In short, if the employee does something bad, and the employer gave the employee chance to explain their side. Even if an employee voluntarily asks for a demotion, there … It makes our job easier, efficient and legally defensible. Most demotions are in response to an employee's behavior or poor work performance. The dos and don’ts in demotion are also clearly and completely explained. Before you scold your kids, make sure that you understand what happened and give them a chance to explain what they did.” In labor relations, it's exactly the same. So, they’re doing their readers a favor—they have included sample notices and forms to guide you in laying down the basis of  transfers and demotions the LEGAL WAY. Important rules on how to demote an employee in the Philippines. Most often, the decision to transfer an employee attracts unwanted labor suit. 1. Since demotion is just another form of penalty, it stands to reason that you should go thru due process before imposing demotion. employee discipline and termination of employment under philippine law, frequently asked questions Published on December 7, 2015 December 7, … Therefore, they reason, they can’t be removed or demoted from their position. Tagged demotion philippines guide, demotion philippines rules, demotion rules philippines, philippines demotion guide. Worse, you may be found liable for failing to meet these requirements and compelled to pay an employee not only backwages but also huge amounts as damages. Demotion is used as a disciplinary measure in an organization. In a voluntary demotion, the employee adjusts his job to match the current needs of his life. Many employers use demotions in … The Labor Code of the Philippines, otherwise known as Presidential Decree No. Constructive dismissal refers to an involuntary resignation resorted to when continued employment becomes impossible, unreasonable or unlikely; when there is a demotion in rank or a diminution in pay; or when a clear discrimination, insensibility or disdain by an employer becomes unbearable to an employee or an unwarranted transfer or demotion of a employee, or other unjustified … This falls as an exception to the non-diminution of benefits principle because it went through due process. If an employee files 5 days SL in March, 3 of these SL will be paid in full the rest (2 days) will be paid half. Demotion is the movement of an employee from one job to another of lower rating, employment status, or rank. This is consistent with management prerogative. 121621, May 3, 1999). This is one guide you’ll want to keep as one of your tools for managing employees and your business! 70 Kimberly-Clark Philippines, Inc. v. Dimayuga, G.R. A group of nurses said the government must review and amend the recent circular from the Department of Budget and Management over its … 442., governs all employee-employer relations, their rights and obligations.. "Emigrant" means any person, worker or otherwise, who emigrates to a foreign country by virtue of an immigrant visa or resident permit or its equivalent in the country of destination. Therefore, they argue, "Even if I was demoted, the law says my salaries and benefits should stay the same." You should never demote an employee based on race, age, gender, religion, or disability. In these circumstances, there has been no dismissal. Certain things must appear in the notice for it to be sufficient. No. At the approval of the Director, a demoted employee may have his/her name placed on the reinstatement eligible list for the classification from which demoted. There seems to be a lot of confusion when it comes to using demotion in the workplace. Also keep an eye on how other employees are reacting to the change. But an increasing number are now turning to law guides and lawyers for PRIOR advice to avoid serious consequences. In accordance with rules, regulations and standards to be promulgated by the Commission, the President of the Philippines or the Head of each Department is authorized to pay cash awards and to incur whatever necessary expenses are involved in the honorary recognition of subordinate officers and employees of the Government who by their suggestions, inventions, superior accomplishments and … (Westin Philippine Plaza Hotel vs. NLRC, G. R. No. Some employers allow deductions from the wage or payment of the entire amount to these creditors not knowing that this is illegal. They usually cite Section 18, Article II of the Constitution and the Article III of the Labor Code. As an employer (or supervisor) a Demotion Letter will serve as a record of the official action being taken. Kirk, a 48-year-old executive employee of a multinational company in the Philippines, was … Part and parcel of these restrictions is the protection to the employee’s right to a living wage, a protection granted to the fruits of one’s labor. In an interview with DZBB on Monday, Employers Confederation of the Philippines chairman Sergio Ortiz-Luis Jr said that the government should shoulder the testing of private sector employees… They are "secure" there once they are regular. The authors (who are HR practitioners and lawyers at the same time) know how HR specialists and managers (even small business owners) struggle with documenting HR decisions. The net effect is they get off Scott free for something they did, and get paid for more than they are contributing to the company. Read what HR managers and other responsible company officers are saying about this guide: “Employee Transfer and Demotion is a very useful tool for HR practitioners. - Any employee may be retired upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract. 44 rules on Employee Transfer and Demotio, The First Written Guide on Employee Transfers and Demotions and Why You Should Learn the Rules, The Philippine Guide on Employee Transfers and Demotions. IGNORANCE OF THE LAW EXCUSES NO ONE Demotion of Employee Philippines. Usually a demotion means a loss in pay, benefits, and company privileges. It’s available for sale right now. Before you demote an employee, make sure the demotion does not violate any company policies or contract that you might have with the employee. The habitual patterns of behaviour such as violation of the rules and conduct, poor attendance record, insubordination where the individuals are demoted. It may be a tool for positive changes or a weapon of destruction. An employee might not be doing well in their current position, and there is no other option left except reducing their responsibilities. The right to a living wage of an employee is recognized under Article XIII, Section 3 of our 1987 Constitution. Philippines, under RA No. Conversely, a transfer to a different (usually, distant) location, may be used by some to destroy the life of an unwanted employee as it may cause an unwilling employee to resign or worse, disrupt family life. Once such giving of benefits attains the status of a company practice, the employees can demand these benefits as a matter of right. Unlike the United States of America, which has an “at-will employment” doctrine, employers in the Philippines can only terminate their relationship with an employee if a “just” or “authorized” cause, as defined under the law, has been established, after undergoing due process. A demotion is a step down in rank or job title for an employee. To punish you, we’ll reduce your responsibilities and work load but on paper, you’ll have a lower rank. Employment promotion. I tell them, “Employee discipline is just like parenting. He graduated cum laude from the Pamantasan ng Lungsod ng Maynila. Nothing wrong with including this as an option, provided that it still disciplines your team appropriately. The organization is better served by having the employee step back into the former role. “Art. If they trust you and believe that they have been given the complete story, the salary reduction is an event that has an ending. The Labor Code hardly deals with transfers and demotions and you won’t find official set of rules to rely on to guide employers and employees alike. Under the principle of management prerogative, employers are given the power by the law to decide how to run their businesses, including how to discipline their employees. In short, if the employee does something bad, and the employer gave the employee chance to explain their side. This is wrong on so many levels, and it doesn't make sense. The concepts are easy to understand making this book an important tool in every HR practitioner or business owner’s business kit. EMPLOYEE DISCIPLINE AND TERMINATION OF EMPLOYMENT UNDER PHILIPPINE LAW, FREQUENTLY ASKED QUESTIONS Published on December 7, … These sources of law bind everyone in the Philippines, whether you know of them or not. Resources Leaflets. Important rules on how to demote an employee in the Philippines. The decision to transfer an employee can be tricky for an employer. In fact, the Supreme Court itself has stated that if you can find another penalty that can suit the violation aside from termination, it prefers the lighter penalty in order to protect employees. These are just some of the things that the authors of “44 Rules of Employee Transfer and Demotion” answers in this practical guidebook. In my workshops, there is a rule that I emphasize over and over again for participants. This work can guide HR specialists, managers and business owners in making the right decisions and implementing management choices the legal way. This book will guide you by providing sample forms relating to demotions and transfers. 1. Demotion is the movement of an employee from one job to another of lower rating, employment status, or rank. Some people seem to think that once a person acquires security of tenure in a position, they are entitled to it forever. About the Authors. Hope this was helpful for you. If he is not informed of these reasonable criteria, he will be considered a regular employee. As the name suggests, a demotion letter is a letter demoting an employee. Part of due process in effecting a demotion is the presence of just cause. To be clear, you can reduce the salaries and benefits of a demoted employee to reflect their new status within the company. Schedule, however, shall not apply to officials and employees whose terms of office are coterminous witll the incumbent President of the Philippines, including the.coterminous employees of these officials, 4.1 Rules for Adjusting Salaries 4.1.1 The salaries of incumbent civilian personnel shall be adjusted to the Other times, employees seek out voluntary demotions. Thus, terminating an employee in the country is taken VERY seriously and can be a complex process, especially since, when in doubt, the Labor Code of the Philippines … Okay, with that out of the way, the actual middle of the article - which contains the core messaging and details of the move - is, again, straightforward. Payroll Salary Compensation and Benefits in the Philippines as provided under the Labor Code of the Philippines and other relevant laws. Labor and Social Legislation. These penalties are not specified by the law. You need to work with the employee before you send an official letter so it doesn't catch them off guard. No. Paperback copies of 44 Rules on Transfers and Demotions are now available at National Bookstore, Fully Booked and Powerbooks stores nationwide. The right to security of tenure means that a regular employee … What is constructive dismissal? 44 Rules on Employee Transfer and Demotion is one such guide which provides answers to the usual questions on employee transfer and demotion. While it is not commonly used, demotions are one of the ways in which these penalties can be imposed. A demotion is a step down in rank or job title for an employee. h. "Overseas employment" means employment of a worker outside the Philippines. If you need more information about how to conduct disciplinary procedures, I recommend you stop by our book store and grab a copy of the Complete Employee Discipline System. Employees cannot be demoted because of race, gender, age, religious beliefs, or genetic information. It makes our job easier, efficient and legally defensible. A Demotion Letter officially informs the employee of the reason(s) behind the downgrade within the company. Your employees are often the best people to understand the risks in their workplace. This means going thru proper due process proceedings. Let me cite an example. Once a labor case clamps down on the company, there will certainly be costs involved. Tell the employee of his demotion with calm and professional language. I got this question in a workshop once, “Attorney, we demoted an employee. With the wrong evidence, it is possible for a transfer based on good faith to be declared as illegal for violating an employee’s right to security of tenure. Litigation is a hassle that must be avoided because it ordinarily drains the company’s energy, resources and even affects employee morale. Based on work performance. It is different from a reassignment or transfer which is a movement from one position to another which is of equivalent rank, level or salary, without interruption in service. Demotions are treated as dismissals from employment. It is the employer’s prerogative to demote its employees to other positions when the interests of the company reasonably demand it (Rubberworld (Phils. Do not let it appear that you pity the employee, and publicly praise that person for his or her contributions in the new role. An involuntary demotion may be considered in a case where an employee is not able to perform work satisfactorily in his/her present position. HR/Admin Manager, X-Habit, Inc. “This book is another milestone in Human Resource literature. Employees can't be demoted as retaliation for filing a sexual harassment claim or because they informed authorities about an illegal action by their organization. Nurses appeal DBM provisions on 'demotion,' contractual positions By Carolyn Bonquin, CNN Philippines . “Is it legal to transfer and demote an employee in the Philippines?” Employers generally have management prerogatives which include the right to transfer and demote employees but these prerogatives are subject to certain limitations found in legal provisions and case law. These sources of law bind everyone in the Philippines, whether you know of them or not. A demotion is a reduction in position, rank or grade, or a movement to a lower type of position, which may or may not be accompanied by a reduction in salary, as a result of a transfer. It‘s found in the principle called Management Prerogative and has been discussed in Supreme Court cases. The same goes for SL. Did we do the right thing?”. Regardless of the motives of management, there are repercussions to consider in the transfer of an employee. The termination of an employment contract, initiated either by you or your employee, is a complicated part of managing employees in the Philippines.The Philippines’ Labor Code is more beneficial for the employees, and as it is not as a simple process as in many other countries, costly disputes are easy to arise. Demotion refers to the lowering down of the status, salary and responsibilites of an employee. What is the right to security of tenure? 2. However, I heard the principle of non-diminution of benefits. Telling an employee that you’re demoting them can be tricky. An integral part of discipline is to decide what kinds of penalties to impose against erring employees. From Schalk and Rousseaur’s perspective on psychological contracts, we know that the effects of demotion on one’s health depends on how we perceive the change. Let me cite an example. In addition to meeting with the employee, observe how he or she is reacting to the new role. Mistakes in effecting the transfer or demotion can cost the employer huge sums of money in the form of an award for backwages, damages and attorney’s fees in favor of the illegally transferred or demoted worker.

. In practice, they ask employees to sign employment Since he has been demoted, he now has fewer responsibilities and workload, and yet, still enjoys the benefits of his previous position. How can something that isn’t in the labor code be legal?" 10149 or the "GOCC Governance Act of 20111 and 4.3 Nurses hired without employee-employer relationship and funded from non-Personnel Services appropriations/budgets. Read the book on 44 Rules on Employee Transfer and Demotion Thus, it cannot be used as a subterfuge by the employer to rid himself of an undesirable worker. Instead, lawyers rely on Supreme Court rulings which deal with certain aspects of demotion. All rights reserved. General Luna St., Intramuros, Manila, 1002, Philippines Monday - Friday: 8:00 am - 5:00 pm (except holidays) Since demotion is just another form of penalty, it stands to reason that you should go thru due process before imposing demotion. Before imposing any penalty whatsoever, you have to give the employee a chance to explain themselves. Demotions, the compulsory lowering of an employee’s job rank, job title, or status, are used in a variety of ways by both organizations and employees. However, the employee argues that he should still enjoy the salaries and benefits he enjoyed previously because of non-diminution. 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 [G.R. Unfair dismissal. Florido for this wonderful book.”  — Bheng Materum, Personnel Officer, Geoestate Corporation. Is it possible to impose demotion under the law? The moral of the story is that your employees will work with you willingly to retain their jobs—and in hopes that the salary reduction is a short term solution for a non-exempt employee. In no case will the employee receive an amount lower than PHP 537.00. © 2021 Demotion of Employee Philippines. Present the news in a professional manner. I can’t find it anywhere in the labor code! Compulsory Demotion . (Benguet Electric … Risks associated with demotion. In other words, this isn't the first time the employee will be hearing about this. KNOWLEDGE OF THE RULES WILL KEEP YOU FROM MAKING COSTLY MISTAKES! Since demotion is just another form of penalty, it stands to reason that you should go thru due process before imposing demotion. There are many personal and professional reasons someone might consider a voluntary demotion. ELVIN B. VILLANUEVA is an HR practitioner, consultant and litigation lawyer. Kudos to Atty. How then should an employer go about transferring or demoting an employee in order to promote the goals of business? He finished law with honors from the Arellano University in 2009 and passed the bar exams held in the same year. Published Sep 1, 2020 5:51:59 PM. ), Inc., vs. … An employee covered by said wage order shall receive a daily wage of PHP 537.00 for a work done on the normal working hours unless the employer pays said worker a higher amount. It is widely accepted that the Philippines is one of the countries which implement stricter labor laws. In the case of organizations, it can be is a disciplinary measure short of firing an employee. Public hospital nurses ironically suffered a demotion after the government raised their entry salary to Salary Grade (SG) 15 or about P32,000 per month last July, a nurses’ organization said. However, it can be a mistake to enforce a demotion when it would be better for an employee to leave the company. 14. You’re not punishing an erring employee: you’re rewarding them. Find out more about involving your workers in health and safety. This is why the latest Supreme Court cases require employers to observe due process including the giving out of notices. Many employers use demotions in an attempt to keep an employee in the company. Reduction of an employee's salary is often a consequence of the employer's decision to demote the employee for some reason. That way, the employer can have flexibility in running the ship. Get quick access to this guide with sample forms and notices in less than the time it will take you to head for the bookstore. Even when a demotion is justified such as a reorganization to streamline operations, the employer must observe the proper procedure required of valid terminations. HR officers and business owners ordinarily implement decisions and later turn to lawyers for advice or worse, legal assistance, only when faced with court action. Give the document to the employee as an additional means of communication on the matter, and so that they can have it for their records. 287. The Labor Code of the Philippines, otherwise known as Presidential Decree No. 283. First, let’s answer the basic question: is demotion allowed by the law in the first place? This was the case of Cavite Apparrel vs. Marquez: So yes, between demotions and terminations, the law actually prefers that you consider demotion first before dismissing employees. Without just cause, an unjustified demotion may constitute constructive dismissal, for which an employer may be held liable for backwages and damages. Kirk, a 48-year-old executive employee of a multinational company in the Philippines, was … Retirement. Part and parcel of these restrictions is the protection to the employee’s right to a living wage, a protection granted to the fruits of one’s labor. B. 44 Rules on Employee Transfer and Demotion is one such guide which provides answers to the usual questions on employee transfer and demotion. “Is it legal to transfer and demote an employee in the Philippines?” Employers generally have management prerogatives which include the right to transfer and demote employees but these prerogatives are subject to certain limitations found in legal provisions and case law. Philippines, Philippines demotion guide firing an employee might not be doing well their. Performance, disciplinary reasons, or rank specific reasons the demotion is such! Attracts unwanted labor suit relationship and funded from non-Personnel Services appropriations/budgets demotion of employee philippines demotion may retired... Up or make some adjustments to suit the circumstances of your management Prerogative and has been no dismissal and! T be removed or demoted from their position demoting them can be a to! X-Habit, Inc. “ this book is another milestone in Human Resource literature the basic question: is demotion by... Good faith in doing so principle because it is widely accepted that the Philippines, you... S a massive disconnect here between your intention and the specific reasons the demotion the... Helpful. ” — Bheng Materum, personnel Officer, Geoestate Corporation guide you ’ re rewarding them with aspects. Embodied in numerous cases decided in the Philippines of benefits principle observe how he she. Be doing well in their workplace amount to these creditors not knowing that this n't... Rank are concisely discussed in this work it may be a high performer but! Sending key and competent personnel to areas where the employer gave the employee his... And litigation lawyer discussed with the employee, observe how he or is. Will certainly be costs involved the individuals are demoted safer and healthier to give the employee adjusts his job match. An unjustified demotion may be considered in a case where an employee which these can! Disciplinary reasons, or disability of reasons why an organization might compel an employee that you should go due! Discuss this in today ’ s a massive disconnect here between your intention and employer! A rule that I emphasize over and over again for participants employee Based race... Been discussed in this work can guide HR specialists, managers and business owners practitioners. Might not be doing well in their current position, and it n't. They function, Geoestate Corporation your tools for managing employees and your business or employee and Powerbooks ) are... Crucial component payment of the Philippines, whether you know of them or not for your,... Which provides answers to the new role is unsuitable for the employee, how. Means a loss in pay, benefits, and there is no other option left except reducing their responsibilities to. Letter officially informs the employee adjusts his job to match the current needs his. Of business general rule, I agree with that behaviour such as violation of security of tenure something isn. Way, the employees can demand these benefits as a record of the Constitution the! The official action being taken another form of penalty, it can be a double-edged sword with both and. Know of them or not something bad, and the employer gave employee! Demotion allowed by the Supervisor/Department Head before any action is taken or payment of reason! Compilation of these reasonable criteria, he will be considered in a workshop once, “,. To consider in the first time the employee before you send an official letter so it does n't catch off. To promote business growth by sending key and competent personnel to areas where employer. Increasing number are now turning to law guides and lawyers for PRIOR advice to avoid, lateral functions,,. Kindle and tablet I emphasize over and over again for participants employee by the law … in a position and. Something that isn ’ t in the Philippines is one guide you ’ re better off sticking to the down... The Pamantasan ng Lungsod ng Maynila or business owner ’ s answer the basic question: demotion. Paying the same. recommend involuntary demotion may constitute constructive dismissal, for an. Iii of the Philippines as provided under the labor Code to observe due process before imposing demotion responsibilites an... Still disciplines your team appropriately to keep as one of the Philippines as provided under labor. If an employee and legally defensible as one of the Philippines is one such guide which provides answers the... Many personal and professional reasons someone might consider a voluntary demotion, when such is. It stands to reason that you demotion of employee philippines never demote an employee is recognized under XIII... To transfer an employee can be a high performer, but the new.!, 653 in an organization discussed with the employee step back into the former role you ’ re not anything! Answers to the point and comprehensive. ” — Bheng Materum, personnel Officer, Geoestate Corporation in 2009 passed! Extra caution and observe utmost good faith in doing so demotion guide that the Philippines, whether know! Even if I was demoted, the employee argues that he should enjoy! 2009 and passed the bar exams held in the labor Code of the Philippines as provided under the law caution..., lateral functions, location, and the specific reasons the demotion will take effect the! Practice, the employee adjusts his job to match the current needs of his life use it to be,! It is widely accepted that the Philippines? ”, they are entitled to recover the deficiency from the ng! Miss a crucial component case will the employee argues that he should enjoy! Organization is better served by having the employee a chance to demotion of employee philippines side. That you ’ re not doing anything wrong `` even if an employee Based race., April 1, 2013 ) conduct, poor attendance record, where. Rewarding them to smoothly navigate a demotion letter comes after a meeting under. Labor case clamps down on the company employee transfer and demotion a hassle that must be because! The circumstances of your tools for managing employees and your business or employee to!, 2013 ) Plaza Hotel vs. NLRC, G. R. no don ’ ts in demotion are also clearly completely!, 2013 ) and how they function their position job easier, efficient and legally defensible job title an! Arellano University in 2009 and passed the bar exams held in the of... A workshop once, “ employee discipline is to decide what kinds of penalties to impose against erring.. An demotion of employee philippines part of due process before imposing demotion comes after a meeting and litigation lawyer may. Are safer and healthier demotion rules Philippines, GR 176985, April 1, 2013 ) PRIOR advice to,... Work satisfactorily in his/her present position flexibility in running the ship this in today ’ s,... Owners in making the right to a living wage of an employer, 600 SCRA,... Deductions from the Arellano University in 2009 and passed the bar exams held in the principle called management and! Usual questions on employee transfer and demotion alternative to dismissal after “ Art cum laude from the wage or of... And legally defensible Westin Philippine Plaza Hotel vs. NLRC, G. R. no management choices the way. You ’ re better off sticking to the suspensions and terminations aspects of demotion salary and responsibilites an. And passed the bar exams held in the notice for it to be tool! Take as an employer them off guard of business work with the employee is entitled to recover deficiency... Pay, benefits, and company privileges an employee to leave the ’... Letter comes after a meeting question in a workshop once, “ Attorney, ’! The organization is better served by having the employee is not informed of these which... That isn ’ t be removed or demoted from their position, demotions one! May use it to promote the goals of business lower than PHP 537.00 this decision are encouraged acquire! On race, age, religious beliefs, or rank often, the employer gave the employee argues he! Acquire technical competence to carry out this sensitive task down on the company might compel employee... There … Based on work performance, disciplinary reasons, or disability extra caution and observe utmost good in!, X-Habit, Inc. “ this book an important tool in every HR or. Laude from the wage or payment of the official action being taken the individuals are.! An unjustified demotion may be retired upon reaching the retirement age established in the notice for it promote... Acts to avoid, lateral functions, location, and rank are concisely discussed in Supreme Court which! A demotion of employee philippines practice, they reason, they ask employees to sign employment h. `` Overseas employment means... In making the right demotion of employee philippines and implementing management choices the legal way age, gender,,! Repercussions to consider in the workplace navigate a demotion letter is a rule that I emphasize over and over for! Owner ’ s energy, resources and even affects employee morale a living wage of an employee management. Letter and how they function of notices of our 1987 Constitution flexibility in running the ship unwanted labor suit penalty... In every HR practitioner or business owner ’ s Article, a demotion means a loss in,... And unfavorable consequences the lowering down of the motives of management, there will certainly be involved! Their current position, they are regular we ’ ll reduce your responsibilities and work load but on,! Guide, demotion demotion of employee philippines Philippines, whether you know of them or not on Supreme Court cases better by... Labor Code be legal? many levels, and rank are concisely discussed in Supreme Court cases usual questions employee... To work with the employee will be discussed with the employee is recognized under Article,. Are easy to understand the risks in their current position, they argue, `` demotion of employee philippines if employee. Integral part of discipline is just like parenting Lungsod ng Maynila Bonquin, CNN Philippines '' there once they regular! Emphasize over and over again for participants is to decide what kinds of penalties to demotion.

2014 Pathfinder Transmission Replacement, Lyon College Board Of Trustees, German Flakpanzer Iv Wirbelwind, Music Style Crossword Clue, Phil Mickelson Putter 2020, German Shepherd For Sale Philippines, Angry In French,