Transfer of Employees

1. Summary

▪ Transferring of employees is a management prerogative.

▪ There are jurisprudential guidelines for a valid transfer.

▪ Non-compliance with requirements for a valid transfer may result in constructive dismissal.

2. Concepts

“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… transfer of employees...” (Rural Bank of Cantilan, Inc. v. Julve, G.R. No. 169750, 27 February 2007)

A “transfer” – is a “movement from one position to another which is of equivalent rank, level or salary, without break in service.” (Tinio v. CA, SMART Communications, Inc., G.R. No. 171764, 08 June 2007)

Promotion is the “advancement from one position to another with an increase in duties and responsibilities as authorized by law, and usually accompanied by an increase in salary.” (Ibid.)

Demotion involves a situation where an employee is relegated to a subordinate or less important position constituting a reduction to a lower grade or rank, with a corresponding decrease in duties and responsibilities, and usually accompanied by a decrease in salary. (Ibid.)

3. Transfer of employees

The exercise of management’s prerogative concerning the employees’ work assignments is based on its assessment of the qualifications, aptitudes and competence of its employees, and by moving them around in the various areas of its business operations it can ...


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