What is the limitation in exercising the so-called management prerogative?
While an employer is free to regulate all aspects of employment, the exercise of management prerogatives must be in good faith and must not defeat or circumvent the rights of its employees.
Malcaba vs. Prohealth Pharma Philippines, G.R. No. 209085, June 06, 2018 , [864 SCRA 518]
What is the significance of Management Prerogative?
Management prerogative gives an employer freedom to regulate according to their discretion and best judgment, all aspects of employment including work assignment, working methods, the processes to be followed, working regulations, transfer of employees, work supervision, lay-off of workers and the discipline, dismissal and recall of workers.
When can one invoke the concept of strained relationship?
Strained relationship may be invoked only against employees whose positions demand trust and confidence, or whose differences with their employer are of such nature or degree as to preclude reinstatement.
Fernandez, Jr. vs Manila Electric Company, G.R. No. 226002, June 25, 2018, [868 SCRA 156]
Give an example where there is no employer-employee relationship.
Where a person who works for another performs his job more or less at his own pleasure, in the manner he sees fit, not subject to definite hours or conditions of work, and is compensated according to the result of his efforts and not the amount thereof, no employer-employee relationship exists.
Maricalum Mining Corporation vs. Florentino , G.R. No. 221813, July 23, 2018, [872 SCRA 572]
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