Thursday, August 15, 2019

CHARLITO PEÑARANDA vs. BAGANGA PLYWOOD CORPORATION and HUDSON CHUA


G.R. No. 159577 May 3, 2006

Nature of Employment

Facts: Petitioner Charlito Peñaranda was hired as Foreman/Boiler Head/Shift Engineer of Baganga Plywood Corporation (BPC) to take charge of the operations and maintenance of its steam plant boiler. In May 2001, Peñaranda filed a Complaint for illegal dismissal with money claims against BPC and its general manager, Hudson Chua, before the NLRC. He alleges that his services were terminated without due process and valid grounds in accordance with law and that he was not paid his overtime pay, premium pay for working during holidays/rest days, night shift differentials.

BPC, on the other hand, allege that complainant’s separation from service was done pursuant to Art. 283 of the Labor Code. He opted to severe employment when he insisted payment of his separation benefits. Furthermore, being a managerial employee he is not entitled to overtime pay and if ever he rendered services beyond the normal hours of work, there was no office order/or authorization for him to do so.

The labor arbiter ruled in favor of BPC but found petitioner entitled to overtime pay, premium pay for working on rest days, and attorney’s fees.

NLRC ruled that Penaranda was a managerial employee and deleted the award of overtime pay and premium pay for working on rest days.

CA denied Petitioner’s appeal.

Issue: Whether Penaranda is entitled to the payment of OVERTIME PAY and OTHER MONETARY BENEFITS.

Held: No. The Court disagrees with the NLRC’s finding that petitioner was a managerial employee. However, petitioner was a member of the managerial staff, which also takes him out of the coverage of labor standards. Like managerial employees, officers and members of the managerial staff are not entitled to the provisions of law on labor standards. The Implementing Rules of the Labor Code define members of a managerial staff as those with the following duties and responsibilities:
"(1) The primary duty consists of the performance of work directly related to management policies of the employer;
"(2) Customarily and regularly exercise discretion and independent judgment;
"(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 workweek to activities which are not directly and closely related to the performance of the work described in paragraphs (1), (2), and (3) above."

Petitioner supervised the engineering section of the steam plant boiler. His work involved overseeing the operation of the machines and the performance of the workers in the engineering section. This work necessarily required the use of discretion and independent judgment to ensure the proper functioning of the steam plant boiler. As supervisor, petitioner is deemed a member of the managerial staff.

Noteworthy, even petitioner admitted that he was a supervisor. In his Position Paper, he stated that he was the foreman responsible for the operation of the boiler. The term foreman implies that he was the representative of management over the workers and the operation of the department. Petitioner’s evidence also showed that he was the supervisor of the steam plant. His classification as supervisor is further evident from the manner his salary was paid. He belonged to the 10% of respondent’s 354 employees who were paid on a monthly basis; the others were paid only on a daily basis.

WHEREFORE, the Petition is DENIED.

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