Case Digest (G.R. No. 185938)
Facts:
Leticia P. Perez was a long‑service teacher of Diliman Preparatory School since 1972 who in 1994–1995 became subject of two school investigations: one for failure to remit students' magazine subscription payments and another for allowing a student to cheat, resulting in suspensions in April and May–June 1995. On June 14, 1995, Perez faxed a resignation letter claiming she would accompany her father to the United States, received retirement annuity benefits, and three years later filed a complaint for constructive dismissal and separation pay; the Labor Arbiter granted separation pay but found her resignation voluntary, the NLRC and Court of Appeals found constructive dismissal and awarded separation pay, prompting this Rule 45 petition.
Issues:
- Has Perez's cause of action prescribed?
- Was Perez's resignation voluntary or a case of constructive dismissal?
- Was Perez placed on floating status or effectively demoted?
- Did the School have an established practice of granting separation pay to resigning employees?
- Are petitioners entitled to moral, exemplary damages, and attorney's fees?
Ruling:
The petition was GRANTED; the Decision and Resolution of the Court of Appeals were REVERSED and SET ASIDE, and Perez's complaint for constructive dismissal, separation pay, and damages was DISMISSED. The petitioners' claim for moral damages, exemplary damages, and attorney's fees was DENIED.
Ratio:
The Court found that Perez never reported back to work after her suspension and voluntarily tendered resignation, and she failed to prove coercion or that continued employment was rendered impossible, unreasonable, or unlikely; thus there was no constructive dismissal. Her reassignment did not constitute floating status under Article 286 because there was no suspension of school operations and her salary and benefits remained unchanged, and the School lawfully exercised its prerogative to alter assignments; moreover, the lone affidavit offered to prove an employer practice of granting separation pay was an isolated instance insufficient to establish a consistent policy, so Perez was not entitled to separation pay. Finally, moral and exemplary damages and attorney's fees were denied for lack of proof of malice, bad faith, or the factual basis for damages and without equitable justification for attorney's fees under Article 2208 and Article 2229 considerations.
Doctrine:
- Constructive dismissal occurs only when continued employment is rendered impossible, unreasonable, or unlikely by acts such as demotion, diminution in pay, or intolerable discrimination.
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