Employers' discretion on imposing penalties

In Raza v. Daikoku Electronics Phils. Inc.,[1] the petitioner alleged that the penalty of dismissal imposed upon him is too harsh. It is long established that an employer is given a wide latitude of discretion in managing its own affairs, and in the promulgation of policies, rules and regulations on work-related activities of its employees.[2] The broad discretion includes the implementation of company rules and regulations and the imposition of disciplinary measures on its workers.[3] But for the management prerogative to be upheld, the exercise of disciplining employees and imposing appropriate penalties on erring workers must be practiced in good faith for the advancement of the employer’s interest and not for the purpose of defeating or circumventing the rights of the employees under special laws or under valid agreements.[4] [1] G.R. No. 188464, July 29, 2015.

[2] San Miguel Corporation v. NLRC, 574 Phil. 556, 570 (2008).

[3] Dongon v. Rapid Movers and Forwarders Co., Inc., G.R. No. 163431, August 28, 2013.

[4] Fulache, et al. v. ABS-CBN Broadcasting Corp., 624 Phil. 562, 583 (2010).