CBA provisions on overtime work
Are collective bargaining agreement (CBA) provisions on overtime work and
overtime pay valid?
Generally, the premium pay for work performed on the employee’s rest days or regular and special holidays is included as part of the regular rate of the employee in the computation of overtime pay for any overtime work rendered on said days, especially if the employer pays only the minimum overtime rates prescribed by law. The employees and employer, however, may stipulate in their CBA the payment of overtime rates higher than those provided by law. Such agreement may be considered valid only if the stipulated overtime pay rates will yield to the employees not less than the minimum prescribed by law.
In other words, CBA provisions regarding overtime pay are valid as long as they comply with the minimum set by law. Article 87 of the Labor Code provides for the rule on overtime work and overtime pay.
Generally, the premium pay for work performed on the employee’s rest days or regular and special holidays is included as part of the regular rate of the employee in the computation of overtime pay for any overtime work rendered on said days, especially if the employer pays only the minimum overtime rates prescribed by law. The employees and employer, however, may stipulate in their CBA the payment of overtime rates higher than those provided by law. Such agreement may be considered valid only if the stipulated overtime pay rates will yield to the employees not less than the minimum prescribed by law.
In other words, CBA provisions regarding overtime pay are valid as long as they comply with the minimum set by law. Article 87 of the Labor Code provides for the rule on overtime work and overtime pay.
