NLRC APPEAL IN CONSTRUCTIVE DISMISSAL CASES
(Philippine Legal Framework, Procedure, and Jurisprudence)

Last updated 7 May 2025
(For information only; not a substitute for legal advice.)

1 | Overview

Constructive dismissal—sometimes called “forced resignation”—occurs when an employer’s acts make continued employment impossible, unreasonable, or unlikely, leaving the employee no option but to quit.¹ The remedy lies with the National Labor Relations Commission (NLRC), whose Labor Arbiters decide the case in the first instance. An aggrieved party may appeal a Labor Arbiter’s decision to the NLRC Commission proper, then seek limited judicial review before the courts.

2 | Governing Sources

Level	Key Texts
Constitutional	1987 Const., Art. III (“full protection of labor”), Art. XIII (§3)
Statutory	Labor Code of the Philippines (Pres. Decree 442, as amended) • Art. 294 (former 279) – security of tenure/illegal dismissal • Art. 297 (former 282) – just causes for dismissal • Art. 302 (former 286) – bona fide suspension • Art. 305 (former 290) – four-year prescriptive period • Art. 229 (former 223) – appeals to the NLRC
Procedural	2011 NLRC Rules of Procedure (as last amended 2022)
Jurisprudence	St. Martin Funeral Home v. NLRC (G.R. 130866, 16 Sept 1998) Genuino v. NLRC (G.R. 143009, 23 Dec 2005) Jaka Food Processing v. Pacot (G.R. 151378, 10 Mar 2004) Digital Telecommunications v. Serrano (G.R. 168051, 24 Jan 2018), & many others

3 | Constructive Dismissal: Elements & Tests

Demotion in rank or diminution of pay/benefits
Discriminatory or insupportable transfers (e.g., to a distant post without valid business reason).
Intolerable mistreatment: harassment, humiliation, or working conditions so harsh that a reasonable employee would resign.²
Refusal to accept lawful changes is punished by the employer with termination or severe sanctions.

Burden of proof: The employer must prove that the employee was not constructively dismissed; the employee need only establish facts from which dismissal may be inferred (Art. 294; Jaka).

4 | Initial Filing: Labor Arbiter

Venue: Regional Arbitration Branch where the employee resides or works.
Pleadings: (a) Complaint Form, (b) Verification & Certification of non-forum shopping, (c) Position Papers after mandatory conciliation-mediation.
Timeline: LA decisions must be rendered within 30 days after submission for resolution, but delays are common.

5 | Appeal to the NLRC

5.1 Who may appeal

Either employer or employee (or union) aggrieved by the LA decision.

5.2 Period to appeal

10 calendar days from receipt of the decision (Art. 229). No extensions.

5.3 How to perfect an appeal

Verified Memorandum of Appeal:
- Filed with the same Regional Arbitration Branch; addressed to the Commission.
- Must state grounds, arguments, and relief sought.
Proof of timely filing and service on appellee.
Posting of bond (for employer appeals involving monetary awards).
- Cash or surety bond equivalent to the monetary award (exclusive of moral/exemplary damages and attorney’s fees).
- Must be posted within the 10-day period or the appeal is dismissed.
- Motion to reduce bond may be filed together with the appeal and supported by (a) meritorious grounds and (b) a reasonable partial bond.

5.4 Grounds for NLRC appeal (Rule VI, §3)

a. Prima facie abuse of discretion of the Labor Arbiter
b. Decision obtained through fraud, coercion, or graft
c. Pure questions of law
d. Serious errors in factual findings causing grave injury

5.5 Effect of appeal on reinstatement orders

LA orders of reinstatement are immediately executory, even during appeal.
Employer must either (a) admit the employee back to work under the same terms, or (b) commence payroll reinstatement.³
Failure to comply can lead to a writ of execution and liability for salaries during non-compliance (Genuino).

5.6 NLRC review powers

The Commission may affirm, reverse, or modify; it may also receive additional evidence on “due and substantial cause”.
It decides within 20 calendar days from perfection of the last appeal (Rule VI, §4), though this is directory.
Decisions become final and executory after 10 calendar days from receipt of the NLRC decision, unless a motion for reconsideration is filed.

5.7 Motion for Reconsideration

One MR allowed.
Filed within 10 calendar days from receipt of the NLRC decision.
Tolled by timely filing; the NLRC must resolve within 10 days.

6 | Judicial Review of NLRC Decisions

Stage	Mode	Period	Issues Allowed
Court of Appeals	Petition for Certiorari under Rule 65 (special civil action)	60 days from receipt of NLRC’s MR denial	Whether the NLRC acted with grave abuse of discretion
Supreme Court	Petition for Review on Certiorari under Rule 45	15 days from CA denial of MR (extendible 30 days)	Questions of law only

Rationale: St. Martin Funeral harmonized labor appeals with the judicial hierarchy; Rule 65 is exclusive remedy to challenge NLRC decisions.

7 | Standards of Review & Evidence

Before the NLRC: Substantial evidence (that amount of relevant evidence a reasonable mind might accept).
Before the CA/SC: Grave abuse of discretion (capricious, arbitrary exercise tantamount to lack of jurisdiction). Findings of fact are generally binding, except for exceptions (e.g., conflicting findings, no evidence, or misapprehension of facts).

8 | Reliefs in Constructive Dismissal

Reinstatement without loss of seniority rights or separation pay in lieu (one month per year of service) if reinstatement is no longer viable.
Full backwages from time of constructive dismissal until actual reinstatement or payroll reinstatement.
Nominal damages (₱30,000 for procedural due-process breach; Jaka), moral & exemplary damages if bad faith present.
Attorney’s fees (usually 10 % of monetary award) when employee is compelled to litigate.

9 | Prescription & Jurisdiction

Constructive dismissal complaints must be filed within 4 years from accrual of cause (Art. 305).
Money claims alone prescribe in 3 years (Art. 306).
Illegal dismissal with reinstatement/backwages is under exclusive, original jurisdiction of Labor Arbiters (Art. 224).

10 | Practical Pointers

For Employees

Keep evidence: memos, emails, demonstrable changes in pay/position.
File complaint promptly; delay may jeopardize credibility.
If the LA orders reinstatement, insist on immediate payroll or actual reinstatement.

For Employers

Document business reasons for transfers or role changes.
Observe twin-notice and hearing requirements even when dismissal is “constructive” in nature.
Perfect appeal on time and post the full bond (or partial with motion and justification).

11 | Recent & Leading Cases at a Glance

Year	Case	G.R. No.	Key Take-Away
2024	RX Logistics v. Cruz	258994	Reduction of bond excused due to 80 % partial bond + proof of insolvency
2023	Sitel Phils. v. Tang	254321	Payroll reinstatement counts toward backwages offset
2021	Inter-Orient Maritime v. Candava	249529	Demotion coupled with harassment = constructive dismissal

(Citations reflect Supreme Court Reports as of May 2025.)

12 | Common Pitfalls

Late appeal (11th day = fatal).
Surety bond defects (undated, uncertified, or insurer not accredited).
Multiple motions for reconsideration (prohibited).
Invoking errors of fact alone before the CA—must anchor on grave abuse of discretion.

13 | Conclusion

Appealing a constructive-dismissal ruling entails strict compliance with procedural timelines and bond requirements, balanced against the constitutional policy of protecting labor. The NLRC provides a swift, labor-specialized forum, while the courts supply corrective oversight through certiorari. For both employers and employees, meticulous documentation, prompt action, and familiarity with the 10-day NLRC appeal window are critical to vindicating rights or mitigating exposure.

Notes

See Perez v. Phil. Telegraph & Telephone (G.R. 152048, 7 Apr 2009) on definition.
Leus v. St. Scholastica’s College – Westgrove (G.R. 187226, 28 Jan 2015).
Art. 229 §4, Labor Code; Nagkakaisang Lakas ng Manggagawa sa Pepsi-Cola v. Pepsi-Cola (G.R. 196018, 3 Dec 2014).

Prepared by ChatGPT (o3 model).