Labor Cases 4 Tranche: Management Prerogative Case No. 1 Dosch vs. NLRC, 123 SCRA 296 (1983) Facts

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LABOR CASES 4th tranche: Management Prerogative Case No.

Dosch vs. NLRC, 123 SCRA 296 [1983]


Facts:
Helmut Dosch, an American citizen, married to a Filipina, was the resident Manager
of Northwest Airlines, Inc. in the Philippines. He has to his credit eleven (11) years of
continuous service with the company, including nine (9) years as Northwest Manager with
station at Manila. He received an inter-office communication from R.C. Jenkins, Northwest's
Vice President for Orient Region based in Tokyo, promoting him to the position of Director of
International Sales and transferring him to Northwest's General Office in Minneapolis,
U.S.A., effective immediately. Dosch in his letter, expressed appreciation for the promotion
and at the same time regretted that "for personal reasons and reasons involving his family,
he is unable to accept a transfer from the Philippines and that he would, therefore, prefer to
remain in his position, of Manager-Philippines until such time that his services in that
capacity are no longer required by the company. Petitioner tried to resume his duties as
Manager after an authorized
vacation but the Vice-President for the Orient Region of Northwest advised petitioner that in
view of his letter, his status as an employee of the company ceased on the close of business
and the company therefore considers his letter to be a resignation without notice.

Issue:
1. Whether or not the employer’s letter constitute a transfer as a valid exercise of a
management prerogative?

Ruling:
No, Jenkins’ letter is a letter directing the promotion of Dosch from his position as
Philippine manager to Director of International Sales in Minneapolis, U.S.A. It is not merely a
transfer order alone but as the Solicitor General correctly observes, "it is more in the nature
of a promotion that a transfer, the latter being merely incidental to such promotion." The
inter-office communication of Vice President Jenkins is captioned "Transfer" but it is
basically and essentially a promotion for the nature of an instrument is characterized not by
the title given to it but by its body and contents. The communication informed the petitioner
that effective August 18, 1975, he was to be promoted to the position of Director of
International Sales, and his compensation would be upgraded and the payroll accordingly
adjusted.

Petitioner was, therefore, advanced to a higher position and rank and his salary was
increased and that is a promotion. It has been held that promotion denotes a scalar ascent
of an officer or an employee to another position, higher either in rank or salary. In the
Millares case above, the Supreme Court, speaking thru Acting Chief Justice J.B.L. Reyes,
distinguished between transfer and promotion as follows: "A transfer is a movement from
one position to another of equivalent rank, level or salary, without break in the service.
Promotion, on the other hand, is the advancement from one position to another with an
increase in duties and responsibilities as authorized by law, and usually accompanied by an
increase in salary. Whereas, promotion denotes a scalar ascent of a senior officer or
employee to another position, higher either in rank or salary, transfer refers to lateral
movement from one position to another, of equivalent rank, level or salary." There is no law
that compels an employee to accept a promotion, as a promotion is in the nature of a gift or
a reward, which a person has a right to refuse. When petitioner refused to accept his
promotion to Director of International Sales, he was exercising a right and he cannot be
punished for it as qui jure suo utitur neminem laedit. He who uses his own legal right injures
no one.

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