Your company is facing a dilemma. Your company has been training an employee with an engineering background to operate an expensive piece of equipment, which your company only has one of, presently located in your Batangas plant. However due to the recent volcanic eruption of Taal and as part of its management prerogative, it was decided to move some of its operations to its Misamis Oriental Plant which included the operation of this piece of equipment. The employee assigned to operate this equipment was given a letter of assignment informing him of the transfer of his new work location in Misamis Oriental to be effective in 30 days. His salary and position would remain the same since his job description remained the same but he was given an extra 3 months worth of salary as allowance for any expenses he would be incurring during the transfer plus a quarterly round-trip ticket to between Manila and Misamis Oriental, and a company phone with a data plan to make it easier for him to be always in touch with his friends and family in Batangas. It is also noteworthy that the cost of living is much lower in Misamis Oriental.

However the employee refused the transfer and continued to report for work in the Batangas plant after the lapse of 30 days even though the equipment was no longer there. The employee was charged with willful disobedience to company orders and was given a notice to explain on why he should not be terminated from employment. In his answer, the employee argued that he has lived his whole life in Batangas and is raising his family there. His transfer would uproot him from his children who are still at a tender age. Forcing him to be transferred to the other end of the country was unreasonable and cruel. He is adamant that he will not leave his family.

The company is inclined to terminate. Doing so would free the headcount and would allow them to recruit and train someone else from Misamis Oriental. It would cost the company more time to train but it would also be more cost effective in the long run since wages are generally lower in Misamis. If they do no terminate, they would still need to hire and train someone else who would operate the machine resulting in an excess headcount in engineers which is an expense that the company wants to avoid. However, illegally terminating an employee can be more expensive so the company wishes to avoid this as well.

As part of the management disciplinary committee, you've been asked for your recommendation. From a strictly legal point of view, under these circumstances can the company validly terminate the employment of this worker who refused to be transferred? Or would such a move be tantamount to an illegal dismissal. What would be your recommended solution? State your reasons.