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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
Constructive dismissal is an involuntary resignation resorted to when continued employment is rendered impossible, unreasonable or unlikely; or when there is a demotion in rank and/or a diminution in pay. (Jonald Torreda vs. Investment and Capital Corporation of the Philippines, G.R. No. 229881, September 5, 2018)
Resignation is a pivotal part of the employment lifecycle of an employee, typically driven by personal factors thus, should stem from the voluntary choice devoid of any external pressures such as coercion, intimidation, or undue influence from the employer. However, when an employee is compelled to resign against his/her own volition, questions arise regarding the validity of such resignation and its implications – Is the resignation legally binding? Or does it signify a situation of constructive dismissal, indicating a breach of employment rights by the employer?
Forcing or coercing an employee to resign is prohibited by law. Similarly, subjecting employees to circumstances where resignation appears to be their sole option is deemed constructive dismissal that will warrant legal action against the employer.
What is Constructive Dismissal vis-à-vis Resignation?
Constructive dismissal is defined as quitting or cessation of work because continued employment is rendered impossible, unreasonable or unlikely; when there is a demotion in rank or a diminution of pay and other benefits. It 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 except to forego his continued employment. There is involuntary resignation due to the harsh, hostile, and unfavorable conditions set by the employer. The test of constructive dismissal is whether a reasonable person in the employee’s position would have felt compelled to give up his employment/position under the circumstances.
Resignation, on the other hand, is the voluntary act of an employee who is in a situation where one believes that personal reasons cannot be sacrificed in favor of the exigency of the service, and one has no other choice but to disassociate oneself from employment. It is a formal pronouncement or relinquishment of an office, with the intention of relinquishing the office accompanied by the act of relinquishment. As the intent to relinquish must concur with the overt act of relinquishment, the acts of the employee before and after the alleged resignation must be considered in determining whether he or she, in fact, intended to sever his or her employment
How to Prove a Voluntary/Valid Resignation?
To constitute a resignation, it must be unconditional and with the intent to operate as such. There must be an intention to relinquish a portion of the term of office accompanied by an act of relinquishment. (Shie Jie Corporation vs. National Federation of Labor, G.R. No. 153148, July 15., 2005)
In order to withstand the test of validity, resignations must be made voluntarily and with the intention of relinquishing the office, coupled with an act of relinquishment. Therefore, in order to determine whether the employees truly intended to resign from their respective posts, we must take into consideration the totality of circumstances in each particular case. (Flordaliza Llanes Grande vs. Philippine Nautical Training College, G.R. No. 213137, March 1, 2017)
If the employee was proven to have been involuntarily resigned, he was constructively dismissed.
Constructive dismissal is an involuntary resignation resorted to when continued employment is rendered impossible, unreasonable or unlikely; or when there is a demotion in rank and/or a diminution in pay.
It exists when there is a clear act of discrimination, insensibility or disdain by an employer, which makes it unbearable for the employee to continue his/her employment. In cases of constructive dismissal, the impossibility, unreasonableness, or unlikelihood of continued employment leaves an employee with no other viable recourse but to terminate his or her employment.
By definition, constructive dismissal can happen in any number of ways. At its core, however, is the gratuitous, unjustified, or unwarranted nature of the employer’s action. As it is a question of whether an employer acted fairly, it is inexorable that any allegation of constructive dismissal be contrasted with the validity of exercising management prerogative.
There is a difference between illegal and constructive dismissal. Illegal dismissal is readily shown by the act of the employer in openly seeking the termination of an employee while constructive dismissal, being a dismissal in disguise, is not readily indicated by any similar act of the employer that would openly and expressly show its desire and intent to terminate the employment relationship. (Jonald Torreda vs. Investment and Capital Corporation of the Philippines, G.R. No. 229881, September 5, 2018)
It is important to highlight that resignation ought to be a voluntary decision, devoid of threats, intimidation, or manipulation. Furthermore, employers cannot compel resignation in situations where dismissal is the appropriate consequence for an offense.
Read also:
The Tenor of a Voluntary Resignation of an Employee and its Effects
EFFECTS OF VOLUNTARY RESIGNATION FROM EMPLOYMENT
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