The Supreme Court of the Philippines (SC) has ruled that demotion, verbal abuse, and indifferent behavior by an employer leading to an employee's resignation, constituted constructive illegal dismissal.

In a decision by the SC Second Division, dated 3 April, 2024 and penned by Associate Justice Amy C. Lazaro-Javier, the court found that Jonathan Dy Chua Bartolome had been constructively dismissed by a Quezon City-based auto dealership.

Records show that Bartolome, a regular employee since 2010, was responsible for selling cars, as well as other products and services. During his employment, he reportedly faced hostility from the company's senior management.

In 2015, Bartolome was suspended for seven days due to frequent absences. During a meeting with management, Bartolome was accompanied by his sibling, who acted as his legal counsel. The company president allegedly publicly humiliated Bartolome for bringing his sibling to the meeting. He was later transferred to another team, and many of his accounts were taken away without explanation. His attempt to process a sale was rejected by a general manager, and his new boss explicitly asked if he planned to resign.

Faced with this hostile work environment, Bartolome resigned in 2016. He then faced difficulties and reported harassment while trying to obtain clearance. Bartolome filed a complaint with the Labor Arbiter (LA) against the company and its officials for constructive dismissal and money claims.

The LA ruled in Bartolome's favor, stating that his transfer to another team significantly contributed to his resignation, thus constituting constructive dismissal. The National Labor Relations Commission (NLRC) upheld the LA's decision. However, the Court of Appeals (CA) ruled in favor of the auto firm, concluding that Bartolome had voluntarily resigned and failed to prove coercion or intimidation.

The Supreme Court ultimately sided with Bartolome, emphasizing that actions that demonstrate dislike and hostility such as demotion, verbal abuse, and apathetic behavior toward an employee create unbearable working conditions and constitute constructive illegal dismissal.

The Court noted that the standard for constructive dismissal is whether a reasonable person in the employee's position would have felt compelled to resign under similar circumstances.

The high bench added that while disagreements in the workplace are inevitable, they should not degrade the dignity of employees or create a hostile work environment.