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Unity Metal Works, Inc., a private employer with 420 workers, suspends shift supervisor Kai Morales for three days on charges of falsifying production time records to cover a shortfall in output. Morales was not given prior notice or a hearing before the suspension. After the suspension, Unity Metal Works terminates Morales for the same acts, invoking management prerogative to discipline swiftly. (a) Identify the controlling rule on limitations to management prerogatives in disciplining employees. (b) Distinguish between a valid exercise of management prerogatives and an unlawful dismissal. (c) Apply to these facts: Was Morales’s suspension lawful? Was the termination lawful? What remedy would be appropriate if Morales files a case for illegal dismissal?

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