The High Tribunal has something to say about keeping a harmonious environment within the place of work.

The Supreme Court in a ruling said demotion, verbal abuse and indifferent behavior that leads to forcing an employee to resign constitute constructive dismissal.

In an SC Second Division, decision dated 3 April 2024 penned by Associate Justice Amy C. Lazaro-Javier, found Jonathan Dy Chua Bartolome was constructively dismissed by his employer, a car dealership outfit.

Records showed Bartolome became a regular employee in 2010. During his employment, he faced hostility from the company’s senior management.

In 2015, he was suspended for seven days due to frequent absences. During a meeting with his superiors, Bartolome’s sibling, acting as his legal counsel, accompanied him.

The head of the private firm then publicly humiliated Bartolome for bringing his sibling to the meeting.

He was then transferred to another team, and many of his accounts were taken away without explanation.   

The general sales manager turned down his attempt to process a sale, and his new boss explicitly asked if he planned on resigning. Because of the hostile work environment, Bartolome resigned in 2016.

But when trying to get his clearance, he was treated rudely and was even harassed for no apparent reason.

Bartolome filed a complaint with the labor arbiter (LA) against his former employer and its officials for constructive dismissal that included money claims.

Constructive dismissal happens when an employer creates an unbearable working condition that an employee is compelled to resign.

The labor arbiter ruled that Bartolome was constructively dismissed. The official held that the circumstances leading to his transfer to another team largely contributed to his resignation. The National Labor Relations Commission affirmed the arbiter’s decision.

The Court of Appeals (CA), where the case was elevated, ruled in favor of the employer, saying that Bartolome voluntarily resigned and failed to prove that his resignation resulted from coercion and intimidation.

The High Court overturned the CA, emphasizing 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 caused the employment conditions to become unbearable that are equivalent to suggestions to resign.

The Court held that the standard for constructive dismissal is whether a reasonable person in the employee’s position would have felt forced to give up their employment under the circumstances.

While the Court said strong words may be exchanged in the workplace and that disagreements are hard to avoid, such frictions should not degrade the dignity of employees.