FAQ: Management Prerogative

Answers to frequently asked questions on management prerogative in the Philippines.

What is management prerogative?

Management prerogative is the bundle of rights inherent to the employer who gets to decide all aspects of employment, from pre-employment to post-employment, unless limited or regulated by labor law.

What are examples of management prerogative?

The exercise of management prerogative may come in various forms, such as implementing workplace policies and regulations, enforcing company practices, managing of employees, and so on.

As earlier explained, management prerogative covers pre-employment to post-employment, and everything else in between, including work hours/schedules, work assignments, work supervision, disciplinary action, recall, and so on.

What is the legal basis of management prerogative?

The Supreme Court recognized management prerogative as an inherent right of an employer. This means that such bundle of rights automatically attaches or ensues the moment a business becomes an employer. This is the meaning of it being an inherent right.

Since it is an inherent right, no law is needed. Thus, there are no legal provisions pertaining to management prerogative in the 1987 Constitution, Republic Acts, as well as in older laws, such as Presidential Decrees, Batasang Pambansa, and so on.

Is management prerogative unlimited?

No, management prerogative is not unlimited. Management prerogative has two general limitations, which a...

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