Lima.

Also see the Department of State’s Trafficking in Persons Report at www.state.gov/j/tip/rls/tiprpt/.

c. Prohibition of Child Labor and Minimum Age for Employment

The legal minimum age for employment is 14, although children between the ages of 12 and 14 may work in certain jobs for up to four hours per day. Adolescents between the ages of 15 and 17 may work up to six hours per day, if they obtain special permission from the Ministry of Labor and certify that they are attending school. In certain sectors of the economy, higher age minimums existed: 15 in nonindustrial agriculture; 16 in industry, commerce, and mining; and 17 in industrial fishing. The law specifically prohibits the hiring of minors in a number of occupations considered hazardous for children, including working underground, lifting or carrying heavy weights, accepting responsibility for the safety of others, and working at night. The law prohibits work that jeopardizes the health of children and adolescents; puts their physical, mental, and emotional development at risk; or prevents regular attendance at school.

A permit from the Labor Ministry is required for persons under 18 to work legally. Parents must apply for the permits, and employers must have a permit on file to hire a minor.

The Ministry of Labor and SUNAFIL are responsible for enforcing child labor laws, but enforcement was not effective, especially in the informal sector in which the majority of child labor occurred. The ministry and SUNAFIL lacked the resources needed to execute necessary inspections, and inter-ministerial coordination was often lacking. Inspectors conducted visits without notice to areas where persons or organizations had reported child labor problems. By law the penalties for illegal child labor include fines from 192,500 soles ($59,400) for microbusiness to 385,000 soles ($118,800) for small and medium-sized businesses and 770,000 soles ($237,600) for larger enterprises. In addition to these fines, violators are subject to civil and criminal legal proceedings.

The Labor Ministry continued its “Vamos Peru” (Let’s Go, Peru) program, focused on job training, technical assistance to entrepreneurs, and job placement, and the “Peru Responsable” (Responsible Peru) program, aimed at fostering corporate social responsibility and creating formal employment for youth. The ministry continued to implement its national strategy to combat child labor, including projects in Junin, Huancavelica, Pasco, Carabayllo, and Huanuco, which focused on reducing child labor by improving educational services, providing mechanical tools, and providing cash transfers to families in rural areas.

The Office of the Ombudsman for Children and Adolescents (DEMUNA) worked with the Labor Ministry to document complaints regarding violations of child labor laws. DEMUNA operated a decentralized child labor reporting and tracking system. The Ministry of Women and Vulnerable Populations administered a program that sent specialized teachers to the streets to provide education and support to minors involved in begging and street vending. The ministry continued to implement the Yachay program, which assists homeless children ages six to 17 with workshops, health care, education, legal services, and scholarships.

A 2016 government child labor report found more than two million children in the five-to-17 age group worked, a rate of more than 26 percent. The report noted child labor rates tracked closely with high poverty rates, with several of the rural highland regions having child labor rates above 50 percent: 67 percent for Huancavelica, 63 percent for Cajamarca, 54 percent for Cusco, and 51 percent for Puno. Some coastal regions had child labor rates below 10 percent, such as Callao with 4 percent, Lima with 6 percent, and Ica with 9 percent. The report also found child labor predominately occurred in rural, agricultural areas (46 percent), in contrast to urban centers (13 percent). The report noted that children engaged in the worst forms of child labor, including mining and in commercial sexual exploitation, sometimes as a result of human trafficking.

Representatives from the Labor Ministry, NGOs, and labor unions reported counterfeit U.S. currency cases that involved child labor. The ministry, NGOs, and labor activists reported the use of child labor in rice production on plantations in the Tumbes Region.

Also, see the Department of Labor’s Findings on the Worst Forms of Child Labor at www.dol.gov/ilab/reports/child-labor/findings/ .

d. Discrimination with Respect to Employment and Occupation

The law prohibits discrimination with respect to employment based on race, color, sex, religion, political opinion, national origin, citizenship, social origin, disability, age, language, or social status. The law does not specifically identify discrimination based on sexual orientation or gender identity, HIV-positive status, or other communicable diseases. The law prohibits discrimination against domestic workers and any requirement by employers for their domestic workers to wear uniforms in public places. The law establishes the following employment quotas for persons with disabilities: 3 percent for private businesses with more than 50 employees and 5 percent for public-sector organizations. The National Council for the Integration of Persons with Disabilities oversees compliance with employment quotas for persons with disabilities.

The government did not effectively enforce the law. Penalties for violations include fines and imprisonment, but they were not sufficient to deter violations. NGOs and labor rights advocates noted that discrimination cases often went unreported to authorities.

Societal prejudice and discrimination led to disproportionate poverty and unemployment rates for women. Women were more likely to work in the informal sector or in less secure occupations, such as domestic service, factory work, or as street vendors, and they were more likely to be illiterate due to lack of formal education.

e. Acceptable Conditions of Work

In April the government increased the statutory monthly minimum wage for formal workers from 850 soles ($265) to 930 soles ($290) per month. The INEI estimated the poverty line to be 315 soles ($97) a month per person, although it varied by region. The average monthly income, set in September 2016, was 1,640 to 1,867 soles ($505-$575) for men and 1,352 soles ($415) for women. The INEI reported the average monthly income in 2017 for Lima was 1,667.30 soles ($521).The government did not effectively enforce wage laws and penalties were not sufficient to deter violations of minimum wage standards.

The law provides for a 48-hour workweek for formal workers and one day of rest. There is no prohibition on excessive compulsory overtime, nor does the law limit the amount of overtime that a worker may work. The law stipulates 15 days of paid annual vacation.

The Occupational Health and Safety (OHS) Standards are appropriate for the main industries. SUNAFIL is responsible for the enforcement of OHS standards. The government did not devote sufficient resources and personnel to enforce OHS standards.

Fines for labor violations were last increased in April 2014. Noncompliance with the law is punishable by fines of 7,400 to 74,000 soles ($2,280 to $22,800). In July 2014, however, the government enacted a three-year decree that reduced fines on employers for labor violations to no more than 35 percent of the maximum fine established by law. The government renewed that decree in 2017 for another three years. The reduction is limited to fines for occupational safety and health violations that did not result in death or permanent injury of the worker and violations of laws related to freedom of association and workplace discrimination determined not to be “very serious.” The reduction does not apply to violations that “very seriously affect” freedom of association, union formation, and workplace discrimination; violations related to child labor or forced labor; violations of occupational and safety norms that result in death or permanent disability of the worker; actions that impede labor inspections; and recidivist conduct, defined as repeat violations within a six-month period from the time a final decision on the first infraction was issued. The reductions, however, do not apply to violations of fundamental labor rights. Many fines went uncollected, in part because the government lacked an efficient tracking system and at times due to a lack of political will, according to a local labor NGO and labor experts.

The law provides for fines and criminal sanctions for occupational safety and health violations. In cases of infractions, injury, or deaths of workers or subcontractors, the penalty is one to four years’ imprisonment. Criminal penalties are limited to those cases where employers “deliberately” violated safety and health laws and where labor authorities had previously notified employers who chose not to adopt measures in response to a repeated infraction. The law requires that a worker prove an employer’s culpability to obtain compensation for work-related injuries.

Representatives of labor, business, and the government reported that the majority of companies in the formal sector generally complied with the law. Many workers in the informal economy, approximately 70 percent of the total labor force, received less than the minimum wage, although most were self-employed.

Philippines

Executive Summary

The Philippines is a multi-party, constitutional republic with a bicameral legislature. President Rodrigo Roa Duterte, elected in May 2016, began his constitutionally limited six-year term in June 2016. The 2016 presidential election was generally seen as free and fair. Barangay (village) and youth council elections originally scheduled for 2016 were twice postponed but ultimately held in May. These, too, were generally free and fair, although there were reports of violence and vote buying.

Civilian control over the Philippine National Police (PNP) continued to improve but was not fully effective.

Extrajudicial killings have been the chief human rights concern in the country for many years and, after a sharp rise with the onset of the antidrug campaign in 2016, they continued in the reporting year, albeit at a lower level. From January to September 29, media chronicled 673 deaths in police operations suspected to be connected with the government’s antidrug campaign. The PNP Internal Affairs Service (IAS) is required to investigate all deaths or injuries committed in the conduct of a police operation. IAS claimed it began investigations of all reported extrajudicial killings. There were no reports that civilian control over other security forces was inadequate.

Human rights issues included unlawful or arbitrary killings by security forces, vigilantes, and others allegedly connected to the government, and by insurgents; forced disappearance; torture; arbitrary detention; harsh and life-threatening prison conditions; political prisoners; arbitrary or unlawful interference with privacy; criminal libel; killings of and threats against journalists; official corruption and abuse of power; and the use of forced and child labor.

The government investigated a limited number of reported human rights abuses, including abuses by its own forces, paramilitaries, and insurgent and terrorist groups. Concerns about police impunity increased significantly following the sharp increase in killings by police in 2016. President Duterte publicly rejected criticism of alleged police killings, but said authorities would investigate any actions taken outside the rule of law. Significant concerns persisted about impunity of civilian national and local government officials and powerful business and commercial figures. Slow judicial processes remained an obstacle to bringing government officials allegedly involved in human rights abuses to justice.

Muslim separatists, communist insurgents, and terrorist groups continued to attack government security forces and civilians, causing displacement of civilians and resulting in the deaths of security force members and civilians. Terrorist organizations engaged in kidnappings for ransom, bombings of civilian targets, beheadings, and the use of child soldiers in combat or auxiliary roles. The government called off negotiations with the National Democratic Front of the Philippines, the political arm of the communist New People’s Army, in June, but continued to explore ways to resume talks.

Section 2. Respect for Civil Liberties, Including:

d. Freedom of Movement, Internally Displaced Persons, Protection of Refugees, and Stateless Persons

The constitution provides for freedom of internal movement, foreign travel, emigration, and repatriation, and the government generally respected these rights. The government cooperated with the Office of the United Nations High Commissioner for Refugees (UNHCR) and other humanitarian organizations in providing protection and assistance to internally displaced persons, refugees, returning refugees, asylum seekers, stateless persons, and other persons of concern. There were no reports the government exerted pressure or threatened refugees to return to the country from which they had fled.

Foreign Travel: Government limits on foreign travel were generally based on security or personal safety factors, such as when a citizen had a pending court case, or to discourage travel by vulnerable workers to countries where they could face personal security risks, including trafficking or other exploitation. The Philippine Overseas Employment Administration manages departures for work abroad. It requires overseas workers to register and receive predeparture screening, training, and certification before traveling, and is intended to ensure that future overseas workers deal with legitimate, licensed recruitment agencies.

INTERNALLY DISPLACED PERSONS (IDPS)

Decades of sectarian and political insurgency, sporadic interclan fighting, and natural disasters have generated significant internal displacement. The number of IDPs was uncertain and fluctuated widely. Counterinsurgency campaigns against the ASG, primarily in Sulu and Basilan Provinces, and clashes with the NPA, concentrated in the most geographically remote provinces, caused sporadic and small-scale displacement. Most IDPs were women and children.

In Mindanao, UNHCR reported that as of June an estimated 143,033 persons were displaced and in need of durable solutions. Of those, an estimated 98,433 were displaced by crime or violence, 36,617 by armed conflict, and 7,983 by natural disasters.

Government agencies, often with support from UN agencies and other international donors, provided food (although NGOs noted that food aid was sometimes delayed); constructed shelters and public infrastructure; repaired schools; built sanitation facilities; offered immunization, health, and social services; and provided cash assistance and skills training for IDPs. The government permitted humanitarian organizations access to IDP sites. Security forces sometimes carried out military operations near IDP sites, increasing the risk of casualties and damage, and restricting freedom of movement. Impoverished IDPs were highly susceptible to human trafficking networks. Additionally, despite a government policy of free public education, significant numbers of children in displaced families were unable to attend school because of unofficial school fees and transportation expenses.

At times the government encouraged IDPs to return home, but they were often reluctant to do so for security or welfare reasons.

PROTECTION OF REFUGEES

Access to Asylum: No comprehensive legislation provides for granting refugee status or asylum. The Department of Justice’s Refugee and Stateless Persons Protections Unit (RSPPU) determines which applicants qualify as refugees in accordance with an established, accessible system that appeared to provide basic due process. From January to July, the RSPPU received 129 asylum applications, and granted 20. The RSPPU reported 493 refugees in the country as of July 31; 11 refugees transited under the Emergency Transit Mechanism according to UNHCR.

Safe Country of Origin/Transit: The government cooperated with UNHCR and other humanitarian organizations to assist refugee transit through the country pursuant to a Department of Foreign Affairs-UNHCR memorandum of agreement.

Employment: The government allowed refugees to work (see section 7.d.).

Access to Basic Services: In 2017, 16 agencies signed the Inter-Agency Agreement on the Protection of Asylum Seekers, Refugees, and Stateless Persons, which commits them to provide government services, including education and health care, to affected persons.

STATELESS PERSONS

The Department of Justice is responsible for statelessness determinations of persons born in the country and of newly arrived persons. According to revised rules, after an applicant files for a determination of statelessness, deportation or exclusion proceedings against the applicant and dependents are suspended, and the applicant may be released from detention. As of July, five stateless persons were in the country. None were classified as refugees.

Stateless persons may be naturalized. As of August there were no known cases of social discrimination against stateless persons or limits on their access to public services.

As of August under a 2014 initiative to register persons of Indonesian descent at risk of statelessness in Southern Mindanao, the Philippine and Indonesian governments collectively registered 8,745 persons, of whom 6,744 had their citizenship confirmed. The Philippine and Indonesian governments jointly reaffirmed the provision of consular assistance to both documented and undocumented migrants of Indonesian descent.

Section 7. Worker Rights

a. Freedom of Association and the Right to Collective Bargaining

The law provides for the rights of workers, with the exception of the military, police, short-term contract employees, and some foreign workers, to form and join independent unions, bargain collectively, and conduct strikes; it prohibits antiunion discrimination. The law, however, places several restrictions on these rights.

Laws and regulations provide for the right to organize and bargain collectively in both the private sector and corporations owned or controlled by the government. The law prohibits organizing by foreign national or migrant workers unless a reciprocity agreement exists with the workers’ countries of origin specifying that migrant workers from the Philippines are permitted to organize unions there. The law also requires the participation of 20 percent of the employees in the bargaining unit where the union seeks to operate; the International Labor Organization (ILO) called this requirement excessive and urged the government to lower minimum membership. The scope of collective bargaining in the public sector is limited to a list of terms and conditions of employment negotiable between management and public employees. These are items requiring appropriation of funds, including health-care and retirement benefits, and those that involved the exercise of management prerogatives, including appointment, promotion, compensation, and disciplinary action, are nonnegotiable.

Strikes in the private sector are legal. Unions are required to provide strike notice, respect mandatory cooling off periods, and obtain approval from a majority of members before calling a strike. The Department of Labor and Employment’s (DOLE/labor department) Bureau of Labor Relations reported 417 mediation-conciliation cases from January to July. Of these, 288 cases were filed under preventive mediation, 124 under notices of strike or lockout, and five cases under actual strike or lockout. Of the total reported mediation-conciliation cases, 66 percent raised issues on unfair labor practices.

The law subjects all problems affecting labor and employment to mandatory mediation-conciliation for one month. Parties to a dispute must attempt mediation before giving notice to strike; if that fails, the union may issue a strike notice. Parties may bring any dispute to mediation, but strikes or lockouts must be related to acts of unfair labor practice, a gross violation of collective bargaining laws, or a collective bargaining deadlock. The law provides for a maximum prison sentence of three years for participation in an illegal strike, a requirement the ILO urged the government to amend.

The law permits employers to dismiss union officers who knowingly participate in an illegal strike. Union officers convicted of striking illegally are subject to a maximum imprisonment of three years, although there has never been such a conviction.

The law prohibits government workers from joining strikes under the threat of automatic dismissal. Government workers may file complaints with the Civil Service Commission, which handles administrative cases and arbitrates disputes. Government workers may also assemble and express their grievances on the work premises during nonworking hours.

The secretary of the DOLE, and in certain cases the president, may intervene in labor disputes by assuming jurisdiction and mandating a settlement if either official determines that the strike-affected company is vital to the national interest. Vital sectors include hospitals, the electric power industry, water supply services (excluding small bottle suppliers), air traffic control, and other activities or industries as recommended by the National Tripartite Industrial Peace Council (NTIPC). Labor rights advocates continued to criticize the government for maintaining definitions of vital services that were broader than international standards.

By law antiunion discrimination, especially in hiring, is an unfair labor practice and may carry criminal or civil penalties (although generally civil penalties were favored over criminal penalties).

The government generally respected freedom of association and collective bargaining, and enforced laws protecting these rights. The Department of Labor has general authority to enforce laws on freedom of association and collective bargaining. The National Labor Relations Commission’s (NLRC) labor arbiter may also issue orders or writs of execution for reinstatement that go into effect immediately, requiring employers to reinstate the worker and report compliance to the NLRC. Allegations of intimidation and discrimination in connection with union activities are grounds for review by the quasi-judicial NLRC, as they may constitute possible unfair labor practices. If there is a definite preliminary finding that a termination may cause a serious labor dispute or mass layoff, the DOLE secretary may suspend the termination and restore the status quo pending resolution of the case.

Penalties under the law for violations of freedom of association or collective bargaining laws were generally not sufficient to deter violations.

Administrative and judicial procedures were subject to lengthy delays and appeals. Before disputes reach the NLRC, the labor department provides mediation services through a board, which settles most unfair labor practice disputes. Through the National Conciliation and Mediation Board, the department also works to improve the functioning of labor-management councils in companies with unions.

The NTIPC serves as the main consultative and advisory mechanism on labor and employment for organized labor, employers, and government on the formulation and implementation of labor and employment policies. It also acts as the central entity for monitoring recommendations and ratifications of ILO conventions. The labor department, through the NTIPC, is responsible for coordinating the investigation, prosecution, and resolution of cases alleging violence and harassment of labor leaders and trade union activists pending before the ILO.

Workers faced several challenges in exercising their rights to freedom of association and collective bargaining. Unions continued to claim that local political leaders and officials who governed the Special Economic Zones (SEZs) explicitly attempted to frustrate union organizing efforts by maintaining union-free or strike-free policies. Unions also claimed that the government stationed security forces near industrial areas or SEZs to intimidate workers attempting to organize, and alleged that companies in SEZs used frivolous lawsuits to harass union leaders. Local SEZ directors claimed exclusive authority to conduct their own inspections as part of the zones’ privileges intended by the legislature. Employers controlled hiring through special SEZ labor centers. For these reasons, and in part due to organizers’ restricted access to the closely guarded zones and the propensity among zone establishments to adopt fixed-term, casual, temporary, or seasonal employment contracts, unions had little success organizing in the SEZs. The DOLE does not have data on compliance with labor standards in SEZs.

There were isolated reports of labor-related violence during the year. In July police arrested 19 NutriAsia workers and supporters for “obstructing the ingress and egress” to the company plant. The DOLE mediated the case between NutriAsia and its workers.

Some employers reportedly chose to employ workers who could not legally organize, such as short-term contract and foreign national workers, to minimize unionization and avoid other rights accorded to “regular” workers. The nongovernmental Center for Trade Union and Human Rights contended that this practice led to a decline in the number of unions and workers covered by collective bargaining agreements. Employers also often abused contractual labor provisions by rehiring employees shortly after the expiration of the previous contract. The labor department reported multiple cases of workers alleging employers refused to bargain.

b. Prohibition of Forced or Compulsory Labor

The law prohibits all forms of forced or compulsory labor. Legal penalties for forced labor were sufficiently stringent.

Trade unions reported continued poor compliance with the law, due in part to the government’s lack of capacity to inspect labor practices in the informal economy. The government continued awareness-raising activities, especially in the provinces, in an effort to prevent forced labor. The DOLE’s efforts included an orientation program for recruits for commercial fishing vessels, who were among the workers most vulnerable to forced labor conditions.

Reports of forced labor by adults and children continued, mainly in fishing and other maritime industries, small-scale factories, gold mines, domestic service, agriculture, and other areas of the informal sector (see section 7.c.). Unscrupulous employers subjected women from rural communities and impoverished urban centers to domestic servitude, forced begging, and forced labor in small factories. They also subjected men to forced labor and debt bondage in agriculture, including on sugar cane plantations and in fishing and other maritime industries.

There were reports that some persons who voluntarily surrendered to police and local government units in the violent antidrug campaign were forced to do manual labor, exercise, or other activities that could amount to forced labor without charge, trial, or finding of guilt under law.

Also see the Department of State’s Trafficking in Persons Report at www.state.gov/j/tip/rls/tiprpt/.

c. Prohibition of Child Labor and Minimum Age for Employment

The law prohibits the employment of children younger than 15 years, except under the direct and sole responsibility of parents or guardians, and sets the maximum number of working hours for them at four hours per day and no more than 20 hours per week. The law also prohibits the worst forms of child labor. Children between 15 and 17 are limited to eight working hours per day, up to a maximum of 40 hours per week. The law forbids the employment of persons younger than 18 in hazardous work. The law sets the minimum age for domestic workers at 15.

Although the government supported programs that sought to prevent, monitor, and respond to child labor, resources remained inadequate. The government imposed fines and instituted criminal prosecutions for law violations in the formal sector, such as in manufacturing. Fines for child labor law violations were not sufficient to deter violations. From January to July, the DOLE, through its Sagip Batang Manggagawa (Rescue Child Laborers) program (part of the Health, Education, Livelihood, and Prevention, Protection, and Prosecution, Monitoring and Evaluation [H.E.L.P.M.E.] Convergence Program), conducted five operations and removed 25 minors from hazardous and exploitative working conditions. As of July the department closed three establishments for violations of child labor laws. In June the PNP’s Women and Children Protection Center rescued 19 female high school students allegedly working as escorts at a bar in Manila. The PNP also arrested three suspected pimps offering “jobs” to students outside the school premises.

The government, in coordination with domestic NGOs and international organizations, continued to implement programs to develop safer options for children, return them to school, and offer families viable economic alternatives to child labor. The labor department continued its efforts to reduce the worst forms of child labor and to remove children from hazardous work under the H.E.L.P.M.E. Convergence Program.

Despite these efforts, child labor remained a widespread problem. Previous cases reported to the DOLE centered in the service and agricultural sectors, notably in the fishing, palm oil, and sugar cane industries. Most child labor occurred in the informal economy, often in family settings. Child workers in those sectors and in activities such as gold mining, manufacturing (including of fireworks), domestic service, drug trafficking, and garbage scavenging faced exposure to hazardous working environments.

NGOs and government officials continued to report cases in which family members sold children to employers for domestic labor or sexual exploitation.

Online sexual exploitation of children and child soldiering also continued to be a problem (see sections 6 and 1.g., respectively).

Also see the Department of Labor’s Findings on the Worst Forms of Child Labor at www.dol.gov/ilab/reports/child-labor/findings/ .

d. Discrimination with Respect to Employment and Occupation

The law prohibits discrimination with respect to employment and occupation based on age; sex; race; creed; disability; and HIV, tuberculosis, hepatitis B, or marital status. The law does not prohibit employment discrimination with respect to color, political opinion, national origin or citizenship, language, sexual orientation, gender identity, age, other communicable disease status, or social origin. While some local antidiscrimination ordinances existed at the municipal or city levels that prohibit employment discrimination against lesbian, gay, bisexual, and transgender–but not intersex–persons, there was no prohibition against such discrimination in national legislation.

The law requires most government agencies and government-owned corporations to reserve 1 percent of their positions for persons with disabilities; government agencies engaged in social development must reserve 5 percent. The law commits the government to providing “sheltered employment” to persons with disabilities, for example in workshops providing separate facilities. The labor department’s Bureau of Local Employment maintained registers of persons with disabilities that indicate their skills and abilities and promoted the establishment of cooperatives and self-employment projects for such persons.

Persons with disabilities experienced discrimination in hiring and employment. The labor department estimated that only 10 percent of employable persons with disabilities were able to find work.

Between January and July, no cases were filed to test how effectively the law was enforced. The government did not effectively monitor and enforce laws prohibiting employment discrimination based on disability, and the National Council for Disability Affairs and the labor department did not monitor the regulation regarding the employment of persons with disabilities effectively. The effectiveness of penalties to prevent violations could not be assessed.

The government had limited means to assist persons with disabilities in finding employment, and the cost of filing a lawsuit and lack of effective administrative means of redress limited the recourse of such persons when prospective employers violated their rights. In 2016 an HIV-positive worker won a case against his employer for having been fired because of his HIV-positive diagnosis. The court ordered that the individual be reinstated and receive approximately 600,000 pesos ($11,200) in damages and back wages.

Discrimination in employment and occupation occurred with respect to LGBTI persons. A number of LGBTI organizations submitted anecdotal reports of discriminatory practices that affected the employment status of LGBTI persons. Discrimination cases included the enforcement of rules, policies, and regulations that disadvantaged LGBTI persons in the workplace. For example, in 2017 transgender women were told by recruitment officers that they would be hired only if they presented themselves as males by cutting their hair short, dressing in men’s clothes, and acting in stereotypically masculine ways.

Women faced discrimination both in hiring and on the job. Some labor unions claimed female employees suffered punitive action when they became pregnant. Although women faced workplace discrimination, they continued to occupy positions at all levels of the workforce.

Women and men were subject to systematic age discrimination, most notably in hiring.

The government allowed refugees to work. A DOLE order affirmed refugees’ and stateless persons’ access to work permits. The Bureau of Immigration provided temporary work permits for persons with pending applications for refugee or stateless status upon endorsement by the RSPPU. The types of employment open to refugees and stateless persons were generally the same as those open to other legal aliens.

e. Acceptable Conditions of Work

As of May tripartite regional wage boards of the National Wage and Productivity Commission had not increased the daily minimum wage rates for agricultural and nonagricultural workers. Minimum wages ranged from 512 pesos ($9.57) per day for nonagricultural workers in the Manila region to 256 pesos ($4.79) per day for agricultural workers in the Ilocos region. According to the government, in 2015, the latest year for which such data was available, a family of five needed an average income of 8,022 pesos ($150) per month to avoid poverty.

The law did not cover many workers, since wage boards exempted some newly established companies and other employers from the rules because of factors such as business size, industry sector, export intensity, financial distress, and capitalization level.

Domestic workers worked under a separate wage and benefit system, which lays out minimum wage requirements and payments into social welfare programs, and mandates one day off a week. While there were no reliable recent data, informed observers believed two million or more persons were employed as domestic workers, with nearly 85 percent being women or girls as young as 15 years.

Penalties for noncompliance with increases or adjustments in the wage rates as prescribed by law are a fine not exceeding 25,000 pesos ($468), imprisonment of one to two years, or both. In addition to fines, the government used administrative procedures and moral suasion to encourage employers to rectify violations voluntarily.

By law the standard workweek is 48 hours for most categories of industrial workers and 40 hours for government workers, with an eight hour per day limit. The law mandates one day of rest each week. The government mandates an overtime rate of 125 percent of the hourly rate on ordinary days, 130 percent on special nonworking days, and 200 percent on regular holidays. There is no legal limit on the number of overtime hours that an employer may require.

The law provides for a comprehensive set of occupational safety and health standards. Regulations for small-scale mining prohibit certain harmful practices, including the use of mercury and underwater, or compressor, mining. The law provides for the right of workers to remove themselves from situations that endangered health or safety without jeopardy to their employment. Most labor laws apply to foreign workers, who must obtain work permits and may not engage in certain occupations.

The DOLE’s Bureau of Working Conditions (BWC) monitors and inspects compliance with labor law in all sectors, including workers in the formal sector, nontraditional laborers, and informal workers, and inspects SEZs and businesses located there. The number of labor law compliance officers, who monitor and enforce the law, including by inspecting compliance with core labor and occupational safety standards and minimum wages, increased to 608 from 574 in 2017. The BWC stated that its budget increased to allow 710 permanent labor inspector positions, once qualified applicants were selected. Nonetheless, the number of compliance officers was insufficient for the workforce of 42 million workers, particularly in rural areas. ILO standards for developing countries suggest a need for approximately 2,800 labor inspectors–one inspector for every 15,000 workers. The labor department prioritized increasing the number of officers while acknowledging that insufficient inspection funds continued to impede its ability to investigate labor law violations effectively, especially in the informal sector and in small and medium size enterprises.

The DOLE continued to implement its Labor Laws Compliance System for the private sector. The system included joint assessments, compliance visits, and occupational safety and health standards investigations. Labor department inspectors conducted joint assessments with employer and worker representatives; inspectors also conducted compliance visits and occupational safety and health standards investigations. The labor department and the ILO also continued to implement an information management system to capture and transmit data from the field in real time using mobile technology. Violations included 13,240 for labor standards, 9,842 for general labor standards, 2,045 for violations of minimum wage rates, and 11,142 for occupational safety and health standards. Following a deficiency finding, the labor department may issue compliance orders that can include a fine or, if the deficiency poses a grave and imminent danger to workers, suspend operations. The BWC also reported no establishments were found deficient with respect to child labor law as of July.

Violations of minimum wage standards were common, as was the use of contract employees to avoid the payment of required benefits, including in the SEZs. Many firms hired employees for less than minimum wage apprentice rates, even if there was no approved training in their work. Complaints about payment under the minimum wage and nonpayment of social security contributions and bonuses were particularly common at companies in the SEZs. In 2017 the DOLE issued Department Order 174, setting stricter guidelines on the use of labor contracting and subcontracting. Some labor unions, however, criticized the order for not ending all forms of contractual work. On May 1, President Duterte issued an Executive Order prohibiting employers from circumventing a worker’s “security of tenure,” which he defined as the right “not to be dismissed or removed without just and authorized cause.” Similar to Department Order 174, some labor unions criticized the action for not ending all forms of contractual work.

There were also gaps and uneven applications of the law. Media reported problems in the implementation and enforcement of the domestic worker’s law, including a tedious registration process, an additional financial burden on employers, and difficulty in monitoring employer compliance.

During the year various labor groups criticized the government’s enforcement efforts, in particular the DOLE’s lax monitoring of occupational safety and health standards in workplaces. Between January and July, the BWC recorded 28 work-related accidents that caused 19 deaths and 23 injuries. Statistics on work-related accidents and illnesses were incomplete, as incidents were underreported, especially in agriculture.

The government and several NGOs worked to protect the rights of the country’s overseas citizens, most of whom were Philippine Overseas Employment Agency (POEA) contract or temporary workers. Although the POEA registered and supervised domestic recruiter practices, authorities often lacked sufficient resources to provide complete worker protection overseas. The Overseas Worker Welfare Administration provides support to overseas workers in filing grievances against employers via its Legal Assistance Fund. The fund covers administrative costs that would otherwise prevent overseas workers from filing grievance complaints. Covered costs include fees for court typing and translation, visa cancellation, and contract termination.

The government continued to place financial sanctions on, and bring criminal charges against, domestic recruiting agencies found guilty of unfair labor practices. From January to August 2017, the POEA reported 100 suspension orders issued to 57 licensed recruitment agencies for various violations.

Foreigners were generally employed in the formal economy and recruited for high paying, specialized positions. They typically enjoyed better working conditions than citizens.

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