Photo from Unsplash (Chris Montgomery)
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE
- Managerial prerogatives are subject to limitations provided by law, collective bargaining agreements, and general principles of fair play and justice.
- The State affords the constitutional blanket of rendering protection to labor, but it must also protect the right of employers to exercise what are clearly management prerogatives, so long as the exercise is without abuse of discretion.
- While we concede that management would best know its operational needs, the exercise of management prerogative cannot be utilized as an implement to circumvent our laws and oppress employees.
The exercise of management prerogative is not absolute. The prerogatives accorded to management cannot defeat the very purpose for which labor laws exist, which is, to balance the conflicting interests of labor and management and not to tilt the scale in favor of one over the other, but to guarantee that labor and management stand on equal footing when bargaining in good faith with each other. (Philippine Airlines, Inc. Pascua, G.R. No. 143258. August 15, 2003)
What are the limitations on the exercise of management prerogatives?
- Limitations imposed by
- Law
- CBA
- Employee contract
- Employer practice
- General principles of fair play and justice
- It is subject to police power
- Its exercise should be without abuse of discretion
- It should be done in good faith and with due regard to the rights of labor
The rights and privilege of the employer or the so-called management prerogatives are recognized. The courts shall not interfere with it. This privilege is inherent in the right of employers to control and manage their enterprise effectively. However, the right of employees to security of tenure does not give them vested rights to their positions to the extent of depriving management of its prerogative to change their assignments or to transfer them.
Jurisprudence says:
Managerial prerogatives, however, are subject to limitations provided by law, collective bargaining agreements, and general principles of fair play and justice. (The Philippine American Life And General Insurance Co. vs. Angelita S. Gramaje, G.R. No. 156963, November 11, 2004)
Although the employer has the prerogative to discipline or dismiss its employee, such prerogative cannot be exercised wantonly, but must be controlled by substantive due process and tempered by the fundamental policy of protection to labor enshrined in the Constitution. (Wenifredo Farrol vs. The Honorable Court of Appeals, G.R. No. 133259. February 10, 2000)
Jurisprudence says:
There is no question that the employer has the inherent right to discipline, including that of dismissing its employees for just causes. This right is, however, subject to reasonable regulation by the State in the exercise of its police power. (Associated Labor Unions, TUCP and Renato Felizardo vs. National Labor Relations Commission, G.R. No. 120450. February 10, 1999)
Management prerogatives are included in the constitutional blanket of rendering protection not only to labor, but also to the right of employers, so long as it does not abuse its discretion.
Jurisprudence says:
The State affords the constitutional blanket of rendering protection to labor, but it must also protect the right of employers to exercise what are clearly management prerogatives, so long as the exercise is without abuse of discretion. (Pantranco North Express, Inc. vs. The Hon. National Labor Relations Commission, G.R. No. 106516. September 21, 1999)
Lastly, while it is true that the management is free to regulate, according to its own discretion and judgment, all aspects of employment, including hiring, work assignments, working methods, time, place and manner of work, processes to be followed, supervision of workers, working regulations, transfer of employees, work supervision, lay off of workers and discipline, dismissal and recall of workers and also to retain the prerogative, whenever exigencies of the service so require, to change the working hours of its employees, the exercise of management prerogative is not absolute.
Jurisprudence says:
By its very nature, encompassing as it could be, management prerogative must be exercised in good faith and with due regard to the rights of labor—verily, with the principles of fair play at heart and justice in mind. While we concede that management would best know its operational needs, the exercise of management prerogative cannot be utilized as an implement to circumvent our laws and oppress employees. The prerogative accorded management cannot defeat the very purpose for which our labor laws exist: to balance the conflicting interests of labor and management, not to tilt the scale in favor of one over the other, but to guaranty that labor and management stand on equal footing when bargaining in good faith with each other. (Unicorn Safety Glass, Inc., Lily Yulo And Hilario Yulo vs. Rodrigo Basarte, Jaimelito Flores, G.R. No. 154689, November 25, 2004)
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
All rights reserved.