Managerial Employees

1. Summary

▪ Managerial employees have various definitions under the Labor Code.

2. Concept

Managerial employees have various definitions under the Labor Code.

The term varies depending on the Book or Title where managerial employees are being discussed or covered by certain provisions as will be discussed herein.

a. Labor Code – Book Three, Title I

Under the Labor Code, Book Three – Conditions of Employment, Title I – Working Conditions and Rest Periods, defines managerial employees as follows:

“As used herein, ‘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.” (Paragraph 2, Article 82, Chapter I – Hours of Work)

Book III, Title I, discusses the rules on normal hours of work – i.e. 8-hour work day, 48-hour workweek, compensable working time, meal periods, night shift differential, overtime work, overtime pay, weekly rest periods, premium pay, service incentive leave, service charges, among others. Managerial employees are exempted or excluded from the coverage of these benefits.

b. Omnibus Rules Implementing the Labor Code – Book Three

Under the Omnibus Rules Implementing the Labor Code, Book Three – Conditions of Employment, Rule I – Hours of Work, further defines managerial employees as follows:

“(b) Managerial employees [are those who] meet all of the fol...

 



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