Labor Law

Engineering Equipment, Inc. vs Minister of Labor

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G.R. No. L-64967 – 133 SCRA 752 – Labor Law – Labor Standards – Working Conditions and Rest Periods – Overtime Pay – Managerial Employee not entitled to OT pay

In 1977, Miguel Aspera was contracted by Engineering Equipment, Inc. to work as a mechanical engineer in Saudi Arabia. He was contracted to work for 10 hours a day. Later he sued Engineering Equipment claiming that he is entitled to overtime pay because under the law, the working hours should be 8 hours a day only hence the extra 2 hours should be paid as overtime. Engineering Equipment averred that Aspera is a managerial employee who was exempted from overtime pay.

ISSUE: Whether or not Aspera is entitled to OT pay.

HELD: No. Engineering Equipment was able to prove that Aspera is part of the managerial staff, a fact which Aspera did not deny. Aspera was a managerial employee exercising supervision and control over rank-and-file employees with power to recommend disciplinary action or their dismissal. As a managerial employee within the meaning of the law, he was not entitled to overtime pay.

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