Title
Exclusion of managerial and outside sales employees from 8-hour labor law
Law
Republic Act No. 2377
Decision Date
Jun 20, 1959
Republic Act No. 2377 amends the Eight-Hour Labor Law to exclude managerial employees and outside sales personnel, recognizing their unique roles and responsibilities and allowing for more flexibility in their work and compensation. This exclusion may result in longer working hours without overtime pay, but also offers higher salaries or commission-based compensation reflecting their additional responsibilities and performance.

Q&A (Republic Act No. 2377)

The purpose of Republic Act No. 2377 is to amend Commonwealth Act No. 444, also known as the Eight-Hour Labor Law, by excluding managerial employees and outside sales personnel from its coverage.

Managerial employees, outside sales personnel, farm laborers, laborers who prefer to be paid on a piece work basis, domestic servants, persons in the personal service of another, and members of the family of the employer working for him are excluded from the law's coverage.

A managerial employee is defined as any person whose primary duty consists of managing the establishment or a recognized department/subdivision thereof, or any officer or member of the managerial staff.

Outside sales personnel are those who regularly perform their duties away from the employer's established place(s) of business, engaged in making or promoting sales, and are paid a basic compensation plus commission or on commission only.

Yes, it applies to all persons employed in any industry or occupation, whether public or private, except for the excluded categories mentioned in the Act.

No, domestic servants are excluded from the law's coverage as stated in Section 2 of RA 2377.

The Act takes effect upon its approval, which was on June 20, 1959.

No, members of the family of the employer working for him are explicitly excluded from the law's application.

No, such laborers are excluded from the scope of the law.

RA 2377 clarifies and limits the scope of the Eight-Hour Labor Law by excluding specific categories of employees, thereby refining the application of work hour regulations in the Philippines.


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