Dear Atty. Vlad,
I am a rank-and-file employee in one of the manufacturing plants in Sta. Rosa, Laguna. During the last 15 years of my employment, Saturdays and Sundays were considered as our rest days. Very recently, our employer would like to make the first and last Saturdays of the month, regular days. 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 first and last Saturdays of the month. Is our employer correct?
Vicky
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Dear Vicky,
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. No. 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. Further, in the case of Arco Metal Products Inc. vs. Samahan ng mga Manggagawa sa Arco-Metal-NAFLU (SAMARM-NAFLU), G.R. No. 170734, 14 May 2008, the Court further pointed out that the legal bases for the invocation of the principle that any benefit or supplement being enjoyed by employees cannot be reduced, discontinued or eliminated by the employer are the following:
1. Express Terms of an employment agreement;
2. Company Practice which refers to the implied terms of an employment agreement which the employer freely, voluntarily and consistently extended to its employees and thus cannot be withdrawn except by mutual consent or agreement of the contracting parties;
3. The Constitution (Section 18 of Article II and Section 3 of Article XII); and,
4. Article 4 of the Labor Code.
In the case of Wesleyan University-Philippines vs. Wesleyan University-Philippines Faculty and Staff Association, G.R. No. 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 day for the last 15 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 convert your first and last Saturdays of the month as regular work days without violating the rule on diminution of benefits under the Labor Code of the Philippines.
I hope I was able to assist you based on the facts that you have stated.
Atty. Vlad del Rosario