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The Implementing Rules of the Labor Code state that managerial employees are those who meet
the following conditions:
"(1) Their primary duty consists of the management of the establishment in which they are
employed or of a department or subdivision thereof;
"(2) They customarily and regularly direct the work of two or more employees therein;
"(3) They have the authority to hire or fire other employees of lower rank; or their suggestions
and recommendations as to the hiring and firing and as to the promotion or any other change of
status of other employees are given particular weight."
Art. 212, par. (m), of the Labor Code is explicit. A managerial employee is (a) one who is vested
with powers or prerogatives to lay down and execute management policies, or to hire, transfer,
suspend, lay off, recall, discharge, assign or discipline employees; or (b) one who is vested with
both powers or prerogatives.
There are two classes of employees vested with trust and confidence. To the first class belong
the managerial employees or those vested with the powers or prerogatives to lay down
management policies and to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline
employees or effectively recommend such managerial actions.
The Labor Code was further amended by Republic Act No. 6715. Section 4 of the said Republic
Act, amended Article 212 (m), which now contains separate definitions for managerial and
supervisory employees, to wit,