The Supreme Court (SC) announced on Tuesday its ruling that the unilateral imposition of reduced workdays and worker rotation schemes amounts to constructive dismissal.
In its decision, the SC En Banc found a company’s unlawful reduction of workdays constituted constructive dismissal because it resulted in lower salaries, making continued employment unreasonable for workers.
While employers may adopt flexible work arrangements during economic difficulties or national emergencies, the High Court said these arrangements must comply with Department of Labor and Employment Advisory No. 2, Series of 2009.
The SC explained that employers must first consult affected employees and obtain the voluntary support of the majority of workers before implementing such arrangements.
