A Guide to Grounds and Evidence under Philippine Labor Law

In the Philippine legal landscape, a "resignation" isn't always voluntary. When an employer creates a work environment so hostile, unbearable, or prejudicial that an employee is left with no choice but to walk away, the law recognizes this as Constructive Dismissal.

Legally, it is a "dismissal in disguise." Even though the employee physically signed the resignation letter, the law treats it as an illegal termination because the consent to leave was vitiated by the employer's actions.

The Legal Standard: The "Unbearable" Test

The Supreme Court of the Philippines consistently defines constructive dismissal as an involuntary resignation resorted to when continued employment is rendered impossible, unreasonable, or unlikely.

It exists when there is a clear "insensibility, disdain, or deliverance" on the part of the employer that makes the employment relationship so stifling that any reasonable person in the employee's shoes would feel compelled to give up their post.

Common Grounds for Filing a Case

Not every workplace grievance qualifies. To win a case before the Labor Arbiter, the action must fall under specific categories of "management prerogative" gone wrong:

1. Demotion in Rank or Salary

This is the most "textbook" case. If you are stripped of your managerial title and assigned to clerical tasks without a valid disciplinary reason, or if your basic pay is reduced without your consent, constructive dismissal has likely occurred.

2. Unreasonable Transfer

While employers have the right to transfer employees, it becomes constructive dismissal if:

The transfer is done in bad faith (e.g., to "punish" the employee).
It involves a demotion in rank or a diminution of benefits.
It is unreasonably inconvenient (e.g., transferring a low-wage earner from Manila to Cebu without a relocation package).

3. Hostile Work Environment and Harassment

This involves a pattern of behavior intended to make the employee quit. It includes:

Constant verbal abuse or public humiliation.
Victimization or "singling out" for impossible deadlines.
Discrimination based on gender, religion, or age.

4. Non-Payment of Wages and Benefits

Deliberate and repeated failure to pay salaries or the arbitrary withdrawal of established company benefits (the principle of Non-Diminution of Benefits) can be seen as an attempt to force the employee out.

Evidence Required to Prove the Case

In labor cases, the burden of proof shifts. Once the employee proves they were forced to resign, the employer must prove the dismissal (or the actions leading to it) was for a just or authorized cause. However, the employee must first build a solid foundation of evidence.

Documentary Evidence

The Resignation Letter: It is often strategic to state in the letter why you are leaving (e.g., "I am resigning due to the unbearable harassment from my supervisor"). If the letter is purely "thank you for the opportunity," it is harder to prove the resignation was involuntary.
Memos and Emails: Documentation of unfair reprimands, sudden changes in duties, or discriminatory remarks.
Pay Slips: To prove a reduction in pay or missing benefits.
Notice of Transfer/Demotion: The actual document issued by the HR department.

Testimonial Evidence

Affidavits: Statements from coworkers who witnessed the harassment, the public shaming, or the change in the employee's working conditions.

Medical Evidence

If the workplace environment led to clinical depression, anxiety, or physical ailments, medical certificates and psychiatric evaluations can serve as evidence of the "unbearable" nature of the employment.

Burden of Proof and Remedies

The Supreme Court holds that in illegal dismissal cases, the employer carries the burden of proving that the dismissal was legal. However, in constructive dismissal, the employee must first provide substantial evidence (that amount of relevant evidence which a reasonable mind might accept as adequate to justify a conclusion) that their resignation was indeed forced.

What can an employee claim?

If the National Labor Relations Commission (NLRC) finds that constructive dismissal occurred, the employee is entitled to:

Full Backwages: Payment of the salary they would have earned from the time of dismissal until the finality of the decision.
Separation Pay: Since the "strained relations" usually make reinstatement impossible, the court awards one month's salary for every year of service.
Moral and Exemplary Damages: If the dismissal was done in a wanton or oppressive manner.
Attorney’s Fees: Usually 10% of the total monetary award.

Procedural Note

Before filing with the NLRC, parties usually undergo SENA (Single Entry Approach), a mandatory conciliation-mediation process to see if a settlement can be reached without a full-blown legal battle.