DOCTRINE OF MANAGEMENT PREROGATIVE

- While the constitution is committed in the INTERPRETATION AND CONSTRUCTION

policy of social justice and the protection of
working class, it should not be supposed that
every labor dispute will be automatically
decided in favor of labor.
- Management also has its own rights which, as
such, are entitled to respect and enforcement
in the interest of simple fair play.
 Liberal Approach
- In interpreting the constitutions’ protection to
labor and social justice provisions and the
labor laws and rules and regulations
implementing the constitutional mandate, the
SC adopts the liberal approach which favors
the exercise of labor rights.

Among the rights are the following:
a. Right to ROI
- The employer has the right to return of
investments and to make profit.
b. Right to prescribe rules/regulations
- Employers have the right to make reasonable
rules and regulations or the government of
their employees, and when employees, with
knowledge of an established rule, enter the
service, the rule becomes part of the contract
of employment.
- Binding, UNLESS, grossly oppressive or
contrary to law.
ARTICLE 5: RULES AND REGULATIONS
- The DOLE and other agencies charged with the
administration and enforcement of this code or
any of its parts shall promulgate the necessary
implementing rules and regulations (IRR).
Such rules and regulations shall become
effective 15 days after announcement of their
adoption in newspaper or general circulation
(Tanada vs Tuvera).

c. Right to Select Employees

- An employer has the right to select his
employees and t decide when to engage them.

d. Right to Transfer/Discharge Employees

- An employer has the perfect right to transfer,
reduce, or lay-off personnel in order to
minimize expenses and to insure the stability
of the business, and even to close he business.

REASON FOR [ACCORDING GREATER

PROTECTION TO EMPLOYEES/LABOR]
- Is the matter of employment bargaining, there
is no doubt that the employer stands on higher
footing than the employees!
- First, there is a greater supply than demand for
labor; and Second, the need for employment by
labor comes from vital, and even disparate
necessity.
- Consequently, the law must protect labor, @
least, to the extent of raising him to equal
footing in bargaining relations with capital and
to shield him from buses brought about by the
necessity for survival.
- (BASIS) Article 2, Section 18: “The state
affirms labor as a primary social economic force.
It shall protect the rights of workers to promote
their welfare.”