Académique Documents
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Kinds of employees
MANAGEMENTPREROGATIVES
Management prerogative
Example.
When an owner of a business
enterprise, after operating a profitable
business for several years and decides
to close the same for he is already tired
of doing business and wants to travel
abroad for vacation, absolutely, he CAN
CLOSE the business. However, he is
obliged to pay separation pay to
workers as mandated by law. (Art. 283,
Labor Code.)
Most
ManagementPrerogatives
common
1. Four-fold test
2. Economic reality test
3. Two-tiered test (or Multi-factor test)
Four-fold test elements