Businesses urged to employ flexible work arrangements

CEBU, Philippines - The Department of Labor and Employment urges companies to employ flexible work arrangements to avoid manpower retrenchments and to better cope with the crisis.

In a DOLE advisory workshop initiated by the European Chamber of Commerce of the Philippines (ECCP) attended by over 30 companies from different sectors and industries in Cebu, DOLE Bureau of Working Conditions director Brenda L. Villafuerte said the advisory is aimed at aiding and guiding employers and employees in the implementation of various flexible work arrangements as one of the coping mechanisms and remedial measures to survive an economic crisis.

Villafuerte said these flexible work arrangements are alternative schedules that can be implemented by companies to cut on costs. This strategy however, must be implemented after prior consultations with employees on the situation of the performance and financial condition of the company.

“This advisory presents alternative measures on how companies can cope with the impact of the crisis without terminating their workforce or closing their operations. We want to see to it that they rather adopt these measures than decide to close down or opt to retrench their people,” said Villafuerte.

She said that among flexible work arrangements that can be implemented by companies include compressed workweek which refers to reducing the working days to six days.

But in this particular arrangement, the total number of work hours of 48 hours per week will remain, therefore the normal workday will be increased to more than eight hours but should not exceed 12 hours but without corresponding overtime premium.

Another measure is the reduction of workdays which refers to reducing the normal workdays per week but this however should not last for more than six months.

The rotation of workers on the other hand is rotating workers or alternatively providing work within a particular workweek.

There is also an option for forced leave wherein employees are required to go on leave for several days or weeks utilizing their leave credits if there are any.

Broken-time schedule refers to a situation wherein the work schedule is not continuous but the work-hours within the day or week remains.

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

Villafuerte said that under these flexible work arrangements, the employers and employees are encouraged to explore alternative schemes under any agreement and company policy or practice in order to cushion and mitigate the effect of loss of income of the employees.

She also stressed that before a company implements any one of the mentioned flexible work arrangements, DOLE should first be notified and the regional office of the department will conduct ocular visits to validate the adoption of this action if it is in accordance with the guidelines.

“Through adopting these actions, companies can also at the same time save on their electricity costs because they will have shorter power usage. They can also save on food and transportation costs and also allow employees to do other livelihood schemes that can provide them additional income,” said Villafuerte.