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What is the test for Constructive Dismissal?

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The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.

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:

The test for constructive dismissal is whether a reasonable person in the employee’s position would have felt compelled to give up his position under the circumstances. (Cornworld Breeding Systems Corp. v. Court of Appeals, G.R. No. 204075, [August 17, 2022])


The law says – 

ART. 294. [279] Security of Tenure.252 – In cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or when authorized by this Title (Title I of Book 6 of the Labor Code). An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement.

Jurisprudence says – 

In Doble, Jr. v. ABB, Inc.,  the Court explained that —

[C]onstructive 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[/her] continued employment. There is involuntary resignation due to the harsh, hostile, and unfavorable conditions set by the employer. 

The test for constructive dismissal is whether a reasonable person in the employee’s position would have felt compelled to give up his position under the circumstances.

In constructive dismissal cases, the employer is, concededly, charged with the burden of proving that its conduct and action were for valid and legitimate grounds.||| (Cornworld Breeding Systems Corp. v. Court of Appeals, G.R. No. 204075, [August 17, 2022])

In constructive dismissal cases, the employer has the burden of proving that its conduct and action or the transfer of an employee are for valid and legitimate grounds such as genuine business necessity. Particularly, for a transfer not to be considered a constructive dismissal, the employer must be able to show that such transfer is not unreasonable, inconvenient, or prejudicial to the employee. Failure of the employer to overcome this burden of proof taints the employee’s transfer as a constructive dismissal. ||| (Wescare Accounting Services v. Luya, G.R. No. 242095 (Notice), [April 1, 2019])

Read also: MAY AN EMPLOYEE QUESTION THE LEGALITY OF HIS/HER DISMISSAL?

Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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