Transfer of Employee Done in Good Faith is not Illegal Even if Costly and Inconvenient
Transfer of employees is one of the management prerogatives. The employer has the prerogative of making transfers and reassignment of employees to meet the requirements of the business.
Since the employees are viewed as having no vested rights over the position, the employer can transfer them whenever the exigencies of business require it.
In a number of cases, the Court has recognized and upheld the prerogative of management to transfer an employee from one office to another within the business establishment provided that there is no demotion in rank or diminution of his salary, benefits and other privileges. This is a privilege inherent in the employer’s right to control and manage its enterprise effectively. (Yuco Chemical Industries, Inc. v. MOLE et al., 185 SCRA 727.)
The employee cannot refuse the transfer insisting on the comfort of his position. The Supreme Court said:
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 prerogative to change his assignment or transfer him where he will be most useful. When his transfer is not unreasonable, nor inconvenient, nor prejudicial to him, and it does not involve a demotion in rank or diminution of his salaries, benefits, and other privileges, the employee may not complain that it amounts to a constructive dismissal. (Philippine Japan Active Carbon Corp. v. NLRC, 171 SCRA 164.)
Further, even as the law is solicitous of the employees’ welfare, it cannot ignore the right of the employer to
exercise what are clearly and obviously management prerogatives. The freedom of management to conduct its business operations to achieve its purpose cannot be denied. (Yuco Chemical Industries, Inc. v. MOLE et al., 185 SCRA 727.)
In Benguet Electric Cooperative v. Fianza (G.R. No. 158606, March 9, 2004, 425 SCRA 41, 50.), the SC held that the management had the prerogative to determine the place where the employee is best qualified to serve the interests of the business given the qualifications, training and performance of the affected employee.
Although the employees’ transfer to a certain location might be potentially inconvenient for them because it would entail additional expenses on their part aside from their being forced to be away from their families, it was neither unreasonable nor oppressive. (See Chateau Royale Sports and Country Club, Inc. vs. January 18, 2017, G.R. No. 197492)
Benefit of the “Transfer Clause” in Employment Contract
If the employee signed the transfer clause, the SC held that having expressly consented to the foregoing, the employees had no basis for objecting to their transfer. According to Abbot Laboratories (Phils.), Inc. vs. National Labor Relations Commission (No. L-76959, October 12, 1987, 154 SCRA 713, 719.) the
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employee who has consented to the company’s policy of hiring sales staff willing to be assigned anywhere in the Philippines as demanded by the employer’s business has no reason to disobey the transfer order of management.
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Prescinding from the above, the company cannot be held liable for a valid transfer. It is not under any obligation to pay for the costs of transfer of employees where the transfer is carried out in good faith on account of the exigencies of business.
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