The creation of unbearable working conditions by employers, such as the demotion, verbal abuse, and indifferent behavior towards employees constitute constructive dismissal, the Supreme Court (SC) said on Friday, September 27.
According to the SC decision penned by Associate Justice Amy Lazaro-Javier, an employer's hostility, which forces an employee to resign, is considered a form of illegal dismissal.
This was aligned to Jonathan Dy Chua Bartolome, a former regular employee of Toyota Quezon Avenue, Inc. (TQAI) in 2010. The decision stated that he was tasked with selling Toyota cars, products, and services. However, during his employment, Bartolome faced hostility from the company's senior management.
Hostile Work Environment
It was indicated that Bartolome was suspended for seven days in 2015 due to frequent absences. During a meeting with the company management, the President of TQAI publicly humiliated him for bringing his sibling, acting as his legal counsel.
Additionally, there were several attempts to belittle and burden him after his transfer to another team was granted.
Bartolome tendered his resignation in 2016 due to the unbearable working environment. However, attempts to get his clearance prompted others to harass him for no reason.
Due to this, Bartolome filed a complaint with the Labor Arbiter (LA) against TQAI and its officials for constructive dismissal and money claims.
The Court's Ruling
“Constructive dismissal happens when an employer creates such unbearable working conditions that the employee feels forced to resign,” the SC wrote.
The National Labor Relations Commission (NLRC) affirmed the LA's ruling that Bartolome was constructively dismissed. They found that the circumstances leading to his transfer greatly contributed to his resignation.
Although the Court of Appeals (CA) ruled in the company's favor, the SC ruled in favor of Bartolome.
“It emphasized that actions demonstrating extreme dislike and hostile behavior, such as demotion, uttering insulting words, and apathetic behavior toward an employee, constitute constructive illegal dismissal when such actions cause the employment conditions to be so unbearable that there is no other choice but to resign,” they wrote.
What Falls Under Constructive Dismissal
The Court's standard for constructive dismissal relies on whether a reasonable person in the employee's position would have felt forced to resign from their position, under the same circumstances.
While disagreements and moments of tension are unavoidable, the words exchanged in the workplace should not degrade the dignity of employees to avoid a hostile work environment.
The Court found that Bartolome's employers demonstrated extreme dislike and hostile behavior towards him; Indicating that they were forcing the former out, leaving him with no other choice but to resign.
TQAI and its officials were ordered by the SC to pay Bartolome full back wages separation pay, earned commissions, moral and exemplary damages, and attorney's fees.
