Article 88 of the Labor Code: Undertime not offset by overtime
Status: In force
What does Article 88 say?
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 required in this Chapter.
Read the Labor Code on the DOLE website (it uses the article numbers before 2015)
What does it mean in plain language?
Article 88 of the Labor Code says that hours missed on one day (undertime) cannot be cancelled by extra hours worked on another day (overtime). The overtime is still paid with its premium. Letting the employee take a day off later in the week does not replace that pay.
The article keeps the same number and the same words it had in the 1974 Labor Code, as the DOLE renumbered edition shows.
How does it work in real life?
Celia: a long Monday, a short Tuesday
Celia works ten hours on Monday at her manager's request and leaves two hours early on Tuesday with permission. Under Article 88, her two hours of undertime on Tuesday do not cancel the two hours of overtime on Monday. The Monday overtime is paid with its premium.
Marco: a day off for the overtime
Marco works twelve hours on Wednesday to finish an order. His employer offers him Friday off "to make up for it" instead of overtime pay. Under Article 88, permission to go on leave on another day of the week does not exempt the employer from paying the overtime premium for Wednesday.
What does this mean in practice?
- Article 88 is in Book Three, Title I, so it does not cover the groups excluded by Article 82, such as managerial employees and field personnel.
- When an employer may require overtime is in Article 89 and Can your employer require overtime?
- For the amounts, use the overtime pay calculator.
- Arrangements such as a compressed work week rest on DOLE issuances that are not covered here.
- Unpaid overtime is a money claim, filed within three years. See how long you have to file a labor money claim, how to file a labor complaint and Free legal help in the Philippines.
What does Article 88 say?
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 required in this Chapter.
The article has two rules:
- No offsetting. Each day is counted on its own. Two hours short on Tuesday do not cancel two hours of overtime on Monday.
- Leave is not payment. Allowing the employee to go on leave on another day of the week does not take the place of the additional compensation the chapter requires, such as the overtime premium.
How does it work with the overtime rule?
Article 87 says work beyond eight hours a day is paid with an additional compensation of at least 25% of the regular wage, and at least 30% of the rate for that day when the overtime is on a rest day or holiday. In Coca-Cola Bottlers v. Iloilo Coca-Cola Plant Employees Labor Union (2018), the Supreme Court said overtime is work exceeding eight hours within the worker's 24-hour workday.
Article 88 protects that rule. If overtime and undertime on different days could be netted, the premium would disappear even though the employee worked beyond eight hours on a given day.
What about undertime itself?
Article 88 does not say whether hours of undertime are paid or deducted. It only says they cannot be set off against overtime on another day. Wage deductions have their own rules in Article 113.
Frequently asked questions
Can undertime be offset by overtime?
No. Article 88 of the Labor Code says undertime work on any particular day shall not be offset by overtime work on any other day.
Can my employer give me a day off instead of overtime pay?
Article 88 says permission given to the employee to go on leave on some other day of the week does not exempt the employer from paying the additional compensation required in the chapter, which includes the overtime premium.
If I come in late, can I stay late to make up for it?
Article 88 is about one day against another day. It does not say how lateness and extra time on the same day are counted. The overtime rule in Article 87 is about work beyond eight hours a day.
Does Article 88 cover managers?
No. Article 88 is in Book Three, Title I of the Labor Code, which Article 82 says does not apply to managerial employees, field personnel and the other excluded groups.
General information, not legal advice. For your case, ask a lawyer, the Public Attorney's Office (PAO) or the agency.
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