Published — June 20, 2022
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
After reading “What is Compressed Work Week?”, read also “Flexible Work Arrangements”
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A Compressed Work Week scheme is an alternative arrangement whereby the normal workweek is reduced to less than six days but the total number of normal working hours per week shall remain at 48 hours.
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The agreement of undertaking a Compressed Work Week scheme may be expressed through collective bargaining agreement or other legitimate workplace mechanisms of participation.
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The Compressed Work Week scheme is undertaken as a result of an express and voluntary agreement of majority of the covered employees.
A Compressed Work Week (CWW) scheme is an alternative arrangement whereby the normal workweek is reduced to less than six days but the total number of normal working hours per week shall remain at 48 hours. The normal workday is increased to more than eight hours without corresponding overtime premium. This concept can be adjusted accordingly in cases where the normal workweek of the firm is five days. (par. 2, Part III, Department Advisory No. 02, Series of 2004, Department of Labor and Employment)
What are the conditions of a valid CWW scheme?
The law says:
- The CWW scheme is undertaken as a result of an express and voluntary agreement of majority of the covered employees or their duly authorized representatives.
- In firms using substances… or operating under conditions… which may pose hazards to the employees’ health, there must be a certification from an accredited health and safety organization… or from the firm’s safety committee that work beyond eight (8) hours is within threshold limits or tolerable levels of exposure as set in the Occupational Safety and Health Standards; and
- The employer shall notify the Department of Labor and Employment (DOLE) (par. 1, Part IV, Department Advisory No. 02, Series of 2004, Department of Labor and Employment)
The agreement of undertaking a CWW scheme may be expressed through collective bargaining agreement or other legitimate workplace mechanisms of participation such as labor-managing councils, employee assemblies or referenda.
The DOLE is likewise notified through the Regional Office having jurisdiction over the workplace of the adoption of the CWW scheme.
What are the effects of the CWW scheme that shall comply with the aforementioned conditions?
The law says:
- Unless there is a more favorable practice existing in the firm, work beyond eight hours will not be compensable by overtime premium provided the total number of hours worked per day shall not exceed 12 hours. In any case, any work performed beyond 12 hours a day or 48 hours a week shall be subject to overtime premium.
- Consistent with Article 85 of the Labor Code, employees under a CWW scheme are entitled to meal periods of not less than 60 minutes. Nothing herein shall impair the right of employees to rest days as well as to holiday pay, rest day pay or leaves in accordance with law or applicable collective bargaining agreement or company practice.
- Adoption of the CWW scheme in no case result in diminution of existing benefits. Reversion to the normal eight-hour workday shall not constitute diminution of benefits. The reversion shall be considered a legitimate exercise of management prerogative, provided that the employer shall give the employees prior notice of such reversion within a reasonable period of time. (par. 2, Part IV, Part IV, Department Advisory No. 02, Series of 2004, Department of Labor and Employment)
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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