Purpose and policy framework
- The Advisory guides employers and employees in implementing flexible work arrangements as coping mechanisms and remedial measures during economic difficulties and national emergencies.
- Adoption of flexible work arrangements is treated as a better alternative than outright termination of employees’ services or total closure of the establishment.
- Flexible work arrangements are anchored on a voluntary basis and conditions mutually acceptable to both employer and employees.
- Adoption is recognized as beneficial for reduction of business costs, and for saving jobs while maintaining competitiveness and productivity in industries.
Core concept and coverage of arrangements
- Flexible work arrangements are alternative arrangements or schedules other than the traditional or standard work hours, workdays, and workweek.
- Employers may consider flexible work arrangements after consultation with employees.
- Employers must consider the adverse consequence of the situation on the performance and financial condition of the company.
- The Advisory encourages exploring alternative schemes through agreement and company policy or practice to cushion and mitigate the loss of income of employees.
Enumerated flexible work options
- Compressed Workweek is a flexible work arrangement where the normal workweek is reduced to less than six (6) days while the total number of work-hours of 48 hours per week remains.
- Under Compressed Workweek, the normal workday is increased to more than eight hours but not to exceed twelve hours, without corresponding overtime premium.
- Reduction of Workdays reduces normal workdays per week, but it must not last for more than six months.
- Rotation of Workers provides for employees to be rotated or alternately provided work within the workweek.
- Forced Leave requires employees to go on leave for several days or weeks using their leave credits, if any.
- Broken-time schedule provides work where the schedule is not continuous, but the work-hours within the day or week remain.
- Flexi-holidays schedule allows employees to agree to avail holidays on other days, with no diminution of existing benefits as a result of the arrangement.
Administration responsibilities and grievance handling
- The parties to flexible work schemes are primarily responsible for their administration.
- If there are differences of interpretation, the dispute is treated as a grievance under the applicable grievance mechanism of the company.
- If there is no grievance mechanism or if it is inadequate, the grievance is referred to the Regional Office which has jurisdiction over the workplace for appropriate conciliation.
- Employers must maintain, as part of their records, the documentary requirements proving that the flexible work arrangement was voluntarily adopted.
Notice, required form, and validation by DOLE
- Before implementation, the employer must notify the DOLE through the Regional Office which has jurisdiction over the workplace of the adoption of any of the flexible work arrangements listed.
- The notice must be filed using the Report Form attached to the Advisory.
- After notice, the Regional Office shall conduct an ocular visit to validate whether the adoption of the flexible work arrangements is in accordance with the Advisory.
Referenced prior DOLE advisory
- The Compressed Workweek concept may be adjusted depending on the company’s normal workweek pursuant to Department Advisory No. 02, series of 2004, dated 2 December 2004.