Court Rules Bank Abused Power by Reassigning Employee 52 km Away
Regional court upholds severance pay for 16-year employee forced into distant transfers and demotion.
KEY POINTS
- Employee demoted and transferred 52 km away repeatedly over short periods
- Worker resigned and sued for severance pay after 16 years of service
- Local labor court awarded severance; bank appealed decision
- Regional Court upheld ruling, citing abuse of management rights
- Precedent limits employer power to impose unilateral adverse changes
A bank employee with 16 years of service resigned after being demoted and repeatedly reassigned to branches up to 52 kilometers from the original workplace. The worker sued for severance pay, arguing the transfers constituted constructive dismissal.
The local labor court ruled in favor of the employee, granting severance compensation. The bank appealed, citing contractual flexibility clauses and claiming the statute of limitations had expired.
“The employer's right to manage cannot be unlimited and must be exercised objectively.”
The Regional Court of Justice upheld the ruling, stating management rights are not unlimited and must be exercised objectively and in good faith. The court found the bank failed to justify the reassignments as a genuine operational necessity.
The decision establishes that employers cannot use transfer clauses to effectively force an employee to quit. The bank's appeal was rejected, finalizing the severance award.
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