Demotion Rules Philippines Guide

Sales are the lifeblood of businesses,  big and small.   Employee performance and the management of human resources are vital in business.

Call centers,  pharmaceutical companies and manufacturing enterprises often review sales performance of employees against quotas and other performance standards.  The usual problem arises when an employee fails to meet these standards yet management still feels that it’s possible to retain an employee by transferring him or her to another position where his or her skills are best suited.

In other instances,  companies undergo reorganization in order to streamline operations,  reduce costs or change business directions.   In most cases, organizational changes can result in transfers and demotions.

The question often asked is:

“Is it legal to transfer and demote an employee in the Philippines?”

Employers generally have management prerogatives which include the right to transfer and demote employees but these prerogatives are subject to certain limitations found in legal provisions and case law. These sources of law bind everyone in the Philippines, whether you know of them or not.


HR officers and business owners ordinarily implement decisions and later turn to lawyers for advice or worse, legal assistance, only when faced with court action. But an increasing number are now turning to law guides and lawyers for PRIOR advice to avoid serious consequences.

44 Rules on Employee Transfer and Demotion is one such guide which provides answers to the usual questions on employee transfer and demotion. This is a must-have for employers who wish to make the right decision and avoid or minimize litigation.

Mistakes in effecting the transfer or demotion can cost the employer huge sums of money in the form of an award for backwages, damages and attorney’s fees in favor of the illegally transferred or demoted worker.


This work can guide HR specialists, managers and business owners in making the right decisions and implementing management choices the legal way. Questions regarding timing of transfer, acts to avoid, lateral functions, location, and rank are concisely discussed in this work. The do’s and don’ts in demotion are also clearly and completely explained. The concepts are easy to understand making this book an important tool in every HR practitioner or business owner’s business kit.

Read what HR managers and other responsible company officers are saying about this guide:

Employee Transfer and Demotion is a very useful tool for HR practitioners. It makes our job easier, efficient and legally defensible. Kudos to Atty. Villanueva and Atty. Florido for this wonderful book.”   —    Bheng Materum, Personnel Officer, Geoestate Corporation

Very practical, direct to the point and comprehensive.”   —   Elenor Alnajes. HR/Admin Manager, X-Habit, Inc.

This book is another milestone in Human Resource literature. Business owners and practitioners alike will find this helpful.”    —   Bobbit Jimenez, Controller, Citadel


Demotions are treated as dismissals from employment.     This is why the latest Supreme Court cases require employers to observe due process including the giving out of notices.      Certain things must appear in the notice for it to be sufficient.     This book will guide you by providing sample forms relating to demotions and transfers.    Just fill them up or make some adjustments to suit the circumstances of your business or employee.

44 rules on Employee Transfer and Demotion is now available at National Bookstores and Fully Booked stores. It is also available in EBook and Kindle format, perfect for your PC, Ipad, Kindle and tablet.

Understanding the Principle of Night Shift Differential Pay

Workers and employees who work at specified night shift hours are entitled to additional pay known as night shift differential because of the recognized ill effects of working late at night.

Scientists have long studied how disrupting the normal sleep cycle (where people sleep at night and go out during the day) is increasingly linked to serious diseases such as hypertension, heart attack and certain cancers.

The Supreme Court adopted the general view that night work is Continue reading

When Transfer Does Not Amount to Demotion

Not all transfers or re-assignment of work from one office or area of operations to another are demotions.

There is a demotion when there is a downward change in the rank, salary, benefits and other privileges of the employee.

The mere title or position held by an employee in a company does not of itself determine whether a transfer constitutes a demotion.  It is the totality of circumstances in each case such as: Continue reading

Termination of Employment

A weak economy sees the emergence of more small and medium enterprises and the closure or re-engineering of large companies. To stay afloat, a business establishment usually resorts to cutting costs, including that of manpower.
Termination of employment by retrenchment is usually to prevent serious business losses. Existing labor laws require the employer to give a 30-day notice to the employee regarding management’s decision to terminate the employment. The employer should also submit an Employment Termination Report at least 30 days before the intended date of termination at the Department of Labor and Employment. Click here to get the required form.  Upon the expiry of the 30-day notice, the employer then becomes liable to pay the terminated employee his separation pay, computed at a minimum of a half-month’s salary for every year of service. Those employed for less than a year with the company shall be entitled to the equivalent of one month’s salary.
If you are an employer, business owner, HR manager, specialist or company executive, learn more about termination of employment here.

Resource book on Minimum Wage Law

Philippine Guide on Minimum Wage

LVS Publishing recently launched its latest labor law guide entitled “Guide on Wage Order and Minimum Wage”– a must-have for every employer, business owner, manager and HR specialist.

This handy guide teaches you how to apply the latest minimum wage law in your current business.

Find the answer to your most frequent questions:

– Who are covered employees?

–  How does the wage order affect existing terms of CBA?

–  What is wage distortion? See sample computations!

–  What happens to recent salary increases in the company?

–  What about employees who are already receiving ‘above-minimum’ rates?

–  Are there exemptions and how to apply for it?


The Revised 2011 Edition now contains updates in the new minimum wage rates.  Subscribe to the affiliated website HR Practitioners Guide for updates in minimum wage rates.

The Revised 2011 Edition is now available online in PDF format, both for ordinary document views and Kindle reading at Php 597.00 each.  Order here.