G.R. No. 205728 - The Diocese of Bacolod vs. Commission on Elections

Alma C. Lugawe was hired by Pacific Cebu Resort International, Inc. (PCRI) as an Accounting Clerk on March 9, 2000, and was later promoted to Human Resource (HR) Officer/Manager on January 1, 2007.
In October 2013, PCRI underwent a takeover when Filipinas (PREFAB BLDG) Systems Inc. (FILSYSTEMS) acquired the shares formerly held by Japanese owners.
A Memorandum of Agreement was executed between PCRI and FILSYSTEMS prior to the takeover, promising the continuity of service records and employment status as well as the provision of statutory benefits for PCRI’s 104 regular employees.

On September 2, 2013, employees held a General Assembly and then engaged in a Mediation Assistance and Intervention on September 6, 2013 regarding the transition under new management.
Shortly after FILSYSTEMS took over on October 5, 2013, PCRI removed the Compensation and Benefits functions from Lugawe’s area and transferred these to the Finance Department, headed by Christine Almaden.
Lugawe’s responsibilities that were transferred included tracking employee leave credits, monitoring attendance, payroll implementation, and processing of government-mandated benefits, among others.

Lugawe contended that the transfer of key HR functions effectively reduced her role to that of a mere office clerk or “lame duck” HR Officer/Manager.
Additional allegations included:

Being deprived of a voice in hiring decisions.
Loss of one of her two HR assistants to the Finance Department.
Denial of access to employee records and being required to report to Almaden instead of the General Manager.
Removal of other functions such as administration of Security Services and supervision of company drivers.

Lugawe further claimed that PCRI acted in a discriminatory, insensitive, and disdainful manner, referencing incidences like:

Accusations by General Manager Eric Chung Mang Shum of incompetence.
Instances where she was bypassed in favor of other employees for coordination matters and signatory authority.
Inadequate response to her complaint regarding derogatory remarks by Rey Belandres concerning anomalies in a security services contract.

On December 10, 2013, Lugawe fell ill and took a sick leave until December 12, 2013.
Despite being on leave, she was directed by Shum to report to address a leaking faucet, which she eventually did.
On December 13, 2013, instead of returning to work after her leave, Lugawe filed a complaint for constructive dismissal with the NLRC, alleging non-payment of separation pay and other remedies.
PCRI, unaware of her filing, later received a text from Lugawe on December 16, 2013, stating she would no longer report for duty, following which, a letter was sent on January 7, 2014, requesting an explanation for her absences. Lugawe did not respond, leading PCRI to consider the matter as an abandonment of her job.

The Labor Arbiter (LA) issued a decision on June 30, 2014, finding Lugawe constructively dismissed and awarding her backwages, separation pay, attorney’s fees, and moral damages.
PCRI appealed the LA decision to the National Labor Relations Commission (NLRC), which on November 28, 2014, modified the award but affirmed the finding of constructive dismissal, later reaffirmed on February 27, 2015, when a Motion for Reconsideration was denied.
PCRI then elevated the case to the Court of Appeals (CA) with a Petition for Certiorari filed on May 8, 2015. During the pendency, Lugawe filed a Motion for Execution.
On April 6, 2017, the CA reversed the NLRC’s findings, holding that Lugawe had voluntarily resigned and ordering her to return the monetary award.
Lugawe filed a Motion for Reconsideration on May 24, 2017, which was denied on November 8, 2017, leading her to file the Petition for Review on Certiorari in the Supreme Court.

Reexamining the evidence and substituting its factual findings for those of the NLRC and LA, both of which were supported by substantial evidence.
Ruling that she voluntarily resigned despite contrary evidence.
Deleting her awarded monetary benefits and ordering their return to PCRI.

Whether Lugawe was constructively dismissed by PCRI or voluntarily abandoned her employment.
Whether the transfer of key HR functions from Lugawe’s office to other departments constituted a demotion amounting to constructive dismissal.
Whether the alleged discriminatory, insensitive, and disdainful acts committed by PCRI substantiate a claim for constructive dismissal.
Whether the CA, in reexamining the evidence and factual findings, committed a grave abuse of discretion in overruling the findings of the Labor Arbiter and NLRC.