Title
Source: Supreme Court
Republic, Represented by the Civil Service Commission vs. Minerva M.P. Pacheo
Case
G.R. No. 178021
Decision Date
Jan 25, 2012
Pacheo contested her reassignment by the BIR, claiming it amounted to constructive dismissal. The Court of Appeals ruled in her favor, granting her reinstatement and back wages, which the Supreme Court modified to specify limits on back pay.

Case Digest (G.R. No. 178021)
Expanded Legal Reasoning Model

Facts:

  • Background of the Case:
Minerva M.P. Pacheo, a Revenue Attorney IV and Assistant Chief of the Legal Division of the Bureau of Internal Revenue (BIR) in Revenue Region No. 7 (RR7), Quezon City, was reassigned to Revenue Region No. 4 (RR4) in San Fernando, Pampanga, via Revenue Travel Assignment Order (RTAO) No. 25-2002 issued on May 7, 2002. The BIR cited "exigencies of the revenue service" as the basis for the reassignment.
  • Pacheo’s Protest:
Pacheo contested the reassignment, arguing that it would cause her significant financial and physical burdens. She claimed the transfer would cost her approximately ₱4,000 monthly in travel expenses, which was about 28% of her take-home pay. She also argued that the reassignment was a form of harassment and constructive dismissal.
  • Administrative Proceedings:
Pacheo filed a complaint with the Civil Service Commission-National Capital Region (CSC-NCR), which dismissed her complaint for procedural deficiencies. The BIR denied her protest, stating that her reassignment did not involve a reduction in rank, status, or salary and that her appointment did not specify a particular station.
  • CSC Resolution:
The CSC, in Resolution No. 051697, declared Pacheo’s reassignment invalid, ordering her reinstatement to her original station but denying her backwages under the principle of "no work, no pay." The CSC ruled that the reassignment caused significant financial dislocation, which is prohibited under CSC rules for small-salaried employees.
  • Court of Appeals Decision:
The Court of Appeals (CA) reversed the CSC’s decision, ruling that Pacheo was constructively dismissed and entitled to reinstatement with full backwages and benefits. The CA found that the reassignment caused a diminution in her salary and imposed unreasonable burdens, amounting to constructive dismissal.

Issues:

  • Whether Pacheo was constructively dismissed and entitled to backwages despite her refusal to comply with the reassignment order, which was immediately executory under Section 24(f) of P.D. 807.
  • Whether Pacheo suffered a diminution in salary due to her reassignment, in violation of Section 6, Rule III of CSC Memorandum Circular No. 40, series of 1998.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Conclusion:

The Supreme Court denied the petition, affirming the CA’s decision with modification. Pacheo was ordered reinstated without loss of seniority rights but was only entitled to back salaries for five years from the date of her invalid reassignment.

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