FACT SHEET: What is a Manager?

Ministry of Labour
Employment Standards Branch
Province of British Columbia

This fact sheet has been prepared for general information purposes. It is not a legal document. Please refer to the Employment Standards Act and Regulation for purposes of interpretation and application of the law.   May 1996

FOR MORE INFORMATION:
Call: 1-800-663-3316, or 660-4000 in Vancouver
Fax: 1-604-775-3509
E-mail: infoesb@system6.lcs.gov.bc.ca
Internet: www.labour.gov.bc.ca

Managers are excluded from Parts 4 and 5 of the Employment Standards Act, dealing with hours of work, overtime entitlements and statutory holiday pay.

How is 'Manager' Defined?

Section 1 of the Employment Standards Act Regulation says a "manager"is:

• (a) a person whose primary employment duties include supervising and directing other employees, or
  (b) a person employed in an executive capacity.
  

It is not enough to say a person has the authority of a manager. This authority must have been used by that person.

Considerations by the Director

To determine if an employee is a manager, the Director considers:

• the amount of time spent supervising and directing other employees,
  
• the nature and amount of the person's other (non-supervisory) duties,
  
• the degree to which the person exercises the kind of power and authority typical of a manager,
  
• the reason for employment; and
  
• the nature and size of the business.
  

Manager as Decision Maker

Typically, managers have a power of independent action, autonomy and discretion. They have the power to make final decisions, not simply recommendations, relating to supervising and directing employees or to the conduct of the business. Managers may also make final judgments about:

• hiring and firing staff,
  
• disciplining staff,
  
• authorizing overtime, time off or leaves of absence,
  
• calling employees in to work,
  
• laying them off,
  
• altering work processes,
  
• establishing or altering work schedules and
  
• training employees.
  

If there are no other employees, there is no manager.

If there are no duties consisting of supervising and directing other employees, and the person is not employed in an executive capacity, the person is not a manager, regardless of the importance of their duties to the operation of the business.

Executive Capacity

A person is said to be in an executive capacity when she or he makes key decisions which are critical to the business, such as :

• how many employees are to be employed,
  
• what product should be purchased or produced,
  
• what services should be provided,
  
• from whom should supplies be purchased, and
  
• at what price should produce be sold.
  

They are the controlling mind of the business. They need not be the owner. They are sometimes given titles such as General Manager, Manager of Operations, Comptroller,or Director of Store Development.

An executive is the person who decides that a store should be opened in a particular shopping mall; approves the size and location of the store, and authorizes the number of employees to work there.

A manager is the person who directs the employees who work at that store, schedules shifts, approves leaves, authorizes overtime, and monitors performance.

What the Director does not consider:

When determining who is a manager, the Director does not take into account:

• The title given to a position,
  
• The fact that other employees refer to that person as a 'manager',
  
• The form of payment of wages, (eg salary, hourly wage, commission);
  
• The responsibility to open and close the business, or
  
• The ability to make special arrangements with customers as to price or delivery of products or services.
  

An employee who is not a manager is entitled to the full range of entitlements under Parts 4 and 5, including premium wage rates for overtime and statutory holidays with pay.