Law Summary
Policy Objectives
- Encourage voluntary agreements between employers and workers to adopt CWW schemes.
- Objectives:
- Promote business competitiveness and productivity by reducing operating costs and employee work-related expenses.
- Provide flexible work hours balancing business needs and employees' work-life balance.
- Ensure employees' health and safety at all times.
- Only CWW schemes compliant with this Advisory will be recognized for administration and enforcement of work hour laws.
Concept and Definition of Compressed Workweek
- Normal work hours per day: 8 hours; work beyond 8 hours requires overtime pay.
- Normal workweek: 6 days, totaling 48 hours; firms with 5-day workweeks totaling 40 hours also acknowledged.
- CWW scheme: an arrangement reducing workdays to less than 6 but maintaining total weekly hours at 48.
- Accordingly, normal workday hours may increase beyond 8 without overtime premium.
- Adjustments are made if the firm's normal workweek is 5 days.
Specific Guidelines and Conditions for CWW Adoption
- CWW must be based on an express and voluntary agreement of majority of employees or authorized representatives.
- Agreement may be via collective bargaining or legitimate worker participation methods (labor-management councils, assemblies, referenda).
- Firms handling hazardous substances or exposed to harmful environmental conditions need certification from accredited health and safety bodies or the firm’s safety committee confirming exposures are within tolerable OSHS limits.
- Employers must notify DOLE Regional Office of CWW adoption using the DOLE CWW Report Form.
Effects of CWW Schemes
- Work beyond 8 hours per day (up to 12 hours) is not paid as overtime unless more favorable existing practice applies.
- Work exceeding 12 hours per day or 48 hours per week is subject to overtime compensation.
- Employees receive at least 60-minute meal periods.
- Rights to rest days, holiday pay, and leaves remain intact.
- CWW adoption shall not reduce existing employee benefits.
- Reversion to normal 8-hour workdays is allowed as a management prerogative with reasonable prior notice.
Administration and Dispute Resolution
- Parties adopting CWW are responsible for its administration.
- Disputes to be handled under the firm’s grievance mechanisms.
- If no adequate grievance mechanism exists, disputes referred to DOLE Regional Office for Training and Assistance Visit (TAV).
- TAV verifies voluntariness of agreement and compliance with safety standards; may conduct referendum or work environment measurement.
- Employers must keep documentary proof of voluntary adoption and safety certification.
- Absence of proof obligates employer to pay overtime as if no CWW existed.
- If work beyond 8 hours breaches OSHS, immediate return to normal hours is mandated.
Publication and Posting Requirements
- Advisory to be published in two newspapers of general circulation.
- Included in DOLE labor education manuals.
- Firms adopting CWW must post advisory in conspicuous workplace locations.