Engineering Equipment, Inc.

v Minister of Labor Date: September 23, 1985 Ponente: Aquino Facts: Miguel Aspera, a mechanical engineer, worked or !ngineering !quipment, "nc# in Saudi Arabia or nearl$ a $ear at a monthl$ salar$ o %&5' (%8)'* with a )+da$ work week consisting o 1' working hours# ,e claims that his monthl$ salar$ should correspond to 8 hours o dail$ work onl$ and that or the additional 2 hours dail$, he was entitled to o-ertime pa$ at .1#21)2 per hour or to .81/#85 or )&' hours during 335 working da$s# 0he 1irector o !mplo$ment Ser-ices and the 2ational 3abor 4elations 5ommission sustained his claim and awarded him that amount as o-ertime pa$# 0he$ declared 67"1 the stipulation or a 1'+hour working da$ because it was contrar$ to Section 83 o the 3abor 5ode, ormerl$ !ight+,our 3abor 3aw, which e8pressl$ pro-ides that 9the normal hours o work o an$ emplo$ee shall not e8ceed 8 hours a da$9 and to section 8& o the same 5ode which pro-ides that work per ormed 9be$ond 8 hours a da$9 is treated as o-ertime work# !ngineering !quipment "nc# contends the ollowing: o Section 82 o the 3abor 5ode pro-ides that managerial emplo$ees are not entitled to o-ertime pa$# Aspera was a managerial emplo$ee e8ercising super-ision and control o-er its rank+and+ ile emplo$ees with power to recommend disciplinar$ action or their dismissal# o ;ritten contract signed was with a 9built+in9 o-ertime pa$ in the 1'+hour working da$ and that the stipulated basic monthl$ pa$ was ad<usted to re lect the higher amount co-ering the guaranteed two+hour e8tra time whether worked or unworked# o Said contracts (with =built+in> o-ertime pa$* were submitted to ?!S 1irector @onathan M#4#A# de la 5ruA, the same director who rendered the questioned decision ,e appro-ed the same# ;ithout his appro-al, the petitioner would not ha-e stipulated the 1'+hour work schedule and would ha-e pro-ided or a lower basic salar$ or an 8+hour working da$# o Aspera was gi-en ree board and lodging while in Saudi Arabia and ree transportation in going to and returning rom that countr$# Issue: ;72 Acting Minister o 3abor and 1irector 1e la 5ruA committed a gra-e abuse o discretion amounting to lack o <urisdiction in awarding o-ertime pa$ Held: Bes atio: ;e hold that under the particular circumstances o this case the Acting Minister o 3abor and 1irector 1e la 5ruA committed a gra-e abuse o discretion amounting to lack o <urisdiction in awarding o-ertime pa$ and in disregarding a contract that 1e la 5ruA himsel , who is supposed to know the !ight+,our 3abor 3aw, had pre-iousl$ sealed with his imprimatur# ?ecause o that appro-al, the petitioner acted in good aith in en orcing the contract# Curthermore, Aspera had not denied that he was a managerial emplo$ee within the meaning o section 82# As such, he was not entitled to o-ertime pa$# Dispositive: 0he resolution o the Acting Minister o 3abor dated 2o-ember 1), 1981 is re-ersed and set aside# AsperaDs complaint is dismissed# 2o costs#