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SC: Hostile work environment that forces employee to resign constitutes constructive illegal dismissal

Published Sep 27, 2024 5:17 pm

The Supreme Court (SC) has ruled that an employer's indifferent behavior, verbal abuse, and demotion that forces a worker to resign constitute constructive illegal dismissal.

In a 20-page decision penned by Associate Justice Amy Lazaro-Javier, the SC's Second Division found that a certain Jonathan Dy Chua Bartolome was "constructively dismissed" by Toyota Quezon Avenue, Inc. (TQAI).

According to the High Court, constructive dismissal happens when an employer "creates such unbearable working conditions that the employee feels forced to quit."

Bartolome, who had been a regular employee at the company since 2010, was met with hostile behavior from senior managers. In 2015, he was suspended for seven days due to frequent absences.

He then brought his sibling, who acted as his legal counsel, to a meeting with TQAI's management and was "publicly humiliated" by the president of the company for it.

Later, Bartolome was transferred to a new team, with his accounts taken away without explanation. A general sales manager also turned down his attempt to process a sale. According to the SC, his new boss then "explicitly" asked if he wanted to resign.

Following the events and work environment, Bartolome left the company in 2016 and was "treated like a stranger-criminal and harassed for no reason" when he came back for his clearance.

He filed a complaint against TQAI with the Labor Arbiter (LA) for constructive dismissal and money claims. It ruled that he was constructively dismissed.

However, the Court of Appeals reversed the ruling, stating that Bartolome had voluntarily resigned.

The Supreme Court ruled in favor of Bartolome, stating that his letter of resignation was "involuntary and not genuine."

"[The respondents] posit that his resignation letter was simple, candid, and direct to the point, and left no doubt that he did intend to resign. Thus, respondents insist they cannot be held personally and individually liable for his voluntary resignation. We are not convinced," the SC said.

TQAI was ordered to pay Bartolome's full backwages from April 1, 2016 to the date of the decision, separation pay, P92,687.22 in total commissions, and P70,000 in moral and exemplary damages.