The Supreme Court ruled in favor of Victoria's Milling Company in the case of Chu v. NLRC. The company's prerogative to transfer Chu was not limited by the special contract of employment. Management has inherent rights to control variables like employee transfers and assignments in order to enhance profitability. As long as a transfer is not unreasonable, inconvenient, prejudicial, or involves demotion or diminution of salary and benefits, there is no constructive dismissal. An employee's tenure rights do not deprive a company of its management prerogatives to transfer workers where they will be most useful.
The Supreme Court ruled in favor of Victoria's Milling Company in the case of Chu v. NLRC. The company's prerogative to transfer Chu was not limited by the special contract of employment. Management has inherent rights to control variables like employee transfers and assignments in order to enhance profitability. As long as a transfer is not unreasonable, inconvenient, prejudicial, or involves demotion or diminution of salary and benefits, there is no constructive dismissal. An employee's tenure rights do not deprive a company of its management prerogatives to transfer workers where they will be most useful.
The Supreme Court ruled in favor of Victoria's Milling Company in the case of Chu v. NLRC. The company's prerogative to transfer Chu was not limited by the special contract of employment. Management has inherent rights to control variables like employee transfers and assignments in order to enhance profitability. As long as a transfer is not unreasonable, inconvenient, prejudicial, or involves demotion or diminution of salary and benefits, there is no constructive dismissal. An employee's tenure rights do not deprive a company of its management prerogatives to transfer workers where they will be most useful.
The Supreme Court ruled in favor of Victoria's Milling Company in the case of Chu v. NLRC. The company's prerogative to transfer Chu was not limited by the special contract of employment. Management has inherent rights to control variables like employee transfers and assignments in order to enhance profitability. As long as a transfer is not unreasonable, inconvenient, prejudicial, or involves demotion or diminution of salary and benefits, there is no constructive dismissal. An employee's tenure rights do not deprive a company of its management prerogatives to transfer workers where they will be most useful.
• • SC RULES IN FAVOR OF VICTORIA’S MILLING. THE COMPANY’S PREROGATIVE TO TRANSFER CHU WAS NOT LIMITED BY THE SPECIAL CONTRACT OF EMPLOYMENT • • Certain rights are inherent in the management of business enterprises, these are called management prerogatives or acts by which one directing a business is able to control the variables to enhance the chances of making profit. • • In short, the elbowroom in his quest for profits. • • One of such prerogatives is the right to transfer employees in their workstation based on the employer’s assessment and perception of its employee’s qualifications, aptitudes, and competence. • • When the transfer is not unreasonable, nor inconvenient, not prejudicial, and does not involve a demotion in rank, or diminution of salaries, benefits, and other privileges, there is no constructive dismissal. • • Even as the law is solicitous of the welfare of employees, it must also protect the right of an employer to exercise what are clearly management prerogatives. • • The free will of management to conduct its own business affairs to achieve its purpose cannot be denied. • • An employee’s right to security of tenure does not give him such a vested right in his position as would deprive the company of its prerogatives to change his assignment or transfer him where he will be most useful. • • The court found no waiver of right to transfer petitioner in the “Special Contract of Employment” as there is no stipulation to that effect. • • The mere specification in the employment contract of the position to be held by the employee is not such stipulation.