As the Philippine member firm of L&E Global, Villaraza & Angangco examines an important Supreme Court ruling on flexible work arrangements.
In the article, Rashel Ann Pomoy, Lawrence Ivan Manalo, and Annie Erika Dee discuss Bacani v. Fiber Textile Manufacturing Corp. and explain the legal distinction between hybrid work and arrangements that reduce employees’ workdays or earnings.
The article outlines the requirements employers must satisfy before implementing a reduced-workday arrangement, including genuine consultation, express majority support, evidence of economic difficulty or a national emergency, a six-month limit, and prior notice to the Department of Labor and Employment (“DOLE”).
The ruling also provides that an otherwise valid arrangement implemented without the required DOLE notice may expose the employer to nominal damages of PHP 100,000 for each affected employee.