Flexible Work Arrangements

1. Concept

Flexible work arrangements refer to alternative arrangements or schedules other than the traditional or standard workhours, workdays and workweek. (DOLE LABOR ADVISORY NO. 4, SERIES OF 2010, Part II; henceforth “DOLE LA-4”)

NB: Similar definition is provided for under DOLE DEPARTMENT ADVISORY NO. 2, SERIES OF 2009, Paragraph 2; henceforth, “DOLE DA-2”

2. Purpose

In view of the rapid technological innovations, the continuing streamlining and transformation of the work processes brought about by the globalization phenomena, [DOLE LA 4-10] [was] issued to assist and guide employers and employees in the implementation of various flexible work arrangements. The adoption of flexible work arrangement is being considered to improve business competitiveness and productivity and give employers and employees flexibility in fixing hours of work compatible with business requirements and the employees’ need for balanced work life. (DOLE LA-4, Part I)

b. Distinguished

[D]elineation [should] be made between:

(1) flexible work arrangements that are entered into voluntarily by employers and employees as a matter of ordinary business practice, without resulting in a reduction of employee pay or benefits; and

(2) flexible work arrangements that result in a reduction in employee pay or benefits. (Bacani et al. v. Fiber Textile Manufacturing Corp. et al., En Banc, G.R. No. 271518, September 30, 2025, Per Lazaro-Javier, J.)

1) DOLE LA-4: Voluntary Agreement

The effectivity and implementation of any of the flexible work arrangements shall be based on voluntary agreements between the employer and the employees. (DOLE LA-4, Part II)

2) DOLE DA-2: Remedial Measures

[DOLE DA 4-09 was] issued to assist and guide employers and employees in the implementation of various flexible work arrangements as one of the coping mechanisms and remedial measures in times of economic difficulties and national emergencies. Adoption of flexible work arrangements is considered as a better alternative than the outright termination of the services of the employees or the total closure of the establishment. Anchored on voluntary basis and conditions mutually acceptable to both the employer and the employees, it is recognized as beneficial in terms of reduction of business costs and helps in saving jobs while maintaining competitiveness and productivity in industries. (DOLE DA-2, Part I)

[D]OLE Department Advisory No. 2, Series of 2009 affirms as valid the adoption by employers of flexible work arrangements as one of the coping mechanisms and remedial measures in times of economic difficulties and national emergencies, as it is considered a better alternative than the outright termination of the services of employees or the total closure of the establishment. (Bacani et al. v. Fiber Textile Manufacturing Corp. et al., En Banc [2025], supra.)

Flexible work arrangements in the context of DOLE Department Advisory No. 2, Series of 2009 are those alternative arrangements or schedules other than the traditional or standard work hours, workdays and workweek, and includes compressed workweek, reduction of workdays, rotation of workers, forced leave, broken-time schedule, and flexi-holidays schedule. (Bacani et al. v. Fiber Textile Manufacturing Corp. et al., En Banc [2025], supra.)

a) Effectivity and Implementation

The effectivity and implementation of any of the flexible work arrangements provided herein shall be temporary in nature. (DOLE DA-2, Paragraph 3)

3. Types of Flexible Work Arrangements

a. Voluntary Agreement, via DOLE LA-4

III. FLEXIBLE WORK ARRANGEMENTS

The following are the flexible work arrangements which may be considered, among others:

1. Compressed Workweek refers to one where the normal workweek is reduced to less than six (6) days but the total number of work hours of 48 hours per week shall remain. The normal workday is increased to more than eight hours but not to exceed twelve hours, without corresponding overtime premium. The concept can be adjusted accordingly depending on the normal workweek of the company pursuant to the provisions of Department Advisory No. 02, series of 2004, dated 2 December 2004.

2. Gliding or Flexi-time schedule refers to one where the employees are required to complete the core workhours in the establishment but are free to determine their arrival and departure time.

3. Flexi-holidays schedule refers to one where the employees agree to avail the holidays at some other days provided there is no diminution of existing benefits as a result of such arrangement.

The employers and the employees may likewise explore other alternative work arrangements under any agreement and company policy or practice in accordance with existing laws and regulations. (DOLE LA-4, Part III)

b. Remedial Measures, via DOLE DA-2

The following are the flexible work arrangements which may be considered, among others:

1. Compressed Workweek refers to one where the normal workweek is reduced to less than six (6) days but the total number of work-hours of 48 hours per week shall remain. The normal workday is increased to more than eight hours but not to exceed twelve hours, without corresponding overtime premium. The concept can be adjusted accordingly depending on the normal workweek of the company pursuant to the provisions of Department Advisory No. 02, series of 2004, dated 2 December 2004.

2. Reduction of Workdays refers to one where the normal workdays per week are reduced but should not last for more than six months.

3. Rotation of Workers refers to one where the employees are rotated or alternately provided work within the workweek.

4. Forced Leave refers to one where the employees are required to go on leave for several days or weeks utilizing their leave credits if there are any.

5. Broken-time schedule refers to one where the work schedule is not continuous but the work-hours within the day or week remain.

6. Flexi-holidays schedule refers to one where the employees agree to avail the holidays at some other days provided there is no diminution of existing benefits as a result of such arrangement.

Under these flexible work arrangements, the employers and the employees are encouraged to explore alternative schemes under any agreement and company policy or practice in order to cushion and mitigate the effect of the loss of income of the employees. (DOLE DA-2, Paragraph III)

1) Requisites for Remedial Measures under DOLE DA-2

Chief Justice Gesmundo further opined during the deliberations that the grounds for the adoption of flexible work arrangements under DOLE Department Advisory No. 2, Series of 2009 should not be limited to actual economic difficulties or national emergencies. It is enough that, as in the authorized cause of retrenchment, the employer shows that the measure implemented is “reasonably necessary and likely to prevent business losses which, if already incurred, are not merely de minimis, but substantial, serious, actual, and real, or if only expected, are reasonably imminent as perceived objectively and in good faith by the employer.” (Bacani et al. v. Fiber Textile Manufacturing Corp. et al., En Banc [2025], supra.)

Thus, under DOLE Department Advisory No. 2, Series of 2009, a company seeking to adopt a flexible work arrangement must meet the following requisites: first, the adoption of a different work schedule or scheme is expressly and voluntarily supported by a majority of the workers affected, i.e., there should have been a consultation with the employees before a part time work arrangement is adopted and implemented; second, the implementation of a non-traditional work arrangement should be temporary. For reduction of workdays, specifically, the same should not exceed six months; third, the DOLE Regional Office should be notified before any flexible work arrangements may be implemented; and finally, the employer is suffering from actual or reasonably imminent economic difficulties or national emergencies and its adoption of flexible work arrangement was done in good faith to cope with such circumstances. (Bacani et al. v. Fiber Textile Manufacturing Corp. et al., En Banc [2025], supra.)

4. Administration

The parties to the flexible work arrangements shall be primarily responsible for its administration. In case of differences of interpretation, the following guidelines shall be observed:

1. The differences shall be treated as grievances under the applicable grievance mechanism of the company.

2. If there is no grievance mechanism or if this mechanism is inadequate, the grievance shall be referred to the Regional Office which has jurisdiction over the workplace for appropriate

conciliation.

3. To facilitate the resolution of grievances, employers are required to keep and maintain, as part of their records, the documentary requirements proving that the flexible work arrangement was voluntarily adopted. (DOLE LA-4, Part IV)

NB: Similar provision is provided for under DOLE DA-2, Part IV.

5. Non-diminution of benefits

The adoption of the flexible work arrangements provided herein shall in no case result in diminution of existing benefits of the employees. (DOLE LA-4, Part II)

6. Notice to DOLE

The employer shall notify the Department through the Regional Office which has jurisdiction over the workplace, copy furnished the Bureau of Working Conditions, of the adoption of any of the above flexible work arrangements and the employment of women employees during nighttime. (DOLE LA-4, Part V)

Prior to its implementation, the employer shall notify the Department through the Regional Office which has jurisdiction over the workplace, of the adoption of any of the above flexible work arrangements. The notice shall be in the Report Form attached to this Advisory.

The Regional Office shall conduct an ocular visit to validate whether the adoption of the flexible work arrangements is in accordance with this issuance. (DOLE DA-2, Part V)

7. Non-compliances

Bacani et al. v. Fiber Textile Manufacturing Corp. et al., En Banc, G.R. No. 271518, September 30, 2025, Per Lazaro-Javier, J.:

• [T[o guide the bench, the bar, and the public, we hold that:

• In cases where flexible work arrangements under DOLE Department Advisory No. 2, Series of 2009 and similar issuances were validly implemented, but the employer failed to give prior notice to the DOLE, the adoption and implementation of the flexible work arrangements shall remain valid but the employer shall be liable for nominal damages in the amount of PHP 100,000.00 for each employee.

1. We find that PHP 100,000.00 is an amount high enough to serve (i) as an effective deterrent against employers from failing to comply with the notice requirement under DOLE Department Advisory No. 2, Series of 2009 and (ii) as sufficient compensation and indemnity to employees who were prejudiced by such non-­compliance.

2. Where, however, noncompliance with the notice requirement under DOLE Department Advisory No. 2, Series of 2009 is attended also by noncompliance with the other requisites for the valid adoption of flexible work arrangement, the adoption and implementation of such flexible work arrangement shall be declared invalid and the affected employees shall receive the proper reliefs corresponding to constructive or illegal dismissal.

See: Original Decision | Case Digest