Management Prerogative vs. Labor Rights
Posted on March 26th, 2008 by ReyM
Employers have the right to choose whom to hire, as well as to
discipline and fire. This prerogative, however, is not absolute and
must be performed in accordance to general guidelines set forth by
the Department of Labor (DOLE). This is intended to prevent abuse of
authority and arbitrary decisions, which are sometimes unfair and
prejudicial to labor.
However, we still hear lots of cases filed in DOLE for various
violations, with so many landing in the higher courts. The
Department of Labor and Employment / National Labor Relations
Commission (Philippines), published an annual report – 2005, on
status of labor cases they received:
“The NLRC, through its Regional Arbitration Branches (RABs)
consisting of 104 salas and the five Divisions in the Commission
Proper, handled a total number of 65,503 cases in 2005 . . .
The number of workers benefited by the decisions of the NLRC in 2005
totaled 60,085, with 47,219 in the RABs and 12,866 in the Commission
Proper. The total amount awarded was Php 6,229,383,142.47. Of the
decisions rendered, 61% was in favor of workers while 39% was in
favor of employers . . .
By nature of cases, illegal dismissal constituted a great majority
of cases, accounting for 74% of total cases received.”
Based on the figures, the amount involved deserves some serious
look. While most of these cases are far from intentional, majority
happen due to lack of basic information on how to exercise
management prerogative in the correct manner. This has been the case
since time immemorial, until the present.
We in the HR practice constantly admonish supervisors and managers
that HR is a line function, and rightfully so. My point of
comparison is always that of a family. If I am the father of my son,
I would not allow my brother to discipline him for me when he
commits a misdemeanor. It is my primary obligation to do so, and
relegating that responsibility to somebody else is a remiss of my
functions as a father.
It is rather unfortunate to learn that first-line leaders, who are
expected to carry out this task, dismiss the idea and point their
fingers to HR to do the dirty job. In my corporate experience, I
learned that it’s not because they do not want to do it but simply
do not know how to do it. Being HR professionals, it should be one
of our commitments – to develop our leaders’ capabilities to perform
effectively, not only in matters of production but of doing their HR
functions as well. Self-serving I believe, but it’s well worth it.
One last item, and you would be happy to get this!
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Learn to enjoy, and enjoy learning!
Best regards,
ReyM
The Leaders’ Ladder





this management prerogative is most of the times abused by employers. The labor code has so many loopholes that most companies take advantage of.