Beruflich Dokumente
Kultur Dokumente
ISSUE: 1. Is Villuga a member of managerial staff and is not entitled to overtime pay and
services for Sundays and Legal Holidays?
2. Are the rest of the petitioners not employees but independent contractors of private
respondents and are not entitled to their claims under PD Nos. 925, 1123, and 851.
SC RULING: No. Villuga is a rank and file employee and should be entitled to overtime pay,
holiday pay, premium pay for holiday and rest day, service incentive leave pay and
separation pay, in addition to his 13th month pay.
RATIO: Villuga’s function is merely to cut and prepare patterns for items to be sewn. He does
not lay down or implement any of the management policies and does not participate in
policy-making. The test of supervisory or managerial status depends whether a person
has the authority that is not merely routinary or clerical in nature but one that requires
use of independent judgment. As a rank and file employee hired to perform the work of
cutter, he is not excluded from the benefits under the Labor Code. In addition to the 13th
month pay, he should be paid overtime pay, holiday pay, premium pay for holiday and
rest day, and service incentive leave.
The eleven petitioners were employees of the private respondent and not independent
contractors. Considering that they are employed as early as 1972 and the latest is in 1976
and faithfully rendering their services which are necessary for the business of the private
respondent and observing management’s approved standards set for their respective
lines of work as well as the customer’s specifications. Although they are paid on a piece-
rate basis, an employer-employee relationship could not be denied because it is just a
method of compensation and does not define relationship. However, they are not entitled
to payment of overtime pay, holiday pay, premium pay for holiday and rest day and
service incentive leave pay. Moreover, they should be paid 13th month pay because they
are employees of the private respondent.