Dasuceco-National Federation of Labor v. Davao Sugar Central Co., Inc.) Absent Any Indication

ARTICLE VI WORKING DAYS, HOURS OF WORK, OVERTIME AND PREMIUM PAY,
HOLIDAYS AND NIGHT SHIFT DIFFERENTIAL (SERGIO, CHAN, ROYCE)
Section 1. Regular Working Days. Due to the nature of the business in which the
CORPORATION is engaged, the CORPORATION shall observe a six (6) day work week,
with one (1) rest day, the specific day of the week to be determined according to the employee’s
shift schedule.
Counter-Proposal:
“Section 1. Regular Working Days. Due to the nature of the business in which the
CORPORATION is engaged, the CORPORATION shall observe a six (6) day work week,
with one (1) rest day, the specific day of the week to be determined by the CORPORATION,
taking into consideration the necessities of business operations, without prejudice to existing
provisions of the law.
Basis:
The scheduling of the designated rest day must be left to the discretion of the employer in the
valid exercise of its management prerogative, “a function associated with the employer’s
inherent right to control and manage effectively its enterprise.” (Nagkahiusang Namumuno sa
Dasuceco-National Federation of Labor v. Davao Sugar Central Co., Inc.) Absent any indication
of malice, arbitrariness, or capriciousness, any decision undertaken in pursuit of management
prerogative is valid and cannot be overridden by the courts.
In David v. Macasio, the Court ruled that “[the] power to determine the work schedule obviously
implies power of control,” which is indispensable element in an employer-employee relationship.
(David v. Macasio, G.R. No. 195466) Therefore, the determination of when an employee can
take a rest day must be effected by the employer, subject only to the provisions of existing laws,
good faith, and necessities of business operations.
Section 2. Regular Working Hours. The CORPORATION working hours shall be from 8:00
am to 5:00 pm. A grace period of fifteen (15) minutes shall be given to an employee at his/ her
time- in and shall extend his or her work hours for that day accordingly.
Counter-Proposal:
“Section 2. Regular Working Hours. The CORPORATION working hours shall be from 8:00
am to 5:00 pm, inclusive of a one (1) hour lunch break. A grace period of fifteen (15) minutes
shall be given to an employee at his/her time-in and shall extend his or her work hours for that
day accordingly. The CORPORATION, however, shall retain the right, whenever exigencies of
business operations so require, to change the working hours of employees. Similarly, the
CORPORATION shall retain the right to adopt a compressed workweek (CWW), upon the
mutual agreement of the CORPORATION and a majority of the employees affected and the
procurement of the necessary documents as required by existing law or regulations.
Basis:
Under Art. 85 of the Labor Code, every employer must give to his or her employees not less
than one (1) hour or sixty (60) minutes time-off for their regular meals. During such period, no
work must be undertaken by the employee; thus, an employee is free to do anything he or she
wants (except to work). This time-off is not compensable.
Moreover, under the principle of management prerogative, an employer has the discretion to
change the working hours of his or her employees in order to address a legitimate need of the
business. Therefore, the employer may order shifts or changes in employees’ schedules, when
so warranted by operations.
The adoption of a compressed workweek (CWW) is also within the management prerogative of
employers, subject to the voluntary assent of the workers involved in such scheme. Under a
CWW, the number of work days in a week is reduced, but the number of work hours in a day is
increased to more than eight (but no overtime pay may be claimed). Although encouraged due
to its numerous advantages in certain situations, the adoption of a CWW is valid only upon: (1)
express support by a majority of the employees affected; (2) certification from an accredited
safety organization that work beyond eight hours is within the limits of exposure set by DOLE’s
standards; and (3) notification to the DOLE regional office.
SUBJECT TO 1 HOUR LUNCH BREAK; CORPORATION RETAINS THE RIGHT TO

CHANGE WORKING HOURS AND AMOUNT OF WORK HOURS; SHIFT SCHEDULES
RESERVES RIGHT TO COMPRESSED WORK WEEK (THESIS NI STREEGAN);
CONSENSUAL NOT UNILATERAL
Section 3. Overtime pay. Work performed beyond the designated shift shall be paid an
additional compensation equivalent to the employee’s regular wage plus twenty-five
percent (25%) thereof.
3.1. Work performed beyond the designated shift on a holiday or rest day shall be paid an
additional compensation equivalent to the rate on a holiday or rest day.
3.2 Work performed beyond the designated shift on a regular holiday shall be paid an additional
compensation equivalent to the rate on a regular holiday.
3.3 No employee covered by this agreement shall perform overtime work without duly approved
overtime authorization from the CORPORATION’s Operations Manager.
Section 4. Premium pay. Where an employee is made or permitted to work on his scheduled
rest day or special holiday, he shall be paid an additional compensation (for his designated
shift) of forty percent (40%) of his regular wage. Where such holiday work falls on the
employee’s scheduled rest day, he shall be entitled to an additional compensation of fifty per
cent (50%) of his regular wage.
For worked performed on a regular holiday (for his designated shift), the employee shall be
compensated twice his regular daily wage plus 10% of such daily wage. If such holiday falls
on a scheduled rest day, the employee shall be compensated with twice his regular daily
wage plus 50% thereof.
LOWER TO STATUTORY LEVELS (ARBIN MENTIONED PERCENTAGES)

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ARTICLE VI WORKING DAYS, HOURS OF WORK, OVERTIME AND PREMIUM PAY,

HOLIDAYS AND NIGHT SHIFT DIFFERENTIAL (SERGIO, CHAN, ROYCE)

SUBJECT TO 1 HOUR LUNCH BREAK; CORPORATION RETAINS THE RIGHT TO

LOWER TO STATUTORY LEVELS (ARBIN MENTIONED PERCENTAGES)

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