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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.
AT A GLANCE:
While due process required by law is applied on dismissals, the same is also applicable to demotions as demotions likewise affect the employment of a worker whose right to continued employment, under the same terms and conditions, is also protected by law. Moreover, considering that demotion is, like dismissal, also a punitive action, the employee being demoted should as in cases of dismissals, be given a chance to contest the same.
Unjustified demotion, in effect, constitutes constructive dismissal, which is illegal, and which would entitle complainant to reinstatement and payment of backwages. (Zenaida Gaco vs. The Honorable National Labor Relations Commission, G.R. No. 104690, February 23, 1994)
Demotion in the workplace means moving someone to a lower position with less responsibility, status, or rank, possibly with a lower salary. It is like going backward in your job instead of moving forward. But just like getting fired, demoting someone is not something a boss can do without following certain rules.
What is Demotion?
A demotion in office, i.e., the movement from one position to another involving the issuance of an appointment with diminution in duties, responsibilities, status or rank which may or may not involve a reduction in salary, is tantamount to removal, if no cause is shown for it. (Virginia Bautista vs. Civil Service Commission, G.R. No. 185215, July 22, 2010)
Demotion is defined as a situation where an employee is appointed to a position resulting in a diminution in duties, responsibilities, status or rank, which may or may not involve a reduction in salary. Where an employee is appointed to a position with the same duties and responsibilities but a rank and salary higher than those enjoyed in his previous position, there is no demotion and the appointment is valid. (Virginia D. Bautista v. Civil Service Commission and Development Bank of the Philippines, G.R. No. 185215, July 22, 2010)
Demotion as a Management Prerogative
Among the employer’s management prerogatives is the right to prescribe reasonable rules and regulations necessary or proper for the conduct of its business or concern, to provide certain disciplinary measures to implement said rules and to assure that the same would be complied with. (St. Luke’s Medical Center, Inc. vs. Maria Theresa Sanchez, G.R. No. 212054, March 11, 2015)
A “management prerogative” refers to the rights and powers that an employer holds to manage its business effectively. This includes setting rules and regulations to ensure smooth operations and discipline within the workplace.
One of the disciplinary measures that employers can implement is demotion. Demotion involves moving an employee from their current position to a lower one due to disciplinary reasons or performance issues. It is a way for employers to address problems within the workforce and maintain organizational effectiveness.
Requirements for a Valid Demotion
While employers have the prerogative to demote employees, they must do so within the bounds of reasonableness and fairness. This means that the demotion decision should be based on valid reasons related to the employee’s performance, conduct, or the needs of the business.
Even the employer’s right to demote an employee requires the observance of the twin-notice requirement. (Floren Hotel vs. National Labor Relations Commission, G.R. No. 155264, May 6, 2005)
While due process required by law is applied on dismissals, the same is also applicable to demotions likewise affect the employment of a worker whose right to continued employment, under the same terms and conditions, is also protected by law. Moreover, considering that demotion is, like dismissal, also a punitive action, the employee being demoted should as in cases of dismissals, be given the chance to contest the same. (Zenaida Gaco vs. The Honorable National Labor Relations Commission, G.R. No. 104690, February 23, 1994)
Unjustified demotion, in effect, constitutes constructive dismissal, which is illegal, and which would entitle complainant to reinstatement and payment of backwages. (Zenaida Gaco vs. The Honorable National Labor Relations Commission, G.R. No. 104690, February 23, 1994)
Read also:
What you should know about demotion of employees
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