After reading “What is the rule on payment of overtime work?”, read also “Can an employee contractually waive his right to overtime pay?”.
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It is thus the additional work, labor or service employed and the adverse effects just mentioned of his longer stay in his place of work that justify and is the real reason for the extra compensation that he called overtime pay.
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Workers who are paid by results are not entitled to receive overtime pay.
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To be entitled to overtime, entitlement to overtime pay must first be established and said overtime work was actually performed.
Overtime work is an additional compensation for work performed beyond 8 hours within the workers’ 24-hour workday regardless whether the work covers 2 calendar days. (Article 87, Labor Code of the Philippines)
What is the rationale for providing overtime pay? Jurisprudence says:
Verily, there can be no other reason than that he is made to work longer than what is commensurate with his agreed compensation for the statutorily fixed or voluntarily agreed hours of labor he is supposed to do. When he thus spends additional time to his work, the effect upon him is multi-faceted: he puts in more effort, physical and/or mental; he is delayed in going home to his family to enjoy the comforts thereof; he might have no time for relaxation, amusement or sports; he might miss important pre-arranged engagements; etc., etc. It is thus the additional work, labor or service employed and the adverse effects just mentioned of his longer stay in his place of work that justify and is the real reason for the extra compensation that he called overtime pay. (PNB vs. PEMA, G.R. No. L-30279, July 30, 1982)
Hence, the employee is given overtime pay because he is made to work longer than what is commensurate with his agreed compensation for the statutorily fixed or voluntarily agreed hours of labor he is supposed to do.
The basis for the computation for overtime pay is the regular basic wage. Regular basis wage includes cash wage only, without any deduction on account of facilities provided by the employer. (Article 90, Labor Code)
What is the rule on the payment of overtime work? The law says:
Workers who are paid by results, including those who are paid on piece-work, takay, pakiao, or task basis, and other non-time work if their output rates are in accordance with the standards prescribed under Sec. 8, Rule VII, Book III, of these regulations, or where such rates have been fixed by the Secretary of Labor in accordance with the aforesaid section, are not entitled to receive overtime pay. (Section 2(e), Rule I, Omnibus Rules Labor Code Implementing Rules and Regulations)
What are the conditions to be entitled to overtime pay? Jurisprudence says:
Simply, stated, the rendition of overtime work and the submission of sufficient proof that said work was actually performed are conditions to be satisfied before a seaman could be entitled to overtime pay which should be computed on the basis of 30% of the basic monthly salary. In short, the contract provision guarantees the right to overtime pay but the entitlement to such benefit must first be established. (Julio N. Cagampan vs. National Labor Relations Commission, G.R. Nos. 85122-24, March 22, 1991) (emphasis supplied)
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