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Overtime Pay

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1 Overtime Pay on Fri Sep 28, 2012 12:51 pm


Arresto Menor
Dear Atty,

The head of our Cash department has been receiving overtime pay for several years now. He has 3 subordinates under his department. Is it legal or allowed since i think he falls under the managerial/supervisory level and therefore exempt from overtime pay? Will it constitute diminution of benefits should our company decide to discontinue giving his overtime pay? A provision from our employee HR manual on Overtime states that "OT shall be under the provisions of the Labor code of the Phils." May I be enlightened please? Thank you very much.

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2 Re: Overtime Pay on Fri Sep 28, 2012 1:55 pm


Arresto Mayor
In NASUREFCO v NLRC, the Supreme Court discussed the concept of past practices which have ripened into contractual obligations. To fall under this category it must be a benefit:

1. Given over and above what the law requires
2. Over an extended period of time
3. The employer knowing he is not obliged by law to grant it.

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3 Re: Overtime Pay on Fri Sep 28, 2012 4:23 pm


Arresto Menor
In other words, we can no longer invoke Art. 82 of the LCP?

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