Practice question
What is the distinction between a lawful built-in overtime payment and a waiver of overtime compensation?
- They are always identical.
- A built-in payment purports to pay an identifiable overtime entitlement within the agreed compensation; a waiver would forgo the entitlement.
- Every built-in clause permits unlimited unpaid extra hours.
- A waiver is always valid if the salary exceeds minimum wage.
- Neither requires consideration of actual compensation.
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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