Title
Supreme Court
Malig-on vs. Equitable General Services, Inc.
Case
G.R. No. 185269
Decision Date
Jun 29, 2010
Employee forced to resign after prolonged floating status; Supreme Court ruled constructive dismissal, awarding backwages and separation pay.

Case Summary (G.R. No. 137792)

Factual Background

Elsa Malig-on started her employment with Equitable General Services, Inc. on March 4, 1996, receiving a daily wage of P250.00 for a nine-hour workday. On February 15, 2002, she was informed that she would be reassigned to another client, but this transfer never occurred. After several follow-ups, the company informed her on October 15, 2002, that she needed to submit a resignation letter prior to reassignment. Malig-on complied; however, the company failed to follow through on the promised relocation, prompting her to file a complaint for illegal dismissal. In contradiction, the company argued that Malig-on abandoned her position on February 16, 2002, without justification.

Initial Rulings

On January 26, 2004, the Labor Arbiter (LA) deemed Malig-on's resignation valid and binding but mandated the company to pay her emergency cost of living allowance and the remaining balance of her 13th month pay. The National Labor Relations Commission (NLRC) later reversed this ruling on February 28, 2005, asserting that the company had constructively dismissed Malig-on and ordered her reinstatement with backwages until the finality of the NLRC's decision. The respondent company appealed to the Court of Appeals (CA), which ruled on July 16, 2008, reinstating the LA's decision.

Legal Issue

The pivotal legal question presented before the Court is whether the CA erred in its determination that Malig-on abandoned her work and voluntarily resigned rather than being constructively dismissed by the company.

Court's Analysis on Burden of Proof

The Court emphasized that in cases of termination, the employer holds the burden of proving just cause for dismissal. When asserting an employee's voluntary resignation, the employer must demonstrate that the resignation was made willingly and under circumstances that support this intent. Malig-on contended her resignation was made under pressure, following the company's request and the failure to reassign her as promised.

Examination of Resignation Circumstances

The company claimed that Malig-on's actions constituted voluntary resignation since she submitted a resignation letter; however, the Court found that the circumstances surrounding her resignation were inconsistent with voluntary resignation. Malig-on's sudden absence and subsequent return to file a complaint for illegal dismissal merely three days after submitting her resignation letter indicated her lack of genuine intent to resign. The Court noted that the company failed in its duty to inquire into Malig-on’s disappearance, opting instead to send letters only after an extensive delay, suggesting that their actions did not align with established legal obligations.

Finding of Constructive Dismissal

The Court determined that Malig-on was placed in a "floating status" for over six months without any substantial assignment, which constitutes constructive dismissal under prevailing jurisprudence. Thus, her resignation on October 15, 2002, was deemed legally in

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