RULING:

The rule is that the transfer of an employee ordinarily lies within the ambit of the employer’s
prerogatives. The employer exercises the prerogative to transfer an employee for valid reasons
and according to the requirement of its business, provided the transfer does not result in
demotion in rank or diminution of the employee’s salary, benefits and other privileges. In illegal
dismissal cases, the employer has the burden of showing that the transfer is not unnecessary,
inconvenient and prejudicial to the displaced employee.

The constant transfer of bank officers and personnel with accounting responsibilities from one branch to
another is a standard practice of Allied Bank, which has more than a hundred branches throughout the
country. Allied Bank does this primarily for internal control. It also enables bank employees to gain the
necessary experience for eventual promotion.