Constructive dismissal

Dear Atty. Angela,

I am a machine operator for an ice cream plant for six years now. For the past months, the management has been suspending work two to three times a week due to alleged low sale and full stockroom storage, without our consent. Due to this, we are receiving reduced salaries for no-work-no-pay days. It has become very difficult for me as I am the sole breadwinner of our family. Is this suspension of workdays and reduced payment of salary legal?

Rose

Dear Rose,

The unilateral suspension and reduction of salary due to low sales or full storage is legally questionable. If the suspensions last for a prolonged period, it may be considered as “constructive dismissal” under the labor law.

If the management reduced your weekly workdays as a flexible work arrangement (e.g., rotating shifts, working two to three days a week) to save the company from closing, it must be reported to the DoLE Regional Office and could not be implemented for a continuous duration.

In the case of Bacani v Fiber Textile Manufacturing Corp., G.R. No. 271518 (2025), the Supreme Court (SC) emphasized that while employers may adopt flexible work arrangements during economic difficulties or national emergencies, these arrangements must comply with the requirements set out in Department of Labor and Employment (DoLE) Department Advisory No. 2, Series of 2009.

The SC explained that employers must first consult affected employees and obtain the voluntary support of the majority of workers. Employers must also notify the DoLE before implementing the arrangement and prove that the company is suffering from actual or reasonably imminent economic difficulties.

Also, employers may adopt flexible work arrangements to prevent business losses, such measures must be exercised in good faith and with due regard to the rights of workers.

In your case, the unlawful reduction of workdays amount to constructive dismissal since no consent was obtained and the decision was unilaterally applied. This now resulted in diminished salaries and created an uncertain work stability, making the continued employment unreasonable for the workers.

Atty. Angela Antonio