Practice question
A lawful built-in component fully pays ordinary overtime. On one day, part of the proved overtime occurs in the statutory night period. The employer refuses to calculate night differential because the ordinary overtime component was paid. All coverage requirements are met. What is required?
- No further inquiry because the word built-in settles all components
- Determine and pay the additional applicable night differential on the qualifying overtime rate
- Replace all overtime with only a night premium
- Treat night hours as unpaid breaks
- Cancel the regular hourly wage
Legal references
- Labor Code, Articles 82-93 and implementing Book III, Rule I, Sections 3-7: https://lawphil.net/statutes/presdecs/pd1974/pd_442_1974.html
- Omnibus Rules Implementing the Labor Code, Book III, Rules I-III, hours, meals, night differential and weekly rest: https://lawphil.net/statutes/presdecs/pd1974/pd_442a_1974.html
- PAL Employees Savings and Loan Association v. NLRC, G.R. No. 105963, August 22, 1996, MAIN decision: https://lawphil.net/judjuris/juri1996/aug1996/gr_105963_1996.html
Answer this question in flashcards to review your response and continue practicing.