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?
- Yes, every fixed component buys unlimited hours.
- Yes, because the worker accepted monthly pay.
- No; the unpaid additional hour must be assessed and compensated under the applicable rate.
- No overtime can ever be included in an agreed package.
- 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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