Dear PAO,

I have been working as a sales agent in Santiago City, Isabela, for the past two years and have consistently ranked among the top performers in our company. Recently, however, my supervisor informed me that there is a strong possibility that I will be reassigned to Las Piñas City due to declining sales in that area. This potential transfer has already been discussed by the top management, and a meeting regarding the matter has been scheduled by my supervisor.

I am hesitant to accept the transfer because my children are currently enrolled in a private school in Santiago City, Isabela. My wife is also working near our residence. Additionally, I am concerned that weaker sales performance in Las Piñas City could negatively affect my incentives and reduce my overall income.

Moira

Dear Moira,

It is a well-established principle that an employer holds the management prerogative to transfer employees as necessary, in pursuit of the overall best interest and operational efficiency of the business. In Automatic Appliances, Inc. vs. Deguidoy (GR 228088; Dec. 4, 2019; Ponente: Associate Justice Jose Reyes, Jr.), the Supreme Court had the occasion to explain the management prerogative of companies to transfer their employees as follows: “Particularly, under the doctrine of management prerogative, an employer possesses the inherent right to regulate, according to its “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.” xxx

Accordingly, the employer may determine, in accordance with its sound business judgment, its employees’ work assignments. This discretion to impose work assignments, or corollarily, transfer the employees shall be based on the employer’s assessment of the “qualifications, aptitudes and competence of its employees.” The employer is allowed to move them around various areas of its business operations to ascertain where they will function with maximum benefit to the company. After all, the employer is in the best position to determine where its employees will thrive for the good of the company.

In Peckson vs. Robinsons Supermarket Corporation (GR 198534; July 3, 2013; Ponente: Associate Justice Bienvenido Reyes), the Supreme Court elucidated that employers may transfer employees based on their qualifications and the needs of the business, as long as the transfer is reasonable, not prejudicial, and does not result in demotion or loss of pay or benefits:

“The managerial prerogative to transfer personnel must be exercised without grave abuse of discretion, bearing in mind the basic elements of justice and fair play. Having the right should not be confused with the manner in which that right is exercised. Thus, it cannot be used as a subterfuge by the employer to rid himself of an undesirable worker. In particular, the employer must be able to show that the transfer is not unreasonable, inconvenient or prejudicial to the employee; nor does it involve a demotion in rank or a diminution of his salaries, privileges and other benefits. Should the employer fail to overcome this burden of proof, the employee’s transfer shall be tantamount to constructive dismissal, which has been defined as a quitting because continued employment is rendered impossible, unreasonable or unlikely; as an offer involving a demotion in rank and diminution in pay.”

Thus, it is clear from the above that an employer may transfer an employee from one unit to another, but the same must be made in good faith. Otherwise, the transfer could be interpreted as a constructive dismissal of the concerned employee.

Applying the foregoing to your case, if you feel that your transfer is unreasonable or tainted by bad faith based on the standards mentioned above, you may file a complaint against your employer. On this score, you may need more than possible loss of income or distance as reasons for contesting the transfer.

We hope that we were able to answer your queries. This advice was solely based on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.

Thank you for your continued trust and support.