Labor Law and Social Legislation › Labor Standards › Management Prerogative
3. Change in Working Hours
Er’s Right to Change Working Hours
The working hours may be changed, at the discretion of the company, should such change be necessary for its operations, and that Ees shall observe such rules as have been laid down by the company. (Interphil Laboratories Union-FFW v. Interphil Laboratories, Inc., G.R. No. 142824, 19 Dec. 2001)
Management retains the prerogative, whenever exigencies of the service so require, to change the working hours of its Ees. The exercise of management prerogative, however, is not absolute as it must be exercised in good faith and with due regard to the rights of labor. (Royal Plant Workers Union v. Coca-Cola Bottlers Phil., Inc., G.R. No. 198783, 15 Apr. 2013)
Q: May the normal hours fixed in Art. 83 of the LC be reduced by the Er? Explain.
A: YES. Art. 83 of the LC provides that the normal hours of work of an Ee shall not exceed eight (8) hours a day. This implies that the Er, in the exercise of its management prerogatives, may schedule a work shift consisting of less than eight (8) hours. And following the principle of “a fair day’s wage for a fair day’s labor,” the Er is not obliged to pay an Ee, working for less than eight (8) hours a day, the wages due for eight (8) hours.
Nonetheless, if by voluntary practice or policy, the Er, for a considerable period of time, has been paying his Ees’ wages due for eight (8) hours work although the work shift is less than eight (8) hours (e.g., seven hours) it cannot later on increase the working hours without an increase in the pay of the Ees affected. An Er is not allowed to withdraw a benefit which he has voluntarily given.
Q: Sime Darby Pilipinas issued a memorandum implementing a new work schedule. It eliminated the 30-minute paid “on call” lunch break of its monthly salaried Ees and instead provided for a 10-minute break time and one hour lunch break. The Ees felt adversely affected by the memorandum and filed before the LA a complaint for unfair labor practice.
The LA dismissed the complaint on the ground that the change in the work schedule constituted a valid exercise of management prerogative.
Is changing the work schedule of the Ees a valid exercise of management prerogative?
A: YES. The right to fix the work schedules of the Ee rests principally on their Er. The petitioner, as the Er, cites as reason for the adjustment the efficient conduct of its business operations and improved production. Management retains the prerogative, whenever exigencies of the service so require, to change the working hours of its Ees.
So long as such prerogative is exercised in good faith for the advancement of the Er’s interest and not for the purpose of defeating and circumventing the rights of the Ees under special laws or under valid agreements, this court will uphold such exercise. (Sime Darby Pilipinas v. NLRC, G.R. No. 119205, 15 Apr. 1998)