Dear PAO,
I am one of the few machine operators currently employed in our company. Lately, our team leader has required us to work overtime from time to time from September through December. According to our team leader, demand for our products has increased since the “ber” months began, and we need to double our time to meet our production deadlines and sales quota for the year. Moreover, rush orders from our clients must be fulfilled, or our company will incur losses and penalties for delays. Unfortunately, this has already affected my time with my family, causing me to miss many important events. Can they require us to perform mandatory overtime? Please advise.
Grai
Dear Grai,
Article 83 of the Labor Code enunciates that the normal hours of work of any employee shall not exceed eight (8) hours a day. This provision embodies the statutory policy of protecting employees from excessive working hours and recognizes eight hours as the ordinary limit of the employee’s daily work. Thus, as a general rule, employees may not be compelled to work in excess of eight hours on any given working day against their will, to wit:
“ART. 83. Normal Hours of Work. - The normal hours of work of any employee shall not exceed eight hours a day.”
This, however, does not mean that work beyond eight hours is absolutely prohibited. Article 89 constitutes an exception to the general, which states that:
“Art. 89. Emergency overtime work. - Any employee may be required by the employer to perform overtime work in any of the following cases:
”a. When the country is at war or when any other national or local emergency has been declared by the National Assembly or the Chief Executive.
“b. When it is necessary to prevent loss of life or property or in case of imminent danger to public safety due to an actual or impending emergency in the locality caused by serious accidents, fire, flood, typhoon, earthquake, epidemic or other disaster or calamity.
“c. When there is urgent work to be performed on machines, installations or equipment, in order to avoid serious loss or damage to the employer or some other cause of similar nature.
“d. When the work is necessary to prevent loss or damage to perishable goods.
“e. Where the completion or continuation of the work started before the eighth hour is necessary to prevent serious obstruction or prejudice to the business or operations of the employer.
“Any employee required to render overtime work under this Article shall be paid the additional compensation required in this Chapter.”
In your case, you mentioned that you are one of the few machine operators in your company. You also said that your company has been short of sales, and there is a continuous rise in the demand for your products with production deadlines. Your situation may fall under Article 89, Par. (c) of the Labor Code. In the case of Billy M. Realda vs. New Age Graphics Inc. (GR 192190, 25 April 2012, Ponente: Associate Bienvenido Reyes [Ret.]), to wit:
“This particular issue is far from being novel as this Court had the opportunity in R.B. Michael Press v. Galit to categorically state that an employer has the right to require the performance of overtime service in any of the situations contemplated under Article 89 of the Labor Code and an employee’s noncompliance is willful disobedience. Thus:
“For willful disobedience to be a valid cause for dismissal, these two elements must concur: (1) the employee’s assailed conduct must have been willful, that is, characterized by a wrongful and perverse attitude; and (2) the order violated must have been reasonable, lawful, made known to the employee and must pertain to the duties which he had been engaged to discharge.
“In the present case, there is no question that petitioners’ order for respondent to render overtime service to meet a production deadline complies with the second requisite.”
The requirement to render overtime was not imposed on you arbitrarily or merely for management’s convenience. It was necessitated by pressing production requirements and the need to meet customer deadlines. As recognized in the aforementioned case, the employer is empowered under Article 89 of the Labor Code to require employees to work beyond regular hours when their continued services are necessary to prevent serious loss or damage to the business. Hence, it is only reasonable that you were mandated to render overtime work to keep up with the demand and to prevent your employer from incurring losses and penalties for delays.
On the other hand, an employee who performs work exceeding eight hours is entitled to an additional compensation equivalent to his regular wage plus at least 25 percent thereof. Consequently, you are also entitled to overtime pay. This was clearly laid out under Art. 87 of the Labor Code, which provides
“Art. 87. Overtime work. Work may be performed beyond eight hours a day provided that the employee is paid for the overtime work, an additional compensation equivalent to his regular wage plus at least twenty-five percent thereof. Work performed beyond eight hours on a holiday or rest day shall be paid an additional compensation equivalent to the rate of the first eight hours on a holiday or rest day plus at least thirty percent (30 percent) thereof.”
We hope that we were able to answer your queries. This advice is solely based on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.
Thank you for your continued trust and support.
Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net.
