Movement from one position to another of equivalent
rank, level or salary, without a break in the service; or Courts often decline to interfere in legitimate business 2. Movement from one office to another within the same decisions of employers. In fact, labor laws discourage business establishment. interference in employers judgment concerning the conduct of their business. An employer can regulate, generally without Conditions to uphold the prerogative of management to restraint, according to its own discretion and judgment, every transfer an employee from one position or office to another: aspect of its business. 1. There is no demotion in rank or diminution of salary, benefits, and other privileges; and Limitations on the exercise of management prerogatives: 2. The action is not motivated by discrimination, made in bad 1. Those imposed by Law; faith, or effected as a form of punishment or demotion 2. Those provided under a CBA; without sufficient cause. 3. Those provided under an employment contract; 4. Those imposed by employer policy; Test to determine validity of transfer The employer must be 5. Those imposed by company practice; able to show that the transfer is not unreasonable, 6. Those imposed by the general principles of fair play and inconvenient or prejudicial to the employee. Should the justice; employer fail to overcome this burden of proof, the 7. Subject to police power; employees transfer is tantamount to constructive dismissal. 8. Exercise should be without abuse of discretion; and 9. Should be done in good faith and with due regard to the Prerogative to Reorganize rights of labor. Notes: The prerogative of management to implement a job evaluation program or a reorganization is valid for as long as it is not contrary to law, morals or public policy. Discipline If the purpose of a reorganization is to be achieved, changes in the positions and rankings of the employees Right to Discipline The only criterion to guide the exercise of should be expected. To insist on ones old position and its management prerogative is that the policies, rules and ranking after a reorganization would render such regulations on work-related activities of the employees must endeavor ineffectual. always be fair and reasonable and the corresponding It is hard to accept the claim that an employer would go penalties, when prescribed, commensurate to the offense through all the expenditure and effort incidental and involved and to the degree of the infraction. necessary to a reorganization just to dismiss a single employee whom they no longer deem desirable. Right to Dismiss While the constitution is committed to the policy of social justice and the protection of the working class, Prerogative to Promote it should not be supposed that every labor dispute will be automatically decided in favor of labor. Management also has Promotion the advancement from one position to another its own rights which, as such, are entitled to respect and involving increase in duties and responsibilities as authorized enforcement in the interest of simple fair play. by law, and increase in compensation and benefits. Apparently, the indispensable element for there to be a Rights of employer in the discipline of an employee: promotion is that there must be an upward vertical movement 1. Right to determine who to punish. of the employees rank or position. Any increase in salary 2. Right to prescribe company rules and regulations. should only be considered incidental but never determinative 3. Right to impose penalty on erring workers pursuant to of whether or not a promotion is bestowed upon an employee. company rules and regulations. The penalty must be This can be likened to the upgrading of salaries of government commensurate with the act, conduct or omission imputed employees without conferring upon them, the concomitant to the employee and imposed in connection with the elevation to the higher positions. employers disciplinary authority. Transfer vs. Promotion Promotion denotes a scalar ascent of Proportionality rule The penalty imposed should be an officer or an employee to another position, higher either in commensurate to the gravity of his offense, act, conduct rank or salary. Transfer, on the other hand, involves lateral or omission imputed, and imposed in connection with movement from one position to another of equivalent level, employers disciplinary authority. rank or salary.
4. Right to choose which penalty to impose. Notes:
5. Right to impose heavier penalty than what the company An employee has the right to refuse promotion. rules prescribe if circumstances warrant the imposition An employee cannot be promoted without his consent thereof. even if merely as a result of a transfer. An employee cannot be dismissed because of his refusal The fact that the offense was committed for the first time to be promoted. It cannot amount to insubordination or or has not resulted in any prejudice to the company was willful disobedience. held not to be valid excuse. No employer may rationally be expected to continue in employment a person whose Prerogative to Demote lack of morals, respect and loyalty to his employer has so plainly and completely bared. Demotion This involves a situation where there is reduction in position, rank or salary as a result of a transfer. In addition Transfer of Employees to the comparison involving nature of work, another aspect of comparison to determine the existence of demotion is the Two Kinds of Transfers: workplaces themselves. Hence, there is also demotion if there in competitive employment or activities after termination is a change in the workplace. of his employment. 4. Garden-Leave Clause An employee who has left his work Productivity Standard either by reason of termination or resignation is bound to stay at home during the garden-leave period at which Productivity Standards: time, he continues to receive all his salaries and benefits 1. Incentive scheme Employees who surpass the but is prohibited from commencing employment with new productivity standards or quota are usually given employers until this period has elapsed. additional benefits. 5. Confidentiality and Non-Disclosure Clause Commitment 2. Disciplinary scheme Employees may be sanctioned or of the employee that he shall not, during or after dismissed for failure to meet the productivity standards or termination of his employment, use of disclose to any quota. person, firm or corporation any information concerning the business or affairs of his employment, for his own benefit or to the detriment of the employer. Grant of Bonus 6. Non-Solicitation Clause The employee may be barred from soliciting or approaching, or accept any business Bonus An amount granted and paid ex gratia to the employee from any person or entity who shall, at any time within a for his industry or loyalty, hence, generally not demandable or fixed period after his termination, have been a client of enforceable. It is a grant or act of liberality which the recipient the employer, a part or prospective party to an agreement has no right to demand as a matter of right. Its grant is a with the employer, or agent of the client. management prerogative. 7. Non-Recruitment or Anti-Piracy Clause Prohibits the recruitment by the employee of personnel of the When bonus is demandable and enforceable: employer for a certain period after his termination. 1. When stipulated in an employment contract of CBA; 8. Inventions Assignment Clause Requires the employee, 2. When the grant is a company policy or practice; or within a certain period, to disclose in confidence to the 3. When it is granted as an additional compensation which employer, and to assign all inventions, improvements, the employer agreed to give without any condition such design, etc., which the employee may solely or jointly as success of business or more efficient or more conceive or develop or reduce to practice, during the productive operation, and thus, must be deemed part of period of his employment with the employer. wage or salary.
Change of Working Hours
Management retains the prerogative to change the working
hours of its employees whenever exigencies of the service so require.
Rules on Marriage Between Employees of Competitor-Employers
If the contract of employment expressly prohibits an employee
from having a relationship with an employee of competing drug companies, this is a valid exercise of management prerogative as it only aims to protect the companys interests against possibility that a competitor company will gain access to its trade secrets, manufacturing formulas, marketing strategies and other confidential programs and information.
The company policy of not accepting, or considering as
disqualified from work any woman worker who contracts marriage runs afoul of the test of, and the right against, discrimination afforded to all women workers.
Post-Employment Ban
Stipulations on Post-employment Ban:
1. Non-Compete or Non-Involvement Clause The employer and the employee are free to stipulate in the employment contract prohibiting the latter within a certain period from and after the termination of his employment from: a. Starting a similar business, profession or trade; or b. Working in an entity that is engaged in similar business that might compete with the employer. 2. Forfeiture-for-Compensation Clause Stipulation where an employee forfeits certain benefits because of his act of engaging in competitive employment or activities after termination of his employment. 3. Compensation-for-Competition Clause (Clawback) A provision which requires the payment by the employee of some amount of money to his former employer to engage