The court held that the age requirement imposed by RICC/PICMW on the security guards assigned to its compound was a valid contractual stipulation within the client's rights. While employees have security of tenure under the constitution, companies can transfer employees to different assignments if it is reasonable and does not involve demotion, pay cuts, or diminished benefits. Here, the transfer of guards over age 45 to different posts did not amount to constructive dismissal since there was no demotion or loss of compensation involved. The client has the right to require service contractors to meet certain qualifications for personnel assigned to their needs.
The court held that the age requirement imposed by RICC/PICMW on the security guards assigned to its compound was a valid contractual stipulation within the client's rights. While employees have security of tenure under the constitution, companies can transfer employees to different assignments if it is reasonable and does not involve demotion, pay cuts, or diminished benefits. Here, the transfer of guards over age 45 to different posts did not amount to constructive dismissal since there was no demotion or loss of compensation involved. The client has the right to require service contractors to meet certain qualifications for personnel assigned to their needs.
The court held that the age requirement imposed by RICC/PICMW on the security guards assigned to its compound was a valid contractual stipulation within the client's rights. While employees have security of tenure under the constitution, companies can transfer employees to different assignments if it is reasonable and does not involve demotion, pay cuts, or diminished benefits. Here, the transfer of guards over age 45 to different posts did not amount to constructive dismissal since there was no demotion or loss of compensation involved. The client has the right to require service contractors to meet certain qualifications for personnel assigned to their needs.
Summary: NO. The condition imposed by respondent RICC/PICMW, as a
principal or client of the contractor Amethyst, regarding the age Security of tenure, although provided in the Constitution, does requirement of the security guards to be designated in its compound, not give an employee an absolute vested right in a position as would is a valid contractual stipulation. It is an inherent right of deprive the company of its prerogative to change their assignment or RICC/PICMW, as the principal or client, to specify the qualifications of transfer them where they will be most useful. When a transfer is not the guards who shall render service pursuant to a service contract. It unreasonable, nor inconvenient, nor prejudicial to an employee; and it stands to reason that in a service contract, the client may require from does not involve a demotion in rank or diminution of his pay, benefits, the service contractor that the personnel assigned to the client should and other privileges, the employee may not complain that it amounts meet certain standards and possess certain qualifications, to a constructive dismissal. conformably to the client’s needs.
Facts: Security of tenure, although provided in the Constitution, does
not give an employee an absolute vested right in a position as would These were consolidated cases for alleged illegal dismissal deprive the company of its prerogative to change their assignment or with money claims against sister companies Resin Industrial Chemical transfer them where they will be most useful. When a transfer is not Corp., (RICC) and Philippine Iron Construction and Marine Works, unreasonable, nor inconvenient, nor prejudicial to an employee; and it Inc., (PICMW) and their security services provider, Amethyst Security does not involve a demotion in rank or diminution of his pay, benefits, and General Services, Inc. (formerly Calmar Security Agency). and other privileges, the employee may not complain that it amounts to a constructive dismissal. When RICC/PICMW renewed their service contract with Amethyst in January 1998, respondent RICC in a letter dated January 15, 1998, The law recognizes the employer’s right to transfer or assign reminded Amethyst of their stipulated age limit for the latter’s guards employees from one area of operation to another, or one office to detailed at the RICC/PICMW compound. This prompted respondent another or in pursuit of its legitimate business interest, provided there Amethyst to issue an order on January 23, 1998, directing all security is no demotion in rank or diminution of salary, benefits and other guards to submit copies of their respective Birth Certificates. On privileges and not motivated by discrimination or made in bad faith, or January 30, 1998, petitioners who were at that time over 45 years of effected as a form of punishment or demotion without sufficient cause. age received Memorandum/Relief Orders relieving them from their existing postings as security guards of Amethyst with RICC/PICMW, effective February 1, 1998. Petitioners were instructed to report to the main office of Amethyst for reassignment. The order further stated that the failure of petitioners to comply with the directive would be construed as a manifestation of their lack of interest to continue working as security personnel and Amethyst would consider them absent without official leave (AWOL).
Issue:
WON petitioners were constructively dismissed which resulted
in violation of their constitutional right to labor.