Elvin Villanueva

NEW!!! 44 Rules on Employee Transfer and Demotion

Sales are the lifeblood of businesses, big and small.  Employee performance and the management of human resources are vital as well 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 dos 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 Book Store outlets, Fully Booked and Powerbooks.  For quick and convenient purchase and reading, this guide is also available  in EBook and Kindle formats, perfect for your PC, Ipad, Kindle and tablet. Ebook Price: Php 497.00

44 Rules on Employee Transfer and Demotion

44 Rules on Employee Transfer and Demotion




Requirements for Valid Retrenchment Under Philippine Laws

Retrenchment refers to the termination of employment initiated by the employer through no fault of and without prejudice to the employees.

It is resorted to during periods of:

  • business recession,
  • industrial depression,
  • seasonal fluctuations, 
  • lulls occasioned by lack of orders,
  • shortage of materials,
  • conversion of the plant to a new production program, or
  • automation

While labor laws allow retrenchment as a company’s valid exercise of management prerogative, it must comply with certain requirements for it to be valid:

(1) the retrenchment is reasonably necessary and likely to prevent business losses which, if already incurred, are not merely de minimis, but substantial, serious and real, or only if expected, are reasonably imminent as perceived objectively and in good faith by the employer;

(2) the employer serves written notice both to the employee/s concerned and the DOLE at least one month before the intended date of retrenchment;

(3) the employer pays the retrenched employee separation pay in an amount prescribed by law;

(4) the employer exercises its prerogative to retrench in good faith; and

(5) the employer uses fair and reasonable criteria in ascertaining who would be retrenched or retained. 

The business losses sought to be avoided should not simply be  a drop in the earnings of the company in order for retrenchment to be justified.  A mere decline in gross income cannot in any manner be considered as serious business losses.  It should be substantial, sustained and real.

Case of : Lambert Pawnbrokers and Jewelry corporation and Lambert Lim vs. Helen Binamira, G.R. No. 170464. July 12, 2010.

Learn more about the legal requirements for retrenchment from Valid Dismissal of Employment by Atty. Elvin Villanueva.

Computation of Termination Pay

The minimum amount of a terminated or dismissed employee’s termination pay depends on the reason or ground for his dismissal, either a half month’s pay or one month’s pay for every year of service, but in no case will an employee get the equivalent of less than one month’s pay.

Cases where employee is entitled to a half month’s pay for every year

  1. Retrenchment to prevent losses, i.e. reduction of personnel affected by management to prevent losses
  2. Closure or cessation of operation of an establishment not due to serious losses or financial reverses; and
  3. When the employee is suffering from a disease not curable within a period of six (6) months and his continued employment is prejudicial to his health or to the health of his co-employees.

Cases where employee is entitled to one month’s pay for every year

  1. Installation of labor-saving device, such as replacement of employees by machineries or computerization;
  2. Redundancy, as when the position of the employee has been found to be surplusage or unnecessary in the operation of the enterprise;
  3. Impossible reinstatement of the employee to his former position or to a substantially equivalent position for reasons not attributable to the fault of the employer, as when the reinstatement ordered by a competent authority cannot be implemented due to closure or cessation of operations of the establishment or employer, or when the position to which he is to be reinstated no longer exists and there is not substantially equivalent position in the establishment to which he can be assigned.

Learn more about how to compute termination pay and other legal requirements of dismissing employees from Guide to Valid Dismissal of Employees by Atty. Elvin Villanueva.

Night Shift Pay

The Labor Code provides that every employee is entitled to a night shift differential or night shift pay of not less than ten percent (10%) of his regular wage for each hour of work performed between 10 p.m. and 6 a.m.  If overtime work or work in excess of eight (8) hours falls within the night shift period, premiums for overtime work should first be integrated into the regular hourly rate of the employee before computing night shift pay. 

Who are not covered by the night differential provisions

The provisions on night shift differential apply to all employees except:

  • government employees
  • employees of retail and service establishments regularly employing not more than 5 workers
  • domestic helpers and persons in the personal service of another
  • managerial employees
  • field personnel and those whose time and performance are unsupervised by the employer

Learn more about night shift pay or night shift differential from Compensation and Benefits Guide by Atty. Elvin Villanueva.

What Every Overseas Filipino Worker Must Know: “Gabay sa Karapatan ng OFW” by Atty. Elvin Villanueva


This work focuses on the fundamental information that every OFW  should know.

With this guide, OFWs can get a clearer understanding of basic issues such as:

  • placement fee,
  • repatriation expenses,
  • labor offices abroad and
  • illegal recruitment.

Early chapters deal with the organizational structures of POEA, OWWA and other government agencies so you’ll know  know how to use these offices when enforcing your rights. 

Labor laws

Knowing the officers involved in addressing OFW’s concerns is the foundation of understanding them. Labor legislations involving overseas workers are also discussed such as the recent Migrant Workers’ Act which highlights the amount to be paid to an illegally dismissed employee.


Learn how to file cases against employers or agencies. This book teaches you the step-by-step process in enforcing claims starting with filing of complaint, mandatory conferences, filing of position paper, etc.

Solidary liability of foreign employer

Another interesting discussion is on the solidary liability of foreign employer and the local agency. In case of illegal dismissal of an OFW, who shall be liable for backwages and damages? Likewise, is the OFW a regular employee? These are interesting questions that are clearly answered in this book.

Other topics include:

  •  large-scale illegal recruitment,
  • illegal recruitment by syndicates,
  • bilateral labor agreements,
  • mandatory remittance system,
  • VISA, passport and documentation
  • OFW claims for disability and
  • death claims.

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Author:  Atty. Elvin Villanueva

Price:  Php 395

Form: Paperback

Ideal for: OFWs, those who intend to go abroad for employment, and relatives of OFWs.

Availability:  National Book Store, Fully Booked and online.

“Gabay Sa Mga Karapatan ng Overseas Filipino Workers (OFW)” by Atty. Elvin Villanueva

Book Title:  “Gabay sa Mga Karapatan ng Overseas Filipino Workers (OFW)”

Author:  Atty. Elvin Villanueva

Date of Publication:  June 2010


Para sa isang itinuturing na bagong bayani ng bansa, nararapat lamang na napapangalagaan ang kapakanan ng mga OFW. Ang ganitong pananaw ay tumpak lamang sa teoriya at tila hindi sa katotohanan.

 Napakaraming insidente ng pang-aabuso, pagmamaltrato at pananakit ang nararanasan ng libu-libong OFW sa iba’t-ibang bansa. Makikitang hindi pa sapat ang proteksyon na nakukuha ng mga ito para sa kanilang mga karapatan. Marahil napakahirap magbigay ng agarang pag-alalay dahil sa layo ng lugar sa mga ahensya ng pamahalaan.

 Kung kaya ang isang OFW ay namulat na nakikibaka para sa kanyang karapatan ng solo. Ang adhikain ng aklat na ito ay upang makapagbigay ng mga kailangang impormasyon upang ipaunawa sa mga manggagawa ang kanilang mga karapatan at mga dapat gawin sa isang sitwasyon.

 Hindi man ito ang lubos na kasagutan sa mga suliraning pang-OFW, ito ay magsisilbing gabay na maaring magturo sa tamang paraan na dapat gawin ng isang OFW. Ang mga bagay tungkol sa placement fee, illegal recruitment, PDOS, mga tungkulin ng POEA, POLO, Embahada, recuitment agencies, Bilateral Labor Agreements at iba pa ay tinatalakay rito.

 Mga bagay-bagay tungkol sa remittance, migrant worker’s day, absentee voting, pagsampa ng reklamo sa mapang-abusong employer at agency, at mga kahilingan tungkol sa disability, sickness at iba pa ay mababasa rin sa aklat.

 Alam ng lahat na karamihan sa mga kababayan natin ay hindi nais na mawalay sa kanilang mga mahal sa buhay. Subalit sila ay tinulak ng kapalaran upang magsikap para mapaganda ang kinabukasan ng pamilya sa Pilipinas. Dapat lamang na sila ay makahanap ng kaagapay sa kanilang pakikibaka sa ibang bansa.

Price:  Php395.00

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“Guide on Employee Compensation and Benefits Vol. Two” by Atty. Elvin Villanueva


Book Title: Guide on Employee Compensation and Benefits (Volume 2)

Author: Atty. Elvin Villanueva

Year of Publication:  2010



Just how much should the company give as bonus? Just how many months of bonus should the company give without violating the law? If the company pays Christmas Bonus is it still required to pay 13th month pay? How about 14th and 15th month pay, should the company pay them also?

These are some of the perplexing questions that a typical HR practitioner encounters in his work. Most often, it is resolved in favor of the employees resulting in increased manpower cost on the part of the company.

The rules on 13th month pay and Christmas Bonus are discussed in this book. When to pay them and when not to are explained using the law and jurisprudence. Companies are not required to pay 14th, 15th month pay, and so forth, unless they are stipulated already in the CBA or any contract for that matter. But they are not legally mandated benefits.

How about productivity incentive bonuses, signing bonus, etc.? This book also offers explanation why some should be paid and the rest should not be.

Then comes the issue on leaves. Question like is there such thing as vacation leave in the Labor Code? Why can’t I find it? There is none because the Labor Code only provides for service incentive leave. There are other leave benefits discussed in this work like paternal, paternity and for women who are victims of violence.

This book also deals with issues on

  • employee cash bonds, deposits
  • authorized deductions
  • the rules on employee compensation for disability, sickness, etc.

Price:  Php 528.00 PLUS shipping costs.

“Guide on Employee Compensation and Benefits Volume One” by Atty. Elvin Villanueva

Book Title:  Guide on Employee Compensation and Benefits Volume 1″

Author: Atty. Elvin Villanueva

Year of Publication:  2010


Consider the following scenarios: Company A underpays its employees because it is not aware of the salaries and benefits mandated by law. Then its employees file a complaint for underpayment or nonpayment of benefits.

Company B overpays its 2,000 employees by Php1,000.00 each in terms of benefits or salaries. Upon realizing its mistakes, it removes said salaries and benefits. Then its employees file a complaint for violating the rule on non-diminution or non-elimination of benefits.

In both cases, the companies would be forced to face the headaches of litigation.

Knowing the basics of employee compensation and benefits will go a long way in terms of paying employees of their services. It will guide employers on the minimum terms of engagement so that it pays within the sphere of legal amount and does not overpay by mistake.

This book provides the guidelines, jurisprudence, and even sample computations on some critical aspects of compensation like overtime, night-shift differential, holiday pay, etc. For example, how to calculate the daily rate if the employee works on a holiday, renders overtime, falling on night differential period and at a time where it is also his rest day? The book shows how.

It shows the solutions to situations in salary administration involving minimum wage and legally mandated benefits. The aim of this work is to promote payment of correct salaries and benefits to the best assets of the company while at the same time preserving the reason for being of any business: that is, derive profits.

Price:  Php 568.00


“Guide to Valid Dismissal of Employees” by Atty. Elvin Villanueva

 Book Title:  Guide to Valid Dismissal of Employees

AuthorAtty Elvin Villanueva

Year Published:  2010


For a company, it is only a matter of time before one of its employees files an illegal dismissal complaint against it. When it happens, it could bring serious drain of resources.

 Defending a company from an illegal dismissal case requires careful preparation due to pro-labor presumptions by law. Raising a good defense requires adequate knowledge on the basics of employee dismissal.

 This is where this book comes in, to equip HR practitioners and employees of the ways to validly dismiss the workers. The defense actually begins prior to dismissing an employee not during or after.

 In a nutshell, to dismiss an erring employee requires just cause or grounds for dismissal found in Article 282 of the Labor Code. If the reason for the removal of the employee is retrenchment, redundancy, etc., the basis for termination is found in Article 283. If due to disease, it is Article 284.

 Second, it is not enough that there are justifications for dismissal. There must be due process also or the notice and hearing.           

 The book shows certain pitfalls that must be avoided in dismissing or terminating an employee to prevent payment of backwages and moral damages. Ultimately, it helps HR Practitioners decide whether or not to dismiss a worker.

 In the first place, the triggering factor of an illegal dismissal case is the dismissal of the employee itself. At the end of the day, this book teaches that if the company cannot dismiss the employee validly, it should not dismiss him at all.

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Price:   Php568.00

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