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Constructive Dismissal in the Philippines

Constructive Dismissal

In a Constructive Dismissal, the employee resigned involuntarily due to unbearable working conditions created by the employer. And since the resignation is involuntary, it is essentially a termination of employment.

Click here to find out the authorized causes of termination.

Elements of Constructive Dismissal

Constructive Dismissal exists when continued employment is rendered impossible, unreasonable or unlikely due to one or more of the following acts: demotion; diminution in pay; or, a clear discrimination, insensibility, or disdain to the employee. It may also happen when an employee is placed on preventive suspension for more than 30 days or on a floating status for more than 6 months.

And in the case of a transfer of an employee, the employer is required to show that the act of transferring the employee is out of a legitimate business decision. And that the transfer is not unreasonable, inconvenient or prejudicial to the employee. Otherwise, the act of transferring the employee may also be an act of unlawful constructive dismissal.

Examples of Constructive Dismissal Cases in the Philippines

Transfer of Employee

In the case of Philippine Japan Active Carbon Corporation, et al. vs. NLRC, et al., the employee was transferred from Executive Secretary to the Executive Vice President and General Manager to Production Secretary with the same salary and workload. The court has ruled that since the transfer is not unreasonable, nor inconvenient, nor prejudicial to the employee, and it does not involve a demotion in rank or a diminution of the employee’s salaries, benefits, and other privileges, constructive dismissal, in this case, is invalid.

Discrimination against Employee

And, in the case of Globe Telecom, Inc., et al. vs. Joan Florendo-Flores, constructive dismissal was established as the court finds a clear discrimination from the immediate superior against the employee without reason.

Professional and Sexual Harassment

In this case of Digitel Telecommunications Philippines, Inc., et al., vs. Mariquit Soriano, the employee claims to suffer from professional and sexual harassment leading to the employee’s resignation. However, there was a lack of substantial, concrete and credible evidence to support so. Therefore, constructively dismissal is held invalid.

Click here to find out the due process for termination of employment.

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Constructive Dismissal in the Philippines


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