When an employer makes a worker work longer than the legal working hours (Refer to our Working Hours web site), the employer must pay extra wages calculated on the overtime hours worked. This also applies to overstayed foreigners and technical interns.
Extra wages are as follows:
Overtime labor (any work done in excess of 8 hours a day and 40 hours a week) is 25% over the ordinary wage.
Work on a day-off is 35% over the ordinary wage.
Late-night work (any work done after 10:00 p.m. or before 5:00 a.m.) is 25% over the ordinary wage.
Late-night overtime is 50% over the ordinary wage.
Late-night work on a holiday is 60% over the ordinary wage.
The overtime work compensation rate was partly amended on April 1st, 2010. Before the amendment, 125% of the regular wage was the rate applicable to overtime work (g8 hours a dayh and g40 hours a weekh). Furthermore, under the amendment on April 1st, 2010, a certain number of major companies must pay at least 150% of the regular wage for overtime work in excess of 60 hours per month.
Regarding the detailed calculation method of extra wages described above, please consult us because it is complicated to calculate.
Unpaid extra wages
Actually, there are many unpaid extra wages cases. There seems to be bad cases in the case of foreign workers in particular.
Regarding representative cases where extra wages are not paid, there is "unpaid overtime" where no wage is paid at all even if a worker works longer than the legal working hours. In addition, there are cases where insufficient extra wages are paid by a wrong calculation method even if extra wages are paid. There are also cases where less wages than the ordinary wage are paid by manipulating a calculation.
Demand for extra wages
In the event that constitutionally-imposed extra wages are not paid, you can demand the company for payment of the unpaid wages. As described in our Extra Wages web site, the statute of limitations on unpaid extra wages is two years.
Regarding how to demand the unpaid extra wages, you can consult the nearest labor standards office, the labor union of the company or the local labor union near you to seek redress for it. However, the labor standards office or the labor union is not sometimes eager to find a solution. Thus, there is another way that you can consult a professional. You can contact us for consultation for the unpaid extra wages as well.
If the company pays the extra wages without much resistance, it causes no troubles. But if not, there are times you may need to start a lawsuit. You may be concerned that you will be dismissed from the company due to a lawsuit or that a lawsuit would take a long time. However, even if you start a lawsuit, the company is not permitted to dismiss you. There is also a kind of lawsuit called a glabor trialh, which takes a comparatively shorter time.
When you demand extra wages in trial, there are times the court orders the company to pay a gcash rebateh, which is the same amount as the unpaid extra wages, in addition to the unpaid wages.