Title
Supreme Court
Penaflor vs. Outdoor Clothing Manufacturing Corp.
Case
G.R. No. 177114
Decision Date
Apr 13, 2010
Employee resigned due to discriminatory appointment, claimed constructive dismissal; Supreme Court ruled in his favor, citing hostile conditions, but absolved corporate officers of liability.

Case Summary (G.R. No. 177114)

Applicable Law

This case is rooted in the provisions of the 1987 Philippine Constitution, labor laws, and jurisprudence regarding employment relationships and dismissal.

Factual Background

PeAaflor was hired as a probationary HRD Manager on September 2, 1999. On March 13, 2000, he learned of the appointment of Edwin Buenaobra to the concurrent position of HRD and Accounting Manager. Following this, PeAaflor submitted an irrevocable resignation effective March 15, 2000, citing discriminatory treatment as the reason for his departure. He subsequently filed a complaint for illegal dismissal, which the labor arbiter initially ruled in his favor. However, this decision was later reversed by the National Labor Relations Commission (NLRC) and affirmed by the Court of Appeals.

Issue of Constructive Dismissal

The central issue was whether PeAaflor's resignation was voluntary or forced, which would classify it as constructive dismissal. The timing of his resignation in relation to Buenaobra's appointment was crucial. PeAaflor contended he resigned after Buenaobra's appointment, while Outdoor Clothing argued the resignation occurred before this appointment. The credibility of the evidence presented by both parties played a significant role in the Court's analysis.

Court's Ruling on Evidence

The Supreme Court determined that PeAaflor submitted his resignation after the unacceptable appointment of Buenaobra, supporting his claim of constructive dismissal. The Court found the three memoranda presented by Outdoor Clothing suspicious, as they were not introduced at the labor arbiter stage and raised doubts about their authenticity. The failure to disclose these important documents earlier was deemed critical in assessing the case's merits, as they did not substantiate Outdoor Clothing's position effectively.

Reaffirmation of Constructive Dismissal

The Court emphasized that despite PeAaflor's labeling of his resignation as irrevocable, the hostile work environment and managerial appointment constituted constructive dismissal. In such circumstances, the burden of proof lay with Outdoor Clothing to demonstrate the voluntariness of PeAaflor's resignation. The Supreme Court ruled that Outdoor Clothing failed to meet this burden, thus affirming the constructive dismissal.

Motion for Reconsideration and Liability

Outdoor Clothing filed a motion for reconsideration, arguing the Court mistakenly declared PeAaflor's resignation as constructive dismissal and asserted that all respondents should not be held jointly and severally liable for damages. The Court, however, clarified that the lack of evidence showing malice or bad faith from the corporate officers, Syfu, Demogena, and Lee, meant they should not bear personal liability.

Fin

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