I incurred several undertimes (UTs) in a month in our company because of some family emergencies. Because of this, my employer forced me to render overtime (OT) work in order to offset my incurred UTs. Last pay day, I discovered that my OT work was not duly paid. My employer reasoned that it is precisely because the OT work merely offset my UTs for productivity loss of the company, although they deducted the UTs from my salary. Is my employer right?
For your information, under Article 87 of the Labor Code of the Philippines, it is stated:
Article 87. Overtime work. Work may be performed beyond eight (8) hours a day provided that the employee is paid for the overtime work, an additional compensation equivalent to his regular wage plus at least twenty-five percent (25 percent) thereof. Work performed beyond eight hours on a holiday or rest day shall be paid an additional compensation equivalent to the rate of the first eight hours on a holiday or rest day plus at least thirty percent (30 percent) thereof.
Clearly, when an employee renders overtime, he is entitled to payment pursuant to the above-stated provision of law. It is not proper to claim the overtime work can be used to offset undertimes as Article 88 of the same law further states:
Article 88. Undertime not offset by overtime. 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 in this chapter.
Hence, in your case, if your employer insists on not paying your overtime work despite the above-provisions of the law, you may now have the right to enforce your rights before the National Labor Relations Commission.
Again, we find it necessary to mention that this opinion is solely based on the facts you have narrated and our appreciation of the same. The opinion may vary when the facts are changed or elaborated.
We hope that we were able to enlighten you on the matter.
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