Overtime

August 9, 2022

Dear Atty. Vlad

Since the start of this year, there were times when I preferred to stay in the office while continuing to work after my regular eight-hour shift (8 a.m. to 5 p.m.) so that I could finish in advance some of my deliverables. I usually worked three to five extra hours per day, which I logged as overtime in my attendance records. When payday came, I was surprised that I only received my usual, basic pay, without the overtime pay and overtime pay premium for the extra hours I rendered to finish the projects assigned to me.

When I brought this up with our payroll officer, he said the overtime pay was disallowed because there was no record that my manager authorized the rendition of the overtime work. I think this is unfair because I was doing my assigned projects for the month during those extra hours so that I could achieve my quota. Shouldn’t I be paid for the overtime work I rendered?

Marie

***

Dear Marie,

Article 87 of the Labor Code provides that work may be performed beyond eight hours per day, provided that the employee is paid for the overtime work and additional compensation equivalent to at least 25 percent thereof. Thus, as a general rule, if you work more than eight hours in a day, you should be paid an overtime premium.

However, overtime pay can be claimed only if an employee has a pre-approved overtime schedule and daily time record (Intertranz Container Lines Inc., et al. vs Bautista, G.R. 187693, 13 July 2010).

There should be proof that you were allowed or required to render overtime work by your manager. In the absence of your manager’s prior approval of your overtime hours, even if these were spent on doing your assigned work, you do not have factual and legal basis to be granted overtime pay.

On the part of the employer, rendering overtime work in order to achieve targets may encourage slow down at work since employees will be paid anyway a premium for extra hours given to achieve their set targets. Hence, before you render any overtime work, you must first obtain the prior approval of your manager, to be entitled to overtime pay and overtime pay premium.

I hope that I was able to reply to your concern based on what you shared with me.

Atty. Vlad del Rosario


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