Dear PAO,

I have a question regarding my employment as a sales manager in our company. I wanted to join a labor organization in our workplace, but our Human Resource (HR) Department told me that I am ineligible to join because I am considered a managerial employee. Because of this, I checked the Labor Code to determine who qualifies as a managerial employee, and I am now contemplating whether I truly fall under this category. Thank you for your response.

Avigail

Dear Avigail,

Managerial employee is defined under Presidential Decree (P.D.) No. 442, as amended, or the Labor Code of the Philippines, specifically under Article 219(m) thereof, as follows:

“(m) ‘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. xxx”

While the Omnibus Rules Implementing the Labor Code, enumerated the conditions to be met in order for an employee to be considered a managerial employee. Sec. 2(b), Rule I, Book III thereof states that:

“(b) Managerial employees [are those who] meet all of the following conditions:Their primary duty consists of the management of the establishment in which they are employed or of a department or sub-division thereof.They customarily and regularly direct the work of two or more employees therein.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.”

Managerial employees are excluded from being members of labor unions because their roles often put them in positions where they represent the company’s interests. Their participation in labor unions could create a conflict of interest, as they would be expected to negotiate on behalf of both the employees and the employer. Article 255 of the PD 442, as amended, provides that:

“Art. 255. Ineligibility of managerial employees to join any labor organization; right of supervisory employees. Managerial employees are not eligible to join, assist or form any labor organization. Supervisory employees shall not be eligible for membership in a labor organization of the rank-and-file employees but may join, assist or form separate labor organizations of their own. The rank and file union and the supervisor’s union operating within the same establishment may join the same federation or national union.”In the case of Asia Pacific Chartering (Phils.) Inc. vs. Farolan, GR 151370, Dec. 4, 2002, penned by Honorable Associate Justice Conchita Carpio-Morales, the Supreme Court clarified that if the designation of a certain position consists of the word “manager,” it does not automatically mean that it belongs to the managerial employees of a company. It is provided in the case that:

“Managerial employees are ranked as Top Managers, Middle Managers and First Line Managers. The mere fact that an employee is designated ‘manager’ does not ipso facto make him one-designation should be reconciled with the actual job description of the employee for it is the job description that determines the nature of employment.”

With regard to your situation, it is important to take note of the discussions above in order to determine whether your position is considered managerial. Simply having the word ‘manager’ in your title does not automatically mean that you belong to the managerial employees of your company. You need to consider the definition of a managerial employee under the Labor Code and check if it matches your job description. Additionally, all the conditions enumerated under Sec. 2(b), Rule I, Book III of the Omnibus Rules Implementing the Labor Code must be met. If you meet all the above-mentioned conditions, then you are ineligible to join a labor organization in your workplace.

We hope that we are able to answer your queries. This advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.

We appreciate your trust and support.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected]