Dear Atty. Kathy,

I have been an employee of our Company for 1 year now. Recently, our Company hired more people for my same position, but with a higher salary than when I was hired, so I talked to our HR Manager for a salary increase. The HR Manager told me that I am not due for any salary increase yet and that salary rates for new employees depend on many factors such as hiring dates, qualifications and industry rates at the time of employment. I feel this is not fair and I want to file a complaint with the NLRC. Do I have a valid ground?

Kayden

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Dear Kayden,

It is the prerogative of management to regulate, according to its discretion and judgment all aspects of employment. This flows from the established rule that labor law does not authorize the substitution of the judgment of the employer in the conduct of its business. Such management prerogative may be availed of without fear of any liability so long as it is exercised in good faith for the advancement of the employer's interest and not for the purpose of defeating or circumventing the rights of the employees under special laws or agreements and are not exercised in a malicious, harsh, oppressive, vindictive or wanton manner or out of malice or spite.

Based on your narration, it appears that your Company is exercising its management prerogative in determining salaries of new employees, depending on hiring dates, qualifications and industry dates.

There is no indication of bad faith that would compel the labor courts to interfere in the business judgment of your Company. Such setting of salaries is accepted in order to attract or lure the best possible applicants in the market.

Therefore, you may not have a valid ground to file a complaint for the increase of your salary absent any showing that the different salary rates for your same position was exercised in bad faith, and the courts will not interfere with such exercise of management prerogative by your Company.

(Philippine Geothermal Inc. Employees Union (PGIEU) vs Chevron Geothermal Phils. Holdings Inc., G.R. 207252, 24 January 2018).