This article explains how travel time is treated under Philippine labor standards—when it counts as “hours worked,” when overtime (OT) and premium rates apply, and how to compute pay in common scenarios. It’s educational, not legal advice.
1) Core legal ideas
a) “Hours worked.” Employees are paid for all time they are required or permitted to work. Time is “worked” when an employee must be on duty, at a prescribed workplace, or performing tasks the employer knows about and benefits from.
b) Ordinary work hours and overtime.
- Normal day: up to 8 hours.
- Overtime: beyond 8 hours in a day, paid at +25% of the hourly rate (i.e., 125%).
- Night shift differential: +10% for work between 10:00 p.m. and 6:00 a.m. (on top of any overtime or premium pay).
- Premium days: work on rest days, special days, and regular holidays has higher base premiums, and overtime on those days stacks on top (see §6 below).
c) Coverage. Overtime and “hours worked” rules generally apply to rank-and-file and most supervisory employees, but not to:
- Managerial employees (those who primarily manage and exercise policy-level discretion),
- Field personnel whose actual hours cannot be determined with reasonable certainty,
- Certain workers paid by results (with caveats), and
- Domestic workers (covered by separate law with distinct rules).
2) The travel-time framework
Travel can be compensable (counted as “hours worked”) or non-compensable, depending on purpose, timing, control, and restrictions. Use these questions:
Is the travel part of the day’s principal work?
- Yes: Count it. Example: technicians moving between job sites, delivery drivers on route, sales reps going from one client to another.
Is the travel mandated by the employer and controlled (route/schedule/tools) such that the worker isn’t free to use the time for themselves?
- Yes: Usually count it.
Is it ordinary home-to-work or work-to-home commuting?
- Generally no: Don’t count it (even if longer than usual), unless exceptional factors convert it into work (see §3d).
Does travel occur outside the employee’s regular work municipality/area or require an overnight trip?
- Often partly compensable—see §3c.
Is the employee actually performing work while traveling (emails, reports, calls that are more than de minimis, supervising a team, transporting tools that must be monitored)?
- Yes: Count that time.
3) Common scenarios (what counts vs. what doesn’t)
(a) Ordinary commuting
- Home → regular workplace → home: Not hours worked.
- Company shuttle: Waiting for or riding a voluntary shuttle is usually not compensable. If the employer requires a specific shuttle/time and imposes restrictions (e.g., required pre-boarding inspections or briefings), the restricted portion can be hours worked.
(b) Travel that is “all in a day’s work”
- Between job sites/clients during the day: Hours worked.
- Reporting to a central hub to pick up tools, then to site: From the hub to the site and between sites is hours worked (the initial commute to the hub is generally not).
- Driving as a principal duty (drivers, messengers): All route time is hours worked, including required pre-trip inspections and post-trip reports.
(c) Out-of-town / overnight travel
Required same-day trip outside the usual work area: Travel during normal working hours is hours worked; travel clearly outside normal hours is often not, unless work is actually performed during that time or restrictions are severe.
Overnight trip:
- Travel that coincides with the employee’s regular working hours is typically hours worked, even on non-working days.
- Actual work while traveling (prepping reports, supervising, required calls) is compensable whenever it occurs.
- Waiting at airports/ports due to employer-driven scheduling can be hours worked if the employee isn’t free to use the time for personal purposes.
(d) When commuting becomes work
- Emergency call-back from home to work: The travel time is generally not counted, but actual work (including waiting on site) is. Some CBAs treat travel for call-backs as payable—follow the CBA if more favorable.
- Carrying/monitoring essential equipment that significantly limits personal freedom, or transporting co-workers when required as part of duty: travel can become hours worked.
- Mandatory pre-shift checkpoints/briefings off-site: time spent from the checkpoint onward may be counted.
(e) Training, seminars, conferences
- Required by the employer and during working hours: Hours worked (including necessary travel within those hours).
- Voluntary and outside working hours with no productive work required: generally not hours worked.
- If the employee works during the event/travel (e.g., runs a booth, gives a talk, manages participants): Count that time.
(f) Waiting, standby, on-call while traveling
- Engaged to wait (e.g., must remain at the pier/hub, attend to cargo, be ready to move on short notice with restrictions): Hours worked.
- Waiting to be engaged (free to leave, free to use time for personal purposes): Not hours worked.
- On-call: If restrictions substantially limit personal use of time (tight response time and location limits), the period may be hours worked.
4) Field personnel caveat
If an employee’s nature of work makes their actual hours indeterminable with reasonable certainty (classic example: itinerant field sales without strict schedules), the law may treat them as field personnel, often excluding them from overtime coverage.
- However: If the employer tracks and controls time (e.g., fixed itineraries, GPS logs, required check-ins), hours may be ascertainable—bringing them back into regular coverage.
5) Practical decision tool (five questions)
- Required? Is the travel required by the employer?
- Control & restrictions? Does the employer control schedule/route or impose restrictions that limit personal freedom?
- Within workday? Does it occur within the employee’s normal work hours?
- Work performed? Is the employee actually working while traveling?
- Nature of role? Is the employee covered by overtime rules (not managerial/true field)?
If most answers are “yes,” treat travel time as hours worked (and possibly OT). If mostly “no,” treat as non-compensable travel.
6) Pay rates when travel counts as work
When travel time is hours worked, pay it like any other working time, stacking the correct premiums:
| Situation | First 8 hours | Beyond 8 hours (OT) |
|---|---|---|
| Ordinary workday | 100% | 125% |
| Rest day or special non-working day | 130% | 130% × 1.30 = 169% |
| Rest day that is also a special day | 150% | 150% × 1.30 = 195% |
| Regular holiday | 200% | 200% × 1.30 = 260% |
Night shift differential: add +10% for hours worked 10:00 p.m.–6:00 a.m. Transport allowances/per diems: do not replace required wage and OT if the travel time is legally “hours worked.”
Tip: Compute in this order: (1) determine compensable hours; (2) split by day type (ordinary/rest/holiday) and by time bands (day/night); (3) apply base premium; (4) apply overtime premium to hours beyond 8; (5) add night differential where applicable.
7) Worked examples
Example 1: Same-day provincial client visit (rank-and-file)
- Normal schedule: 9:00–18:00 (1-hr meal break).
- Trip: Leaves office 8:00, arrives client 11:00; works 11:00–16:00; returns 16:00–19:00.
- Compensable: 9:00–12:00 (travel/working within hours), 13:00–18:00 (work/return within hours), plus 18:00–19:00 (return travel beyond 8 if part of the day’s work).
- Pay: 8 regular hours + 1 hour OT @125%.
Example 2: Overnight flight (supervisor, covered)
- Normal schedule: 8:00–17:00.
- Flight: 21:00–23:00 (Sunday), required briefing 7:30 Monday at destination.
- Compensable: Only actual work during the flight (if any). Time cutting across 8:00–17:00 on travel days is generally counted. Sunday 21:00–23:00 is outside regular hours and typically not hours worked unless actual work is performed.
- Monday 7:30–17:30: Count 8 hours regular + 1 OT if work extends beyond 8.
Example 3: Driver on rest day
- Required to move vehicles 9:00–14:00 (includes driving between depots).
- Compensable: 5 hours at rest-day premium (130%). No OT (not beyond 8).
Example 4: Field salesperson (hours uncertain)
- Employer gives only weekly targets, no fixed routes/hours, no time tracking.
- Likely field personnel → OT rules may not apply. If employer later imposes fixed check-ins/routes (hours ascertainable), then OT rules can apply to travel during the day.
8) Documentation & compliance
- Policies: Adopt a clear travel-time policy that defines compensable vs. non-compensable travel, approval flows, and documentation.
- Timekeeping: Use timesheets or apps to record departure/arrival times, actual work while traveling, and waiting periods.
- Authorizations: Require pre-approval for after-hours travel that could trigger overtime.
- CBAs / Company handbooks: Apply the more favorable rule to employees.
- Allowances: Distinguish per diems (expense support) from wage/OT (legal entitlements).
9) Sample policy language (plain English)
Travel during the workday. Travel between job sites or clients that is required as part of the day’s work is treated as hours worked. Home-to-work commuting. Ordinary travel from home to the regular workplace and back is not hours worked. Out-of-town travel. Required travel that occurs within an employee’s normal working hours counts as hours worked. Required travel outside normal hours is not counted unless the employee actually performs work or is subject to restrictions that substantially limit personal use of time. Overtime approval. Overtime arising from travel requires prior written approval, except in emergencies. Recording. Employees must record travel start/stop times, waiting times, and any work performed while traveling. Staggered/alternate schedules. When feasible, managers may adjust start/end times to keep total daily hours within 8 while meeting business needs.
10) Quick checklist for HR & managers
- Is the employee covered by OT rules (not managerial/true field)?
- Is the travel required and within control of the employer?
- Did it occur during normal working hours, or did the employee work during travel?
- Are there severe restrictions on the employee’s freedom while traveling/waiting?
- Did total hours exceed 8 (triggering OT) or occur on a premium day (rest/holiday)?
- Were night hours involved (10 p.m.–6 a.m.)?
- Is documentation complete?
11) Key takeaways
- Ordinary commuting is not paid time.
- Travel that is part of the day’s work (between job sites/clients; principal duties like driving) is paid time.
- Out-of-town/overnight travel is partly compensable, especially where it overlaps regular hours or involves actual work or significant restrictions.
- When travel time counts as hours worked, pay it like any other working time—with OT, premium, and night differential where applicable.
- Field personnel and managerial employees are special cases.
Friendly reminder
Company practices and CBAs can grant more generous benefits, but not less than minimum legal standards. When in doubt, document the facts (who required what, when, where, how much control/restriction existed) and apply the framework above. If a specific dispute or large exposure is at stake, consult counsel for fact-specific advice.