Dear Attorney,

I am an employee in a company where we are often required to work beyond regular hours. Despite fulfilling these extended hours, we are not compensated for overtime. Are employees legally obligated to follow orders to work overtime if the company refuses to provide overtime pay?

Sincerely,
A Concerned Employee

Insights

In the Philippines, overtime work and compensation are governed by the Labor Code, particularly under Book III, Title I, Chapter I. The law mandates that employees who work beyond eight hours a day should be compensated with an additional 25% of their regular hourly rate. For work on a rest day or holiday, the overtime rate increases by 30%.

Compulsory Overtime
Employers may require overtime work in specific circumstances, such as urgent tasks that require immediate completion to prevent serious loss or damage to the company or its operations. However, overtime work should not be imposed arbitrarily and must align with the situations mentioned in the Labor Code.

Refusal to Pay Overtime
If an employer fails to pay the legally mandated overtime compensation, employees are not obligated to comply with such compulsory overtime. Employers cannot force workers to work extra hours without just compensation. In such cases, employees have the right to lodge a complaint with the Department of Labor and Employment (DOLE) for a violation of labor standards.

Legal Recourse
Employees who believe their overtime rights are being violated may file a complaint with DOLE or the National Labor Relations Commission (NLRC). These agencies have the authority to investigate and enforce proper labor standards, including unpaid overtime.

In conclusion, employers are required to compensate overtime in accordance with Philippine labor laws. Refusing to pay such compensation could result in penalties and legal repercussions. Employees should not be compelled to work overtime without proper compensation, and they are entitled to seek legal redress if their rights are violated.