In the evolving landscape of Philippine labor relations, the Compressed Workweek (CWW) has emerged as a popular alternative work arrangement. Governed primarily by Department Advisory No. 02, Series of 2004 and Department Advisory No. 04, Series of 2010 from the Department of Labor and Employment (DOLE), the CWW allows companies to stretch the standard 8-hour workday to up to 12 hours without paying overtime, provided the total weekly hours do not exceed 48.
However, confusion often arises when work is required on weekends. Understanding your entitlements requires distinguishing between a "regular workday" and a "rest day" within the context of the CWW.
1. The Core Principle of CWW
Under a standard 5-day workweek, anything beyond 8 hours a day is overtime. In a CWW (e.g., four 10-hour days or three 12-hour days), the employee waives the 8-hour limit in exchange for a longer weekend or more rest days.
- No Overtime for Regular CWW Hours: You are not entitled to overtime pay for the 9th or 10th hour of a scheduled CWW shift, as these are considered "regular hours" under this specific arrangement.
- The 48-Hour Ceiling: If the total hours worked in a week exceed 48, or if a single shift exceeds 12 hours, overtime pay must be applied.
2. Is the Weekend a "Rest Day" or a "Workday"?
In the Philippines, there is no legal requirement that the weekend (Saturday and Sunday) must be the rest period. A "weekend" in a CWW is simply whatever days are designated as rest days in the company policy or CBA.
Case A: Work on a Scheduled Rest Day (The "Weekend")
If your CWW schedule is Monday to Thursday (10 hours each) and you are called to work on Friday, Saturday, or Sunday (your designated rest days), you are entitled to Rest Day Pay.
- First 8 hours: Plus 30% of your daily rate.
- Beyond 8 hours: Plus 30% of your hourly rest day rate (which already includes the initial 30% premium).
Case B: When the Weekend is a Regular Workday
Some CWW arrangements schedule "weekends" as regular workdays (e.g., a Wednesday to Saturday shift).
- If Saturday is part of your regular 10-hour CWW shift, you receive your regular daily wage with no premium for the first 10 hours.
- Overtime only kicks in after the 10th hour.
3. Summary of Pay Rates
The following table outlines the premium rates applicable when a CWW employee works on their designated "weekend" or rest day:
| Scenario | Premium Rate (First 8 Hours) | Overtime Rate (Beyond 8 Hours) |
|---|---|---|
| Work on Scheduled Rest Day | 130% of Basic Daily Wage | 130% of Rest Day Hourly Rate |
| Rest Day falling on a Special Day | 150% of Basic Daily Wage | 130% of Special Day/Rest Day Hourly Rate |
| Rest Day falling on a Regular Holiday | 260% of Basic Daily Wage | 130% of Holiday/Rest Day Hourly Rate |
4. Legal Requisites for Validity
For these specific pay structures to be legal and for the employer to be exempt from paying OT for the 9th and 10th hours of a regular CWW shift, the following must be met:
- Voluntary Agreement: The employees must express their desire for the CWW, or it must be agreed upon in the Collective Bargaining Agreement (CBA).
- Health and Safety: The work must not be strenuous enough to cause health risks over a 10-12 hour period.
- DOLE Notification: The employer should ideally notify the DOLE Regional Office of the adoption of the CWW.
Important Note: If a CWW arrangement is found to be invalid (e.g., forced upon employees without agreement), the employer may be held liable for back-payment of overtime for every hour worked beyond 8 hours daily, even if those hours were within the "compressed" schedule.
5. Night Shift Differential
If your CWW "weekend" shift extends into the night (10:00 PM to 6:00 AM), the Night Shift Differential (NSD) of an additional 10% still applies. This is calculated on top of your rest day or holiday premium.
Would you like me to calculate a specific sample payroll breakdown based on your current daily rate and CWW schedule?