Dear PAO,
My friend was transferred to another branch of our company due to poor performance and issues he had at his previous branch. He had already received several warnings related to misfeasance at work before his transfer, but he did not improve. However, he is not amenable with the transfer. He feels that it amounts to discrimination and is equivalent to constructive dismissal. Are private employers allowed to make transfers of their employees from one branch or post to another? Isn’t it a form of constructive dismissal? Please advise.
Sean
Dear Sean,
We wish to emphasize that in matters involving constructive illegal dismissal, as with actual illegal dismissal, it is incumbent upon the employees to prove with substantial evidence the fact of their dismissal. Bare sentiments and unsubstantiated allegations will not be given any weight. Corollary, your friend must be able to establish that he was dismissed from his employment or was being prevented from harmoniously continuing with his work, which in effect, forced him to cease his engagement with the company. If he is still employed with the company and he is only being transferred at the moment, and no other acts of discrimination and unfavorable conditions are imposed on him, then we submit that it is premature to discuss the issue of constructive dismissal.
At any rate, we likewise wish to emphasize that jurisprudence has long recognized management prerogative, which is the discretion of the employer to manage its business as well as its employees. It includes the right of the employers to transfer its employees so long as such transfer is not unreasonable or prejudicial to the employee, done with legitimate purpose, and does not result in the diminution of the employee’s rank or salaries. The Supreme Court, through Honorable Associate Justice Jose C. Reyes Jr., explained:
“Labor laws are not one-sided. Although the law bends over backwards to accommodate the need of the working class, not every labor dispute shall be decided in favor of labor. Indeed, the Constitutional provisions on social justice as well as labor laws guarantee the protection of the employees’ tenurial security. However, this tenurial security shall not grant the employees a vested right to their desired position. Rather, management possesses the right to regulate all aspects of employment relating to the employees’ work assignment and working methods.
“Particularly, under the doctrine of management prerogative, an employer possesses the inherent right to regulate, according to its ‘own discretion and judgment, all aspects of employment, including hiring, work assignments, working methods, the time, place and manner of work, work supervision, transfer of employees, lay-off of workers, and discipline, dismissal, and recall of employees.’ This wide sphere of authority to regulate its own business may only be curbed by the limitations imposed by labor laws and the principles of equity and substantial justice. The importance of discouraging interference is necessary to ensure that the employer may in turn expect good performance, satisfactory work, diligence, good conduct and loyalty from its employees.
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“It is imperative, however, to strike balance between the employees’ tenurial security on the one hand, and the employer’s management prerogative, on the other. In Rural Bank of Cantilan Inc. vs Julve, and Peckson vs Robinsons Supermarket Corporation, et al., the Court laid down guidelines to ensure that both rights are protected:
“Concerning the transfer of employees, these are the following jurisprudential guidelines: (a) a transfer is a movement from one position to another of equivalent rank, level or salary without break in the service or a lateral movement from one position to another of equivalent rank or salary; (b) the employer has the inherent right to transfer or reassign an employee for legitimate business purposes; (c) a transfer becomes unlawful where it is motivated by discrimination or bad faith or is effected as a form of punishment or is a demotion without sufficient cause; (d) the employer must be able to show that the transfer is not unreasonable, inconvenient, or prejudicial to the employee. (Citations omitted)
“Accordingly, the Court respects the right of the employer to re-assign its employees to other stations, provided that the transfer is not unreasonable, inconvenient, prejudicial, or involve a demotion in rank or a diminution of salaries, benefits, and other privileges. For as long as said conditions are met, the employee may not complain that the transfer amounts to a constructive dismissal.” (Automatic Appliances Inc. vs Francia B. Deguidoy, G.R. No. 228088, December 04, 2019, Emphasis supplied)
Applying the foregoing to the situation of your friend, the fact that he is not amenable with his transfer and that he feels he is being discriminated will not suffice to conclude that he is being constructively dismissed by his employer, absent any proof of actual or genuine discrimination or prejudice, diminution of his rank, level or salaries, or bad faith on the part of his employer. The decision of an employer to transfer its employees to another post or branch will be respected as part of the recognition of the employer’s management prerogative.
We hope that we were able to answer your queries. Please be reminded that this advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.
Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected]
