SC: Forcing workers to resign under threat of criminal charges is illegal

The Supreme Court has ruled that threatening employees with criminal prosecution to force them to resign constitutes constructive illegal dismissal, even without a formal termination notice.

In a decision dated 26 August 2026, the high court's First Division sided with Niño Rio Gabrillo, a longtime employee of Tri-J Marketing Inc., who was repeatedly pressured to resign after an audit uncovered inventory discrepancies.

The company allegedly presented Gabrillo with a prepared resignation letter and threatened criminal charges if he refused to sign.

The Supreme Court ruled that resignation must be voluntary and that employers cannot use intimidation to force employees out of their jobs.

The Court ordered Tri-J Marketing to pay Gabrillo full back wages, separation pay equivalent to one month's salary for every year of service, ₱30,000 in moral damages, ₱30,000 in exemplary damages and attorney's fees.

The ruling also rejected the company's claims of job abandonment and loss of trust, finding insufficient evidence to justify the employee's dismissal.