• Not all supervisors entitled to overtime pay

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    Persida Acosta

    Persida Acosta

    Dear PAO,
    I am an office supervisor. I was required by the company to render overtime work to deal with the increase in job orders. I want to claim for an overtime pay, but someone told me that I am not entitled because I am a supervisor. Is this true?
    Mikhail

    Dear Mikhail,
    The answer to your query lies on the nature of your office and the function you perform for the company.

    Article 82 of the Labor Code specifically provides that managerial employees, among others, are not covered by the provisions on working conditions and rest periods which includes overtime pay. As used in the said article, managerial employees refer to 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. Clearly, managerial employees, and officers or members of the managerial staff do not have a statutory right to overtime pay.

    In one case, the Supreme Court found that the concerned supervisors are officers and members of the managerial staff and are therefore not entitled to overtime pay (National Sugar Refineries Corp. vs. NLRC,220 SCRA 452).Yet, a scrutiny of the said decision would reveal that not all those identified or tagged as supervisors are excluded from the provisions of the Labor Code on overtime pay. Rather, only those whose nature of work is indeed managerial are excluded because the criterion is the character of the work performed, rather than the title of the employee’s position. (Id.)

    On this matter, the Omnibus Rules Implementing the Labor Code is enlightening. It provides that managerial employees are excluded from the coverage of the Labor Code on working conditions and rest periods if they meet all the following conditions:

    (1)    Their primary duty consists 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 recommendations as to hiring and firing and as to the promotion or any other change of status of other employees, are given particular weight. (Book III, Rule I, Section 2 (b))

    On the other hand, to be classified as officers or members of a managerial staff, an employee must be performing the following duties and responsibilities:

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

    (2) Customarily and regularly exercise discretion and independent 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 supervision 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 (c))

    Hence, your designation as supervisor does not automatically negate your entitlement to overtime pay. It is still necessary to compare your office duties and responsibilities against the criterion set by the Omnibus Rules Implementing the Labor Code to determine if you are indeed an officer or member of the managerial staff in the true and legal sense.

    We hope we were able to sufficiently address your concern. Please bear in mind that this opinion is based on the facts you narrated and our appreciation of the same. Our opinion may vary if actual 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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    1 Comment

    1. Good day! I love reading your legal-related posts. Is it possible to view your previous posts?