G.R. No. 178125 - The Orchard Golf and Country Club vs. Francisco

Amelia R. Francisco was employed on March 17, 1997 by The Orchard Golf and Country Club as the Club Accountant.
In her capacity as Club Accountant, she headed the General Accounting Division which oversaw four subdivisions: Revenue and Audit, Billing/Accounts Receivable, Accounts Payable, and Fixed Assets.
She directly reported to the Club’s Financial Comptroller, Jose Ernilo P. Famy.

On May 18, 2000, Famy directed Francisco to draft a letter to SGV & Co. regarding the accounting treatment of a property intended for sale or donation.
Despite repeated verbal and written reminders—including the last reminder on June 22, 2000—Francisco failed to prepare the requested letter.
On June 27, 2000, Famy issued a memorandum demanding a written explanation under threat of insubordination charges. Instead of complying, Francisco sought intervention from the Club’s General Manager, Tomas B. Clemente III, which led her to delay submitting the explanation.

On June 29, 2000, following her failure to respond as required, Francisco was suspended without pay for 15 working days.
Subsequent to her suspension, Francisco questioned the propriety of Famy’s unilateral actions in a memorandum addressed to the General and Administrative Manager, Ma. Irma Corazon A. Nuevo.
In her communication, she raised issues regarding departmental authority, due process protocols, and alleged abuse of power by Famy.
Nuevo exonerated Famy, justifying his actions as within the scope of his authority, and dismissed Francisco’s allegations of abuse of authority.

On July 5, 2000, Francisco lodged a complaint concerning alleged irregularities in the approval and release of Club checks relative to BIR tax payments.
On July 20, 2000, immediately after her suspension, Famy issued memoranda directing her temporary transfer from the Club Accountant position to the Cost Accounting Section pending the investigation on her complaint against him.
Subsequent to the temporary transfer, on September 7, 2000, she was placed on forced leave with pay for 30 days—continuing the pattern of administrative penalties.
Upon expiration of her forced leave, on October 12, 2000, she was permanently transferred to the Cost Accounting Section. This reassignment, although accompanied by a claim of “no diminution in benefits,” effectively demoted her position from a managerial role (Club Accountant) to a supervisory role (Cost Controller/Accountant).

Francisco filed a complaint initially for illegal dismissal, which she later amended to include illegal suspension and constructive dismissal.
The Labor Arbiter dismissed her complaint by finding her suspensions valid and her continued reporting for work indicative that there was no constructive dismissal.
However, the National Labor Relations Commission (NLRC) reversed part of the Labor Arbiter’s decision, ruling that while the suspensions were valid, the permanent transfer constituted an unjustified demotion equivalent to constructive dismissal.
The Court of Appeals (CA) later affirmed the NLRC ruling, emphasizing that the transfer was executed without proper notice and opportunity for Francisco to contest, and that it resulted in a demotion in rank.
Petitioner then filed motions for reconsideration which were denied, and the case eventually reached the Supreme Court on a Petition for Certiorari.

Whether the transfer of Amelia R. Francisco from the managerial position of Club Accountant to the supervisory position of Cost Controller amounted to a de facto demotion, hence constituting constructive dismissal.
Whether the actions taken by the employer—in particular, the issuance of successive suspensions, forced leave, and transfers without providing the employee an opportunity to contest—violated the due process requirements inherent in employment relations.
Whether the award of attorney’s fees amounting to ₱50,000.00 was proper, given that no exemplary damages were granted and in light of the employer’s unilateral acts creating the need for protracted litigation.