What are management prerogatives?

What are management prerogatives? 

● Management prerogative refers to the right of an employer to regulate all aspects of employment, such as the freedom to prescribe work assignments, working methods, processes to be followed, regulation regarding transfer of employees, supervision of their work, lay-off and discipline, and dismissal and recall of work. (SHS Perforated Materials, Inc. vs. Diaz, G.R. No. 185814, October 13, 2010)

● Under the doctrine of management prerogative, every employer has the 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, lay-off of workers, and discipline, dismissal, and recall of employees. (Peckson vs. Robinsons Supermarket Corporation, G.R. No. 198534, July 3, 2013)

What are the limitations on the exercise of management prerogative?

1. It must be exercised in good faith.
2. It must not be tainted with unfair labor practice.
3. The exercise of management prerogative must be within the limitations set by law, collective bargaining agreement (CBA), employment contract, employer policy and employer practice.
4. The exercise must be consistent with the principles of fair play and justice.
5. It is subject to police power.