The Department of Labor and Employment (DOLE) vowed Friday, Mar. 6, that workers’ pay and benefits will remain intact if companies adopt a proposed four-day workweek, a flexible arrangement that could help employees and businesses cope with rising energy costs.

DOLE Bureau of Working Conditions Director Alvin B. Curada said the arrangement allows employees to complete the standard 40-hour workweek in four days instead of five, without reducing daily pay.

He explained that under the compressed workweek setup, employees may work longer hours per day—typically up to 10 hours—to complete the required weekly hours.

Additional hours under this schedule are not considered overtime as long as they fall within the agreed 40-hour workweek between employers and workers.

Curada noted that the arrangement is already covered under existing DOLE policy.

“It has been implemented in the past, particularly during economic downturns in 2004 and 2009, when companies adopted flexible schedules to sustain operations while protecting jobs,” he said.

He added that the arrangement may also include hybrid or remote work options allowed under the Telecommuting Act of 2019.

The law permits employees whose tasks can be performed through computer technology to work from home or alternative workplaces.

Many companies, particularly in administrative services, manufacturing, and other office-based sectors, have already adopted telecommuting and other flexible work arrangements.

However, Curada clarified that the setup cannot be applied across all industries, noting that sectors such as agriculture and mining require on-site operations and therefore have limited flexibility.

For companies unable to implement work-from-home arrangements, a compressed schedule could still help maintain productivity while reducing operational costs, he said.

Labor officials said fewer workdays could reduce electricity use, operational spending, and commuting costs.

Curada emphasized that adopting a four-day workweek is voluntary and must be based on mutual agreement between employers and workers.