Management Prerogative: Discretionary Power of the Employer

“Jurisprudence recognizes the exercise of management prerogatives. Labor laws also discourage interference with an employer’s judgment in the conduct of its business. For this reason, the Court often declines to interfere in legitimate business decisions of employers. The law must protect not only the welfare of employees, but also the right of employers.

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Due Process Termination

In line with the management prerogative, the employer is allowed to terminate the services of the employee provided that substantive and procedure due process are observed.[1]

Substantive due process is complied with once the grounds are established to justify a disciplinary action. On the other hand, procedural due process is complied with once the required processes under the law are observed.

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Employee Resignation

The employee has the right to resign from his employment resulting in its termination.[1] Resignation is “the voluntary act of an employee who is in a position where he believes that personal reasons cannot be sacrificed in favor of the exigency of the service, and he has no other choice but to disassociate himself from employment.”[2]

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A strike is an economic weapon by the employees. Due to its potential adverse consequences on the employer and the employees, the law carefully regulates the constitutional right to strike of the employees.

Labor law defines strike as “any temporary stoppage of work by the concerted action of employees as a result of an industrial or labor dispute.”[1]

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Labor Organizations

A labor organization is any employee union or association existing in whole or in part for the purpose of collective bargaining or of dealing with employers concerning terms and conditions of employment.[1]

The said union or association becomes a legitimate labor organization if it is duly registered with DOLE.[2] Vested with a legal personality, a legitimate labor organization has these rights and privileges:[3]

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Unfair Labor Practice

Unfair labor practices are violations of the constitutional rights of workers and employees to self-organization.[1] These illegal practices are considered inimical to the legitimate interests of both labor and management.[2] These unfair practices are likewise prejudicial to the labor and management’s right to bargain collectively, and otherwise deal with each other in an atmosphere of freedom and mutual respect.[3] These practices disrupt industrial peace and hinder the promotion of healthy and stable labor-management relations.[4]

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