Employers' discretion on imposing penalties
In Raza v. Daikoku Electronics Phils. Inc.,[1] the petitioner alleged that the
penalty of dismissal imposed upon him is too harsh. It is long established that
an employer is given a
wide latitude of discretion in managing its own affairs, and in the promulgation of policies, rules and regulations on work-related
activities of its employees.[2] The broad discretion includes the
implementation of company rules and regulations and the imposition of
disciplinary measures on its workers.[3] But for the management prerogative
to be upheld, the
exercise of disciplining employees and imposing appropriate penalties
on erring workers must be practiced in good faith for the advancement of the
employer’s interest and not for the purpose of defeating or circumventing the
rights of the employees under special laws or under valid agreements.[4]
[1] G.R. No. 188464, July 29, 2015.
[2] San Miguel Corporation v. NLRC, 574 Phil. 556, 570 (2008).
[3] Dongon v. Rapid Movers and Forwarders Co., Inc., G.R. No. 163431,
August 28, 2013.
[4] Fulache, et al. v. ABS-CBN Broadcasting Corp., 624 Phil. 562, 583 (2010).