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Difference Between Transfer and Promotion

The document discusses the differences between transfer and promotion for employees. It also discusses an employer's ability to transfer employees without notice. It provides the following key points: 1. A promotion involves an increase in duties, responsibilities and salary, while a transfer is a lateral move without a promotion. 2. An employer generally cannot transfer an employee without prior notice but may do so in cases of urgency if it is in good faith and does not negatively impact the employee's rights. 3. Jurisprudence recognizes management's prerogative to transfer employees between locations for legitimate business reasons as long as it does not involve demotion, pay cuts, or discrimination. A transfer may constitute constructive dismissal if it is

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7K views3 pages

Difference Between Transfer and Promotion

The document discusses the differences between transfer and promotion for employees. It also discusses an employer's ability to transfer employees without notice. It provides the following key points: 1. A promotion involves an increase in duties, responsibilities and salary, while a transfer is a lateral move without a promotion. 2. An employer generally cannot transfer an employee without prior notice but may do so in cases of urgency if it is in good faith and does not negatively impact the employee's rights. 3. Jurisprudence recognizes management's prerogative to transfer employees between locations for legitimate business reasons as long as it does not involve demotion, pay cuts, or discrimination. A transfer may constitute constructive dismissal if it is

Uploaded by

LizCruz-Kim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Difference between Transfer and Promotion

Promotion is the advancement of an employee from one position to another with an increase in duties and
responsibilities, and is usually accompanied by an increase in salary. Promotion is a privilege and as such may
be declined by the employee.

Transfer is a lateral movement that does not amount to a promotion. It constitutes a valid exercise of management
prerogative, unless it is done to defeat an employees right to self-organization, to get rid of undesirable workers,
or to penalize an employee of his or her union activities. If done in good faith, managements decision to transfer
an employee may not be questioned. An employees refusal to transfer may constitute willful disobedience, a
just cause for his or her dismissal.

An Employer Transferring an Employee to another


place of work without prior notice
Generally, an employer cannot transfer an employee to another place of work without prior notice. But if the
urgency of the service requires a transfer, and such transfer is exercised in good faith for the advancement of the
employers interest and will not adversely affect the rights of the employee, the transfer may be undertaken even
without the employees consent.

1. Transfer of employee not amounting to constructive dismissal. Transfer of an employee from one area of
operation to another is a management prerogative and is not constitutive of constructive dismissal, when
the transfer is based on sound business judgment, unattended by a demotion in rank or a diminution of
pay or bad faith. (Tan vs. NLRC, G.R. No. 128290, November 24, 1998.)
2. Transfer of employee amounting to constructive dismissal. A transfer amounts to constructive dismissal
when the transfer is unreasonable, unlikely, inconvenient, impossible, or prejudicial to the employee. (Phil.
Industrial Security Agency Corp. vs. Aguinaldo, G.R. No. 149974, June 15, 2005.)

Jurisprudence recognizes the exercise of management prerogative. For this


reason, courts often decline to interfere in legitimate business decisions of
employers. In fact, labor laws discourage interference in employers judgment
[19]

concerning the conduct of their business. [20]

In the pursuit of its legitimate business interest, management has the


prerogative to transfer or assign employees from one office or area of
operation to another provided there is no demotion in rank or diminution of
salary, benefits, and other privileges; and the action is not motivated by
discrimination, made in bad faith, or effected as a form of punishment or
demotion without sufficient cause. [21]

By transferring respondent to the Malabon City FEBTC Branch, petitioner


resorted to constructive dismissal. A transfer amounts to constructive
dismissal when the transfer is unreasonable, unlikely, inconvenient,
impossible, or prejudicial to the employee, as in this case. It is defined as
[22]
an involuntary resignation resorted when a clear discrimination, insensibility or
disdain by an employer becomes unbearable to the employee. [23]

In constructive dismissal, the employer has the burden of proving that the
transfer and demotion of an employee are for just and valid grounds, such as
genuine business necessity. The employer must be able to show that the
[24]

transfer is not unreasonable, inconvenient, or prejudicial to the employee; nor


does it involve a demotion in rank or a diminution of salary and other benefits.
Should the employer fail to overcome this burden of proof, the employees
transfer shall be tantamount to unlawful constructive dismissal. [25]

In the case at bar, petitioner failed to overcome this burden of


proof. Foremost, respondent explained that he was in complete attire that
morning. However, the bank personnel informed him that the FEBTC armor car,
on its way to deliver cash to the Central Bank Office in Tuguegarao, incurred
mechanical trouble. So he immediately went outside to fetch a mechanic. It was
then raining, hence, he got wet the reason why he was not wearing his perching
cap. Under the circumstances, his failure to wear his perching cap is justified.
Thus, he should not be held liable for any violation of office regulations which
warrants his transfer to another work place.
Second, the letter of Mr. Banastas recommending the retention of
respondent in the FEBTC Santiago City Branch negates petitioners reasons in
re-assigning the latter to the FEBTC Malabon City Branch. Service-oriented
enterprises, such as petitioner's business of providing security services,
generally adhere to the business adage that "the customer or client is always
right". Here, petitioner disregarded such aphorism.
[26]

Petitioners act manifests insensibility to the welfare of respondent and his


family. Obviously, his transfer to Malabon City will be prejudicial to them
economically and emotionally. Indeed, , petitioners action is in defiance of basic
due process and fair play in employment relations. [27]

Third, petitioners excuse in re-assigning respondent to Malabon City,


pending the opening of another FEBTC Branch in Santiago City is
unreasonable. The Appellate Court is correct in holding that there is no
assurance that a new FEBTC Branch will be opened in Santiago City.
In Blue Dairy Corporation vs. NLRC, we ruled that:
[28]

x x x the managerial prerogative to transfer personnel must not be exercised with


grave abuse of discretion, bearing in mind the basic elements of justice and fair play.
Having the right should not be confused with the manner in which that right is
exercised. Thus, it cannot be used as a subterfuge by the employer to rid himself of an
undesirable worker. x x x
G.R. No. 149974. June 15, 2005]

PHILIPPINE INDUSTRIAL SECURITY AGENCY


CORPORATION, petitioner, vs. PERCIVAL
AGUINALDO, respondent.

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