Dear PAO,

I am employed in a retail clothing store located at a mall. To my knowledge, the regular working hours is only 8 hours. However, there are times when our manager requires us to work for 10 hours. Should the overtime of 2 hours be compensated?

EJ

Dear EJ,

Please be informed of Articles 83 and 87 of Book Three Title 1 Chapter 1 of the Labor Code, which state that:

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"Art. 83. Normal Hours of Work – The normal hours of work of any employee shall not exceed eight (8) hours a day. xxx

"Art. 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%) 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%) thereof." (Emphasis ours)

Based on the above-stated provisions, since the normal hours of work in the Philippines is set at 8 hours, if an employee works for longer than that, he or she must be paid an overtime pay. This includes an additional compensation of 25 percent of his or her regular work wage on a regular work day. If the overtime work is rendered on a holiday or rest day, then the additional compensation is 30 percent of the employee's holiday or rest day rate.

Kindly take note that for purposes of computing overtime pay, "the 'regular wage' of an employee shall include the cash wage only, without deduction on account of facilities provided by the employer" (Art. 90, Labor Code). Further, the provision on overtime does not apply to "government employees, managerial employees, field personnel, members of the family of the employer who are dependent on him for support, domestic helpers, persons in the personal service of another, and workers who are paid by results as determined by the Secretary of Labor in appropriate regulation" (Art. 82, Id.)

In your case, absent any indication that you fall within the exclusions mentioned in the law, you are entitled to overtime pay for work rendered beyond the normal eight-hour work shift.

We hope that we were able to answer your queries. Please be reminded that this advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.

Editor's note: Dear PAO is a daily column of the Public Attorney's Office. Questions for Chief Acosta may be sent to [email protected]