Intec Cebu Inc., et al. Vs. Hon. Court of Appeals, et al.
G.R. No. 189951, June 22, 2016

Reduction of work week as basis of constructive dismissal

The Court has held that management is free to regulate, according to its own discretion and judgment, all aspects of employment, including hiring, work assignments, working methods, time, place, and manner of work, processes to be followed, supervision of workers, working regulations, transfer of employees, work supervision, lay-off of workers, and discipline, dismissal and recall of workers. The exercise of management prerogative, however, is not absolute as it must be exercised in good faith and with due regard to the rights of labor.

Thus, it was incumbent upon Intec to prove that   that the implementation of the reduced working days is valid and done in good faith.

The company committed illegal reduction of work hours. Constructive dismissal occurs when there is cessation of work because continued employment is rendered impossible, unreasonable or unlikely; when there is a demotion in rank or diminution in pay or both; or when a clear discrimination, insensibility, or disdain by an employer becomes unbearable to the employee. Intec’ s unilateral and arbitrary reduction of the work day scheme had significantly greatly reduced respondents’ salaries thereby rendering it liable for constructive dismissal.

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