Tag - constructive dismissal

No Abandonment and No Constructive Dismissal Result in Reinstatement without Backwages

It is well settled that abandonment of work cannot be simply presumed from the occurrence of certain equivocal acts. In proving abandonment, this the Supreme Court (SC) held in Hubilla vs. HSY Marketing Ltd., Co. (823 Phil. 358, 385 (2018) that there must be a positive and overt act signifying an employee’s deliberate intent to sever his or her employment. Thus, mere absence from work, even after a notice to return, is insufficient to prove abandonment. The employer must show that [...]

Transfer and Constructive Dismissal when Merges as Issues in an Illegal Dismissal Complaint

Complaint for constructive / illegal dismissal based on claim of illegal transfer usually faces the clash of two sets of different burden of proof. That is, burden on the employer side (in case of proving validity of transfer) and burden on the side of employee (to prove the fact of dismissal in a claim of constructive dismissal). A transfer is a “movement from one position to another which is of equivalent rank, level or salary, without break in service.” Promotion, [...]

Verbal Dismissal and its Probative Weight in Labor Cases

An employer may be sued before the National Labor Relations Commission (NLRC) for illegal dismissal involving claims of verbal dismissal. How will the labor court appreciate the allegation of verbal dismissal? In the case of Nuda vs. LGTM Corporation, Inc. (G.R. No. 245835, March 22, 2023), the Supreme Court held that before there can be a finding of illegal dismissal, the fact of dismissal must first be proved by the employee. Indeed, in illegal dismissal cases, the burden of proof is [...]

Constructive Dismissal does not Always Involve Diminution in Rank, Compensation, Benefit and privileges

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 or a diminution in pay’ and other benefits. Aptly called a dismissal in disguise or an act amounting to dismissal but made to appear as if it were not, constructive dismissal may, likewise, exist if an act of clear discrimination, insensibility, or disdain by an employer becomes so unbearable on the part of [...]

Notice Requirement and Compelling Economic Reason in Bona Fide Suspension of Operations

The suspension of employment under Article 301 of the Labor Code is only temporary and should not exceed six months, as the Supreme Court (SC) explained in PT&T Corp. vs. National Labor Relations Commission, it may be applied but only by analogy to set a specific period that employees may remain temporarily laid-off or in floating status. Six months is the period set by law that the operation of a business or undertaking may be suspended thereby suspending the employment [...]

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 position [...]

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 intense [...]

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 from [...]

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 constructive [...]

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