PLDT v. Paguio Digest

PLDT v. Paguio

Facts:

1. Telecoms company PLDT (Petitioner) has 27 exchanges and respondent Paguio was the head of the Garnet Exchange. The petitioner conducted a performance evaluation which was criticized by the respondent due to an alleged unfair criteria used. Despite this, Garnet exchange obtained the top rating. Subsequently,  Paguio was transferred to another center based on a finding of insubordination. Aggrieved, respondent filed a complaint for illegal dismissal which was later amended to one for illegal demotion.

Labor Arbiter: Dismissed the complaint and upheld the validity of the transfer

NLRC: Reversed the LA decision and held that the transfer is unlawful

CA: Affirmed.

2. Hence this petition. Petitioner contended that the transfer was not a demotion.

Issue: W/N there was a valid transfer

RULING: No, the transfer constitutes a demotion. The exercise of management prerogative has its limits. It cannot be utilized to circumvent the laws and public policy on labor and social justice. It must be exercised with fair play and justice. The employer must show that the transfer is not unreasonable, inconvenient or prejudicial to the employee. Not does it involve a demotion in the rank or diminution of salaries or other benefits.