OSAKA -- Sharp Corp. employees working flextime shifts have been paid overtime in line with a recommendation by a labor standards inspection office, sources said Friday.

The Osaka-based office recommended that Sharp rectify its payment system and pay overtime to the workers, the sources said.

Sharp paid some 30 million yen in arrears for unpaid overtime worked between December and February to about 400 employees at its Osaka headquarters, the sources said.

The office found during investigations in February that some flextime employees in the company's administrative departments were working overtime without being paid for it, the sources said.

The office criticized Sharp for failing to properly pay flextime employees in its cost-cutting drive, the sources said.

The company terminated flextime in March, saying it was difficult to determine the working hours of flextime employees. The system had been in place since 1988.