Managerial Employees

April 23, 1976POLICY INSTRUCTIONS NO. 08-76TO:All Regional Directors   SUBJECT:Managerial Employees The Revised Rules and Regulations Implementing the Labor Code omit the provisions exempting managerial employees from the clearance requirement with respect to dismissal and shutdown. Many queries have been raised about this.The policy still stands: Employers are not required to obtain a previous written clearance from the Secretary of Labor or his duly authorized representative when dismissing or terminating managerial employees as defined in Book V of the Code, not in Book III. Managerial employees in Book V are those 1) who have the powers to lay down management policies; 2) who have the power to hire, fire demote, promote, etc.; and 3) who have the power to recommend effectively 1) and 2). They are not eligible for union membership. Some managerial employees under Book III are eligible for union membership.The employer is not required to obtain a previous written clearance to terminate managerial employees in order to enable him to manage effectively. In the same manner, the rank-and-file employee is free to unionize effectively....