What is meant by the term "constructive dismissal"

Constructive dismissal or a constructive discharge has been defined as quitting because continued employment is rendered impossible, unreasonable or unlikely, as an offer involving a demotion in rank and a diminution in pay. (See Philippine Industrial Security Agency Corporation vs. Virgilio Dapiton et al., G.R. No. 127421 December 8, 1999). Constructive dismissal may also occur when there is an act of clear discrimination, insensibility, or disdain by an employer so unbearable on the part of the employee so as to foreclose any choice on his part except to resign from such employment (See Soliman Security Services Inc. et al. vs. The Court of Appeals et al., G.R. 143215 July 11, 2002).

As held in the case of Siemens Philippines Incorporated et al. vs. Enrico Domingo et al., G.R. 150488 July 28, 2008, the gauge for constructive dismissal is whether a reasonable person in the employee's position would feel compelled to give up his employment under the prevailing circumstances. It may exist when the resignation on the part of the employee was involuntary due to the harsh, hostile and unfavorable conditions set by the employer. An employee who is forced to surrender his position through the employer's unfair or unreasonable acts is deemed to have been illegally terminated and such termination is deemed to be involuntary.

The following are instances which constitute constructive dismissal:

1) Diminution of pay is prejudicial to the employee and amounts to constructive dismissal;

2) Where the transfer involves demotion of rank or a diminution of salary and other benefits;

3) Ordering the employee to take a leave and transfer by reason of company financial losses, and upon the employee's return to work, he was not allowed to enter the company premises;

4) Failing to pay wages due;

5) Putting managers into excessively difficult work situations without supporting their decisions.

6) Harassment or humiliation particularly in front of less senior staff;

7) Victimization of the staff member;

8) Unilaterally changing the employee's job content or terms of employment;

9) Significantly changing the employee's job location at short notice;

10) Falsely accusing an employee of misconduct or of not being capable of carrying out their job;

11) Undue demotion or disciplinary procedures;

12) Sabotage of employee's work product either directly or indirectly with repeated interruption, confusing or inaccurate direction, or uncommunicated deadline changes;

13) Vandalizing the employee's workplace, home, or other personal property. Such tactics could range from minor destruction of immaterial items to more severe acts of vandalism.

14) Forced attendance of a social event against the employee's wishes;

15) Forced resignation;