OT pay

Dear Atty. Peachy,

I have been employed at a small private company for roughly two years. Lately, my employer has started demanding that we work extra hours beyond our normal shifts without extra compensation, claiming that we are “on a fixed salary” anyway. Often, this results in us working an additional 1 to 2 hours daily, particularly during peak times.

I’ve checked my employment contract, which mentions my monthly pay but doesn’t specify anything regarding overtime or exemptions. When I informally brought this up, I was told that it is “standard practice” and that I should be thankful for having stable employment.

I want to know: Am I entitled to overtime pay even though I have a fixed monthly salary? If I am, what actions can I take without jeopardizing my job?

Sincerely,

Dennis

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Dear Dennis,

According to Philippine labor law, specifically the Labor Code, employees are generally entitled to overtime pay for any work performed beyond eight hours in a day, unless they meet specific exemptions.

Having a fixed monthly salary does not automatically exempt you from receiving overtime pay. The law stipulates that overtime work must be compensated at an additional rate of at least 25 percent on regular days, with higher rates applicable on holidays and rest days.

Exemptions usually apply to managerial roles, officers, or personnel whose work conditions make tracking hours difficult, such as field workers. If your position does not fit these descriptions, you are entitled to overtime pay.

Since your contract does not mention overtime, the legal default provisions apply. Employers cannot disregard statutory benefits simply by omission or by calling it “standard practice.”

Regarding your next steps, it’s wise to be cautious. Maintain a personal log of your start and end times, including any overtime requests. There may be internal rules that contradict what you’ve been told verbally.

A written request to your HR department can create a formal record of your concern and may lead to a more constructive response. If the situation is not resolved, consider reaching out to the Department of Labor and Employment for advice or to file a formal complaint.

It’s important to remember that the law safeguards employees against unfair labor practices, including the non-payment of legally mandated wages. However, it is also crucial to balance your rights with practical considerations, such as preserving your job, so a careful and documented approach is recommended.

Sincerely,

Atty. Peachy Selda-Gregorio