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?
Maki
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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