Saturday, January 27, 2018

Constructive Dismissal

In a constructive dismissal, the employee resigned involuntarily due to unbearable working conditions created by the employer. Since the resignation is involuntary, it is essentially a termination of employment.
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.

Case 1 - TRANSFER OF EMPLOYEE
In the case of Philippine XXX Corporation, vs. NLRC, 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.


Case 2 - PROFESSIONAL AND SEXUAL HARASSMENT

In this case of  XXX, Inc.,  vs. Muit , 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.

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MARKET ISSUES

[last partial update : 02/28/2018] Macro and Overseas (a) US interest rate : 1.25 ~ 1.5%, May increase 3 times in 2018 (b) US 10 yr bond...