Employee Ranks
Concepts
Employee rank – refers to a employee’s hierarchical position in an organization.
1. Employe Ranks
Under Labor Law, there are three employee ranks:
1) Managerial employees;
2) Managerial staff;
3) Supervisory employees; and
4) Rank-and-File employees.
a. Managerial employees
“Managerial employee” is one who is vested with the powers or prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees. Supervisory employees are those who, in the interest of the employer, effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment. (Section [m], Article 219[212], Labor Code; Section [o], Rule I, Book V, Omnibus Rules Implementing the Labor Code)
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b. Managerial staff
Officers or members of a managerial staff are those who perform 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) (a) 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 (b) execute under general supervision work along specialized or technical lines requiring special training, experience, or knowledge; or (c) 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. (Section 2[c], Rule I, Book III, Omnibus Rules Implementing the Labor Code)
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c. Supervisory employees
Supervisory employees are those who, in the interest of the employer, effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment. (Article 219[212][m], Labor Code; cf. Section 1[o], Rule I, Book V, Omnibus Rules Implementing the Labor Code)
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d. Rank-and-file employees
“Managerial employee” is one who is vested with the powers or prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees. Supervisory employees are those who, in the interest of the employer, effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment. All employees not falling within any of the above definitions are considered rank-and-file employees for purposes of this Book. (Section [m], Article 219[212], Labor Code; Section [o], Rule I, Book V, Omnibus Rules Implementing the Labor Code)
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