The Supreme Court ruled that Symex Security Services illegally dismissed Magdalino Rivera, Jr. and Roberto Yago by using reassignment as a retaliatory measure after they filed a labor complaint. The Court emphasized that while employers have the right to transfer employees, this prerogative cannot be used to punish or coerce employees who assert their labor rights, protecting workers from unfair labor practices disguised as legitimate business decisions.

Guarding Rights: Can a Security Agency’s Reassignment Policy Lead to Illegal Dismissal?

This case revolves around a labor dispute between Symex Security Services, Inc. and two of its security guards, Magdalino O. Rivera, Jr. and Roberto B. Yago. The guards filed a complaint for underpayment of wages and other benefits, leading to their subsequent relief and alleged constructive dismissal. The central legal question is whether Symex Security Services used its prerogative to reassign security guards as a means to retaliate against the employees for asserting their labor rights, thereby constituting illegal dismissal.

The factual backdrop involves Rivera and Yago, who were employed by Symex as security guards and assigned to Guevent Industrial Development Corporation. They claimed that they were not paid overtime, holiday pay, and other mandated benefits. After filing a complaint with the Labor Arbiter (LA), they were summoned to the head office and informed that their services were no longer needed due to a reduction in the number of guards required by Guevent. Subsequently, they alleged that they were told they would only be reassigned if they withdrew their complaint. When they refused, they were effectively dismissed, leading them to amend their complaint to include illegal dismissal.

Symex countered that the guards were not dismissed but merely relieved from their post and that they refused subsequent assignments. The LA initially dismissed the illegal dismissal claim but awarded proportionate 13th-month pay. The National Labor Relations Commission (NLRC) reversed this decision, finding that the guards were indeed illegally dismissed and were entitled to separation pay, backwages, and other monetary claims. The Court of Appeals (CA) affirmed the NLRC’s decision, leading to the current petition before the Supreme Court.

The Supreme Court’s analysis hinges on the principle of security of tenure, which is enshrined in the Constitution. This principle ensures that an employee can only be dismissed for just or authorized cause, with procedural due process. The burden of proving that the dismissal was for a valid or authorized cause rests on the employer. In this case, the Court found that Symex failed to provide substantial evidence to justify the termination of Rivera and Yago’s employment.

The Court acknowledged the employer’s management prerogative to transfer or reassign employees, but emphasized that this prerogative must be exercised in good faith. As stated in Exocet Security and Allied Services Corporation v. Serrano, the employer must ensure that there is no demotion in rank or diminution of salary, benefits, and other privileges, and the transfer is not motivated by discrimination or bad faith, or effected as a form of punishment or demotion without sufficient cause. In this case, the court stated that:

[T]he security guard’s right to security of tenure does not give him a vested right to the position as would deprive the company of its prerogative to change the assignment of, or transfer the security guard to, a station where his services would be most beneficial to the client. Indeed, an employer has the right to transfer or assign its employees from one office or area of operation to another, or in pursuit of its legitimate business interest, provided there is no demotion in rank or diminution of salary, benefits, and other privileges, and the transfer is not motivated by discrimination or bad faith, or effected as a form of punishment or demotion without sufficient cause.

The Court scrutinized the circumstances surrounding the reassignment of Rivera and Yago, finding that it was directly linked to the labor complaint they had filed. The Operations Manager’s demand that they withdraw the complaint as a condition for reassignment strongly suggested that the reassignment was a retaliatory measure. This lack of good faith on the part of Symex led the Court to conclude that the guards were constructively dismissed.

The Court further determined that Rivera and Yago did not abandon their employment. Abandonment requires a clear and deliberate intent to discontinue one’s employment without any intention of returning, evidenced by both a failure to report for work and overt acts demonstrating a severance of the employer-employee relationship. As emphasized in Tan Brothers Corporation of Basilan City v. Escudero:

To constitute abandonment, however, there must be a clear and deliberate intent to discontinue one’s employment without any intention of returning. In this regard, two elements must concur: (1) failure to report for work or absence without valid or justifiable reason, and (2) a clear intention to sever the employer-employee relationship, with the second element as the more determinative factor and being manifested by some overt acts.

The Court highlighted that Rivera and Yago’s act of filing a complaint for illegal dismissal, with a prayer for reinstatement, was inconsistent with an intention to abandon their jobs. This action demonstrated their desire to maintain their employment, negating any claim of abandonment.

The Court affirmed the award of separation pay, backwages, and other monetary claims to Rivera and Yago. In cases of illegal dismissal, employees are typically entitled to these remedies to compensate them for the loss of their jobs and the violation of their labor rights. The Court also upheld the award of moral and exemplary damages, finding that Symex acted in bad faith by using the reassignment to punish the employees for asserting their rights. It is settled that once the employee has set out with particularity in his complaint, position paper, affidavits and other documents the labor standard benefits he is entitled to, and which the employer failed to pay him, it becomes the employer’s burden to prove that it has paid these money claims.

However, the Court modified the CA’s decision by absolving Rafael Y. Arcega, the President of Symex, from solidary liability. Generally, corporate officers are not held personally liable for the obligations of the corporation unless they acted with evident malice or bad faith. In this case, there was no evidence to show that Arcega was directly involved in the illegal dismissal or that he acted with bad faith in directing the affairs of the corporation.

In Guillermo v. Uson, the Supreme Court clarified the circumstances under which corporate officers can be held liable in labor cases stating that:

the veil of corporate fiction can be pierced, and responsible corporate directors and officers or even a separate but related corporation, may be impleaded and held answerable solidarily in a labor case, even after final judgment and on execution, so long as it is established that such persons have deliberately used the corporate vehicle to unjustly evade the judgment obligation, or have resorted to fraud, bad faith or malice in doing so.

The Court’s decision reinforces the principle that employers cannot use their management prerogative to circumvent labor laws or retaliate against employees who assert their rights. This ruling serves as a reminder that while employers have the right to manage their business, they must do so in good faith and in compliance with the law. Failure to do so can result in significant legal and financial consequences.

FAQs

What was the key issue in this case?	The key issue was whether Symex Security Services illegally dismissed its employees by using reassignment as a retaliatory measure after they filed a labor complaint.
What is constructive dismissal?	Constructive dismissal occurs when an employer’s actions render continued employment unreasonable, unlikely, or impossible for the employee, effectively forcing them to resign.
What is management prerogative?	Management prerogative refers to the inherent right of employers to control and manage their business operations, including the right to transfer and reassign employees.
What is the principle of security of tenure?	The principle of security of tenure protects employees from arbitrary dismissal, requiring employers to have a just or authorized cause and to follow due process before terminating employment.
What is abandonment in labor law?	Abandonment is the deliberate and unjustified refusal of an employee to resume employment, requiring both a failure to report for work and a clear intent to sever the employer-employee relationship.
When can corporate officers be held liable for corporate debts?	Corporate officers can be held personally liable for corporate debts if they acted with evident malice, bad faith, or gross negligence in directing the affairs of the corporation.
What remedies are available in cases of illegal dismissal?	Remedies for illegal dismissal typically include separation pay, backwages, and other monetary claims, as well as moral and exemplary damages in cases of bad faith.
What did the Court rule regarding Rafael Arcega’s liability?	The Court absolved Rafael Arcega, the President of Symex, from solidary liability, finding no evidence that he acted with bad faith or was directly involved in the illegal dismissal.

This case underscores the importance of upholding employees’ rights to security of tenure and protection from unfair labor practices. While employers retain the prerogative to manage their workforce, they must exercise this right responsibly and in compliance with the law, ensuring that employees are not penalized for asserting their legal rights.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Symex Security Services, Inc. v. Rivera, G.R. No. 202613, November 08, 2017