Title
Supreme Court
DOLE Guidelines on Compressed Workweek Schemes
Law
Dole Advisory No. 02, S. 2004
Decision Date
Dec 2, 2004
DOLE Advisory No. 02, S. 2004 establishes guidelines for the voluntary adoption of compressed workweek schemes, allowing flexibility in work hours while ensuring employee safety and maintaining existing benefits, applicable to most industries except those with specific health and safety risks.

Law Summary

Policy Objectives

  • Encourage voluntary agreements between employers and workers to adopt CWW schemes.
  • Objectives:
    1. Promote business competitiveness and productivity by reducing operating costs and employee work-related expenses.
    2. Provide flexible work hours balancing business needs and employees' work-life balance.
    3. 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.

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