2008 PRE-WEEK BAR EXAM NOTES ON LABOR LAW
By: Prof. JOSELITO GUIANAN CHAN
LABOR LAWS OF THE PHILIPPINES
PART - IV
LAW ON TERMINATION OF EMPLOYMENT
SECURITY OF TENURE
1. What is the extent of the application of security of tenure?
Security of tenure does not exclusively apply to regular employment only. It also applies to probationary, seasonal, project and other forms of employment during the effectivity thereof.
Managerial employees also enjoy security of tenure. The principle of security of tenure applies not only to rank-and-file employees but also to managerial employees. (PLDT vs. Tolentino, G. R. No. 143171, Sept. 21, 2004). chanrobles virtual law library
The fact that one is a managerial employee does not by itself exclude him from the protection of the constitutional guarantee of security of tenure. (Fujitsu Computer Products Corporation of the Philippines vs. CA, G. R. No. 158232, April 8, 2005; Maglutac vs. NLRC, 189 SCRA 767 [1990]). chanrobles virtual law library
MANAGEMENT RIGHTS AND PREROGATIVES.
2. What is the extent of the rights and prerogatives of management?
Our laws recognize and respect the exercise by management of certain rights and prerogatives. For this reason, courts often decline to interfere in legitimate business decisions of employers. In fact, labor laws discourage interference in employers' judgment concerning the conduct of their business. (Philippine Industrial Security Agency Corporation vs. Aguinaldo, G. R. No. 149974, June 15, 2005; Mendoza vs. Rural Bank of Lucban, G.R. No. 155421, July 7, 2004).
An employer can regulate, generally without restraint, according to its own discretion and judgment, every aspect of its business. (Deles, Jr. vs. NLRC, G. R. No. 121348, March 9, 2000). chanrobles virtual law library
This privilege is inherent in the right of employers to control and manage their enterprise effectively. (Mendoza vs. Rural Bank of Lucban, G.R. No. 155421, 07 July 2004).
3. What are the limitations on the exercise of management prerogatives?
Needless to state, the exercise of management prerogative is not absolute. The exercise of management prerogative is subject to the limitations imposed by law or by CBA, employment contract, employer policy or practice and general principles of fair play and justice. (The Philippine American Life and General Insurance Co. vs. Gramaje, G. R. No. 156963, Nov. 11, 2004).
4. What is the extent of management's prerogative to prescribe working methods, time, place, manner and other aspects of work?
Employers have the freedom and prerogative, according to their discretion and best judgment, to regulate and control all aspects of employment in their business organizations. Such aspects of employment include hiring, work assignments, working methods, time, place and manner of work, tools to be used, processes to be followed, supervision of workers, working regulations, transfer of employees, work supervision, lay-off of workers and the discipline, dismissal and recall of workers. (Philippine Airlines, Inc. vs. NLRC, G. R. No. 115785, Aug. 4, 2000). chanrobles virtual law library
Thus, as held in one case, management retains the prerogative, whenever exigencies of the service so require, to change the working hours of its employees. (Sime Darby Pilipinas, Inc. vs. NLRC, G.R. No. 119205, 15 April 1998, 289 SCRA 86). chanrobles virtual law library
