Diminished benefits

Dear Atty. Vlad,

I am a rank-and-file employee in one of the manufacturing plants in General Trias, Cavite. During the last 10 years of my employment, Saturdays and Sundays were considered as our rest days. Last week, our employer issued a memo stating that Saturdays a regular day. This means that we will not be paid our rest day pay and rest day pay premium in the event that we will be made to work during Saturdays. Is our employer correct?

Louie

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Dear Louie,

The general rule is that, pursuant to Article 100 of the Labor Code, the employer may not diminish or eliminate the benefits of employees. In the case of Tiangco vs. Leogardo Jr., G.R. L-57636, 16 May 1983, 122 SCRA 267, 207 Phil. 235, it was held that diminution or elimination of benefits is violative of Article 100 of the Labor Code.

In the case of Wesleyan University-Philippines vs. Wesleyan University-Philippines Faculty and Staff Association, G.R. 181806, 12 March 2014, the Court clarified that the Non-Diminution Rule found in Article 100 of the Labor Code prohibits employers from elimination or reducing the benefits received by their employees provided such benefits are based on any of the following:

(1) Express policy;

(2) Written contract; or

(3) Company practice.

In your case, you have been enjoying your Saturdays as your rest for the last 10 years and you were paid rest day pay and rest day pay premium whenever you are required to render work on Saturdays. As such, your employer may not unilaterally change your rest day without violating the rule on diminution of benefits under the Labor Code of the Philippines.

I hope I was able to help you based on the facts that you have stated.

Atty. Vlad del Rosario