When Transfer Does Not Amount to Demotion

Not all transfers or re-assignment of work from one office or area of operations to another are demotions. 

There is a demotion when there is a downward change in the rank, salary, benefits and other privileges of the employee.

The mere title or position held by an employee in a company does not of itself determine whether a transfer constitutes a demotion.  It is the totality of circumstances in each case such as:

  • the economic significance of the work
  • the duties and responsibilities conferred
  • the rank and salary of the employee
  • and other circumstances

In one case, an employee claimed that the abolition of his position as planning and marketing officer and his appointment as bookkeeper I and assistant branch head of one of the company’s branches is a demotion. 

The Supreme Court viewed the functions of his new position vis-a-vis the previous one and eventually came out with a decision stating that the new position entailed great responsibility with supervisory and administrative tasks.  Coupled with the observation that there was no decrease in pay, the Supreme Court did not consider the change in position as a demotion. (Rural Bank of Cantilan v. Julve, Feb 27, 2007).


2 thoughts on “When Transfer Does Not Amount to Demotion

  1. dennis

    i am working abroad and my wife working in manila as waitress..my son is in my in-law in laguna..is there any rights for me to take my son and bring him to bicol because my wife s not taking care of him instead?

    1. Atty. Post author

      Dennis: You are not in the Philippines to take care of your child. It may be to your child’s best interest to live with his mom and be watched over by his grandparent/s. But if you reside in the Philippines, depending on the child’s age, you may try to file a petition for sole custody in order to raise the child in Bicol.

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