OVERTIME PAY

• Overtime Pay


  Additional compensation equivalent to the regular wage plus at least 25% thereof for work performed beyond 8 hours a day or 48 hours a week
• Overtime work on a holiday or rest day


  Paid an additional compensation equivalent to the rate of the first 8 hours or a number of hours under a compressed work week scheme on a holiday or rest day plus 30% thereof
• Under Article 87 of the Philippine Labor Code, employees are entitled to overtime pay
• Voluntary Nature of Overtime


  Rendering overtime work is considered a voluntary act, an employee cannot be forced to work beyond regular working hours without their consent
• Exceptions - Compulsory Overtime

  • Urgent situations where immediate or necessary work is required, such as in the case of an emergency, imminent loss, or when the workforce is necessary to prevent serious obstruction or prejudice to the business operations
• Conditions for compulsory overtime

  Must be fair and reasonable
• If an employee refuses to render overtime

  And it does not fall under the exceptions of compulsory overtime, there should be no legal liability on their part
• If the refusal violates a lawful and reasonable company policy, or if it falls under an exceptional situation where compulsory overtime is justified


  The employee may be held accountable, consequences may include disciplinary action following the proper procedure
• Employees have the right to refuse overtime if it is not compulsory
• Employees exempt from overtime pay

  • Government employees
  • Managerial employees
  • Officers or members of a managerial staff
  • Kasambahay and persons in the personal service of another
  • Workers who are paid by results
  • Field personnel
• Undertime work


  Work done by an employee that is less than the normal or standard work hours
• Undertime work on any particular day shall not be offset by overtime work on any other day
• Permission given to the employee to go on leave on some other day of the week shall not exempt the employer from paying the additional compensation required
• Emergency overtime work


  Work performed by an employee that exceeds the normal or standard work hours, in cases of emergency
• Cases where an employee may be required to perform emergency overtime work


  • When the country is at war or when any other national or local emergency has been declared
  • When it is necessary to prevent loss of life or property or in case of imminent danger to public safety due to an actual or impending emergency in the locality
  • When there is urgent work to be performed on machines, installations, or equipment, in order to avoid serious loss or damage to the employer
  • When the work is necessary to prevent loss or damage to perishable goods
  • Where the completion or continuation of the work started before the eighth hour is necessary to prevent serious obstruction or prejudice to the business or operations of the employer