Companies that have been affected by adverse economic conditions are allowed to explore alternative schemes to cope with financial reverses or losses while minimizing the impact on their employees.
Under the “Guidelines on the Adoption of Flexible Work Arrangements” (Dept. Advisory No. 2, Series of 2009), employers may enter into any of the following arrangements with its employees:
Compressed workweek: Under this arrangement, the normal workweek is reduced to less than 6 days but the total number of working hours per week is still 48 hours. For this to be possible, each working day may have more than 8 hours but not more than 12 hours, without incurring overtime pay.
Reduction of work days: The employees may be required only to report for a few days each week for a maximum of 6 months.
Rotation of workers: Here, employees are rotated or allowed to work alternately within the workweek.
Forced leave: Employees may be required to go on leave for several days or weeks using their leave credits.
Broken-time schedule: Under this setup, the work schedule is not continuous but the total work hours within the week remain the same.
Flexi-holidays: Employees agree to avail of the holidays at some other days as long as this arrangement does not result in a diminution of benefits.
Any flexible work arrangement is valid when:
the employee voluntarily agrees to it; and
prior notice of the flexible arrangement is submitted to the Regional Office of the DOLE.