4. Transfer of Employees

Transfer

a movement from one position to another which is of equivalent rank, level or salary, without break in service.

Employer’s Right to Transfer and Reassign Employees

In the pursuit of its legitimate business interests, especially during adverse business conditions, management has the prerogative to transfer or assign Ees 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, bad faith, or effected as a form of punishment or demotion without sufficient cause. This privilege is inherent in the right of Ers to control and manage their enterprises effectively.

NOTE: The right of Ees to security of tenure does not give them vested rights to their positions to the extent of depriving management of its prerogative to change their assignments or to transfer them. (Endico v. Quantum Foods Distribution Center, G.R. No. 161615, 30 Jan. 2009)

Transfer of Employees when there is No Interference to Self- Organization.

As a rule, it is the prerogative of the company to promote, transfer or even demote its employees to other positions when the interests of the company reasonably demand it. Unless there are instances which directly point to interference by the company with the employees right’s to self – organization, the transfer of an employee should be considered within the bounds allowed by law, e.g. where despite his transfer to a lower position, his original rank and salary remained undiminished. (Rubberworld Phils. Inc., et al. v. NLRC, G.R. No. 75704, 1989)

Factors to Determine Continuity:

• Retention of control
• Use of the same plant or factory
• Use of the same or substantially the same employees, workers, supervisors or managers
• Similar or substantially the same work or production under similar or substantially the same working conditions
• Use of the same machinery and equipment
• Manufacture of the same products or the performance of the same services

Doctrine Applicable when the Successor is an Alter-ego

Absorbing all labor force and necessary personnel as part of the merging of operations indicate the intention to continue the employer – employee relationship of the individual companies with its employees. This is true where the transferee was found to be merely an alter ego of the different merging firms, as in this case. Thus, the transferee has the obligation not only to absorb the workers of the dissolved companies but also to include the length of service earned by the absorbed employees with their former employers as well. (Filipinas Port Services v. NLRC, G.R. No.97237, 1991)