REST DAY O.T. is a Misnomer

When I taught Labor Law for an undergraduate degree program, I had several students who were working in the BPO industry and they asked me about "rest day OT" or "rest day overtime work". I told them that the term they are using and how the BPO industry uses it as a concept does not exist as an animal in Philippine Labor Law. 

The BPO industry love to use terminologies and jargon from US businesses, such as the term "rest day OT". They define it as being made to work beyond the 40-hour or 48-hour workweek, such that, if they work only for 5 or 6 days a week for a total of 40 or 48 hours a week, and they get 2 or 1 day off, if they are made to work on their day/s off in excess of the weekly number of hours, they call it "rest day O.T.|

Some of us labor-law practitioners cringe at the term. To set it straight, we count work hours in the Philippines by day, not by week. Yes, it's correct to have a work-week of 40 or 48 hours with 1 or 2 days off, but OVERTIME (as a legal concept) is computed on the basis of an 8-hour work day as work beyond 8 hours a day is regulated by law. Anything beyond the 8 hour workday is considered overtime. 

Legally speaking, if you work for 5 days a week at 8 hours a day, and you are made to work on your day off, that is not "rest day OT", that is legally what we call REST DAY WORK (Art. 92, Labor Code of the Philippines, as amended) wherein you will be entitled to an additional compensation of 30% of the regular wage. 

Given such a situation, if you are made to work a full 8-hour shift on your rest day, that is REST DAY WORK which entitles you to an additional 30% of your regular wage, and if you are required to work beyond that 8-hour shift on your Rest Day, then then excess of the 8 hours is considered OVERTIME WORK. Therefore, the correct term would be REST DAY WORK with OVERTIME.

Hence, for work in excess of 8 hours performed on a scheduled rest day (or special day): Plus 30% of the hourly rate on said day.

How do we compute that scenario then?

• Let us suppose that the daily rate is P600.00
• Work Schedule: 8AM to 5PM (incl. of 1 hour non compensible lunch break)
• Additional compensation on a Rest Day is 30% on top of the daily wage
• Overtime Premium on a Rest Day or Special Holiday is 30%
• Number of hours OT work is 2 hours from 5PM - 7PM

First Step: Compute hourly wage rate. (daily basic wage divided by number of hours worked multiplied by the rest day rate):

(P600 / 8 hours) x 130% = P75.00 x 130% = P97.50

Second Step: Compute wage between 8AM-5PM using rest day wage rate

8 hours x P97.50 = P780.00

Third Step: Compute Overtime Pay between 5PM - 7PM

[(30% x Hourly wage per hour) + Hourly Wage per hour] x number of OT Hours

(30% x P97.50) + P97.50 = P126.75 x 2 OT hours = P253.50

TAKE HOME PAY:

8AM - 5PM = P780.00
5PM - 7PM = P253.50
Total = P1,033.50

This is only true if one is rank-and-file and not a managerial employee or part of the managerial staff (or if the company you work for is a saint and it's given to managerial/supervisory employees under contract). 

But still, the term REST DAY O.T.  still makes me cringe and I will have to repeat myself, there is no such animal as REST DAY O.T. under Philippine Law, and that term must be choked and buried.