The Supreme Court has ruled that reducing employees’ working days and imposing a rotation scheme without their consent may constitute constructive dismissal, or illegal termination.

In a decision penned by Associate Justice Amy C. Lazaro-Javier, the high court held Fiber Textile Manufacturing Corporation (FMC) liable for the constructive dismissal of seven production workers after the company cut their workdays from six days a week to only two or three days and implemented a rotation system without their approval.

“Ang ilegal na pagbabawas ng FMC sa mga araw ng pagtatrabaho ay maituturing na constructive dismissal dahil nagresulta ito sa pagbaba ng suweldo na naging hindi makatwiran para sa mga manggagawa ang pananatili sa trabaho,” the high court said in a statement.

The ruling stemmed from a complaint filed by FMC workers who said the company unilaterally reduced their working days and enforced a rotational schedule, resulting in significantly diminished income.

FMC argued that the workers had agreed to the temporary arrangement during a meeting, citing a shortage of raw materials for textile production. However, the court found that the company failed to substantiate this claim during proceedings.

The Supreme Court emphasized that while employers may adopt flexible work arrangements to prevent business losses, such measures must be implemented in good faith, with mutual consent, and with due regard for workers’ rights.

The tribunal also underscored that employers must comply with Department of Labor and Employment guidelines, particularly Department Advisory No. 2, Series of 2009, and coordinate with the agency before enforcing such arrangements.

The court said that absent clear and voluntary consent from employees, measures that significantly reduce workdays and income may be deemed a form of constructive dismissal.