Dear Atty. Kathy,

We have a manager who was placed on preventive suspension because he approved falsified documents, which resulted in unauthorized disbursement of funds. After his preventive suspension, he was supposed to be put on payroll reinstatement pending the results of the investigation, but he said he will no longer wait for the decision of his case and will just submit his resignation letter instead. We were therefore surprised when we received a labor complaint for constructive dismissal after the employee already filed his resignation letter. The employee is now saying that he was constructively dismissed when he was allowed to resign immediately since he was supposed to be on payroll reinstatement. Will the employee succeed in his claim?

Artemis

θ θ θ

Dear Artemis,

The Supreme Court has ruled that an employer’s decision to give an employee a graceful exit is perfectly within the employer’s discretion, and that there is nothing unlawful or improper if an employer gives the employee the choice to resign instead of having a tarnished employment record.

When an employer allows an erring employee to resign, the employer is helping the employee avoid the humiliation of a dismissal or having one’s employment records tarnished. As held by the Supreme Court, it is not uncommon that an employee is permitted to resign to avoid the humiliation and embarrassment of being terminated for just cause after the exposure of his malfeasance. Thus, to reiterate, there is nothing reprehensible or illegal when the employer grants the employee a chance to resign and save face rather than smear the latter’s employment record.

In sum, barring any other circumstances that would support a cause of action for constructive dismissal, the employee may not succeed in his claim of constructive dismissal if he was simply allowed a graceful exit.

(Peter Angelo N. Lagamayo vs. Cullinan Group Inc., et al., G.R. No. 227718, 11 November 2021)

Atty. Kathy Larios