Dear Atty. Peachy,

I am writing to seek your advice regarding a situation I have found myself in at work. I have been employed as a customer support representative at a local tech company for the past two years. My regular hours are from 9 a.m. to 5 p.m., Monday to Friday.

Recently, our team has been experiencing an uptick in workload due to a new product launch, and we have been asked to work overtime on several occasions. Initially, our manager assured us that we would be compensated accordingly for any extra hours worked. However, when I submitted my timesheet for the additional hours, I was informed by our HR department that the company has a policy that classifies us as “managerial employees” and therefore we are not entitled to any overtime pay.

I am unsure about my rights in this situation. Can a company classify me as a managerial employee, and does that really mean I am not entitled to overtime pay for the extra hours I’ve worked? I just want to understand if I have any legal ground to stand on, as I truly rely on that extra income.

Thank you for your time and assistance.

Maxine

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Dear Maxine,

Thank you for reaching out with your concern regarding overtime pay. It is crucial to know your rights in situations like this, especially when they directly affect your income.

Under Philippine Labor Law, specifically Article 82 of the Labor Code, the classification of employees into “managerial” or “supervisory” categories plays a significant role in determining entitlement to overtime pay. According to Article 82, managerial employees are those whose primary duty consists of the management of the enterprise in which they are employed or of a department or subdivision thereof. This classification often includes those who have the authority to hire, transfer, suspend, lay off, recall, discharge, assign, or discipline employees.

On the other hand, supervisory employees are those who, while not having management duties, have the authority to perform any of the aforementioned functions in a limited capacity. They usually oversee a group of employees and ensure that company policy is implemented.

If your position as a customer support representative does not involve management responsibilities, such as directing the work of other employees or having the power to discipline or hire staff, then you may not qualify as a managerial employee under the law. Consequently, you would be entitled to overtime pay for hours worked beyond the regular 40 hours per week as stipulated in Article 87 of the Labor Code.

I recommend taking the following steps:

1. Review Your Employment Contract: Assess whether it mentions your classification and provides any details about your job responsibilities.

2. Examine Company Policies: If available, look over your company’s employee manual or guidelines regarding job classifications and overtime pay.

3. Discuss with HR: Clarify with your HR department the basis for your classification as a managerial employee. Understand their rationale and how they arrived at this decision.

4. Consider Filing a Complaint with DoLE: Should your discussions with HR not resolve the matter satisfactorily, you have the option to bring your case to the Department of Labor and Employment for further assistance.

In summary, if your role lacks the managerial authority as described in the Labor Code, you may indeed have grounds to challenge your classification and claim overtime pay for the extra hours worked. Understanding your rights in this area is essential, and I encourage you to pursue clarity in your situation.

Wishing you the best,

Atty. Peachy Selda-Gregorio