Forced Relocation of Workplace and Threat of Termination: Employee Rights in the Philippines

This article explains—in practical, plain language—how Philippine labor law treats employer-initiated transfers and relocations, and what happens when a threat of termination is used to force compliance. It is general information, not specific legal advice.

1) The Core Rule: Security of Tenure

Employees in the Philippines have security of tenure. You can be dismissed only for a just cause or an authorized cause, and only after due process (Labor Code, notably renumbered Arts. 294, 297–301).

Just causes (Art. 297): serious misconduct, willful disobedience of lawful orders, gross & habitual neglect, fraud/breach of trust, commission of a crime against the employer/representatives, and analogous causes.
Authorized causes (Art. 298): installation of labor-saving devices, redundancy, retrenchment to prevent losses, or closure/cessation of business (even if not due to losses), subject to 30-day prior written notice to both employee and DOLE and payment of separation pay (except closure due to serious losses).
Disease (Art. 299): termination only with a DOH-certified competent public health authority’s finding that the disease cannot be cured within six months even with proper medical treatment; with separation pay.
Temporary suspension of work (Art. 301): bona fide suspension (lay-off) up to six (6) months, after which the employee must be recalled or legally separated using an authorized cause.

“Threats” alone are never a legal ground to dismiss. What matters is whether a valid cause exists and proper procedure is followed.

2) Management Prerogative to Transfer vs. Employee Protection

What employers can do

Employers generally have a management prerogative to organize business operations—including assigning or transferring employees—if the order is:

Lawful and reasonable,
Issued in good faith for legitimate business reasons,
Not a demotion in rank or not a diminution of pay/benefits,
Not discriminatory or intended to punish, harass, or coerce,
Consistent with the employment contract, company policies, and any CBA.

If these elements are present, refusal to obey a transfer may be treated as willful disobedience (a just cause) or even insubordination. Employers still owe due process before any penalty.

When relocation becomes unlawful

A “transfer” (including a move to a new city/province) can cross the line into constructive dismissal if it is:

Unreasonable (e.g., impracticably far or disruptive without genuine business need),
A de facto demotion (lower duties, status, or opportunities),
Involves pay/benefit cuts (including removal of allowances integral to pay),
Retaliatory (e.g., because of union activity, filing a complaint, pregnancy, etc.),
In bad faith (e.g., designed to force resignation).

Courts use a “reasonable person” test: would a reasonable employee feel compelled to resign under the circumstances?

3) “Forced Relocation” Scenarios, Analyzed

A) Contract has a mobility/assignment clause

Effect: Strengthens the employer’s prerogative if the new post is within the clause’s scope and the move is reasonable.
Limits: Clause does not authorize demotions, pay cuts, harassment, or unsafe/inhumane conditions.

B) No mobility clause; sudden move to a distant city

Employer must show genuine business necessity and good faith. Provide reasonable lead time and, in practice, relocation assistance (not strictly mandated by law but often expected).
If the move causes grave hardship (e.g., separation from dependents with no feasible arrangements) and seems unnecessary/excessive, it may be unlawful.

C) Transfer with the same title but loss of key benefits

Cutting allowances that are part of wage computation, or removing long-enjoyed perks that are not purely discretionary, may amount to diminution of benefits—which is prohibited absent a lawful basis.

D) Transfer used to punish or chill union rights

Transfers to discourage union activity can constitute Unfair Labor Practice (ULP), exposing the employer to civil and even criminal liabilities.

E) Refusal to relocate followed by a dismissal threat

If the relocation order is lawful and reasonable, refusal may be a just cause (willful disobedience)—but still requires twin-notice and hearing.
If the order is unreasonable/retaliatory, a “resign or be fired” ultimatum can constitute constructive dismissal.

4) Due Process Requirements

For just-cause termination (e.g., disobedience of a lawful transfer):

First written notice: specific charge(s), facts, company rule breached.
Opportunity to be heard: written explanation and/or hearing.
Second written notice: decision, findings, penalty, and reasons.

For authorized causes (redundancy, closure, etc.):

30-day prior written notices to employee and to DOLE + separation pay (as applicable).
A “relocate or resign” tactic cannot replace these steps if the employer’s real plan is to reduce headcount or close a site.

5) Separation Pay Cheat-Sheet (quick reference)

Ground (Authorized Causes)	Separation Pay
Installation of labor-saving devices	1 month pay per year of service (minimum 1 month)
Redundancy	1 month pay per year of service (minimum 1 month)
Retrenchment to prevent losses	1/2 month pay per year of service (minimum 1 month)
Closure/cessation not due to serious losses	1/2 month pay per year of service (minimum 1 month)
Closure due to serious losses	None
Disease (Art. 299)	1/2 month pay per year of service (minimum 1 month)

“Per year of service” is typically computed on the basis of at least six (6) months = one (1) year. Always check your CBA or company policy if it grants better terms.

6) Special Worker Categories

Probationary employees: Transfer rules still apply; dismissal must be for just cause or for failure to meet reasonable, known standards. A punitive transfer to force resignation can still be constructive dismissal.
Project/Fixed-term employees: Transfers must remain consistent with the project scope or fixed-term agreement; end of project/term is a separate ground.
Field personnel/outside sales: Wider mobility is typical, but still bounded by reasonableness/good faith and by the contract/CBA.
Telecommuting/Remote work (Telecommuting Act): Remote work is generally by mutual agreement. Unilateral revocation or forced return to on-site work may be lawful only if consistent with the agreement/policy and applied in good faith (no demotion/diminution; reasonable notice).
Pregnant workers & workers with disability: Transfers should not endanger health or discriminate; reasonable accommodation may be legally required.

7) Evidence That Matters

When “forced relocation” or “threats” are disputed, these documents often decide the case:

Employment contract (any mobility/assignment clause)
Company handbook/CBA (transfer, relocation assistance, notice)
Transfer order(s) (dates, reasons, effective date, role, pay/benefits)
Emails/chat messages showing threats, retaliation, or timelines
Comparative job descriptions (old vs. new)
Payroll/benefits records (to prove diminution)
Medical or family circumstances (to prove unreasonable hardship)
Business papers (to test employer’s “business necessity” claim)

8) Practical Playbooks

If you’re an employee facing forced relocation

Acknowledge receipt of the order in writing; ask for specifics (business reasons, effective date, duration, reporting lines).
Flag any hardship (health, caregiving, schooling, security) and request reasonable accommodation (timeline, hybrid setup, travel/relocation aid).
Preserve evidence of any threats (“resign or be terminated”) or retaliatory motives.
Propose alternatives (temporary assignment, phased reporting, remote days).
If the order seems unlawful, file a written protest. Do not abandon work; keep reporting to your existing assignment (or comply under protest if advised).
Consider an NLRC complaint for constructive or illegal dismissal if the employer imposes an unreasonable transfer or fires you for refusing such order.

Sample one-page “Request for Reconsideration” (short form)

I received the [date] memorandum re: my transfer to [new site] effective [date]. I respectfully request reconsideration and a reasonable alternative timetable because [brief reasons: childcare, health, commute time, costs]. I am willing to [proposed alternative: phased reporting/temporary assignment/remote days]. I remain committed to the company and will comply with all lawful directives. Sincerely, [Name, Position, Employee No.]

If you’re an employer planning a relocation

Document the legitimate business reason (site consolidation, client requirement, cost, safety).
Check contracts/CBAs and past practice; apply policies consistently.
Ensure no demotion/diminution; keep wages/tenure intact.
Provide reasonable notice and, where feasible, assistance (temporary housing, transport, per diems).
Allow employees to be heard; fairly consider hardship requests.
If headcount will drop because of the move, evaluate authorized-cause options (redundancy/closure) with 30-day notices and separation pay instead of coercive tactics.

9) What Counts as a “Threat of Termination”?

“Resign or be fired” over a contested relocation is a red flag. If the relocation order is unlawful or unreasonable, the threat bolsters a constructive dismissal case.
Even if the order is lawful, termination still requires due process and a proportionate penalty. A first-time refusal amid good-faith negotiation rarely justifies outright dismissal.

10) Remedies & Timelines

Illegal dismissal/constructive dismissal: Reinstatement (or separation pay in lieu if reinstatement is no longer viable) + full backwages from dismissal until reinstatement or finality of judgment, + attorney’s fees in some cases.
Prescriptive periods:
- Illegal dismissal actions: generally 4 years.
- Money claims (unpaid wages/benefits): 3 years.
Where to file: Nearest NLRC—Regional Arbitration Branch to your workplace or residence.
Interim relief: If reinstatement is ordered by the Labor Arbiter and appealed by the employer, payroll reinstatement is typically required during appeal.

11) FAQs

Q: Is my employer required to pay relocation allowances? Not by default. But if policy/CBA or past practice provides such benefits—or if the move imposes unusual costs—offering assistance is often necessary to keep the transfer reasonable.

Q: Can I refuse a transfer that doubles my commute time? It depends. If the transfer is reasonable, lawful, and in good faith, refusal risks discipline. If it causes grave hardship without compelling business need, you may challenge it; get advice before refusing.

Q: My title stays the same, but my duties and exposure shrink. Is that a demotion? Possibly. Courts look beyond titles to substance—responsibilities, career prospects, and pay/benefits.

Q: The company is closing my site and telling us to “reapply” in another city. If the closure is real, the proper route is an authorized-cause termination with 30-day notices and separation pay; “reapplication” cannot be used to avoid these obligations.

Q: Can they immediately fire me for refusing to sign a relocation memo? No one can be legally fired immediately without due process. Whether refusal is punishable depends on the lawfulness of the order and the facts.

12) Practical Checklists

Reasonableness of a Relocation (quick audit)

Legitimate business reason documented?
No demotion/no diminution?
Notice period reasonable?
Hardship accommodations considered?
Consistent with contract/CBA/past practice?
Non-retaliatory, non-discriminatory?
Safety/health risks addressed?

Building a Constructive Dismissal Case (employee)

Keep copies of transfer orders and emails with threats/ultimatums.
Show hardship and employer’s refusal to accommodate.
Prove diminution/demotion (numbers, org charts, KPIs).
File promptly; avoid absenteeism/abandonment.

13) Bottom Line

Transfers are lawful when reasonable, in good faith, and free from demotion/diminution or discrimination.
Forced relocation backed by termination threats crosses into constructive dismissal if used to coerce resignation or punish an employee.
Due process is non-negotiable. If a site move is truly necessary but harmful to some workers, the law points employers to authorized-cause options with notices and separation pay, not to coercion.

Disclaimer

This is general information based on Philippine labor law principles. Individual facts matter a lot; when in doubt, consult a labor lawyer or DOLE for guidance tailored to your situation.