In the Philippine jurisdiction, the Labor Code (Presidential Decree No. 442) and its Implementing Rules and Regulations (IRR) serve as the bedrock for protecting workers' rights to just compensation. When an employer fails to pay overtime or mandates early clock-ins without remuneration, they infringe upon statutory mandates.

1. The Statutory Framework for Overtime

Under Article 87 of the Labor Code, the normal hours of work shall not exceed eight (8) hours a day. Any work performed beyond this limit constitutes overtime.

Overtime 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.

The "Early Clock-In" Issue

A common violation is the "early clock-in" or "pre-shift preparatory work." If an employer requires an employee to be at their station 15 to 30 minutes early to attend briefings, prepare tools, or perform "opening" tasks, that time is legally considered hours worked. Under the "Hours Worked" provision (Article 84), time is compensable if:

The employee is required to be on duty or to be at a prescribed workplace; and
The employee is suffered or permitted to work.

2. Administrative Remedies: The DOLE Route

The primary recourse for unpaid wages and benefits is through the Department of Labor and Employment (DOLE).

A. Single Entry Approach (SEnA)

Before a formal lawsuit is filed, parties must undergo mandatory conciliation-mediation through SEnA. This is a 30-day process aimed at reaching an amicable settlement. It is fast, inexpensive, and non-adversarial.

B. Filing a Position Paper

If SEnA fails, the case is referred to a Labor Arbiter under the National Labor Relations Commission (NLRC). Here, the employee files a formal complaint for:

Underpayment/Non-payment of overtime pay.
Damages (if the non-payment was attended by bad faith).
Attorney's fees (usually 10% of the total monetary award).

3. Judicial Remedies: Small Claims and Regular Courts

While labor cases are generally handled by the NLRC, certain monetary claims that do not involve an "employer-employee relationship" issue (or fall under specific thresholds) might be pursued differently, though the NLRC remains the standard "triadic" system for labor disputes.

4. Burden of Proof and Evidence

In Philippine labor law, the burden of proof regarding payment shifts to the employer. Since the employer is in possession of payrolls, daily time records (DTRs), and payslips, they must prove that the employee was actually paid.

Evidence an employee should gather:

Daily Time Records (DTRs): Copies or photos of logs showing early clock-ins.
Payslips: To show the discrepancy between hours logged and hours paid.
Company Policies/Memos: Proof that the "early clock-in" was mandated.
Testimonies: Affidavits from co-workers confirming the practice.

5. Specific Violations and Penalties

Compressed Work Week (CWW) Exceptions

Employers may sometimes argue they are exempt due to a CWW. However, a CWW is only valid if there is a voluntary agreement and it does not exceed 48 hours a week without overtime. If these conditions aren't met, the overtime claim remains valid.

Attorney’s Fees and Interest

Under Article 111 of the Labor Code, in cases of unlawful withholding of wages, the culpable party may be assessed attorney's fees equivalent to 10% of the amount of wages recovered. Furthermore, the Supreme Court has often affirmed that unpaid money claims accrue legal interest (currently 6% per annum) from the time of judicial or extrajudicial demand.

6. Prescription Period

It is critical to note Article 306 (formerly 291) of the Labor Code: All money claims arising from employer-employee relations shall be filed within three (3) years from the time the cause of action accrued. Failure to file within this window results in the claim being barred by prescription.