Case Digest: Velasco v. Transit Automotive Supply, Inc. & De Dios
G.R. No. 171327 : June 18, 2010
ESTRELLA VELASCO, Petitioner, v. TRANSIT AUTOMOTIVE SUPPLY, INC. and ANTONIO DE DIOS, Respondents.
CARPIO, J.:
FACTS:
Petitioner Estrella Velasco was originally hired as accounting clerk of respondent Transit Automotive Supply, Inc. Later, she became the head of the accounting department while concurrently the secretary to the president and general manager and comptroller.
In January 1993, she was asked to resign as comptroller and to concentrate on the preparation of respondents income statement. Velasco then filed an action for constructive dismissal against the corporation.
ESTRELLA VELASCO, Petitioner, v. TRANSIT AUTOMOTIVE SUPPLY, INC. and ANTONIO DE DIOS, Respondents.
CARPIO, J.:
FACTS:
Petitioner Estrella Velasco was originally hired as accounting clerk of respondent Transit Automotive Supply, Inc. Later, she became the head of the accounting department while concurrently the secretary to the president and general manager and comptroller.
In January 1993, she was asked to resign as comptroller and to concentrate on the preparation of respondents income statement. Velasco then filed an action for constructive dismissal against the corporation.
ISSUE:
Whether or not the petitioner is constructively dismissed.
HELD:
LABOR LAW
We agree with the Court of Appeals in reversing the ruling of the National Labor Relations Commission (NLRC) and in finding that petitioner was not constructively dismissed from employment. In this case, it is undisputed that petitioner was holding three positions: head of the accounting department, secretary to the president and general manager, and comptroller. She was asked to relinquish her duties as comptroller. Constructive dismissal is defined as a quitting because continued employment is rendered impossible, unreasonable or unlikely, or when there is a demotion in rank or a diminution of pay. It exists when an act of clear discrimination, insensibility or disdain by an employer has become so unbearable to the employee leaving him with no option but to forego his continued employment.
Here, there was no diminution of petitioners salary and other benefits. There was no evidence that she was harassed or discriminated upon, or that respondents made it difficult for her to continue with her other duties. Absent any evidence of bad faith, it is within the exercise of respondents management prerogative to transfer some of petitioners duties if in their judgment, it would be more beneficial to the corporation. There was no basis for the NLRC's finding that from performing managerial functions, petitioner was reduced to performing clerical tasks.
DENIED
LABOR LAW
We agree with the Court of Appeals in reversing the ruling of the National Labor Relations Commission (NLRC) and in finding that petitioner was not constructively dismissed from employment. In this case, it is undisputed that petitioner was holding three positions: head of the accounting department, secretary to the president and general manager, and comptroller. She was asked to relinquish her duties as comptroller. Constructive dismissal is defined as a quitting because continued employment is rendered impossible, unreasonable or unlikely, or when there is a demotion in rank or a diminution of pay. It exists when an act of clear discrimination, insensibility or disdain by an employer has become so unbearable to the employee leaving him with no option but to forego his continued employment.
Here, there was no diminution of petitioners salary and other benefits. There was no evidence that she was harassed or discriminated upon, or that respondents made it difficult for her to continue with her other duties. Absent any evidence of bad faith, it is within the exercise of respondents management prerogative to transfer some of petitioners duties if in their judgment, it would be more beneficial to the corporation. There was no basis for the NLRC's finding that from performing managerial functions, petitioner was reduced to performing clerical tasks.
DENIED
