In the Philippine legal landscape, the right to overtime pay is not a mere privilege but a statutory mandate under the Labor Code of the Philippines. When an employer refuses to compensate an employee for work performed beyond the standard eight hours, it constitutes a labor standards violation.

The following is a comprehensive guide on the substantive laws and procedural steps for filing a labor complaint to recover unpaid overtime pay.

1. Substantive Legal Basis

Under Article 87 of the Labor Code, work may be performed beyond eight hours a day provided that the employee is paid for the overtime work.

Key Compensation Rates:

Ordinary Working Day: Plus at least 25% of the hourly rate.
Rest Day, Sunday, or Holiday: Plus at least 30% of the hourly rate on said days.

Who are Entitled?

Generally, all employees in all establishments are entitled to overtime pay. However, the following "exempt employees" are not entitled to it:

Government employees (governed by Civil Service laws).
Managerial employees and officers/members of the managerial staff.
Field personnel.
Family members dependent on the employer for support.
Domestic helpers (kasambahay) and persons in the personal service of another.
Workers paid by results (under specific conditions).

2. Modes of Dispute Resolution

The Department of Labor and Employment (DOLE) utilizes two primary tracks for resolving money claims:

A. The Visitorial and Enforcement Power (Article 128)

If the employer-employee relationship still exists and the total money claim does not exceed ₱5,000.00 (though in practice, DOLE Regional Directors often handle larger amounts through routine inspections), the DOLE Regional Office can issue a compliance order.

B. The National Labor Relations Commission (NLRC) (Article 224)

If the employer-employee relationship has been terminated, or if the claim involves complex factual issues, the case falls under the original and exclusive jurisdiction of the Labor Arbiter of the NLRC.

3. The Procedural Roadmap

Step 1: Mandatory Conciliation (SENA)

Before a formal complaint can be filed, the parties must undergo the Single Entry Approach (SENA). This is a 30-day mandatory conciliation-mediation process designed to reach an amicable settlement.

Where to file: The nearest DOLE Provincial/Regional Office or NLRC branch.
Process: A Single Entry Assistance Officer (SEAO) summons the employer to a conference to discuss the unpaid claims.

Step 2: Filing the Formal Complaint

If SENA fails and no settlement is reached, the SEAO will issue a Referral to Compulsory Arbitration. You will then file a formal complaint with the NLRC.

Venue: The Regional Arbitration Branch (RAB) where the workplace is located.
The Position Paper: Both parties will be required to submit a Position Paper. This is a critical document containing:

The facts of the case.
The legal grounds for the claim.
Supporting evidence (Time cards, payslips, logs).

Step 3: Decision by the Labor Arbiter

The Labor Arbiter will review the Position Papers. Unlike a regular court trial, there is usually no trial-type hearing unless the Arbiter deems it necessary to clarify factual issues. A decision is typically rendered based on the submitted pleadings.

4. Burden of Proof and Evidence

In labor cases involving unpaid money claims, the burden of proof shifts depending on the claim:

For the Fact of Work: The employee must prove they actually rendered overtime work (e.g., through signed logs, emails sent after hours, or witness affidavits).
For the Fact of Payment: Once work is proven, the burden of proof shifts to the employer to show that the overtime pay was actually paid. This is because the employer in possession of the payrolls and records.

Essential Documents to Gather:

Daily Time Records (DTRs): Photocopied or logged entries of clock-in/clock-out times.
Payslips: To show the discrepancy between hours worked and wages received.
Employment Contract: To establish the agreed-upon basic salary.
Affidavits: Statements from co-workers who can testify to the overtime rendered.

5. Prescription Period

Under Article 306 (formerly 291) of the Labor Code, all money claims arising from employer-employee relations must be filed within three (3) years from the time the cause of action accrued. Otherwise, the claim is forever barred by the statute of limitations.

6. Appeals Process

If the Labor Arbiter rules against the employee, the decision can be appealed to the NLRC Commission within ten (10) calendar days from receipt of the decision. Subsequent remedies include a Petition for Certiorari to the Court of Appeals (Rule 65) and, finally, an appeal to the Supreme Court.

Note on Attorney's Fees: In cases of unlawful withholding of wages, the culpable party may be assessed attorney's fees equivalent to 10% of the total amount of wages recovered, as per Article 111 of the Labor Code.