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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
Article 86 of the Labor Code provides that every employee shall be paid a night shift differential of not less than 10% of his regular wage for each hour of work performed between 10:00 PM and 6:00 AM. On the other hand, overtime pay is the additional compensation of at least 25% on the regular wage for the service or work rendered or performed in excess of eight (8) hours a day by Ees or laborers in employment covered by the eight (8)-hour Labor Law. (Art. 87, LC)
As the clock ticks past the conventional boundaries of the workday, a different world of labor emerges—a realm where night shift differentials and overtime pay become essential components of workforce compensation.
Article 86 of the Labor Code provides that every employee shall be paid a night shift differential of not less than 10% of his regular wage for each hour of work performed between 10:00 PM and 6:00 AM.
The philosophy behind the provision is to give premium to night work when an employee is supposed to be sleeping. Working at night is violative of the law of nature for it is the period for rest and sleep. An employee who works at night has less stamina and vigor, thus, he can easily contract a disease. (Association of International Shipping Lines, Inc. vs. United Harbor Pilots’ Association of the Philippines, Inc., G.R. No. 172029, 06 Aug. 2008)
Work done at night places has a greater burden on the worker. It is more strenuous and onerous than work done during the day. Therefore, it deserves greater or extra compensation. (Shell Co. v. NLU, G.R. No. L-1309, 26 July 1948)
On the other hand, overtime pay is the additional compensation of at least 25% on the regular wage for the service or work rendered or performed in excess of eight (8) hours a day by Ees or laborers in employment covered by the eight (8)-hour Labor Law. (Art. 87, LC)
The rationale of overtime pay is that the employee is made to work longer than what is commensurate with his agreed compensation for the statutory fixed or voluntarily agreed hours of labor he is supposed to do. (PNB v. PEMA and CIR, G.R. No. L-30279, 30 July 1982)
The reason the law requires additional compensation for work beyond the normal working day is to encourage Ers to dispense with such work, thus providing Ees an opportunity to satisfy their mental, moral, and spiritual needs. They may have more hours to devote to reading, amusement, and other recreational activities necessary for their well-being. Moreover, they could share longer hours in the company of their family, attending to spiritual or religious needs. Law on overtime will surely ease unemployment problem, for Ers will be constrained to employ additional Ees to work in other shifts necessary for the operation of the business. (Shell Co. v. NLU, G.R. No. L-1309, 26 July 1948)
In conclusion, night shift differentials and overtime pay are integral components of modern labor compensation, designed to address the unique demands and challenges associated with non-standard working hours and extended work periods. These practices not only provide essential financial incentives that recognize the sacrifices made by employees working outside regular hours but also play a crucial role in maintaining motivation and workplace equity.
As the nature of work continues to evolve in a 24/7 global economy, these compensatory measures remain vital in balancing the scales of fairness, productivity, and well-being. By valuing and supporting those who navigate these unconventional schedules, we foster a more equitable and resilient workforce, capable of meeting the demands of an ever-changing world.
Related Article/s:
WHAT IS THE RULE ON PAYMENT OF NIGHT SHIFT DIFFERENTIAL?
WHAT IS THE RULE ON PAYMENT OF OVERTIME WORK?
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.
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