St. Michaels Institute vs. Santos, et al.

Management prerogative
Facts: Respondents were regular school teachers of St. Michaels Institute. On August
10, 1993, a public rally was held at the town plaza in the vicinity of the school. It was
participated by faculty members, parents and some students aimed at calling the
attention of the school about substandard facilities and economic demands by the
teachers. The school principal asked the respondents to explain their participation in the
rally which prevented students from attending classes and for criticizing school
authority. Respondents denied all accusations. Upon recommendation by the
investigating committee, the school authorities terminated from service the respondents
for serious disrespect to their superior and for serious misconduct that resulted in the
disruption of classes. Because of this, respondents complained for illegal dismissal
against the petitioners.
Issue: Is the respondents termination warranted as an exercise of management
prerogative?
Ruling: Not really. While it is true that employers right to conduct the affairs of his
business, according to its own discretion and judgment, is well-recognized. However,
policies, rules and regulations on work-related activities of the employees must always
be fair and reasonable including its corresponding penalties. Thus, even when an
employee is found to have transgressed the employers rules, due consideration must
still be given to his length of service and the number of violations committed during his
employment. In this case, the dismissal meted out on the respondents for dereliction of
duty for one school day and denouncing school authority, appears to be too harsh a
penalty.
PS. The burden of proof is always on the employer to prove that the dismissal was for a
just and valid cause.