9/10/2017 21 BASIC DOCTRINES on Employer's Prerogative to Transfer

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21 BASIC DOCTRINES on
Employer's Prerogative to
Transfer

Basic principles:[1] The exercise of the prerogative to transfer or assign employees

from one o ce or area of operation to another is valid provided there is no demotion in
rank or diminution of salary, bene ts and other privileges. The transfer should not be
motivated by discrimination or made in bad faith or effected as a form of punishment or
demotion without su cient cause.
[2] The Court cannot look into the wisdom of the transfer of an employee.
[3] Commitment made by the employee in the employment contract to be re-assigned
anywhere in the Philippines is binding on him.
[4] Even if the employee is performing well in his present assignment, management may
reassign him to a new post.

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9/10/2017 21 BASIC DOCTRINES on Employer's Prerogative to Transfer

[5] The transfer of an employee may constitute constructive dismissal when it amounts
to an involuntary resignation resorted to when continued employment is rendered
impossible, unreasonable or unlikely; when there is a demotion in rank and/or a
diminution in pay; or when a clear discrimination, insensibility or disdain by the employer
becomes unbearable to the employee leaving him with no option but to forego with his
continued employment.
[6] More speci cally, the following three (3) conditions must concur in order for the
transfer to be considered as constructive dismissal: [a] When the transfer is
unreasonable, inconvenient or prejudicial to the employee; [b] When the transfer involves
a demotion in rank or diminution of salaries, bene ts and other privileges; and [c] 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.

More Principles:[1] Transfer made in compliance with a government order does not
amount to constructive dismissal.
[2] Burden of proof in transfer cases is on the employer.
[3] An employee cannot claim any vested right to his position. While an employee may
have a right to security of tenure, this does not give her such a vested right to her
position as would deprive the employer of its prerogative to change her assignment or
transfer her where her service will be most bene cial to the employers interest.
[4] The refusal of an employee to be transferred may be held justi ed if there is a
showing that the transfer was directed by the employer under questionable
circumstances. For instance, the transfer of employees during the height of their unions
concerted activities in the company where they were active participants is illegal.
[5] An employee who refuses to be transferred, when such transfer is valid, is guilty of
insubordination or willful disobedience of a lawful order of an employer under Article
282 of the Labor Code.13 For example: The dismissal of a medical representative who
acceded in his employment application to be assigned anywhere in the Philippines but
later refused to be transferred from Manila to a provincial assignment, was held valid.
The reason is that when he applied and was accepted for the job, he agreed to the policy
of the company regarding assignment anywhere in the Philippines as demanded by his
employers business operation.
[6] Refusal to transfer due to parental obligations, additional expenses, inconvenience,
hardship and anguish is not valid. An employee could not validly refuse lawful orders to

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9/10/2017 21 BASIC DOCTRINES on Employer's Prerogative to Transfer

transfer based on these grounds.ADVERTISEMENT: Work from home! Be an online

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However, take note of the following:[a]Refusal to transfer to overseas assignment is

valid.
[b] Refusal to transfer consequent to promotion is valid.
[c] Transfer pursuant to the company policy of preventing connivance is valid.
[d] Transfer in accordance with pre-determined and established o ce policy and practice
is valid.
[e] Rotation among employees of banks as required in the Manual of Regulations for
Banks and Other Financial Intermediaries issued by the Bangko Sentral ng Pilipinas is
valid.
[f] Transfer due to the standard operating procedure of rotating employees from the day
shift to the night shift is valid.
[g] Transfer to avoid con ict of interest is valid.
[h] A transfer from one position to another occasioned by the abolition of the position is
valid.
[i] Reassignment and transfer pending investigation of irregularities is valid.

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9/10/2017 21 BASIC DOCTRINES on Employer's Prerogative to Transfer

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