What will happen if management prerogative is done in bad faith? | 24 May 2024

The exercise of a management prerogative is not limitless, but hemmed in by good faith and a due consideration of the rights of the worker.

Author

Alburo Law
May 24, 2024

The exercise of a management prerogative is not limitless, but hemmed in by good faith and a due consideration of the rights of the worker. In this light, the management prerogative will be upheld for as long as it is not wielded as an implement to circumvent the laws and oppress labor. (Nathaniel Dongon vs. Rapid Movers and Forwarders, G.R. No. 163431, August 28, 2013)

 

Issue:

Should the amounts received by Solidum through the 10th Alias Writ be returned to Smart?

Ruling:

The immediately executory nature of the Labor Arbiter’s Decision mandates Smart to reinstate Solidum until reversal by the NLRC. Smart’s non-compliance thereof resulted in Solidum’s unpaid wages and benefits under the 10th Alias Writ.

Perfection of an appeal suspends the execution of the labor arbiter’s decision, with the exception of the reinstatement aspect pending appeal. Owing to the immediately executory nature of the decision, the employer is obligated to reinstate and compensate the dismissed employee throughout the appeal process until reversal by the higher court.

In carrying out the reinstatement provision outlined in the labor arbiter’s decision, the employer has two available options: Firstly, it may opt for actual reinstatement, requiring the employee to be restored to the position held prior to the illegal dismissal. this includes reinstating the employee under the same terms and conditions that existed before the dismissal. if the original position is no longer available, the employe must provide a substantially equivalent position.

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