Can Your Employer Transfer You to Another Branch or Post?

Yes. Management prerogative is the employer's right to run its business, including how it assigns its workers. In Lagamayo v. Cullinan Group (2021), the Supreme Court listed the "regulation regarding transfer of employees" among the matters within management prerogative. It also said this prerogative "is not absolute".

The rules on transfers described on this page come from Supreme Court decisions.

For an overview of employment status and security of tenure, see probationary, regular and project employees.

In Telus International Philippines v. De Guzman (2019), the Court said: "for a transfer not to be considered a constructive dismissal, the employer must be able to show that such transfer is not unreasonable, inconvenient, or prejudicial to the employee; nor does it involve a demotion in rank or a diminution of his salaries, privileges and other benefits."

So a transfer may be challenged when it is:

• unreasonable or inconvenient;
• prejudicial to the employee;
• a demotion in rank; or
• a cut in salary, privileges or other benefits.

In Telus, the Court found that the transfer "was not only unreasonable, unfair, inconvenient, and prejudicial to her; it was effectively a demotion in rank and diminution of her salaries, privileges and other benefits." It denied the employer's petition and affirmed the Court of Appeals with modification.

The employer. In Telus, the Court said: "In case of a constructive dismissal, the employer has the burden of proving that the transfer and demotion of an employee are for valid and legitimate grounds such as genuine business necessity."

The employee must still first show the fact of dismissal. In Lagamayo, the Court said that even in constructive dismissal cases, the employee has the burden to prove first the fact of dismissal by substantial evidence. The employer then must show that its act was for valid or legitimate grounds and not "a mere subterfuge to get rid of an employee."

Then the employee is treated as illegally dismissed. Under Article 294 [279] of the Labor Code ([279] is its number before the 2015 renumbering):

See Constructive dismissal: when quitting counts as being fired and Illegally dismissed: what can you get?

These are made-up examples to show how the rules work. They are not advice for any real case.

Rosa is a bank teller in Quezon City. The bank moves her to a branch in Pasig with the same position, pay and benefits, because the Pasig branch is short of tellers. This looks like an ordinary exercise of management prerogative.

Edgar is an account manager. After he complains about unpaid commissions, he is moved to a warehouse post with no clients, a lower title and no commissions. A transfer that involves a demotion and a loss of benefits is the kind of transfer the Court said can be constructive dismissal, unless the employer proves a genuine business necessity.

Lina works in Cebu City. Her employer orders her moved to a far province within a week, with no reason given and no help with the move. Whether this is unreasonable, inconvenient or prejudicial depends on the facts, and the employer would have to show a valid business reason.

Talk to a lawyer before refusing a transfer or leaving your job over one, and if a transfer came with a lower rank or less pay. Employers planning a transfer may also need advice. These cases depend on the facts and the employer's reasons. If you cannot afford a lawyer, see Free legal help in the Philippines. Complaints usually start with conciliation at DOLE: see How to file a labor complaint.