Working Hours in the Philippines: Overtime, Night Shift, and Undertime

In the Philippines, the labor regulations are designed to ensure fair treatment and protection for employees regarding their working hours. According to Article 82 of the Labor Code, standard working hours for employees should not exceed eight hours per day.

This regulation applies to employees in all establishments and undertakings, whether for profit or not, with specific exemptions including government employees, managerial staff, field personnel, family members dependent on the employer, domestic helpers, personal service providers, and workers paid by results.

The standard workday in the Philippines is set at a maximum of eight hours per day. This does not include a mandatory one-hour lunch break, which must be provided to all employees. The law is flexible in allowing for shorter work periods if agreed upon between the employer and employee, ensuring that work arrangements can be tailored to the needs of both parties.

Working hours encompass all time an employee is required to be:

• On-Duty Time: All time during which an employee is required to be on duty or at a prescribed workplace.
• Permitted Work Time: Any period during which an employee is allowed to work.
• Rest Periods: Short rest breaks taken during working hours are considered part of the working hours.

Every employer must provide their employees with a meal break of not less than 60 minutes. This break is typically scheduled around 12:00 PM during day shifts and is considered unpaid time.

Despite not being counted as work hours, this break is crucial for employee well-being and productivity.

Standard Overtime

Overtime work, defined as any work performed beyond the standard eight hours a day, is permitted under Philippine labor laws, provided that employees are compensated accordingly.

The compensation for overtime is an additional 25% of the employee’s regular hourly wage for each hour of overtime on regular workdays. On rest days, holidays, or special holidays, the overtime pay rate increases to an additional 30% of the regular hourly wage.

Emergency Overtime

There are specific scenarios in which an employer can require employees to work overtime, including:

• During national or local emergencies declared by the government.
• To prevent loss of life or property during imminent danger to public safety caused by disasters such as accidents, fires, floods, typhoons, earthquakes, or epidemics.
• Urgent work on machinery, installations, or equipment to prevent serious damage.
• Work necessary to prevent the loss of perishable goods.
• Completing or continuing work that started before the eighth hour to avoid serious disruption to the employer's business.

Prohibition on Offsetting

The Labor Code explicitly states that undertime work (working less than the scheduled hours) on any given day cannot be offset by overtime work on another day. This is because the compensation rate for overtime work is higher than the regular hourly rate, and the law aims to protect employees from potential exploitation.

Leave and Overtime Compensation

Granting permission to an employee to take a day off during a regular workweek does not exempt the employer from paying additional compensation for any overtime work performed. Employers must adhere strictly to these guidelines to ensure fair treatment of employees.

Employees working night shifts, defined as work performed between 10:00 PM and 6:00 AM, are entitled to a night shift premium.

This premium is at least 10% of the employee's regular hourly wage for each hour worked during the night shift. The law ensures that night workers receive fair compensation for the inconvenience and potential health risks associated with night work.

Republic Act No. 10151 mandates that upon the request of the night worker, they shall have the right to undergo a health assessment without charge and to receive advice on how to reduce or avoid health problems associated with their work. These assessments are available:

• Before taking up an assignment as a night worker.
• At regular intervals during such an assignment.
• If they experience health problems during such an assignment.

The findings of such assessments, with the exception of a finding of unfitness for night work, shall be confidential and shall not be used to the detriment of the worker, subject to applicable company policies.

Night workers certified by a competent physician as unfit to render night work due to health reasons shall be transferred, whenever practicable, to a job for which they are fit or a similar or equivalent position. This transfer must be done in good faith and not as a means to punish the employee.

Daily and Short Breaks

Employers may provide short breaks, such as coffee breaks, typically ranging from 5 to 20 minutes. These breaks, if given, are considered compensable working time, meaning employees are paid for these short rest periods.

Weekly Rest Day

Employees are entitled to a rest period of at least 24 consecutive hours after six consecutive workdays. The specific rest day is determined by the employer, taking into consideration collective bargaining agreements and employee preferences based on religious grounds.

Holiday Pay

Employees required to work on regular holidays are entitled to double their regular wage rate. For work on special holidays, employees receive their regular rate plus at least 30% thereof.

Service Incentive Leave

If the work falls on a special day, the pay rate is 50% above the regular rate, and if it is a regular holiday, the rate goes up to at least 200% of the daily wage.

Right to Weekly Rest Day

• It shall be the duty of every employer to provide each of their employees with a rest period of not less than 24 consecutive hours after every six consecutive normal workdays.
• The employer shall determine and schedule the weekly rest day of their employees, subject to collective bargaining agreements and rules and regulations as the Secretary of Labor and Employment may provide.
• The employer shall respect the preference of employees as to their weekly rest day when such preference is based on religious grounds.

Right to Holiday Pay

• Every worker shall be paid their regular daily wage during regular holidays, except in retail and service establishments regularly employing less than 10 workers.
• The employer may require an employee to work on any holiday, but such an employee shall be paid compensation equivalent to twice their regular rate.
• As used in this article, “holiday” includes: New Year’s Day, Maundy Thursday, Good Friday, the ninth of April, the first of May, the twelfth of June, the fourth of July, the thirtieth of November, the twenty-fifth and thirtieth of December, and the day designated by law for holding a general election.

Right to Service Incentive Leave

• Every employee who has rendered at least one year of service shall be entitled to a yearly service incentive leave of five days with pay.
• This provision shall not apply to those who are already enjoying the benefit herein provided, those enjoying vacation leave with pay of at least five days, and those employed in establishments regularly employing less than ten employees or in establishments exempted from granting this benefit by the Secretary of Labor and Employment in the Philippines after considering the viability or financial condition of such establishments.
• The grant of benefits in excess of that provided herein shall not be made a subject of arbitration or any court or administrative action.

Under certain conditions, employers may require employees to work on their designated rest days, including:

Emergencies

In case of actual or impending emergencies caused by serious accidents, fires, floods, typhoons, earthquakes, epidemics, or other disasters or calamities to prevent loss of life and property or imminent danger to public safety.

Urgent Work

In cases of urgent work to be performed on machinery, equipment, or installations to avoid serious loss which the employer would otherwise suffer.

Abnormal Pressure of Work

When there is abnormal pressure of work due to special circumstances where the employer cannot ordinarily be expected to resort to other measures.

Perishable Goods

To prevent loss or damage to perishable goods.

Continuous Operations

Where the nature of the work requires continuous operations and the stoppage of work may result in irreparable injury or loss to the employer.

Other Analogous Circumstances

Under other circumstances analogous or similar to the foregoing as determined by the Secretary of Labor and Employment.

Article 93 of the Labor Code stipulates that:

• When an employee is made or permitted to work on their scheduled rest day, they shall be paid an additional compensation of at least 30% of their regular wage. They shall be entitled to such additional compensation for work performed on Sunday only when it is their established rest day.

• When the nature of the work of the employee is such that they have no regular workdays and no regular rest days can be scheduled, they shall be paid an additional compensation of at least 30% of their regular wage for work performed on Sundays and holidays.

• Work performed on any special holiday shall be paid an additional compensation of at least 30% of the employee’s regular wage. When such holiday work falls on an employee’s scheduled rest day, they shall be entitled to an additional compensation of at least 50% of their regular wage.

• When the collective bargaining agreement or other applicable employment contract stipulates the payment of a higher premium pay than prescribed by the Labor Code, the employer shall pay such a higher rate.

Certain sectors such as healthcare, IT, BPO, and retail may have different working hours arrangements due to the nature of their operations.

These sectors are governed by specific provisions and implementing rules that accommodate their unique demands, ensuring that both employers and employees are protected and treated fairly.

Are you seeking Filipino talents to be hired for you company?

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Further reading:

• Dos and Don'ts for New Employee Orientation Checklist
• Employee Time Off Request Form (with Sample Template)
• Phone Interview Confirmation Email that Will Impress Candidates
• Why Confirmation Messages Matter in Candidate Experience

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