Pimentel, Mark Anthony B.JD 1C1Legal Research
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, supervision of workers, working
regulations, transfer of employees, work suspension, lay-off of
workers and discipline, dismissal and recall of workers.
(Philippine Airlines vs. NLRC, G.R. No. 115785, August 4,
2000).
As in case of AAA Inc. who wanted to implement a labor
rationalization scheme with the intention of reducing the number of
Executive Systems Administrators from 100 to 50 and transferring
back the other 50 to their previous and lower position of Head
Technical Support and maintaining the salaries of ESAs. AAA Inc.,
however, believes that there is no demotion considering that there
is no change in pay and benefits of the employees transferred back
to their previous position.
Jurisprudence has shown that there is demotion when an employee
is appointed to a position that results in a diminution in duties,
responsibilities, status or rank which may or may not involve a
reduction in salary. Where an employee is appointed to a position
with the same duties and responsibilities with a rank and salary
higher than those he enjoyed in his previous position, there is no
demotion and the appointment is valid. (Virginia D. Bautista vs.
Civil Service Commission and Development Bank of the Philippines,
G.R. No. 185215, July 22, 2010). Also, citing the case of Norkis
Trading Co., Inc. and/or Manuel Gaspar E. Albos, Jr. vs Melvin
Nilo, G.R. No. 159730, the court ruled that the transfer of
respondent from Credit and Collection Managerto Marketing Assistant
did not result in the reduction of his salary, there was a
reduction in his duties and responsibilities which amounted to a
demotion tantamount to a constructive dismissal as correctly held
by the NLRC and the CA.
It is clear from the abovementioned statements that there is
demotion if a persons appointment resulted in a diminution of his
duties, responsibilities, status or rank even though there is no
reduction in his salary. The mere showing that there is a reduction
or lowering in position, rank or responsibilities as a result of a
transfer from the previous one, considering that there is no change
in pay and benefits would still constitutes a demotion.
Therefore, if the said labor rationalization scheme will be
fully implemented by AAA Inc. there would be a clear manifestation
of demotion.
