21 basic doctrines on employer's prerogative to transfer

[1] The exercise of the prerogative to transfer or assign employees from one office or area of operation to another is valid provided there is no demotion in rank or diminution of salary, benefits and other privileges. The transfer should not be motivated by discrimination or made in bad faith or effected as a form of punishment or demotion without sufficient cause.

[2] The Court cannot look into the wisdom of the transfer of an employee.

[3] Commitment made by the employee in the employment contract to be re-assigned anywhere in the Philippines is binding on him.

[4] Even if the employee is performing well in his present assignment, management may reassign him to a new post.

[5] The transfer of an employee may constitute constructive dismissal when it amounts to an involuntary resignation resorted to when continued employment is rendered impossible, unreasonable or unlikely; when there is a demotion in rank and/or a diminution in pay; or when a clear discrimination, insensibility or disdain by the employer becomes unbearable to the employee leaving him with no option but to forego with his continued employment.

[6] More specifically, the following three (3) conditions must concur in order for the transfer to be considered as constructive dismissal: [a] When the transfer is unreasonable, inconvenient or prejudicial to the employee; [b] When the transfer involves a demotion in rank or diminution of salaries, benefits and other privileges; and [c] When the employer performs a clear act of discrimination, insensibility, or disdain towards the employee, which forecloses any choice by the latter except to forego his continued employment.

[7] Transfer made in compliance with a government order does not amount to constructive dismissal.

[8] Burden of proof in transfer cases is on the employer.

[9] An employee cannot claim any vested right to his position. While an employee may have a right to security of tenure, this does not give her such a vested right to her position as would deprive the employer of its prerogative to change her assignment or transfer her where her service will be most beneficial to the employer’s interest.

[10] The refusal of an employee to be transferred may be held justified if there is a showing that the transfer was directed by the employer under questionable circumstances. For instance, the transfer of employees during the height of their union’s concerted activities in the company where they were active participants is illegal.

[11] An employee who refuses to be transferred, when such transfer is valid, is guilty of insubordination or willful disobedience of a lawful order of an employer under Article 282 of the Labor Code.13 For example: The dismissal of a medical representative who acceded in his employment application to be assigned anywhere in the Philippines but later refused to be transferred from Manila to a provincial assignment, was held valid. The reason is that when he applied and was accepted for the job, he agreed to the policy of the company regarding assignment anywhere in the Philippines as demanded by his employer’s business operation.

[12] Refusal to transfer due to parental obligations, additional expenses, inconvenience, hardship and anguish is not valid. An employee could not validly refuse lawful orders to transfer based on these grounds.

However, take note of the following:

[13] Refusal to transfer to overseas assignment is valid.

[14] Refusal to transfer consequent to promotion is valid.

[15] Transfer pursuant to the company policy of preventing connivance is valid.

[16] Transfer in accordance with pre-determined and established office policy and practice is valid.

[17] Rotation among employees of banks as required in the Manual of Regulations for Banks and Other Financial Intermediaries issued by the Bangko Sentral ng Pilipinas is valid.

[18] Transfer due to the standard operating procedure of rotating employees from the day shift to the night shift is valid.

[19] Transfer to avoid conflict of interest is valid.

[20] A transfer from one position to another occasioned by the abolition of the position is valid.

[21] Reassignment and transfer pending investigation of irregularities is valid.