Tan Brothers Corporation of Basilan City vs.

Escudero
G.R. No. 188711, July 3, 2013
J. Jose P. Perez
Facts:
Respondent was hired as bookkeeper by petitioners. On September 1, 2004, respondent filed
against petitioners a complaint for illegal dismissal, underpayment of wages, cost of living
allowance and 13thmonth pay. In support of the complaint, respondent alleged in her position
paper that, starting July 2003, her monthly salary of P2,500.00 was not paid on time by
petitioners. After having the corporations office remodeled in the early part of 2004, petitioners
allegedly rented out the office space respondent used to occupy and ceased giving her further
assignments.
Eventually
constrained
to
stop
reporting
for
work
because
of her dire financial condition, respondent claimed that petitioners shrewdly maneuvered her
illegal dismissal from employment. In its position paper, on the other hand, petitioners averred
that respondent was paid a daily wage of P155.00, and she abandoned her employment when she
stopped reporting for work in July 2003. Aside from taking with her most of the corporations
payrolls, vouchers and other material documents evidencing due payment of wages and labor
standard benefits, petitioners maintained that, without its knowledge and consent, respondent
appropriated for herself an Olivetti typewriter worth P15,000.00. With respondents refusal to
heed its demands for the return of the typewriter, petitioners asseverated that it was left with no
choice but to lodge a complaint with the barangay authorities. The LA rendered a
decision, finding petitioners guilty of constructively dismissing respondent from employment.
On appeal, the Labor Arbiters decision was affirmed in toto.
Issue:
Was respondent constructively dismissed?
Ruling:
. b) Yes. Constructive dismissal occurs when there is cessation of work because continuedemplo
yment is rendered impossible, unreasonable, or unlikely as when there is a demotion in rank or
diminution in pay or when a clear discrimination, insensibility, or disdain by an employer
becomes unbearable to the employee leaving the latter with no other option but to quit
( T h e U n i v e r s i t y o f Immaculate Conception v. NLRC, G.R. No. 181146,
January
26,
2011).
The
test
is
whether
a
reasonable person in the employee's position would have felt compelled to give up his position
under the circumstances
(Philippine Veterans Bank v. NLRC, G.R. No. 188882, March 30,
2 0 1 0 ) .Much
though petitioners may now be inclined to disparage the same as mere alibis, the fact that respon
dent wasdeprived of office space, was not given further work assignment and was not paid her
salaries until she was left with no choice but stop reporting for work all combine to make out a
clear case of constructive dismissal.