Exclusion of managerial and outside sales employees from 8-hour labor law

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Republic Act No. 2377: Exclusion of managerial and outside sales employees from 8-hour labor law

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Title Source: Supreme Court: 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.

Definition of Managerial Employees

Managerial employees are those whose primary duty is management of the establishment or recognized department/subdivision thereof.
Includes officers or members of the managerial staff.

Definition of Outside Sales Personnel

Outside sales personnel are those who regularly perform duties away from the employer's established business locations.
Their work involves making, promoting, or helping make/promote sales of employer’s products.
Compensation is either basic salary plus commission or commission only.

Amendment Details

Amends Section 2 of Commonwealth Act No. 444 (Eight-Hour Labor Law).
Clarifies exclusions from the labor law’s coverage to specifically exempt managerial employees and outside sales personnel.

Effectivity

The Act takes effect immediately upon approval on June 20, 1959.

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