Constructive dismissal

Constructive dismissal is an employer’s act amounting to dismissal but made to appear as if it were not – a dismissal in disguise. In most cases of constructive dismissal, the employee is allowed to continue to work, but is simply reassigned, or demoted, or his pay diminished without a valid reason to do so.

Constructive dismissal does not always involve forthright dismissal or diminution in rank, compensation, benefit and privileges. There may be constructive dismissal if an act of clear discrimination, insensibility or disdain by an employer becomes so unbearable on the part or the employee that it could foreclose any choice by him except to forego his continued employment. (See Hyatt Taxi Services case, G.R. No. 143204, June 26, 2001.)

Constructive Dismissal and Involuntary Resignation

Constructive dismissal is an involuntary resignation resulting in cessation of work resorted to when continued employment becomes impossible, unreasonable or unlikely; when there is a demotion in rank or a diminution in pay; or when a clear discrimination, insensibility or disdain by an employer becomes unbearable to an employee.

In Globe Telecom, Inc. v. Florendo-Flores, it was held that where an employee ceases to work due to a demotion of rank or a diminution of pay, an unreasonable situation arises which creates an adverse working environment rendering it impossible for such employee to continue working for her employer. Hence, her severance from the company was not of her own making and therefore amounted to an illegal termination of employment. (Cited in Francisco vs. NLRC, G.R. No. 170087, August 21, 2006.)

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John Ramos
John Ramos
2 years ago

Hello Atty. March 4, 2019, Monday, kababalik ko lang from vacation then nag 1 on 1 meeting kame ng aking Manager. Sinabi nya sakin that the management wants me out of the company. Ang reason nya is about the issue sa isa sa aking mga accounts that happened July-August 2018 pero iba pa ang Manager ko nun. Wala sya maibigay na documentation or email conversation that the management wants me out, ang lagi nyang sinasabi its confidential. Tuesday-Wednesday, nag leave sya para daw pag-isipan ko narin. Thursday, Nag-meet kame uli at pinagawa nya ako ng resignation letter at sabi nya… Read more »

2 years ago

goodafternoon po.. itatanong ko lng po kung my makukuha pa ko separation pay kc po 7yrs and 8months na po ako sa company bilang isang purchaser below minimum po ako non tas nito 2015 lng po ako naging minimum… binigyan po ako ng 39k bilang serbisyo ko dw po nung cmula pero bago po ako nkatanggap ng cash pinagmumura po ako ng boss at ininsulto tas my pinapirma po sa akin na hndi ko po nabasa dhil sa mga salita po ng boss ko pinapirma dn po ako ng 5 months contract bilang warehouse staff nlng po.. nagresign po ako… Read more »