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BREACH OF CONTRACT

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1 BREACH OF CONTRACT on Tue Feb 28, 2017 4:09 pm

SammieVargas


Arresto Menor
Hi,

My contract expired last Feb 5, 2017 from my previous company which holds me from working in the same line of work. I received another letter from them yesterday threatening to sue me. Can they still file a case against me even if my contract with them has already expired?

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2 Re: BREACH OF CONTRACT on Tue Feb 28, 2017 5:08 pm

HrDude


Reclusion Perpetua
Yes they may sue you even if you are not connected with them. You are bound by the terms and conditions of your contract.

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3 Re: BREACH OF CONTRACT on Tue Feb 28, 2017 5:11 pm

SammieVargas


Arresto Menor
My contract with them has expired already 3 weeks ago. They still can sue me?

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4 Re: BREACH OF CONTRACT on Tue Feb 28, 2017 5:14 pm

SammieVargas


Arresto Menor
I mean, i resigned February 5, 2016. My contract with them states, that i can't join a rival company. But now i am with a rival company. It's already 28th of February. And my contract binding me with them has already expired.

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5 Re: BREACH OF CONTRACT on Tue Feb 28, 2017 5:26 pm

HrDude


Reclusion Perpetua
Read your Contract. How long is the condition for you not to join a rival Company.

You stated previously that you are barred from joining a Company with 'the same line of business' and now you stated that you being barred from joining a 'rival company'. These are 2 different conditions. So which is which?

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6 Re: BREACH OF CONTRACT on Tue Feb 28, 2017 10:55 pm

chudee5


Arresto Menor
hi po. Can you enlighten me regarding po sa situation ko ngayon sa employment ko po. 2 months pa lang po ako na employed sa company but I want to resign na po. I am not happy po to where I am right now kaso lang po nkasign po ako ng 2 yrs contract and my stipulation sa contract that in case mgresign before the lapse of two years I need to pay in full liquidated damages computed at 25% of my compensation for the unserved months in addition to firm accountability and training cost. Is the stipulation valid and enforceable in case mg resign po ako?

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7 Re: BREACH OF CONTRACT on Tue Feb 28, 2017 11:29 pm

lukekyle


Reclusion Perpetua
technically "valid" yan. pero if dinulog sa korte kelangan parin iprove kung bakit kelangan silang bayaran nyan. 5 months salary yan + training costs, are you sure you want to risk paying that mucch?

kung di mo nakayang tiisin pwede mo rin itry mag negotiate ng lower exit fee. offer 2 1/2 months plus training costs if takot kang matalo. may chance din silang matalo so baka pumayag.

but kung malakas ang loob mo pwede mong irisk na hindi ka nila ihabla or syempre may chance ka din manalo. but yung training costs almost sure na talo ka dun

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8 Re: BREACH OF CONTRACT on Wed Mar 01, 2017 9:35 am

SammieVargas


Arresto Menor
I resigned February 5, 2016. Sa contract ko naka indicate na bawal ako lumipat sa rival company for one year after resignation. Lumipat po ako sa rival company July last year. Within the contract pa po yun. I received letters from them threatening to sue me. Pero puro ganun lang ang ginagawa nila. Then Februay 5, 2017, my contract with them binding me nag expire na. But i got a letter from them yesterday demanding that i pay them the damages na 50k. Can they still sue me po ba kahit expired na yung binding contract ko with them weeks ago?

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9 Re: BREACH OF CONTRACT on Wed Mar 01, 2017 9:54 am

lukekyle


Reclusion Perpetua
yes kasi lumipat ka ng july. you committed the act nung bawal pa. if ngayon ka lang limipat wala ka sanang problema

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10 Re: BREACH OF CONTRACT on Wed Mar 01, 2017 11:32 am

chudee5


Arresto Menor
Thanks po sa pag reply sir lukekyle. Yes po willing namn po ako na bayaran ang training cost. Nasa stipulation din po na bawal mgresign between dec 1-april 30. Pwd po ba yun? Gusto ko na po talaga umalis nadedepress na kc po ako.

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11 Re: BREACH OF CONTRACT on Wed Mar 01, 2017 11:45 am

lukekyle


Reclusion Perpetua
yes if hindi mo tapusin ang contract pwede ka nila isue for damagesna stipulated sa contract

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12 Re: BREACH OF CONTRACT on Sun Mar 12, 2017 4:13 pm

tcidenebj


Arresto Menor
Hi Sir/Ma'am,

I wanted to ask some advice for my/our issue.

July 1, our first day, Company X lets us sign a Job Agreement with a said attached Training Contract, which is not actually attached, it was stated that we will be Probationary Employees for 6 months and will undergo a training based on the attached Training Contract. Mistakenly, we signed the Job Agreement without asking what is the attached Training Contract.

July 15, first cut-off salary distribution, Company X hands us the Training Contract with a stated two years bond of 65,000.00. We were gloomed but signed it anyway because of the pressure that we already had the salary and worked for two weeks.

Is this legal?

Any response will be appreciated.

Thank you very much,

Regards,
tcidenebj

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13 Re: BREACH OF CONTRACT on Sun Mar 12, 2017 8:56 pm

lukekyle


Reclusion Perpetua
yes its legal. it wouldnt have been binding had you not signed it on july 15. now its more than six months and you want to question the validity?

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14 Re: BREACH OF CONTRACT on Mon Mar 13, 2017 9:38 pm

tcidenebj


Arresto Menor
Thank you, sir. Sir, sa totoo lang, gusto ko na po kasi mag resign. This is my/our first job. And I believe, naging isa lang din ako/kami sa mga biktima ng ganitong kumpanya. Balita din po kasi na daming umaalis kaagad after probationary period. I am a Licensed ECE pero 'yong nature ng job is parang technician lang. There was one time that we worked like a construction worker for an installation of our equipment and I got injured. Yet, my boss still let me work and the company did not pay any of my medications. We do not have overtime pay, offset, and would work on weekends without pay. Three months of work palang, gusto ko na talaga umalis kaso hindi daw pwede sabi ng HR kasi magbabayad daw kami ng ganong halaga. I am so helpless. I also ask the HR bakit nung after two weeks of work at sinaktong sweldo binigay 'yong contract bond at bakit hindi isinabay sa Job Agreement, which is nakasaad na nakaattach 'yong contract bond/training contract, no'ng first day namin. They said na pumirma naman daw kasi kami at ba't daw kami pumirma kung hindi namin gusto, which is nasa rason naman. Is there anything that I/we can do? Wala kaming gano'ng pera to pay yet. If magresign kami, what is the worst case of this Breach of Contract?

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15 Re: BREACH OF CONTRACT on Tue Mar 14, 2017 8:28 am

lukekyle


Reclusion Perpetua
pwede kayo ihabla ng employer. there has been instances na ibabawas sa magiging sweldo mo ang danyos if napatunayang wala kang pambayad. di lang maganda ang impression mo sa susunod mong employer kasi may kaso kang kinahaharap

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16 Re: BREACH OF CONTRACT on Tue Mar 14, 2017 10:53 am

tcidenebj


Arresto Menor
Thank you very much, sir. What if po umalis kami at hindi enough 'yong backpay and any kind of last compensation from our employer to pay the certain amount? Ano po'ng worst na gawin nila samin sir? For example, dumaan po sa korte, natalo kami, and still 'di kami makapag bayad. May chances ba na makulong kami? --sorry if this seems to be overstated as I see it would be the worst case. Marerecord po ba ito to any such as NBI, Police Clearance, etc.?

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17 Re: BREACH OF CONTRACT on Tue Mar 14, 2017 10:59 am

lukekyle


Reclusion Perpetua
hindi kayo makukulong, ang worst case is kakaltasin ang sweldo mo sa next na papasukan mo if yun ang magiging hatol ng korte.

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18 Re: BREACH OF CONTRACT on Tue Mar 14, 2017 11:07 am

lukekyle


Reclusion Perpetua
or pwedeng igarnish ang assets

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19 Re: BREACH OF CONTRACT on Tue Mar 14, 2017 11:40 am

anradajoe


Arresto Menor
Hi may problema ako about sa service incentive leave, I am still entitled to avail because it was stated on my contract that overtime pay, holiday pay and paid leaves mandatory under the Phil. law is already included on my 50k monthly salary.

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20 Re: BREACH OF CONTRACT on Tue Mar 14, 2017 11:52 am

lukekyle


Reclusion Perpetua
nope ibig sabihin, yung 50k mo na alary kasama na dun yung cash equivalent ng SIL. If mag avail ka, babawasan nila yung 50k na sweldo mo

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21 Re: BREACH OF CONTRACT on Tue Mar 14, 2017 4:43 pm

mrs_scofield


Prision Correccional
tcidenebj wrote:Hi Sir/Ma'am,

I wanted to ask some advice for my/our issue.

July 1, our first day, Company X lets us sign a Job Agreement with a said attached Training Contract, which is not actually attached, it was stated that we will be Probationary Employees for 6 months and will undergo a training based on the attached Training Contract. Mistakenly, we signed the Job Agreement without asking what is the attached Training Contract.

July 15, first cut-off salary distribution, Company X hands us the Training Contract with a stated two years bond of 65,000.00. We were gloomed but signed it anyway because of the pressure that we already had the salary and worked for two weeks.

Is this legal?

Any response will be appreciated.

Thank you very much,

Regards,
tcidenebj

When you were made to sign the Job Agreement stating that you will be trained based on the Training Contract, did you ask the HR for a copy of the Training Contract when you found out that it was not attached?

Did you also ask the HR about the terms of the Training Contract before signing the Job Agreement?

Were you in fact trained or sent for training locally or abroad?  This is crucial to determine whether you are liable to pay the cash bond provided in the Training Contract.

WITH REGARDS TO RESIGNATION
Those who had been trained at company's expense, and who fail to fulfill their obligation to render a number of years of service, must pay the cost of training. If they fail to pay, the company can file a civil suit against them with damages if warranted by the facts. This, however, does not justify disapproval of the employee's resignation. If the worker has the right to work, they certainly have the right also to stop working. Nobody, not even employers or the government can compel any person to render work against his or her will. Employment is a consensual contract. The consent of both the employer and the employees is an essential element for the validity of the contract. Resignation is an explicit withdrawal of the employee's consent.

Now, if the company did not provide you with the training as indicated in your Training Contract, you cant be made liable to pay for the bond should you resigned within the prohibited period because that's the very condition of the contract, i.e., i'll provide you training, but you need to pay me the cost should you resigned within the period agreed upon.

It will be more helpful if you can indicate the essential conditions under the Training Contract so we can review the same.

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22 Re: BREACH OF CONTRACT on Tue Mar 14, 2017 5:26 pm

tcidenebj


Arresto Menor
Hello, mrs_scofield. Thank you for the advice. Well, mistakenly, we did not ask about the terms and agreement of the Training Contract and even the copy of it since it was our first day, we were pressured to sign it anyway kasi first job at sayang yung pagasikaso ng mga requirements sa kanila. Is it legal to make your applicants sign their Job Agreement exactly on their first day. Ayon po kasi sa iba, sa ibang company, magsisign ka muna ng Job Offer/Agreement before ka magstart.

No, we were not sent abroad.

For the conditions of the Training Contract, we will be having a 4 to 8 weeks of Training, and after successfull completion of the training, we will be bonded for two years with an amount of 65,000.00. Which is yes, we have undergone a training pero medyo questionable po 'yong 65,000.00. Kasi mismong employees din nila mga nagtrain at sa office din nila po ginanap. Although, I know, pwede nila sabihin na may bayad 'yong room at employees nila na nagtrain samin. At isa pa, hanggang ngayon, di pa nila binibigay yung copy ng Training Contract namin. We even ask for it pero sabi nila binigyan daw kami ng copy.

Additionally, yung said training contract was given after two weeks and exactly on the first salary distribution pay, kaya medyo napressure po kami pirmahan kasi sumahod na kami at nagwork already for two weeks. Feel ko po naabuso kami kasi first job namin lahat at tinake advantage kami.

I stated some of the reasons why I want to leave the company on my previous post if you do not bother to read po. Thank you po so much.



Last edited by tcidenebj on Tue Mar 14, 2017 5:34 pm; edited 2 times in total (Reason for editing : Additional information)

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23 Re: BREACH OF CONTRACT on Tue Mar 14, 2017 5:35 pm

mrs_scofield


Prision Correccional
tcidenebj wrote:Thank you, sir. Sir, sa totoo lang, gusto ko na po kasi mag resign. This is my/our first job. And I believe, naging isa lang din ako/kami sa mga biktima ng ganitong kumpanya. Balita din po kasi na daming umaalis kaagad after probationary period. I am a Licensed ECE pero 'yong nature ng job is parang technician lang. There was one time that we worked like a construction worker for an installation of our equipment and I got injured. Yet, my boss still let me work and the company did not pay any of my medications. We do not have overtime pay, offset, and would work on weekends without pay. Three months of work palang, gusto ko na talaga umalis kaso hindi daw pwede sabi ng HR kasi magbabayad daw kami ng ganong halaga. I am so helpless. I also ask the HR bakit nung after two weeks of work at sinaktong sweldo binigay 'yong contract bond at bakit hindi isinabay sa Job Agreement, which is nakasaad na nakaattach 'yong contract bond/training contract, no'ng first day namin. They said na pumirma naman daw kasi kami at ba't daw kami pumirma kung hindi namin gusto, which is nasa rason naman. Is there anything that I/we can do? Wala kaming gano'ng pera to pay yet. If magresign kami, what is the worst case of this Breach of Contract?

What position did you apply for? Did your employer give you a Job Description? Was the work you were made to do not included in the said job description?

As for the non-payment of overtime pay on ordinary day and rest day, you can file a complaint in the NLRC against your employer to recover the same. However, as a general rule, entitlement to overtime pay must first be established by proof that said overtime work was actually performed before an employee may avail of said benefit. It is a basic rule in evidence that each party must prove his affirmative allegations.

WITH REGARDS TO OFFSETTING

Please take note that under Article 88 of the Labor Code, Undertime not offset by overtime. Undertime work on any particular day shall not be offset by overtime work on any other day. Permission given to the employee to go on leave on some other day of the week shall not exempt the employer from paying the additional compensation in cases where the employee rendered over-time work.

This means that, when you render authorized overtime work, your employer must pay the additional compensation for the said overtime work rendered. Now, if your employer did not pay your overtime pay on the ground that you have undertime but despite non-payment still deducted it from your salary, you may enforce your right to the payment of the overtime pay before the NLRC. Because, although the employer has the right to deduct your undertime, it is obligated under the law to pay the additional compensation for the authorized overtime work rendered.

WITH REGARDS TO MEDICAL SUPPORT

The Labor code, under Art. 163 obliges every employer to furnish employees in any locality with free medical attendance facilities with the services of a full-time registered nurse, if the employees exceeds 50 but not more than 200 since your in a hazardous work place.

First-aid treatment is defined under Rule I, Book Four of the Omnibus Rules Implementing the Labor Code as an "adequate, immediate and necessary medical and dental attention or remedy given in case of injury or sudden illness suffered by a worker during employment, irrespective of whether or not such injury or illness is work connected, before more extensive medical and/or dental treatment can be secured. It does now include continued treatment or follow-up treatment for an injury or illness."

In addition, under Sec. 2 of Act No. 3428, when any employee receives a personal injury from any accident due to and in the pursuance of the employment, or contracts any illness directly caused by such employment or the result of the nature of such employment, his employer shall pay compensation in the sums and to the persons hereinafter specified.

This is in the presumption that you are an industrial employee and whose gross income in the year preceding the one during which the accident occurred was not less than P40k.

It is also provided under this Act that any contract, regulation, or device of any sort intended to exempt the employer from all or part of the liability created by this Act shall be null and void.

Further Sec. 13. of this Act states that immediately after an employee has suffered an injury and during the subsequent period of disability, the employer shall provide the employee with such medical, surgical, and hospital services and supplies as the nature of the injury may require.

The pecuniary liability of the employer for the necessary medical, surgical, and hospital services and supplies shall be limited to the amount ordinarily paid in the community for such treatment of an injured person of the same standard of living if the treatment had to be paid for by the injured person himself.

In case the employer cannot furnish medical, surgical, and hospital services and supplies promptly, the injured employee may acquire the same at the expense of the employer.

Thus, you can ask reimbursement for the medical expenses you incurred in the treatment of your injury but do take note that it shall be limited to the amount ordinarily paid in the community for such treatment of an injured person of the same standard of living if the treatment had to be paid for by the injured person himself.

You can also report these violations by your employer to the DOLE so it can send representative and investigate on the matter. Complaints are treated with confidentiality so do not worry that your employer might know who filed a complaint against them.

Good luck and I wish all the best!!! Hope that I helped you in my own little way, God speed!



Last edited by mrs_scofield on Tue Mar 14, 2017 8:14 pm; edited 1 time in total (Reason for editing : Grammar)

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24 Re: BREACH OF CONTRACT on Tue Mar 14, 2017 5:50 pm

tcidenebj


Arresto Menor
The positioned that I did apply was Biomedical Service Engineer. Well, as I read from the Job Agreement, one paragraph says that, "A description of your duties and responsibilities is attached for your guidance," but nothing is attached, it is just one piece of paper.

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25 Re: BREACH OF CONTRACT on Tue Mar 14, 2017 6:51 pm

mrs_scofield


Prision Correccional
tcidenebj wrote:Hello, mrs_scofield. Thank you for the advice. Well, mistakenly, we did not ask about the terms and agreement of the Training Contract and even the copy of it since it was our first day, we were pressured to sign it anyway kasi first job at sayang yung pagasikaso ng mga requirements sa kanila. Is it legal to make your applicants sign their Job Agreement exactly on their first day. Ayon po kasi sa iba, sa ibang company, magsisign ka muna ng Job Offer/Agreement before ka magstart.

No, we were not sent abroad.

For the conditions of the Training Contract, we will be having a 4 to 8 weeks of Training, and after successfull completion of the training, we will be bonded for two years with an amount of 65,000.00. Which is yes, we have undergone a training pero medyo questionable po 'yong 65,000.00. Kasi mismong employees din nila mga nagtrain at sa office din nila po ginanap. Although, I know, pwede nila sabihin na may bayad 'yong room at employees nila na nagtrain samin. At isa pa, hanggang ngayon, di pa nila binibigay yung copy ng Training Contract namin. We even ask for it pero sabi nila binigyan daw kami ng copy.

Additionally, yung said training contract was given after two weeks and exactly on the first salary distribution pay, kaya medyo napressure po kami pirmahan kasi sumahod na kami at nagwork already for two weeks. Feel ko po naabuso kami kasi first job namin lahat at tinake advantage kami.

I stated some of the reasons why I want to leave the company on my previous post if you do not bother to read po. Thank you po so much.

WITH REGARDS TO TRAINING ACTUALLY GIVEN

Since we do not have a copy of your Training Contract and we do not know what are the sets of 'training" that the company will provide you under the said contract, we will assume that the training provided to you is part of the training package.

Please take note that you are only required to pay for the training cost actually incurred by the company for the training you actually received. The issue of whether or not the P65k is exorbitant or excessive is for the court to determine. Of course, the company needs to provide proof to justify the said amount.

But bear in mind also that in most cases, especially like this, the court applies the policy of social justice where the law bends backward to accommodate the interests of the working class on the humane justification that those with less privilege in life should have more in law.

WITH REGARDS TO THE JOB AGREEMENT WITH TRAINING CONTRACT

Under the Civil Code, we have this what we call as voidable contracts. And a contract is said to be voidable or annullable when:

1. One of the parties is incapable of giving consent to a contract; or

2. The consent of one of the parties is vitiated by mistake, violence, intimidation, undue influence, or fraud.

Your case falls under paragraph 2. Your consent is vitiated by fraud. Now, there is fraud when through insidious words or machinations of one of the contracting parties, the other is induced to enter into a contract which, without them, he would not have agreed to.

Fraud refers to all kinds of deception; whether through insidious machination, manipulation, concealment or misrepresentation that would lead an ordinarily prudent person into error after taking the circumstances into account.

In contracts, a fraud known as dolo causante or causal fraud is basically a deception used by one party prior to or simultaneous with the contract, in order to secure the consent of the other. Needless to say, the deceit employed must be serious. In contradistinction, only some particular or accident of the obligation is referred to by incidental fraud or dolo incidente, or that which is not serious in character and without which the other party would have entered into the contract anyway.

TAKE NOTE, however, that a voidable contract although annullable can be ratified. And ratification extinguishes the action to annul a voidable contract.

When did you learn that the Training Contract provides for payment of a bond? When you learned of the same did you question it or lodge a complaint with the HR?

When you learned of the cash bond, did you make a protest? Or you did not do anything and instead go on with your work and voluntarily attended the training?

I am asking you these questions to determine first if your cause of action have not yet prescribed. In case of fraud, the action for annulment should be brought within four years from the time of the discovery of the same.

And whether your acts after you found out about the cash bond under the Training Contract constitute a ratification of the same.  It is understood that there is an express or tacit ratification when, with knowledge of the reason which renders the contract voidable and such reason having ceased, the person who has the right to invoke it should execute an act which necessarily implies an intention to waive his right.


WHAT ARE THE STEPS TO BE TAKEN

You send a letter to your HR, raising the following:

1. The matter of its failure to provide you with a copy of the Training Agreement;

2. Inquire about the cash bond which you only came to know about just now and ask for clarifications;

3. Should they reply, make it a point to record your protest.

4. Demand for the payment of overtime pay and reimbursement of the medical expense incurred

Make sure to have your letter(s) received by the HR. Keep the receiving copy. Please remember that once you have done all this, make it a point to register your protest if you are required to attend training/s.

And if you are at the point of quitting your job, I suggest you negotiate with your employer to have your cash bond cancelled or at least reduced. Your bargaining chip is its failure to pay your authorized overtime work rendered during regular and rest days and its failure to reimburse the medical expenses you incurred when you suffered a work-related injury. You can ask them that you can offset these payments due to you against the cash bond.

If negotiation fails, wait for the agreed period to expire before resigning but lodge your monetary claims with the NLRC immediately.

All money claims arising from an employer-employee relation are covered by the three-year prescriptive period mandated by Article 305 of the Labor Code, and not by Article 1144 of the Civil Code which provides for a ten-year prescriptive period for written agreements.

If the employee does not make a claim within 3 years, it is possible that he/she will lose his monetary claims.

Now this 3 year prescriptive period starts to run from the time the cause of action accrued.  I will no longer discuss the elements of a cause of action but what you must remember is that it will start to run from the moment your employer denied your monetary claim.

Hence, the need for you to send them a letter demanding for the payment of the overtime pay to establish that your claim is still within the prescriptive period.

I hope I have helped you with your predicament. Good luck and may the force be with you! God speed! Very Happy

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