RIGHT TO LAY DOWN AND EXECUTE MANAGMEMENT POLICIES

An employer can establish Working Hours, to organize and Reorganize. In general terms, An employer is free to regulate
according to his own discretion and judgment, all aspects of employment, including work assignments, working
methods, time, place and the manner or work, tools to be used, processes to be followed, supervision of workers and
working regulations.
RIGHT TO HIRE
The company has the exclusive right to purchase labor from any person whom it chooses. Thus, the transferee in good
faith of a business establishment has no obligation to absorb employees of the transferor and to continue on employing
them
There is no law which requires the purchaser to absorb the employees of the selling corporation. As there is no such
law, the most that the purchasing company may do, for purposes of public policy and social justice, is to give preference
to the qualified separated employees of the selling company, who in their judgment are necessary in the continued
operation of the business establishment.
RIGHT TO TRANSFER
The company has the right to transfer an employee from one office to another within the business establishment
provided that there is no demotion in rank, salary, benefits and other privileges. This is a privilege inherent in the
employers right to control and conduct its business enterprise and conduct of its business operations to achieve its
purpose. It cannot be denied to the employer.
IT is the employers prerogative, based on its assessment on the following employee attributes: Qualifications
Aptitudes Competence An employees security of tenure does not give him such a vested right in his position as
would deprive the company of its prerogative to change his assignment or transfer him where he will be most useful.
When the EEs transfer is not unreasonable, nor inconvenient, nor prejudicial to him, and it does not involve a demotion
in rank or diminution in salaries, benefits and privileges, the employee may not complain that it amounts to constructive
dismissal. (PT&T vs NLRC, GR NO. 76645, July 23, 1991; Allied Bank vs CA, GR No. 144412, 11/18/03)
Transfer of employees
The transfer of an employee ordinarily lies within the ambit of
management prerogatives. However, managerial prerogative to transfer personnel
must be exercised without grave abuse of discretion, putting to mind the basic
elements of justice and fair play (Castillo vs. NLRC 1999). Having the right
should not be confused with the manner by which such right is to be exercised
(Paguio vs. PLDT 2002). It cannot be used a subterfuge by the employer to rid
himself of an undesirable worker (Castillo vs. NLRC 1999).

RIGHT TO DISCIPLINE
The right of the employer to subject his employees to disciplinary measures and the need for discipline have been
judicially noticed. Success in industries and public services is the foundation in which just wages may be paid. There can
be no success without efficiency. There can be no efficiency without discipline. Thus, when they violate the rules of
discipline, employees and laborers jeopardize the interest not only of the employer but also of their own. In violating the
rules of discipline, they aim at killing the hen that lays golden eggs. Laborers who trample down the rules set for an
efficient service are, in effect, parties to a conspiracy against not only to capital but also to labor.The employer has the
right to instill disciplinein his employees and to impose reasonable penalties on erring employees pursuant to company
rules and regulations. (SMC vs NLRC, GR No. 87277, May 12, 1989)IF the undesirable one remains in service, it will
demoralize the other employees (Shoemart vs NLRC Gr No. 74229, 8/11/1989)
RIGHT TO DISMISS
The company has the right to dismiss employees in accordance with the causes and procedures established by law. This
particular right must be exercised with CAUTION and without abuse of discretion because termination affects the right
of the worker to Security of Tenure. Art. 279 in cases of Regular Employment, termination on the grounds of just and
authorized causes, subject to the requirements of due process.
End of contract? Completion of contract/phase? No prior notice is required. Termination of probationary
employment? Notice served on employee within a reasonable time Any decision of termination shall be without
prejudice to the right of the worker to contest the same by filing a complaint with the RAB of the NLRC. Validity of 30
day preventive suspensions.
RIGHT TO RETRENCHMENT
Exists during the period of business recession, industrial depression, or seasonal fluctuations
Retrenchment is a management prerogative, a means to protect and preserve the employer's viability and ensure his
survival. 1 It is one of the economic grounds to dismiss an employee resorted to by an employer primarily to avoid or
minimize business losses. 2 In this regard, the employer bears the burden to prove his allegation of economic or
business reverses, 3 otherwise, it necessarily means that the dismissal of an employee was not justified. 4
We apply this precept in the present case where herein private respondents, 5 employees of petitioner Polymart Paper
Industries, Inc. (Polymart), were dismissed on July 4, 1992 on the ground of retrenchment.
Retrenchment is something akin to downsizing. When a company or government goes through retrenchment, it reduces
outgoing money or expenditures or redirects focus in an attempt to become more financially solvent. Many companies
that are being pressured by stockholders or have had flagging profit reports may resort to retrenchment to shore up
their operations and make them more profitable. Although retrenchment is most often used in countries throughout the
world to refer to layoffs, it can also label the more general tactic of cutting back and downsizing.
RIGHT TO REDUNDANCY
Exists where the services of an employee are in excess of what is reasonably demanded by the actual requirements of
the enterprise
Redundancy is one of the authorized causes for termination of employment. Under Article 283 of the Labor Code,
employees should be given separation pay of one (1) month pay per year of service in case of termination on the ground
of redundancy. The Court affirmed the termination of employment due to redundancy in several instances. In the case
of De Ocampo vs. NLRC (cf. Serrano vs. NLRC 2000) the Court upheld the termination of employment of three (3)
mechanics in a transportation company and their replacement by a company rendering maintenance and repair
services, as follows:
RIGHT TO CEASE OPERATIONS
In any case, Article 283 of the Labor Code is clear that an employer may close or cease his business operations or
undertaking even if he is not suffering from serious business losses or financial reverses, as long as he pays his
employees their termination pay in the amount corresponding to their length of service. It would indeed be stretching
the intent and spirit of the law if we were to unjustly interfere in managements prerogative to close or cease its
business operations just because said business operations or undertaking is not suffering from any loss.
ARTICLE 283. Closure of establishment and reduction of personnel. The employer may also terminate the
employment of any employee due to the installation of labor saving devices, redundancy, retrenchment to prevent
losses or the closing or cessation of operation of the establishment or undertaking unless the closing is for the purpose
of circumventing the provisions of this Title, by serving a written notice on the workers at least one (1) month before the
intended date thereof The purpose of the notice requirement is to enable the proper authorities to determine, after
hearing, whether such closure is in good faith, i.e., for bona fide business reasons (Complex Electronics Employees
Association vs. NLRC 1999).
RIGHT TO SELL THE COMPANY
RIGHT TO ABOLISH POSITIONS
Installation of labor saving devices
The law authorizes an employer to terminate employment due to the
installation of labor saving devices. The courts will not interfere with the exercise
of this management prerogative in the absence of abuse of discretion, arbitrariness
or maliciousness. However, the employer is also required to furnish a written
notice of the intended termination to the employee and to the Department of
Labor and Employment at least one (1) month before the intended date of
termination. This is to enable the affected employee to contest the reality or good
faith character of the asserted ground for the termination of his services before the DOLE