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LABOR LAW I

G.R. No. 159577


Date: May 3, 2006
Pearanda v. Baganga Plywood Corporation
Petitioner: Charlito Pearanda
Re!ondent: "a#an#a Ply$ood Cor!oration and %&don Ch&a
Facts:
Charlito Pearanda $a hired a an e'!loyee o( Baganga Plywood Corporation )"PC* to ta+e ,har#e o( the o!eration and
'aintenan,e o( it tea' !lant -oiler in .&ne 1999. Pearanda (iled a Co'!laint (or ille#al di'ial $ith 'oney ,lai' a#aint "PC
and it #eneral 'ana#er, %&don Ch&a, -e(ore the N/RC in May 2001.
Pearanda alle#ed that he $a e'!loyed -y "PC in arch !""" a Fore#an$Boiler %ead$&hi't (ngineer &ntil he
$a ille#ally ter'inated in )ece#*er +,,,. 0&rther, he alle#e that hi er1i,e $ere ter'inated $itho&t the -ene(it o( d&e !ro,e
and 1alid #ro&nd in a,,ordan,e $ith la$. 0&rther'ore, he $a not !aid hi overti#e pay- pre#i.# pay (or $or+in# d&rin#
holiday2ret day, night shi't di''erentials and (inally ,lai' (or !ay'ent o( da'a#e and attorney3 (ee ha1in# -een (or,ed to
liti#ate the !reent ,o'!laint.
"PC alle#ed that e!aration (ro' er1i,e $a done !&r&ant to Article +/0 o( the /a-or Code. "PC $a on te#porary
clos.re d&e to re!air and #eneral 'aintenan,e and it a!!lied 'or clearance $ith the De!art'ent o( /a-or and 4'!loy'ent
to sh.t down and to dis#iss e'!loyee. 0&rther, Pearanda o!ted to e1ere e'!loy'ent and a,,e!t e!aration -ene(it.
0&rther'ore, -ein# a 'ana#erial e'!loyee, Pearanda i not entitled to o1erti'e !ay and i( e1er he rendered er1i,e -eyond the
nor'al ho&r o( $or+, there $a no o((i,e order2or a&thori5ation (or hi' to do o.
6he la-or ar-iter r&led that there $a no ille#al di'ial and that Pearanda3 Co'!laint $a !re'at&re -e,a&e he was still
e#ployed *y BPC. 6he N/RC r&led that Pearanda $a not entitled to the a$ard o( o1erti'e !ay and !re'i&' !ay (or $or+in# on
ret day -e,a&e he $a a 'ana#erial e'!loyee. 6he C7 di'ied Pearanda3 Petition (or Certiorari on the #ro&nd that
Pearanda till (ailed to &-'it the !leadin# (iled -e(ore the N/RC.
Iss.e:
8 Pearanda entitled to the a$ard #ranted -y the la-or ar-iter, in a,,ordan,e $ith la-or tandard9
Co.rt1s R.ling:
Pearanda, a a #e#*er o' the #anagerial sta'', i not entitled to the a$ard #ranted -y the la-or ar-iter.
Rationale:
anagerial e#ployees and #e#*ers o' the #anagerial sta'' are e2e#pted 'ro# the provisions o' the
La*or Code on la*or standards. :in,e Pearanda -elon# to thi ,la o( e'!loyee, he i not entitled to o1erti'e !ay
and !re'i&' !ay (or $or+in# on ret day.
Article /+ o( the /a-or Code e2e#pts #anagerial e#ployees (ro' the ,o1era#e o( la-or tandard. /a-or tandard !ro1ide the
$or+in# ,ondition o( e'!loyee, in,l&din# entitle'ent to o1erti'e !ay and !re'i&' !ay (or $or+in# on ret day. ;nder thi
!ro1iion, #anagerial e#ployees are <those whose pri#ary d.ty consists o' the #anage#ent o' the esta*lish#ent in which
they are e#ployed or o' a depart#ent or s.*division.3
Pearanda i not a 'ana#erial e'!loyee. %o$e1er, he i a #e#*er o' the #anagerial sta'', $hi,h alo ta+e hi' o&t o( the
,o1era#e o( la-or tandard. /i+e 'ana#erial e'!loyee, o((i,er and 'e'-er o( the 'ana#erial ta(( are not entitled to the
!ro1iion o( la$ on la-or tandard.
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