Published — June 1, 2022
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
As employers you may also read: DOWNSIZING OF EMPLOYEES DUE TO COVID19
Under the doctrine of management prerogative, every employer has the inherent right to regulate, according to his 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. The only limitations to the exercise of this prerogative are those imposed by labor laws and the principles of equity and substantial justice (Jenny F. Peckson, vs. Robinsons Supermarket Corporation, Jody Gadia, Roena Sarte, and Ruby Alex, G.R No. 198 534, July 3, 2013)
According to the World Health Organization, “Coronavirus disease (COVID-19) is an infectious disease caused by a newly discovered coronavirus. COVID-19 has become a pandemic that it affected the world and Philippines is no exception. To avoid or minimize the effect of COVID – 19, the government implemented and is implementing measures to protect its citizens. It is of no question that private sectors providing employment for the Filipinos contribute a large portion to the Philippine economy. Without private sectors, the government would have a difficulty in catering the needs of its citizens. However, private sectors themselves are not exempted from the inevitable effects of this COVID – 19. Private sectors have to also protect their interest so as to sustain themselves throughout this pandemic. It is where the above-stated management prerogative comes in.
The practicality and legality of decisions of the private sectors must be taken into account. Maybe few or no one was prepared for COVID-19. All the employers could do is to wisely exercise their management prerogative. As a response to COVID – 19, these employers may resort to Flexible Work Arrangements. Flexible Work Arrangements (FWA) refer to alternative arrangements or schedules other than the traditional or standard normal workhours, workdays and workweek. Also, under FWA, employers may avail the concept of “Rotation of Workers” where the employees are rotated or alternatively provided work within the week. Rotation of Workers is a useful and practical instrument as a response to the social distancing that citizens are advised to observe and practice.
The private sectors or employers are afforded wide latitude of discretion on what lawful prerogatives they would utilize in order to protect their business and that of their employees.
It is very evident that business enterprises, due to COVID-19, are faced with the pressures of economic recession. Now, should the employers previously opted to lay their employees off as part of their retrenchment, are said employers obliged to rehire the retrenched employees after COVID – 19? In the case of Flight Attendants and Stewards Association of the Philippines (FASAP) vs. Philippine Airlines, Inc. Patria Chiong and The Court of Appeals, G.R. No. 178083, March 13, 2018, the Supreme Court recognized that rehiring of retrenched employees is still a part of management prerogative. The Philippine Airlines, instead of taking in new hires, decided to first offer the employment to those who were previously retrenched. In the same case, the Supreme Court made reference to the case of Caffco International Limited (Philippine Branch) vs. Office of the Minister – Ministry of Labor and Employment and the Caffco Employees Union Association of Democratic Labor Organizations, G.R. No. 76966, August 7, 1992, in which it recognized that
“ xxx when Lapanday continued its operation, it was merely exercising its prerogative to streamline its operations, and to rehire or hire only those who are qualified to replace the services rendered by the retrenched employees in order to effect more economic and efficient methods of production to forestall business losses”.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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