As defined in Title I, Book Three, of the Labor Code

For purposes of entitlement to labor standards benefits, particularly those granted under Title I, Book Three, of the Labor Code (Working Conditions and Rest Periods), managerial employee is defined 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.

From this definition, managerial employees may thus be divided into two categories: (1) “Managerial employees” per se and (2) “Other officers or members of the managerial staff.”

Managerial employees per se

Section 2, Rule I, Book Three, of the Omnibus Rules defines managerial employees under the first category as those who meet the following qualifications:

  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.
Other officers or members of the managerial staff

On the other hand, the other officers or members of the managerial staff are defined as those employees who perform the following functions:

  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.
Caveat: Subsequent court and administrative rulings, or changes to, or repeal of, laws, rules and regulations may have rendered the whole or part of this article inaccurate or obsolete.