Supreme Court Rules in Favor of Valenzuela Factory Workers in Dismissal Case
Valenzuela factory workers win SC case vs employers

Image: Inquirer
The Supreme Court of the Philippines ruled that Fiber Textile Manufacturing Corp. in Valenzuela City unlawfully dismissed seven employees by reducing their workdays without consent. The court ordered the company to pay back wages and benefits, affirming the workers' rights under labor laws.
- 01The Supreme Court's decision was made public on September 30, 2025, and reversed a previous ruling by the Court of Appeals.
- 02The employees were originally hired in June 2017 at a daily wage of ₱380 and faced pay cuts due to reduced workdays.
- 03Fiber Textile Manufacturing Corp. argued that the changes were necessary to reduce financial losses.
- 04The ruling emphasized that constructive dismissal occurs when employment becomes unreasonable or unbearable for employees.
- 05The court mandated FMC to pay full back wages, allowances, and attorney’s fees to the affected workers.
Advertisement
In-Article Ad
In a landmark ruling, the Supreme Court of the Philippines found Fiber Textile Manufacturing Corp. (FMC) in Valenzuela City liable for the constructive dismissal of seven employees. The case arose when FMC unilaterally reduced the employees' workdays from six to two or three days a week in 2018, leading to pay cuts and eventual resignations. The court stated that such actions violated Department of Labor and Employment (DOLE) regulations, which require employee consent for changes in work schedules. The Supreme Court reversed a previous decision by the Court of Appeals, emphasizing that FMC's cost-cutting measures did not justify their actions against the workers. The ruling ordered FMC to compensate the affected employees with full back wages, allowances, and benefits due since their dismissal, along with attorney's fees. Additionally, the company must provide separation pay equivalent to one month's salary for every year of service, reinforcing the importance of labor rights and proper employer conduct in the Philippines.
Advertisement
In-Article Ad
This ruling reinforces the rights of workers in the Philippines, ensuring they are protected against unjust dismissal and are compensated fairly.
Advertisement
In-Article Ad
Reader Poll
Do you believe worker rights are adequately protected in the Philippines?
Connecting to poll...
Read the original article
Visit the source for the complete story.




