ON TRANSFER OF EMPLOYEES

More on employees aside from transfer: Are Seasonal Employees Considered Regular Employees?

• Transfer of employee is a management prerogative

• Not every transfer of employee is valid

• Transfer of employee may amount to constructive dismissal

Movement is life; without movement, life is unthinkable. – Moshe Feldenkrais

The concept of management prerogative always comes in when talking about transfer of employees. Management prerogative is the inherent right of every employer to regulate, according to his own discretion and judgment, all aspects of employment. Among these aspects of employment is the transfer of employees.

In the first place, what is meant by “transfer”?

For a better understanding, let us take the case of Jenny F. Peckson vs. Robinsons Supermarket Corporation (G.R. No. 198534, July 3, 2013).

In this case, Jenny was holding the position of Category Buyer at Robinsons Supermarket Corporation (RSC) when Sarte (Assistant Vice-President for Merchandising) reassigned her to the position of Provincial Coordinator.

Claiming that her new reassignment was a demotion because it was non-supervisory and clerical in nature, Jenny refused to turn over her responsibilities to the new Category Buyer, or to accept her new responsibilities as Provincial Coordinator. RSC, through a memorandum issued to Jenny, demanded an explanation from her within 48 hours for her refusal to accept her new assignment despite written and verbal demands. Jenny ignored the 48-hour deadline to explain which led to the issuance of another memorandum reiterating the demand to explain within 48 hours why she persistently refused to assume her new position.

Jenny then explained that she could not accept the position of Provincial Coordinator since she saw it as a demotion. As it turned out, Jenny had already filed a complaint for constructive dismissal against RSC.

For their part, RSC maintained that her transfer was not a demotion since the Provincial Coordinator occupied a position like the Category Buyer, with the same working conditions, salary and benefits. Also, that the transfer was made in the exercise of management prerogative and sound discretion.

Is the transfer of Jenny amounts to a constructive dismissal?

The Supreme Court says:

No.

The lateral transfer of Jenny from Category Buyer to Provincial Coordinator was not a demotion amounting to constructive dismissal, since both positions belonged to Job Level 5 and between them, there is no significant disparity in terms of the requirements of skill, experience and aptitude.

In addition, management may transfer an employee form one office to another within the business establishment provided there is no demotion in rank or diminution of salary, benefits, and other privileges, and the action is not motivated by discrimination or bad faith or effected as a from of punishment without sufficient cause.

Also, the Supreme Court issued the following guidelines concerning the transfer of employees:

1. 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;
2. The employer has the inherent right to transfer or reassign an employee for legitimate business purposes;
3. 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;
4. The employer must be able to show that the transfer is not unreasonable, inconvenient, or prejudicial to the employee.

In this case, it was sufficiently established by RSC that the transfer was not unreasonable or inconvenient to Jenny and that it was a valid exercise of RSC’s management prerogative.

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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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