Dear Attorney,
I would like to ask for legal advice on how to compute my salary for a compressed work week. Specifically, I had a series of leave without pay days during one of my pay periods, but I also worked 12-hour shifts for several days. The company provided me with a salary calculation that I believe does not account properly for the total number of hours I worked. How should my salary be computed under a compressed work week arrangement, particularly with regard to leaves without pay? I would greatly appreciate your assistance.
Thank you.
Insights
A compressed work week is an alternative working arrangement where the normal work hours are consolidated into fewer than the usual five or six days per week. In the Philippines, this arrangement is permissible under the Department of Labor and Employment (DOLE) guidelines, provided it adheres to the provisions of the Labor Code and benefits the employees without diminishing their rights.
1. Legal Basis and DOLE Guidelines
DOLE's Labor Advisory No. 04, Series of 2010 provides guidelines for implementing a compressed work week scheme. It allows employees to work longer hours per day but for fewer days within a week, as long as the total working hours do not exceed the standard 48 hours per week, or 8 hours per day across six days. It also emphasizes that employees should not be paid less than what they would have earned under the regular work week.
2. Computation of Salary in a Compressed Work Week
In a compressed work week, an employee's salary is still based on the total number of hours worked within a given pay period. The semi-monthly or monthly rate should reflect the same earnings as if the employee worked a regular eight-hour schedule. If an employee works beyond eight hours in a day, these hours may not always qualify for overtime pay under the compressed work week agreement. However, any time worked beyond the total compressed work week schedule (e.g., exceeding the agreed total weekly hours) should be compensated as overtime.
3. Impact of Leave Without Pay
When leave without pay is taken during a compressed work week, the absence is typically deducted from the total work hours for the pay period. This can affect the computation of wages since any unpaid leave directly reduces the hours considered for salary. The company must ensure that the deduction corresponds only to the actual number of hours or days missed without pay.
4. Application in Salary Discrepancies
If an employee believes they have not been compensated accurately, especially when working 12-hour shifts under a compressed work week, it is crucial to review the terms of the compressed work week arrangement and the company’s computation. Employees should ensure that their salary reflects the total hours worked, and any deductions for leave without pay are correctly applied. Miscalculations often stem from misunderstandings between standard pay periods and the compressed work schedule.
Employees in such situations are advised to consult directly with HR departments or seek legal advice to ensure that labor rights are protected under the relevant guidelines and laws.