Updated for the Philippine legal framework as of 2025. This is general information, not legal advice.
The short answer
For employees working from home under a valid telecommuting arrangement, travel time to an on-site meeting can count as “hours worked” (and therefore create overtime) in specific scenarios, but ordinary home-to-work commuting does not. Whether the travel time is compensable turns on control, necessity, timing (inside vs. outside normal hours), and employee classification (e.g., managerial, field personnel).
The legal building blocks
Labor Code (Book III: Working Conditions and Rest Periods)
- Coverage and exemptions. The hours-of-work rules generally apply to rank-and-file employees. They do not apply to managerial employees, government employees, domestic workers, and—crucially—“field personnel” whose hours cannot be determined with reasonable certainty.
- Normal hours of work. 8 hours a day.
- Overtime (OT). Work beyond 8 hours requires OT premium (see rates below) and must generally be authorized.
- Undertime not offset by overtime. Leaving early cannot be “paid back” by later OT without proper OT pay.
- Emergency OT. Employers may require OT in specific emergencies (e.g., accidents, urgent repairs), with premium pay.
Omnibus Rules/Implementing Rules (IRR) under the Labor Code
- “Hours worked.” Includes time an employee is required to be on duty, at a prescribed workplace, or suffered or permitted to work; and generally excludes bona fide meal periods and ordinary home-to-work commuting.
- Waiting time, short rest breaks, travel “all in a day’s work,” and employer-controlled activities can be counted as hours worked.
Telecommuting Act (R.A. 11165) and its IRR
- Parity principle. Telecommuting (WFH/hybrid) employees must receive the same rights and benefits as those working on-site, including hours-of-work, OT, rest days, night shift differential, and leave.
- Written agreement/policy. The telecommuting policy or individual agreement should spell out work hours, timekeeping, OT approval, expense reimbursement, reporting/meeting requirements, and health & safety.
Put together, these rules mean we analyze WFH travel exactly the way we analyze on-site employees’ travel, but with the WFH home treated as the “assigned workplace” when the employer has designated it as such in the telecommuting policy or practice.
What counts as “hours worked” when a WFH employee travels?
Use this four-part test: (1) Control, (2) Necessity, (3) Timing, (4) Classification.
1) Control
Travel time tends to be compensable if the employer requires and controls the travel:
Compensable
- The employee is required to attend an on-site meeting/training and must travel at the employer’s direction.
- The employer sets specific routing/schedule, requires driving a company vehicle, or imposes duties while traveling (e.g., transporting equipment, making work calls, drafting reports).
Usually not compensable
- Ordinary commuting from home to the usual on-site office at the start of the day (even for a hybrid worker), absent special duties or restrictions.
- Purely voluntary visits to the office.
2) Necessity (is it “all in a day’s work”?)
- Compensable if the travel is between job sites or from the assigned workplace (home for WFH) to a temporary worksite during the workday (e.g., 10:00 a.m. WFH → 1:00 p.m. client’s office → back home).
- Not compensable when it’s home-to-principal worksite at the start of the day or principal worksite-to-home at the end of the day—ordinary commuting.
3) Timing (inside vs. outside scheduled hours)
Inside normal working hours (e.g., 9:00–18:00): Required travel is ordinarily counted as hours worked.
Outside normal working hours:
- Driving at the employer’s direction or with assigned duties → count it (and it may create OT).
- Passive passenger travel (e.g., employer books a 7:00 p.m. ride, you sit in the car doing no work): often not counted, unless the employer requires the timing and imposes restrictions such that you cannot use the time freely, or it is continuous with the day’s required travel.
Overnight travel (rare for a single meeting): Only portions that overlap normal working hours are commonly treated as hours worked; purely evening/late-night passenger time is typically not, unless duties are performed.
4) Classification (who is covered?)
- Rank-and-file / non-exempt: All the rules above apply.
- Managerial employees: Generally not entitled to OT, so the travel analysis affects time records, not OT pay.
- Field personnel: If the nature of the job makes hours not reasonably determinable, OT rules don’t apply; travel is usually not separately compensable (but be careful—WFH roles usually aren’t “field personnel”).
- Workers paid by results (piece-rate/commission with no fixed hours): Special rules apply; travel rarely generates OT, but may still matter for expense reimbursement and safety compliance.
Practical scenarios (WFH → on-site)
Mid-day client meeting, same city, within schedule
- 9:00–12:00 WFH, 12:30–13:30 travel, 13:30–15:00 meeting, 15:00–16:00 travel back home, 16:00–18:00 WFH.
- Result: Both travel blocks are hours worked. Total hours: 8. No OT.
Early call requiring pre-shift travel
- Normal schedule 9:00–18:00. Employer requires a 8:00 a.m. on-site start; travel 7:15–7:50.
- Result: 7:15–7:50 may count if required and not ordinary commuting to the principal site (e.g., it’s a temporary client site). If counted, the day may run over 8 hours, creating OT, unless the employer shifts the end time to keep total at 8.
After-hours emergency visit
- 20:00 on-site troubleshooting, travel 19:15–19:45 and 21:30–22:00, with work 20:00–21:30.
- Result: All required travel and on-site time are hours worked and likely OT (plus night shift differential if any portion falls 10:00 p.m.–6:00 a.m.).
Overnight out-of-town training
- Travel as a passenger 19:00–22:00 the night before; training 9:00–17:00 next day; return 18:00–21:00.
- Result: The training day (9:00–17:00) is hours worked; evening passenger travel is usually not, unless duties are performed or employer control is such that you cannot use the time freely. If you drive at the employer’s direction, the drive counts.
Hybrid worker’s “assigned workplace” is the office (not home)
- If the telecommuting policy says the principal workplace is the office and WFH days are optional, then home→office travel remains ordinary commuting; a one-off “come in today” may still be commuting unless special duties are imposed during the travel.
Overtime pay math (for covered employees)
- Ordinary day OT: +25% of hourly rate for hours beyond 8.
- Rest day / special non-working day OT: +30% on top of the applicable rest-day/special-day rate.
- Regular holiday OT: +30% on top of the 200% holiday rate (and higher if the day is also a rest day).
- Night Shift Differential (NSD): +10% of the regular wage for work between 10:00 p.m. and 6:00 a.m. (including compensable travel during those hours).
Tip: Travel that counts as hours worked and falls after the 8th hour triggers OT, and if it occurs 10:00 p.m.–6:00 a.m., NSD may apply to that travel time as well.
Expense reimbursement vs. compensable time
- Separate questions. Whether travel time is paid as work time is different from whether fares/fuel, tolls, parking, meals, lodging are reimbursable.
- Best practice: Telecommuting policies should state that employer-required on-site trips from the WFH location to a temporary site are reimbursable, subject to pre-approval and documented receipts.
Timekeeping, approvals, and documentation (what to put in policy)
- Define the “assigned workplace.” If home is the designated workplace on WFH days, say so explicitly.
- Set work schedules and core hours. Clarify flex-time, compressed workweeks, and grace periods.
- Overtime approval rule. Require prior written approval for OT, except emergencies.
- Travel classification grid. Spell out when travel is commuting vs. hours worked (e.g., “home↔principal office = commute; home↔temporary client site during the day = hours worked”).
- Driving vs. passenger. Driving at employer’s behest is work; passive passenger travel outside scheduled hours is generally not, absent duties.
- On-call and waiting time. If the employee must wait on-site or in transit and is not free to use the time for personal purposes, count it.
- Night work and rest days. Remind teams that NSD and rest-day rules apply to compensable travel.
- Expense rules. Rates, ceilings, receipts, mileage if applicable, and non-reimbursable items.
- Safety. No texting/calls while driving; allow buffer time; rest after late-night travel.
- Data privacy. Avoid requiring trackers beyond necessity; comply with Privacy Act.
A simple decision tree for HR/Managers
Is the employee covered by OT rules?
- Managerial/field personnel? → Likely no OT (but keep time and reimburse expenses as policy dictates).
- Rank-and-file? → Go to 2.
Is the travel required and employer-controlled?
- If no → Generally not compensable (commute/voluntary).
- If yes → Go to 3.
When does it occur?
Within scheduled hours → Count it as hours worked.
Outside scheduled hours →
- Driving or duties performed? Count it (may be OT/NSD).
- Passive passenger, no duties, minimal restrictions? Generally don’t count, unless continuous with the day’s required travel or restrictions are substantial.
What site is it?
- Principal office (ordinary workplace) at start/end of day → Commute.
- Temporary client/site during the workday → Hours worked.
Worked examples (Philippine pesos)
Ordinary day OT
- Daily rate: ₱800 (for 8 hours) → Hourly: ₱100 → OT rate: ₱100 × 1.25 = ₱125/hour.
- If 1.5 hours of compensable travel pushes the day to 9.5 hours → OT pay = 1.5 × ₱125 = ₱187.50 (plus base pay for first 8 hours).
Night travel OT (e.g., 10:30 p.m.–11:30 p.m. compensable driving)
- OT hour with NSD: ₱100 × 1.25 = ₱125 + NSD (₱100 × 10% = ₱10) = ₱135 for that hour.
- If also on a rest day or holiday, apply the appropriate multipliers first, then add the OT premium.
Common pitfalls (and how to avoid them)
- Ambiguous “assigned workplace.” Fix with clear policy language for WFH/hybrid days.
- Assuming all WFH travel is commute. Mid-day required travel between worksites is work.
- Ignoring waiting time. If the employee must wait under employer control (e.g., security screening, badge processing), count it.
- Forgetting NSD. Compensable travel at night still earns NSD.
- Treating WFH staff as field personnel. Most WFH roles are not “field personnel”—hours are reasonably determinable.
- No OT approvals but OT worked anyway. Lack of prior approval doesn’t erase liability for worked hours; handle via discipline, not non-payment.
Model clause you can adapt (telecommuting policy)
Travel to On-Site Locations. On telecommuting days, the employee’s WFH address is deemed the assigned workplace. Employer-required travel during scheduled hours from the WFH location to a temporary worksite (e.g., client office) and back shall be treated as hours worked. Required travel outside scheduled hours that involves driving or assigned duties will also be treated as hours worked. Ordinary commuting between the employee’s residence and the principal office at the start or end of the workday is not compensable. All overtime must be approved in advance, and compensable travel time is subject to overtime and night shift rules where applicable. Reasonable transportation expenses for employer-required travel will be reimbursed in accordance with Company policy.
Takeaways
- Start with classification (covered vs. exempt).
- Decide if the travel is required/employer-controlled and when it occurs.
- Treat mid-day WFH↔temporary site travel as hours worked; treat home↔principal office at day’s ends as commuting.
- Apply OT and NSD if compensable travel pushes hours past thresholds.
- Bake these rules into a clear telecommuting policy and timekeeping workflow (pre-approval, logs, expense claims).
If you want, I can turn this into a one-page HR policy memo or an employee FAQ tailored to your company’s schedules and job classes.