Here is the opinion you requested.

The facts gathered from

you are as follows:
Your company decided to change the penalties imposed in
your company policy in relation to discipline of employees.
However, some of the employees strongly and explicitly refused
to affix their signature in the amended company policy.
The issues are:
1. Whether or not the amended company policy is legally
binding to the employees despite their refusal to affix
their signature.
2. Whether or not it is legally possible to impose only the
amended company policy to the employees who have
affixed their signature.
As to your first query, in our opinion, the absence of their
signature in the amended company policy will not invalidate the
same. The change of penalties in the company policy is within the
confines of what we called management prerogative.
The Supreme Court of the Philippines defined valid
management prerogative as one which covers hiring, work
assignment, working methods, time, place and manner of work,
tools to be used, processes to be followed, supervision of workers,
working regulations, transfer of employees, work supervision, layoff of workers and the discipline, dismissal and recall of workers.
Except as provided for or limited by special laws, employees are
free to regulate, according to their own discretion and judgment,
all aspects of employment.1 From the definition alone, we may
excerpt that the employer has the right to discipline its
employees without their approval.
In a long cases decided by the Highest Court, as a rule, the
Court will not interfere with an employers prerogative to regulate
1 Manila Electric Company v. NLRC, G.R. No. 114129, 24 October 1996, 263 SCRA
538

all aspects of employment. Moreover, the rule is well settled that

labor laws discourage interference with an employers judgment
in the conduct of his business.2 The reason behind this principle is
that management prerogative is inherent in the management of
business. A companys policy is a vehicle of its existence. It is
design to guarantee the smooth operation of its business. Thus,
every employee must obey and uphold the code of conduct laid
down by the company and/or to meet its productivity standard.
However, despite the wide discretion provided by law with
respect to companys management prerogative, it has a
limitation. In the case of St. Michael Institute v. Santos, 422
Phil. 723, the Court declared that the only limitation on the
exercise of management prerogative is that the policies, rules,
and regulations on work-related activities of the employees must
always be fair and reasonable, and the corresponding
penalties, when prescribed, commensurate of the offense
involved and to the degree of the infraction.
As to your second query,

2 Castillo vs NLRC 1999