Management Prerogatives

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Management prerogatives agreements, and general

principles of fair play and justice.


- An exclusive and special right,
power or privilege granted to Most common Management Prerogatives
business owners.
• The Right to Hire - exclusive right to
- “As a privilege inherent in the
purchase labor from any person whom it
employer’s right to control and
chooses.
manage its enterprise effectively, its
freedom to conduct its business • The Right to Dismiss (Fire/Terminate) - right
operations to achieve its purpose to dismiss employees in accordance with
cannot be denied.” (Peckson v. the causes and procedures established by
Robinsons Supermarket Corporation, law.
G.R. No. 198534, 03 July 2013)
• The Right to Transfer - right to transfer an
- Par.4, Sec. 3, ART. XIII, Philippine employee from one office to another within
Constitution: • “The state shall the business establishment provided that
regulate the relations between there is no demotion in rank, salary, benefits
workers and employers, recognizing
and other privileges.
the x x x right of enterprises to
reasonable returns of investments, • The Right to Promote and Demote -
and to expansion & growth.” Promotion: scalar ascent of an employee to
- There are two limitations to another position higher in rank or salary.
management prerogative: (a) good
faith, and (b) employee rights. • The Right to Discipline - The right of the
employer to subject his employees to
a. In a case, the dismissal of a utility disciplinary measures and the need for
man, who was separated from discipline has been judicially noticed.
service due to his refusal to
• The Right to Lay Down/ Policies Establish
transfer, was held valid after it
Working Hours /organize and Reorganize -
was established that the
company was acting in good an employer is free to regulate, according
faith when it implemented a to his own discretion, all aspects of
reorganization plan to address employment, including work assignments,
financial difficulties and after working methods, time, place and the
due process was observed. manner or work, tools to be used, processes
b. “Managerial prerogatives, to be followed, supervision of workers and
however, are subject to working regulations.
limitations provided by law,
collective bargaining • The Right to Reasonable returns on
agreements, and general investment; the process it may adopt or
principles of fair play and devise means designed towards expansion
justice.” (Endico v. Quantum and growth.
Foods Distribution Center, G.R.
No. 161615, 39 January 2009) the
employee’s bundle of rights
consists of those provided for by
law, contract, company policies,
collective bargaining
agreement, other employment

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