Dissenting Opinion

Cutting Edge.No-Non-Sense.Straightforward.Fearless.Just strictly Business...and Law by Spammer Di Hacker

Tuesday, August 25, 2009

HOW TO DETERMINE IF EMPLOYEE IS ENTITLED TO OT AND HOLIDAY PREMIUMS (Part 1)

HOW TO DETERMINE IF EMPLOYEE IS ENTITLED TO OT AND HOLIDAY PREMIUMS (PART 1)
Identify the function of the employee. There are three types of employees as per Labor code to this effect:
a. Manager
b. Supervisor
c. Rank and File
Article 212 (m) of the Labor Code states that, "Managerial employee" is one who is vested with powers or prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees. "Supervisory employees" are those who, in the interest of the employer, effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment. All employees not falling within any of the above definitions are considered rank-and-file employees…
Let us not read over and beyond what is stated by the law. Clearly, our function does not fall under managers, nor are we supervisors. If we will consider attendance and hours work, we still fall under the usual 8-hours a day (or so as project necessitates). The mere fact that we are not treated like the majority of the employees is due to the very nature of our work, which is support. But I do not see a provision of the law, nor does the law intend to differentiate between support personnel and rank-and-file employee in terms of OT and Holiday Pay. In fact, it does not state a word to effect "support," nor exempt.
General rule in statutory construction: GIVE LIFE TO THE SPIRIT OF THE LAW. Surely, our law makers then did not envision support personnel to be deprived of premiums due them. If we are to say that BPO is all a different animal, then, until our lawmakers realize this and make amendments to this effect, then we still need to follow what is written.
Assuming, in arguendo, that our contract states that we are no longer entitled to OT and other Holiday premium, and then, I have to say that there is an illegal clause in our Offer Letter that should be struck down for being in direct violation of the Labor Code.
There are two qualifications which should be taken together by which the contract will be upheld:
(1) If the employee FREELY agreed to the contract and;
(2) If the employee and employer are IN EQUAL FOOTING by means of the terms of the contract such that, the employee is able to negotiate, etc. at the time of the agreement.
While it is true that we FREELY and VOLUNTARILY agreed to the terms of our contract, the second element is missing, which is that WE ARE NOT AT EQUAL FOOTING WITH THE MANAGEMENT AT THE TIME OF THE AGREEEMENT nor were we allowed to negotiate terms in the offer.

Next, I will share a thing or two about the concept of waiving OT and Holiday Premium, at oo, pwede pala ito. Ang tanong: by signing the contract, have we waived our right to OT and Holiday Pay.
Whew! Kapagod...Part 1 pa lang po toh...

DISCLAIMER: I am no law expert, just an enthusiast. I am not a lawmaker, but someday I dream to be. I am not a judge, but then again, who knows what the future holds. I AM a law student. From where I came from: "Law is our Business."

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