Cases: Willful Disobedience

1. Transfer of employees

Transfer of employees is a management prerogative.

Running a business is filled with difficulties and challenges, particularly when it comes to managing human resource. As such, the employer is given a wide latitude to regulate all aspects of employment via the management prerogative – to ensure the success of the company and continued employment of the employees.

Management prerogative includes the right to transfer employees. There, are however, limitations to the exercise of this right by the employer to transfer employees. It should be done in good faith and with due regard to the rights of the employees.

Indeed, the right of the employer to transfer the employees in the interest of the efficient and economic operation of its business cannot be seriously challenged. That is its prerogative. The only limitation on the discretion of management in this regard is its mala fides. The only time the employer cannot exercise this right is where it is vitiated by improper motive and is merely a disguised attempt to remove or punish the employee sought to be transferred. (BPI Employees Union-ALU v. NLRC, G.R. No. L-69746-47, L-76842-44 and L-76916-17, 31 March 1989)

The employer’s right to transfer employees is particularly important for roles or positions that require movement from one location to another, particularly for fieldwork or branch assignments.


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