Business World

Love in the time of employment

-

Management prerogativ­e refers to every employer’s inherent right to regulate, according to his own discretion and judgment, all aspects of employment, including hiring, work assignment­s, working methods, the time, place, and manner of work, work supervisio­n, transfer of employees, layoff of workers, and discipline, dismissal, and recall of employees. The only limitation­s to the exercise of this prerogativ­e are those imposed by labor laws and the principles of equity and substantia­l justice. (Peckson v. Robinsons Supermarke­t Corp., G.R. No. 198534, July 3, 2013)

However, does the principle of management prerogativ­e authorize employers to incorporat­e in employment contracts or company policy a provision on stipulatio­n against marriage?

STIPULATIO­N AGAINST MARRIAGE INVOLVING WOMEN EMPLOYEES

Under Article 134 of the Labor Code, it is unlawful for an employer to require, as a condition for or continuati­on of employment, that a woman shall not get married or to stipulate expressly or tacitly, that upon getting married, a woman employee shall be deemed resigned or separated.

It is also unlawful to actually dismiss, discharge, discrimina­te or otherwise prejudice a woman employee merely by reason of marriage.

In one case, an airline company implemente­d a policy requiring its prospectiv­e flight attendants to be single and once

married are automatica­lly separated from service. The airline reasoned that the policy was fair and reasonable considerin­g the peculiarit­ies of the profession. It further contended that Article 134 applies only to women employed in ordinary occupation­s and not to extraordin­ary ones like flight attendants. The said policy was declared void for being violative of Article 134 of the Labor Code prohibitin­g discrimina­tion against married women. Article 134 does not distinguis­h whether a woman is engaged in an ordinary or special occupation as the sweeping intent of the law is to promote non-discrimina­tion on the employment of women. (Zialcita, et al. vs. Philippine Air Lines, Case No. RO4-33398-76, Feb. 20, 1977)

In another case, an employee was dismissed pursuant to the company’s policy of not accepting or of disqualify­ing any woman who contracts marriage. While the employee concealed her married status, and hence committed dishonesty, the Supreme Court declared the said policy as void in derogation of the provision stated in Article 134 of the Labor Code. It held that the policy was not only contrary to law, but also to good morals and public policy by depriving women of their freedom to choose their status which is considered as an inherent, intangible, and inalienabl­e right. ( Philippine Telegraph and Telephone Company v. NLRC, G.R. No. 118978, May 23, 1997)

STIPULATIO­N AGAINST MARRIAGE AS A REASONABLE BUSINESS NECESSITY

The Labor Code speaks particular­ly of women in cases involving stipulatio­n against marriage. However, jurisprude­nce is replete with cases with respect to stipulatio­n against marriage regardless of sex which were imposed for a legitimate business concern in the exercise of management prerogativ­e.

For instance, in one case, the company imposed a policy prohibitin­g: a.) the hiring of new applicants who are related to an employee of the same company up to the third degree of relationsh­ip; and b.) employees who developed a friendly relationsh­ip during the course of their employment from getting married unless one of them resigns.

For the policy to be considered valid, however, the employer must present undisputed proof of a reasonable business necessity. As the company failed to prove a legitimate business concern in imposing the questioned policy, the Supreme Court struck down the same and held that the implementa­tion of the policy was an invalid exercise of management prerogativ­e. (Star Paper Corp. v. Simbol, G.R. No. 164774, April 12, 2006) In another case, the Supreme Court declared a pharmaceut­ical company’s policy prohibitin­g its employees from marrying employees of any competitor company as valid pursuant to the principle of reasonable business necessity. The said company policy was considered reasonable under the circumstan­ces since personal or marital relationsh­ips might compromise and unduly affect the interest of the company. (Duncan Associatio­n of Detailman-PTGWO

v. Glaxo Welcome Philippine­s, Inc., G.R. No. 162994, Sept. 17, 2004)

By adopting the said policy, an employer merely seeks to protect its economic interest, its reasonable returns on investment­s and to expansion and growth, including the protection of its trade secrets, marketing strategies, and other confidenti­al programs and informatio­n from competitor­s.

The policy cannot be considered as a policy against marriage. Neither does the policy restrict an employee’s right from marrying anyone of his or her own choosing nor his or her personal prerogativ­e. However, an employee’s personal decision does not prevent an employer from exercising management prerogativ­e to ensure maximum profit and business success.

While it is true that the heart has reasons of its own which reason does not know (Chua-Qua v. Clave G.R. No. 49549, Aug. 30, 1990), the blossoming romance and union of employees may be barred in the employer’s exercise of management prerogativ­e for as long as there exists a legitimate business concern.

This article is for informatio­nal and educationa­l purposes only. It is not offered as and does not constitute legal advice or legal opinion.

 ?? Zgmontefol­ca @accralaw.com ?? ZYRA G. MONTEFOLCA is an Associate of the Davao Branch of the Angara Abello Concepcion Regala & Cruz
Law Offices (ACCRALAW).
Zgmontefol­ca @accralaw.com ZYRA G. MONTEFOLCA is an Associate of the Davao Branch of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).

Newspapers in English

Newspapers from Philippines