• Nature of work determines status as managerial employee

    Persida Acosta

    Persida Acosta

    Dear PAO,
    I am a new manager in a company.  Because of the heavy workload, I had to work long hours to finish my duties. On certain weeks, I even had to work during weekend. I was made to understand that my services beyond my normal work hours would be compensated, but it appears that the company has no plan of paying me.  Do I have the right to file a claim for overtime pay?

    Dear Maki,
    Our Labor Code has provisions concerning overtime work. It considers work performed beyond eight (8) hours as overtime for which the employee is entitled to receive an additional compen–sation. However, the Labor Code provisions on overtime do not apply to all employees.  Excepted from the coverage of the law are government employees, managerial employees, field personnel, members of the family of the employer who are dependent on him for support, domestic helpers, persons in the personal service of another, and worker who are paid by results as determined by the Secretary of Labor in appropriate regulations (Article 82, Labor Code). These employees are not guaranteed by law to receive additional compen–sation for work performed beyond the normal working hours.

    As to managerial employees, the law defines managerial employees as those whose primary duty consists of the management of the establishment in which they are employed or of a department or subdivision thereof, and to other officers or members of the managerial staff (Article 82, Labor Code). The Implementing Rules of the Labor Code further elaborates on the matter by providing that before an employee may be considered as a managerial employee, all the following conditions must be met:

    (1)    Their primary duty con–sists of the management of the establishment in which they are employed or of a department or sub-division thereof.

    (2)    They customarily and regularly direct the work of two or more employees therein.

    (3)    They have the authority to hire or fire employees of lower rank; or their suggestions and recom–mendations as to hiring and firing and as to the promotion or any other change of status of other em–ployees, are given particular weight (Book III, Rule I, Section 2, Omnibus Rules Implementing the Labor Code).

    On the other hand, an employee is considered as an officer or member of the managerial staff if he performs the following duties and responsibilities:

    (1)    The primary duty consists of the performance of work directly related to management policies;

    (2)    Customarily and regularly exercise discretion and indepen–dent judgment; and

    (3)    (i) Regularly and directly assist a proprietor or a managerial employee whose primary duty consists of the management of the establishment in which he is employed or subdivision thereof; or (ii) execute under general super–vision work along specialized or technical lines requiring special training, experience, or knowledge; or (iii) execute, under general supervision, special assignments and tasks; and

    (4)    Who do not devote more than 20 percent of their hours worked in a work week to activities which are not directly and closely related to the performance of the work described in paragraphs (1), (2) and (3) above (Book III, Rule I, Section 2, Omnibus Rules Implementing the Labor Code).

    The foregoing provisions show that it is not the designation of an employee that ultimately deter–mines his status as managerial employee, but rather the nature of his work.  Thus, if you do not meet all the conditions prescribed by the Omnibus Rules, despite your designation as manager, you are not a managerial employee which means you are entitled by law to overtime pay.  On the other hand, if you meet all the conditions, you are considered a managerial employee and thus, is not covered by the law on overtime. In the latter’s case, you may refer to your contract, or policy and practice of your company concerning over–time to determine if you have a right to additional compensation.

    We hope that we were able to answer your queries. Please be reminded that this advice is based solely on the facts that you have narrated and our appreci–ation of the same. Our opinion may vary when other facts are changed or elaborated.

    Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net


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