Change of Working Hours | Management Prerogative | SOCIAL LEGISLATION

Change of Working Hours: Management Prerogative and Social Legislation in Philippine Labor Law

Overview

Under Philippine labor law, the right to determine working hours falls within the management prerogative. This authority allows employers to set and modify employee working hours to meet business requirements. However, this prerogative is not absolute and is subject to limitations imposed by law, collective bargaining agreements (CBAs), employment contracts, and principles of fairness and reasonableness.

1. Legal Basis for Management Prerogative

Management prerogative is recognized under the Civil Code of the Philippines and the Labor Code, which permit employers to regulate all aspects of employment, including working hours. However, this prerogative is constrained by:

• Labor Code of the Philippines: Articles 82–96 regulate working conditions, including working hours, rest periods, and overtime.
• Constitutional Mandates: Article XIII, Section 3 of the 1987 Constitution upholds workers' rights to humane working conditions.
• Jurisprudence: Case law emphasizes that while employers have the right to alter working hours, this must not violate employees' rights or labor standards laws.

2. Key Principles Governing Change of Working Hours

1. Reasonableness and Good Faith:

   • Employers must exercise the right to modify working hours in good faith and for valid business purposes.
   • Changes should not be arbitrary or intended to harass employees.

2. Notice Requirement:

   • Proper notice must be given to employees regarding any change in their working hours.
   • The period for notice may depend on company policies, CBAs, or specific labor agreements.

3. Consent and Employment Contracts:

   • For employees covered by fixed-term contracts or explicit agreements on working hours, consent may be required to alter the schedule.
   • Changes that violate contractual stipulations may lead to claims of constructive dismissal.

4. Compliance with Labor Standards:

   • Employers must ensure compliance with the following:
     • Normal Work Hours: Article 83 of the Labor Code establishes an 8-hour workday.
     • Overtime Pay: Any work exceeding 8 hours must be compensated with overtime pay equivalent to at least 25% of the regular hourly rate (Article 87).
     • Night Shift Differential: Employees working between 10:00 PM and 6:00 AM are entitled to additional pay under Article 86.
     • Rest Periods: Article 91 mandates at least 24 consecutive hours of rest for every 6 consecutive days worked.

5. Prohibition of Diminution of Benefits:

   • Altering working hours must not result in a reduction of benefits previously enjoyed by employees (Article 100, Labor Code).

6. Non-Discrimination:

   • Changes to working hours must not discriminate against employees based on gender, age, or any protected characteristic under the Labor Code and the Magna Carta of Women (Republic Act No. 9710).

3. Special Circumstances Affecting Working Hours

1. Flexi-Time Arrangements:

   • Flexible working hours may be introduced through mutual agreement, provided they comply with labor standards on work hours and rest periods.
   • These arrangements are typically documented in company policies or CBAs.

2. Compressed Workweek:

   • Allowed under Department of Labor and Employment (DOLE) regulations if:
     • The compressed workweek does not exceed 48 hours per week.
     • Employees are not deprived of any statutory benefits.
   • The employer must consult employees and secure DOLE approval.

3. Business Necessity or Emergency Situations:

   • In times of business exigencies, such as economic downturns or operational restructuring, employers may adjust working hours temporarily.
   • Employers must still ensure compliance with labor standards.

4. Pandemics and National Emergencies:

   • During pandemics or national emergencies, government regulations may require or allow modifications to working hours.
   • Employers must adhere to specific DOLE advisories and health protocols.

4. Dispute Resolution

Employees who dispute changes in working hours may file complaints with:

• DOLE: For violations of labor standards or non-payment of overtime pay.
• National Labor Relations Commission (NLRC): For claims of constructive dismissal or unfair labor practice.
• Courts: For contractual breaches or claims under civil law.

5. Jurisprudential Guidance

Key rulings include:

1. PT&T vs. NLRC (G.R. No. 118978, May 23, 1997):
   • Established that management prerogative must align with labor laws and principles of fairness.
2. Bisig ng Manggagawa sa PRC vs. CA (G.R. No. 151759, July 23, 2008):
   • Affirmed that changes to work schedules must observe agreements in CBAs.
3. Bankard Employees Union vs. NLRC (G.R. No. 121159, March 27, 1998):
   • Highlighted that changes in working hours affecting employee benefits can amount to diminution of benefits.

Conclusion

Employers have the prerogative to change working hours to address operational needs. However, such changes must adhere to labor standards, employment agreements, and principles of equity. Compliance with legal requirements and proper communication with employees are crucial to avoiding disputes and maintaining a harmonious workplace.