Limitations on management prerogative

There can be limitations on the employer's exercise of management prerogatives. These are limitations imposed by:

[1] Law;
[2] The Collective Bargaining Agreement;
[3] Employment Contract;
[4] Employer policy;
[5] Employer practice; and
[6] General principles of fair play and justice.

Note as well that management prerogatives are inferior to the State police power. Such prerogatives and the exercise thereof should be without abuse of discretion. They should likewise be done in good faith and with due regard to the rights of labor.

Ineluctably, the exercise of management prerogatives is not absolute. The prerogatives accorded to management cannot defeat the very purpose for which labor laws exist - to balance the conflicting interests of labor and management, not to tilt the scale in favor of one over the other, but to guarantee that labor and management stand on equal footing when bargaining in good faith with each other.