An employer that reduces the workload and adopts a flexible work scheme without employee consent is tantamount to dismissing them.
The Supreme Court en banc, in a Sept 30, 2025 decision made public only on Tuesday, found Valenzuela City-based Fiber Textile Manufacturing Corp. (FMC) liable for constructive dismissal of seven of its employees after unilaterally cutting their work days to just two to three from the original six days per week.
The move, which was done in 2018 in violation of Department of Labor and Employment (DOLE) rules, led to pay cuts and their eventual resignation from FMC.
The case stemmed from the complaint filed with DOLE by the seven former FMC workers for constructive illegal dismissal, shorter work hours and nonremittance of mandated contributions, such as the Social Security System, the Philippine Health Insurance Corp., and the Home Development Mutual Fund (Pag-Ibig), after not reaching a settlement with the company.
The petitioners were employed in June 2017 as folding operator, chemical mixer, color man, dyeing operator, among others, with a wage of P380 per day, according to case records. But a year later, they were informed of the changes in work schedule and were even told to quit.