SUMIFRU v.
BAYA
SC:
- Constructive dismissal - cessation of work cos continued
employment is rendered impossible, unreasonable or unlikely, as an
offer involving a demotion in rank or a diminution in pay and other
benefits; there is an act of clear discrimination, insensibility or disdain
by an employer becomes so unbearable on the part of the employee
that it could foreclose any choice by him except to forego his
continued employment.
- Mgmt of both AMSFC and DFC, which were sister companies at the
time, were well-aware of the lack of supervisory positions in AMSFC,
BUT they still proceed to order Baya’s return therein, forcing him to
accept rank-and-file positions.
- Doctrine of strained relations - payment of separation pay is an
acceptable alternative to reinstatement when the latter option is no
longer desirable.
CHATEAU ROYALE v. BALBA
Account Executives to Account Managers
SC:
- Mgmt had the prerogative to determine the place where the
employee is best qualified to serve the interests of the business
given the qualifications, training and performance of the affected
employee.
- Respondents voluntarily affixed their signatures acceding to the
terms and conditions of employment.
- Urgency and genuine business necessity justified the transfer of the
respondents in the Manila office.
- Right of the employee to security of tenure does not give her a
vested right to her position as to deprive mgmt of its authority to
transfer or re-assign her where she will be most useful.
UNIVERSAL CANNING v. CA
SC:
- Infraction of the company rules and regulations which is akin to
serious misconduct is a just cause for termination of employment
Article 282a.
- The use of the company’s time and premises for gambling activities
is a grave offense which warrants the penalty of dismissal for it
amounts to theft of the company’s time and it is explicitly prohibited
by the company rules cos it is against public morals.
- Doctrine of MP - EXCEPT as provided for, or limited by special laws,
or principles of equity and social justice, employer is free to regulate
accdg to his own discretion and judgment, all aspects of
employment.
DIVINE WORD COLLEGE v. MINA
SC:
- In cases of transfer of an employee, the employer is charged with the
burden of proving that its conduct and action are for valid and
legitimate grounds e.g. genuine business necessity and that it is
unreasonable, inconvenient or prejudicial to the employee.
- Mina’s appointment as laboratory custodian was a demotion.
- Demotion - From Highly technical position to mere mechanical work
- SP – length of the employee’s past service while BW – actual period
when the employee was unlawfully prevented from working
ICT MARKETING v. SALES
SC:
- Doctrine of MP
- Transfer of Employees (jurisprudential guidelines)
a. Transfer is a movement from one position to another of equivalent
rank, level or salary without break in the service
b. Employer has the inherent right to transfer or reassign an employee
for legitimate business purposes
c. Transfer becomes unlawful where it is motivated by discrimination or
bad faith or is effected as a form of punishment or is a demotion
without sufficient cause
 d. Employer must be able to show that the transfer is not unreasonable, in service by law, and usually accompanied
inconvenient or prejudicial to the employee by an increase in salary
- Respondent’s transfer to the Bank of America account was - Increase in salary never
effectively a demotion in rank and diminution of her salaries, determinative of
privileges, and other benefits. promotion

- She was unfairly treated as a NEW HIRE and placed her on a

floating status. - An employee is not bound to accept a promotion, which is in the
nature of a gift or reward. Refusal to be promoted is a valid exercise
of a right. There is no insubordination hence respondents cannot be
- The MP to transfer personnel must be exercised without grave abuse validly dismissed.
of discretion.
- Warehouse Checker and a Forklift Operator are rank-and-file
employees. On the other hand, the job of a Delivery
ICO v. STI
Supervisor/Coordinator assigns teams to man the trucks, oversees
SC: the loading of goods, checks the conditions of trucks etc. Hence,
despite the fact that no salary increases were effected, the
- The position of STI-Makati COO was never abolished. As a matter of assumption of the post of a Delivery Supervisor/Coordinator should
fact, soon after petitioner was removed from the position, Fernandez be considered a promotion.
was appointed to take her place as STI-Makati COO.
- Notwithstanding the illegality of dismissal, there’s no sufficient basis
to award the respondents moral and exemplary damages. They
ECHO 2000 v. OBRERO FILIPINO
exhibited disrespectful behavior by their repeated refusal to receive
- Echo is a provider of warehousing mgmt and delivery services. the memoranda issued by Echo and by their continued presence in
their respective areas w/o any work output.
- Enriquez issued a memo informing the respondents of their transfer
to the Delivery Section.
SOLIMAN v. SARMIENTO
- Somido and Cortes declined the promotion as a “Delivery - Respondents filed a complaint against Soliman Agency for not giving
Supervisor” and “Forklift Operator”, respectively. them any assignments after relieving them from their post
SC: SC:
Managerial employees Supervisory employees - The practice of placing security guards on floating status does not
constitute dismissal, as the assignments primarily depend on the
Vested with powers to lay down Effectively recommend such contracts entered into by the agency with third parties and the same
and execute mgmt policies managerial actions if the is a a valid exercise of MP.
and/or to hire, transfer, suspend, exercise of authority requires the
lay-off, recall, discharge, assign use of independent judgment - Floating status should not last longer than 6 months.
or discipline employees
- Prolonged floating status is considered an authorized cause only
when the security agency experiences a surplus of security guards
Transfer Promotion brought about by lack of clients.
Movement from one position to Advancement from one position to
another which is of equivalent another with an increase in duties - If 6months have already lapsed and the employer agency failed to
rank, level or salary, w/o break and responsibilities as authorized either re-assign the security guard or validly dismiss and give her the
 SP, the security guard may be considered to have been
constructively dismissed.

RP v. PACHEO
- Pacheo – Revenue Asst IV, Assistant Chief of the Legal Division of
BIR, QC
- Order of reassignment to San Fernando, Pampanga (same position)
SC:
- Sec. 6 Rule III of CSC Memo Circular No. 40 defines Constructive
Dismissal as a situation when an employee quits his work because
of the agency head’s unreasonable, humiliating or demeaning
actuations which render continued work impossible.

Detail Reassignment

Movement of an employee from Reassigning of employee from

one agency to another w/o the
issuance of an appointment and
shall be allowed only for a limited
period in case of employees
occupying professional, technical
and scientific positions.
one organizational unit to
another in the same agency;
provided that such shall not
involve a reduction in rank,
status or salaries.

- Reassignments involving a reduction in rank, status or salary violate

an employee’s security of tenure.

- Her reassignment to San Fernando, Pampanga will result in the

reduction of her salary or economic dislocation.

- The principle of “no work, no pay” does not apply in this case
because the employee was forced out of work.

- She is entitled to reinstatement but not to full back wages. An

illegally dismissed civil service employee is entitled to back salaries
but limited only to a max of five (5) years from his illegal dismissal
(2002).