Types of Positions

Individuals in one corporation can be categorized into several tiers. In the Philppines, labor code is focused on the Rank & File employees since they are ranked at the bottom of the structure. Many of the labor related rules/standards such as work hour, OT, Holidays, SIL, 13^th month pay, etc are not applied to only Rank & File employees. Managerial employees including supervisory employees and managerial staffs are not under these regulation even though many companies apply almost similar rules.

1. Board of Directors

A board of directors is a group of individuals, elected to represent stockholders. A Board's mandate is to establish policies for corporate management and make decisions on major company issues. It usually includes chairman, major stock stockholders or representatives, some top management officers and independent directors.


Notes: According to Corporation Code of the Philippines, INCORPORATORS should not less than five (5) but not more than fifteen (15), all of legal age and a majority of whom are residents of the Philippines, may form a private corporation for any lawful purpose or purposes. Each of the incorporators of s stock corporation must own or be a subscriber to at least one (1) share of the capital stock of the corporation.
2. Management Officers (Top Management)
It includes President, Vice-President, Secretary, Treasurer, (managing, company, executive, etc) directors. They might have different company titles.

Notes: In general, Secretary and Treasurer position is not allowed to foreigner but there are exceptions such as 100% foreign owned corporation. Even in this case, secretary should be a Filipino.

3. Managerial employees

The primary duty consists of the management of the establishment, department or division.  According to the labor code, a managerial employee is “one who is vested with powers or prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees, or to effectively recommend such managerial actions.”

Managerial Staffs also belong to managerial employees. An employee is considered a member of the managerial staff where

● His primary duty consists of work directly related to the management policies of the employer;

● He customarily and regularly exercises discretion and independent judgment;

● He does not devote more than 20% of his hours worked in a working week to activities which are not directly and closely related to the performance of the work described in the following three bullets:

● regularly and directly assists a proprietor or a managerial employee whose primary duty consists of the management of the establishment in which he is employed, or a subdivision of that establishment; or

● executes under general supervision work along specialized or technical lines requiring special training, experience or knowledge; or

● executes under general supervision special assignments and tasks.

4. Supervisory employees

The employees who effectively recommend managerial actions, where the exercise of that authority is not merely routine or clerical in nature but requires the use of independent judgment. Supervisors are generally considered as members of the managerial staff.

5. Rank & File employees

Employees not falling any of the above categories. 

Notes: The term originates from the formations of military personnel, since troops would stand next to each other (rank) and in a line (file) when marching, while officers would march on the outside of the formation.