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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:
A transfer is a “movement from one position to another which is of equivalent rank, level or salary, without break in service.”
Promotion, on the other hand, is the “advancement from one position to another with an increase in duties and responsibilities as authorized by law, and usually accompanied by an increase in salary.”
(Albert O. Tinio v. Court of Appeals and Smart Communications, Inc., G.R. No. 171764, June 8, 2007)
It has been held that an employee’s right to security of tenure does not give him such a vested right in his position, as would deprive the company of its prerogative to change his assignment or transfer him where he will be most useful.
When his transfer is not unreasonable, or inconvenient, or prejudicial to him, and it does not involve a demotion in rank or a diminution of his salaries, benefits and other privileges, the employee may not complain that it amounts to a constructive dismissal. (Philippine-Japan Active Carbon Corporation v. National Labor Relations Commission, G.R. No. 83239, March 8, 1989)
As held in the case of Coca-Cola Bottlers Philippines v. Del Villar (G.R. No. 163091, October 6, 2010):
“The employer has the right to transfer or assign employees from one area of operation to another, or one office to another or in pursuit of its legitimate business interest.”
A transfer means movement:
(1) From one position to another of equivalent rank, level, or salary, without a break in the service; or
(2) From one office or area of operation to another.
The transfer is valid provided that there is no demotion in rank or diminution of salary, benefits, and other privileges and not motivated by discrimination, made in bad faith, or effected as a form of punishment or demotion without sufficient cause. (Westin Philippine Plaza Hotel v. National Labor Relations Commission, G.R. No. 121621, May 3, 1999)
But, like other rights, there are limits thereto. The managerial prerogative to transfer personnel must be exercised without grave abuse of discretion, bearing in mind the basic elements of justice and fair play. Having the right should not be confused with the manner in which the right is exercised. Thus, it cannot be used as a subterfuge by the employer to rid himself of an undesirable worker.
The employer must be able to show that the transfer is not unreasonable, inconvenient, or prejudicial to the employee; nor does it involve a demotion in rank or a diminution of his salaries, privileges, and other benefits.
Should the employer fail to overcome this burden of proof, the employee’s transfer shall be tantamount to constructive dismissal, which has been defined as a quitting because continued employment is rendered impossible, unreasonable or unlikely; as an offer involving a demotion in rank and diminution of pay. Likewise, constructive dismissal exists when an act of clear discrimination, insensibility or disdain by an employer has become so unbearable to the employee leaving him with no option but to forego his continued employment.
When is a transfer of an employee tantamount to constructive dismissal?
Jurisprudence says:
“A transfer is deemed to be constructive dismissal when the following conditions concur:
(1) when the transfer is unreasonable, inconvenient or prejudicial to the employee;
(2) when the transfer involves a demotion in rank or diminution of salaries, benefits and other privileges; and
(3) when the employer performs a clear act of discrimination, insensibility, or disdain towards the employee, which forecloses any choice by the latter except to forego his continued employment.” (Albert O. Tinio v. Court of Appeals and Smart Communications, Inc., G.R. No. 171764, June 8, 2007)
In the case of Albert O. Tinio v. Court of Appeals and Smart Communications, Inc. (G.R. No. 171764, June 8, 2007), the Supreme Court distinguished promotion from transfer, to wit:
A transfer is a “movement from one position to another which is of equivalent rank, level or salary, without break in service.”
Promotion, on the other hand, is the “advancement from one position to another with an increase in duties and responsibilities as authorized by law, and usually accompanied by an increase in salary.”
May the employer compel an employee to accept a promotion?
No. As held in the case of Echo 2000 Commercial Corporation v. Obrero Filipino-Echo 2000 Chapter (G.R. No. 214092, January 11, 2016):
A transfer that results in promotion cannot be done without the employee’s consent since there is no law that compels an employee to accept a promotion for the reason that a promotion is in the nature of a gift or reward, which a person has a right to refuse.
Related Articles:
Employer’s Right to Transfer Employees
What is the right to security of tenure
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