Tag - constructive dismissal

Diminution in Rank or Diminution of Responsibilities

Diminution is usually associated with benefits. However, in a Supreme Court (SC) decision, the concept of diminution in rank or diminution of responsibilities was established. In the case of Isabela-I Electric Coop, Inc. vs. Del Rosario (July 17, 2019, G.R. No. 226369), the SC discussed diminution in rank of employee whose position was changed from Internal Audit Manager to Area Manager. Although the employee’s position bears the appellation “manager,” the responsibilities he used to discharge as manager in his former [...]

Claim of Involuntariness in Employee Resignation

Resignation is one of the rights granted to employees under Article 300 of the Labor Code, as amended. In the case of Italkarat 18, Inc. vs. Gerasmio (G.R. No. 221411, September 28, 2020), the Supreme Court (SC) held that records are bereft of substantial evidence that will unmistakably establish a case of constructive dismissal. An act, to be considered as amounting to constructive dismissal, must be a display of utter discrimination or insensibility on the part of the employer so [...]

Burden of Proof in Constructive Dismissal

Burden of proof is the standard required in proving a case. In cases of constructive dismissal, the burden of proof is on the employer to show that the employee was dismissed for a valid and a just cause. (Suldao vs. Cimech System Construction, Inc., G.R. No. 171392, October 30, 2006.) This means that if the employee claims he was constructively dismissed from service and sues the employer, it is the employer who must prove that the employee was not dismissed [...]

Constructive Dismissal

Constructive dismissal occurs when there is cessation of work because continued employment is rendered impossible, unreasonable, or unlikely as when there is a demotion in rank or diminution in pay or when a clear discrimination, insensibility, or disdain by an employer becomes unbearable to the employee leaving the latter with no other option but to quit. (Tan Brothers Corporation of Basilan City vs. Escudero G.R. No. 188711, July 3, 2013 citing The University of Immaculate Conception vs. NLRC, G.R. [...]

Constructive Dismissal Involving Reduced Responsibilities

Usually, constructive dismissal involves demotion in rank or diminution in pay. However, there could be constructive dismissal even though on paper there was no demotion in title or diminution in pay. To give a conceptual view, constructive dismissal exists where there is cessation of work because “continued employment is rendered impossible, unreasonable or unlikely, as an offer involving a demotion in rank and a diminution in pay.” (Globe Telecom, Inc. vs. Galang, G.R. No. 150092, September 27, 2002.) There is [...]

Evidence Management in Company Investigation

Evidence is one of the crucial items needed in establishing a case involving violation of company rules and regulations. Considering that evidence is usually a tangible thing it can also be lost on account of being tampered or destroyed. By the time that the company needs the evidence to support its position it is not available anymore. So, what should the company do to preserve the evidence once there is an act warranting company investigation? Depending on the nature of [...]

Strong Words by the Employer Do not Necessarily Result in Constructive Dismissal

Strong words alone cannot make the employment of employee unbearable. In short, they do not necessarily amount to constructive dismissal. Constructive dismissal exists if an act of clear discrimination, insensibility, or disdain by an employer becomes so unbearable on the part of the employee that it could foreclose any choice by him or her except to forego his or her continued employment. The test for determining if an employee was constructively dismissed is whether a reasonable person in the employee’s [...]

Company Practice Must be Proven by Employee

Acquire Mastery of HR/Labor Doctrines, Rules and Principles with Atty. Elvin’s HR Bundle Books at Discounted Rate Company practice is usually used as basis to claim diminution of benefit. The idea is that there is no express policy granting company practice. The claimant alleges that said benefit was removed without his consent. Since there is nothing in writing granting such benefit, the claimant may allege that there is a company practice. While this is admitted, the claimant has to prove [...]

Constructive Dismissal

Constructive dismissal is an illegal form of dismissal which does not involve any written or verbal statement that the employee is dismissed from service. But the treatment on the employee by the employer is inhumane, prejudicial, and inconvenient such that the former is left with no choice but to involuntarily quit his work. The post below is based on the book Guide to Valid Dismissal of Employees Second Edition. Constructive dismissal is defined as quitting or cessation of work because [...]


Martinez Memorial Colleges, Inc. (MMC) is a private educational institution. Mariano was MMC’s Assistant Cashier since April 15, 1976 and had been in service for 32 years. Part of her job was to accept payments and issue receipts and deposit slips to MMC students. On March 12, 2008, the Mariano went on a one month authorized leave of absence, as she and her husband Dario Mariano (Dario), Director for Finance of MMC, would be vacationing in the United States. [...]

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