Transfer that Results in Promotion may be Refused by Employee
The employer wants to transfer the employee to another position. However, such position results in promotion of employee.
Is it still management prerogative such that the employee can be charged with insubordination for refusal?
The Supreme Court held that the offer of transfer is, in legal contemplation, a promotion, which the employees validly refused. Such refusal cannot be the basis for employees’ dismissal from service.
Citing Coca-Cola Bottlers Philippines, Inc. vs. Del Villar the management has the prerogative to transfer or assign employees from one office or area of operation to another – provided there is no demotion in rank or diminution of salary, benefits, and other privileges; and the action is not motivated by discrimination, made in bad faith, or effected as a form of punishment or demotion without sufficient cause.
A transfer is a movement from one position to another which is of equivalent rank, level or salary, without break in service. Promotion, on the other hand, is the advancement from one position to another with an increase in duties and responsibilities as authorized by law, and usually accompanied by an increase in salary.
An employee is not bound to accept a promotion, which is in the nature of a gift or reward. Refusal to be promoted is a valid exercise of a right. Such exercise cannot be considered in law as insubordination, or willful disobedience of a lawful order of the employer, hence, it cannot be the basis of an employee’s dismissal from service.
Hence, despite the fact that no salary increases were effected, the assumption of the post of a Delivery Supervisor/Coordinator should be considered a promotion. The employees’ refusal to accept the same was therefore valid.
(Echo 2000 Commercial Corporation vs. FILIPINO-ECHO 2000 CHAPTER-CLO, G.R. No. 214092, January 11, 2016)
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