Title
Paredes vs. Feed the Children Philippines, Incorporated
Case
G.R. No. 184397
Decision Date
Sep 9, 2015
A high-ranking NGO director resigned amid allegations of misconduct and conflict with employees, claiming constructive dismissal; SC ruled her resignation was voluntary, rejecting damages unrelated to employment.

Case Summary (G.R. No. 184397)

Background of Employment

Paredes began her employment with FTCP in 1999, with her contract renewed several times until its latest iteration from October 1, 2004, to September 30, 2007. Her roles included the management of projects and financial decisions, along with the authority to execute board resolutions. Her salary initially started at USD 1,000 and later increased to PHP 70,000, supplemented by various benefits.

Allegations Against Petitioner

On August 12, 2005, 42 employees signed a petition outlining grievances against Paredes, accusing her of favoritism, mishandling funds, and other misappropriations. The subsequent internal meetings revealed a rift between Paredes and the staff, leading to a series of administrative complaints and her exclusion from critical Board meetings.

Administration and Board Dynamics

A significant meeting on August 28, 2005, involved discussions of conflicts within FTCP, focusing on the issues between staff and management. Paredes's exclusion from this meeting, which was seen as necessary to address the grievances without her influence, highlighted the deteriorating relationship with Board members. This exclusion was characterized as part of a broader pattern of her management style being called into question.

Resignation and Legal Claim

Paredes ultimately submitted her resignation, effective from November 30, 2005, citing untenable working conditions due to disagreements with the majority of the Board. Her resignation letter indicated that she could only serve until the end of December, and she subsequently filed a complaint for illegal dismissal, asserting that she was constructively dismissed due to the hostile environment created by the respondents.

Labor Arbiter's Ruling

The Labor Arbiter ruled in favor of the respondents, stating that Paredes had voluntarily resigned and was not constructively dismissed. The ruling mandated Paredes to repay FTCP for various financial discrepancies and awarded damages to the respondents.

NLRC's Decision and CA's Finding

Paredes appealed to the National Labor Relations Commission (NLRC), which initially ruled in her favor, overturning the Labor Arbiter's decision. This decision was later contested by the respondents, who sought certiorari from the Court of Appeals (CA). Ultimately, the CA reversed the NLRC's ruling, declaring that Paredes had voluntarily resigned and imposed accountability on her, which led to Paredes bringing her case before the Supreme Court.

Supreme Court's Analysis and Findings

The Supreme Court noted the differences in factual findings between the Labor Arbiter, NLRC, and CA. It emphasized the need for substantial evidence to support claims of constructive dismissal. The Court found that Paredes failed to demonstrate clear evidence of harassment or forced resignation, characterizing her claims as uncorroborated.

Legal Principles on Constructive Dismissal

The Court clarified that constructive dismissal occurs when an employee's resignation is compelled by intolerable working conditions or acts of discrimination by the employer. Since Paredes did not provide substantial evidence that her employment

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