Published — January 9, 2021
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.
More about management prerogative aside from promotion: Management prerogative and rights of employers
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Promotion is the advancement from one position to another
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It entails increase in duties and responsibilities and usually accompanied by an increase in salary
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It cannot be done without the employee’s consent
May you punish an employee for not receiving a gift such as promotion?
For a better understanding, let us take the case of Echo 2000 Commercial Corporation vs. Obrero Filipino-Echo 2000 Chapter-CLO, G.R. No. 214092, January 11, 2016.
This case involves Echo 2000 Commercial Corporation (Echo), a provider of warehousing management and delivery services, and its two (2) employees namely: Cortes and Somido. Somido was a Warehouse Checker while Cortes was a Forklift Operator.
Accordingly, Echo received an information about shortages in peso value arising from the movement of products to and from its warehouse. After an immediate audit, Echo suspected that there was a conspiracy among the employees in the warehouse. Since an uninterrupted investigation was necessary, Echo, in the exercise of its management prerogative, decided to re-assign the staff. Somido and Cortes were issued a memorandum informing them of their transfer to the Delivery Section which was within the premises of Echo’s warehouse. The transfer would entail no change in ranks, status and salaries.
Subsequently, Somido wrote Echo a letter indicating his refusal to be promoted as a “Delivery Supervisor.” He explained that he was already happy as a Warehouse Checker. Further, he was not ready to be a Delivery Supervisor since the position was sensitive and required more expertise and training, which he did not have.
On the other hand, Cortes similarly declined Echo’s offer of promotion claiming that he was contented in his post then as a Forklift Operator. He also alleged that he would be more productive as an employee if he remained in his post. He also lacked prior supervisory experience.
However, without the consent of Somido and Cortes, Echo informed both of them their assignments and designations as Delivery Supervisor with specific duties. Somido and Cortes were eventually dismissed for refusal to comply and perform their new specific duties. Somido and Cortes claimed that they were offered promotion, which were mere ploys to remove them as rank-and-file employees.
Echo alleged that Somido and Cortes were merely transferred and not promoted.
What is promotion?
The Supreme Court says:
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. For promotion to occur, there must be an advancement form one position to another or an upward vertical movement of the employee’s rank or position. Any increase in salary should only be considered incidental but never determinative of whether a promotion is bestowed upon an employee.
Is an employee bound to accept a promotion?
The Supreme Court says:
No.
An employee is not bound to accept a promotion, which is in the nature of a gift or reward. Refusal to be promoted is a valid exercise of a right. Such exercise cannot be considered an insubordination or willful disobedience of a lawful order of the employer; hence, it cannot be the basis of an employee’s dismissal from service.
In this case, a Warehouse Checker and a Forklift Operator are rank-and-file employees. On the other hand, the job of a Delivery Supervisor/Coordinator requires the exercise of discretion and judgment from time to time. A Delivery Supervisor’s duties and responsibilities are apparently not of the same weight as those of a Warehouse Checker or Forklift Operator. Hence, despite the fact that no salary increases were effected, the assumption of the post of a Delivery Supervisor was considered by the Supreme Court as a promotion.
Thus, Echo was guilty of illegal dismissal.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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