Cases: Management Prerogative

Under the doctrine of management prerogative, every employer has the inherent right to regulate, according to his own discretion and judgment, all aspects of employment, including hiring, work assignments, working methods, the time, place and manner of work, work supervision, transfer of employees, lay-off of workers, and discipline, dismissal, and recall of employees.

1. Concept

Coca-Cola Export Corporation v. Gacayan, G.R. No. 149433, 15 December 2010

⦁ “The employer’s right to conduct the affairs of its business, according to its own discretion and judgment, is well-recognized. An employer has a free reign and enjoys wide latitude of discretion to regulate all aspects of employment, including the prerogative to instill discipline in its employees and to impose penalties, including dismissal, upon erring employees. This is a management prerogative, where the free will of management to conduct its own affairs to achieve its purpose takes form. The only criterion to guide the exercise of its 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 to the offense involved and to the degree of the infraction.”

Peckson v. Robinsons Supermarket Corporation, G.R. No. 198534, 03 July 2013


⦁ “[The employee] first joined the [the Company – a supermarket] as a Sales Clerk on November 3, 1987. On October ...

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