2010 Labor Law, Q14

After working from 10 a.m. to 5 p.m. on a Thursday as one of 5,000 employees in a beer factory, A hurried home to catch the early evening news and have dinner with his family. At around 10 p.m. of the same day, the plant manager called and ordered A to fill in for C who missed the second shift.
May A validly refuse the plant manager’s directive? Explain. (2%)
Assuming that A was made to work from 11 p.m. on Thursday until 2 a.m. on Friday, may the company argue that, since he was two hours late in coming to work on Thursday morning, he should only be paid for work rendered from 1 a.m. to 2 a.m.? Explain? (3%)

Quick check

Under Article 89 of the Labor Code, when may an employer validly compel an employee to perform emergency overtime work?

What is the statutory rule under Article 88 of the Labor Code regarding offsetting undertime work with overtime work?

Why does the Labor Code prohibit offsetting an employee's undertime with overtime work?

How much additional premium compensation is an employee entitled to receive for work performed beyond eight hours on a regular workday?

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What is the legal effect if an employee refuses an employer's directive to work overtime when no statutory emergency exists?

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1. Compulsory Overtime Exceptions
Under Article 89 of the Labor Code, an employer cannot compel an employee to perform overtime work except under specific emergency situations. These statutory exceptions include urgent work needed to prevent serious loss or damage to life or property, urgent repairs on machines or equipment, work necessary to prevent loss or deterioration of perishable goods, or when the work is necessary to avoid serious disruption of business operations. In a large enterprise with thousands of employees, the mere absence or tardiness of a co-worker does not constitute an emergency justifying compulsory overtime.

2. Undertime Offset Prohibition
Article 88 of the Labor Code explicitly prohibits offsetting undertime work rendered on any workday with overtime work performed on the same or any other day. Undertime and overtime are governed by distinct legal rates and rules. While undertime merely results in a deduction from the basic daily wage for hours unworked, overtime work commands additional statutory premium pay. Allowing an employer to offset undertime against overtime work deprives the employee of the higher compensation mandated by labor standards laws and violates statutory wage protections.

3. Overtime Pay Rules
Under Article 87 of the Labor Code, work performed beyond eight hours on a regular workday entitles the employee to additional compensation equivalent to his regular wage plus at least twenty-five percent thereof. When overtime work is rendered during night shift hours between ten o'clock in the evening and six o'clock in the morning, the employee is additionally entitled to a night shift differential of not less than ten percent of his regular wage for each hour of work performed. An employer must compensate the full hours actually worked.

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The questions reproduced here are the official texts of the Philippine Bar Examinations, published by the Supreme Court. They are reproduced for study purposes.The suggested answers are the author’s own.

They are not official answers, have no connection with the Supreme Court, the Office of the Bar Confidant, or any bar review institution, and are not endorsed by any of them. Official answer keys, where released, should be preferred over anything here.Nothing on this page is legal advice, and reading it creates no lawyer-client relationship. Do not rely on any suggested answer in an actual legal matter. Consult counsel on your own facts.Suggested answers reflect the law and jurisprudence the author considers applicable as of the date shown.

Where a question comes from an earlier examination, the suggested answer applies the law as it now stands, which may differ from the law in force when the question was given, and may therefore differ from what would have been the correct answer at that time. Where the difference is material, the answer notes it.The practice scoring feature measures wording overlap with the suggested answer. It is not a grade, carries no official weight, and says nothing about whether your reasoning is sound.Errors are possible. If you find one, please tell me and I will correct it.Last reviewed: October 2026