Philippine Bar review · Question

Practice question: Built-in Overtime

Multiple Choice Medium

Practice question

An express lawful compensation arrangement fully pays two ordinary-day overtime hours at the correct rate. A covered employee actually works a third overtime hour not included or otherwise paid. Does the two-hour component itself satisfy payment for the third hour?
  1. Yes, every fixed component buys unlimited hours.
  2. Yes, because the worker accepted monthly pay.
  3. No; the unpaid additional hour must be assessed and compensated under the applicable rate.
  4. No overtime can ever be included in an agreed package.
  5. Only the company's profit determines payment.

Legal references

  • PAL Employees Savings and Loan Association v NLRC, G.R. 105963, August 22 1996, main opinion: https://lawphil.net/judjuris/juri1996/aug1996/gr_105963_1996.html
  • Labor Code Articles 82–88, official DOLE consolidated 2022 edition: https://natlex.ilo.org/dyn/natlex2/natlex2/files/download/15242/PHL15242%202022.pdf — Articles 82,87.

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