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Supreme Court Rules Against Employer for Unilateral Work Schedule Changes
SC: Flexible work scheme without consent illegal
Image: Inquirer
The Supreme Court of the Philippines ruled that Fiber Textile Manufacturing Corp. (FMC) unlawfully reduced employees' work schedules without consent, leading to constructive dismissal. The court ordered FMC to compensate seven affected workers with back wages, benefits, and separation pay, emphasizing the need for compliance with labor regulations.
- 01The Supreme Court's ruling was issued on September 30, 2025, and made public recently.
- 02FMC was found liable for reducing the work schedule from six days to two or three days a week without employee consent.
- 03The affected workers were employed as folding operators, chemical mixers, and dyeing operators, earning daily wages of P380.
- 04FMC's argument that the reduced schedule was a cost-cutting measure was rejected by the court.
- 05The ruling overturned a previous decision by the Court of Appeals that favored FMC.
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In a landmark decision on September 30, 2025, the Supreme Court of the Philippines ruled that Fiber Textile Manufacturing Corp. (FMC) was liable for constructive dismissal of seven workers due to unilateral changes in their work schedules. The court found that FMC reduced employees' workdays from six to two or three without their consent, violating Department of Labor and Employment (Dole) regulations. This reduction not only decreased their pay but also forced the workers to resign. The Supreme Court ordered FMC to pay full back wages, allowances, and separation pay equivalent to one month’s salary for each year of service, along with attorney’s fees. The court emphasized that constructive dismissal occurs when continued employment becomes unreasonable or impossible, highlighting the unlawful nature of FMC's actions. This ruling overturned a prior decision by the Court of Appeals that had favored FMC, reaffirming the rights of workers under Philippine labor law.
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This ruling reinforces the importance of employee consent in work arrangements, impacting labor practices across the Philippines.
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