Jonathan Morales vs Harbour Centre Point Terminal

Facts

On 16 May 2000, Morales was hired by respondent) as an Accountant and Acting Finance Officer regularized and promoted. He was reassigned to Operations Cost Accounting. Thereafter, he filed a protest. For the whole of the ensuing month Morales was absent from work and/or tardy. He received 3 consecutive warnings. Morales filed a complaint dated 25 April 2003 against HCPTI, Filart and Singson, for constructive dismissal. He alleged that subsequent to its transfer to its new offices, HCPTI had suspended all the privileges enjoyed by its Managers, Division Chiefs and Section Heads.

Labor Arbiter: ruled that Morales’ reassignment was a valid exercise of HCPTI’s management prerogative which cannot be construed as constructive dismissal absent showing that the same was done in bad faith and resulted in the diminution of his salary and benefits. On appeal: reversed. CA: same with labor arbiter

ISSUE:

WHETHER OR NOT THE CHANGE IN THE DESIGNATION/POSITION OF PETITIONER CONSTITUTED CONSTRUCTIVE DISMISSAL..

Held:

Yes.Constructive dismissal exists where there is cessation of work because "continued employment is rendered impossible, unreasonable or unlikely, as an offer involving a demotion in rank or a diminution in pay"and other benefits. Aptly called a dismissal in disguise or an act amounting to dismissal but made to appear as if it were not,constructive dismissal may, likewise, exist if 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. In cases of a transfer of an employee, the rule is settled that the employer is charged with the burden of proving that its conduct and action are for valid and legitimate grounds such as genuine business necessity and that the transfer is not unreasonable, inconvenient or prejudicial to the employee. If the employer cannot overcome this burden of proof, the employee’s transfer shall be tantamount to unlawful constructive dismissal. HCPTI miserably failed to discharge the foregoing onus. Morales’ demotion is evident from the fact that his reassignment entailed a transfer from a managerial position to one which was not even included in the corporation’s plantilla.

Although jurisprudence recognizes said management prerogative, it has been ruled that the exercise thereof, while ordinarily not interfered with,is not absolute and is subject to limitations imposed by law, collective bargaining agreement, and general principles of fair play and justice.Thus, an employer may transfer or assign employees from one office or area of operation to another, provided there is no demotion in rank or diminution of salary, benefits, and other privileges, and the action is not motivated by discrimination, made in bad faith, or effected as a form of punishment or demotion without sufficient cause. Indeed, having the right should not be confused with the manner in which that right is exercised.