Asis v. NLRC

G.R. No. 107378 (January 25, 1996)

Asis's shift to security guard deemed constructive dismissal; owed backwages and separation pay.

Facts:

Petitioner Remedios K. Asis, a male security guard, was employed by the private respondent, Philippines Scout Security Agency, on August 23, 1990. He was assigned as a detachment commander at the Paguyo Breeder Farm of Purefoods Corporation in Sta. Rosa, Laguna, with a monthly salary of P4,417.40. On July 4, 1990, Asis applied for a leave of absence from July 9 to 15, 1990, which was approved. Upon returning to work on July 16, 1990, he discovered that another security guard had been appointed in his place. He was informed that he had been transferred to Calauan, Laguna, as an ordinary security guard and was asked to sign a "cancellation of official duties," which he did but refused the new assignment.

On August 13, 1990, Asis filed a complaint for illegal dismissal, claiming he had been constructively dismissed due to his demotion from detachment commander to an ordinary security guard without just cause. The private respondents contended that Asis was not dismissed; rather, he stopped reporting for work after his leave. They argued that the transfer was a management prerogative and that Asis was asked to return to work, which he refused.

During the hearing before the Labor Arbiter, Asis presented his evidence, but the private respondents failed to present their evidence due to the absence of their witness. The Labor Arbiter ruled in favor of Asis, finding that there was no valid reason for his transfer and that it constituted a demotion, thus justifying his refusal to accept the new assignment. The Labor Arbiter awarded Asis backwages and separation pay.

The private respondents appealed to the National Labor Relations Commission (NLRC), which reversed the Labor Arbiter's decision, asserting that the transfer was an exercise of management prerogative and that there was no constructive dismissal.

Legal Issues:

The primary legal issue was whether Remedios K. Asis was constructively dismissed from his employment with the Philippines Scout Security Agency.

Arguments:

  • Petitioner (Asis): Asis argued that his demotion from detachment commander to an ordinary security guard constituted constructive dismissal. He claimed that the transfer was made without just cause and that it significantly affected his ability to perform his duties effectively. He also contended that the transfer was not communicated to him properly and that he was not formally notified of the reasons for his reassignment.

  • Respondents (Security Agency): The private respondents contended that Asis was not dismissed but had voluntarily stopped reporting for work after his leave. They claimed that the transfer was a management prerogative and was made at the request of Purefoods Corporation. They asserted that there was no demotion since Asis would not suffer any diminution in pay or benefits.

Court's Decision and Legal Reasoning:

The court held that Asis was indeed constructively dismissed. It recognized the management's prerogative to transfer employees but emphasized that such prerogative cannot be exercised if it results in a demotion in rank or a reduction in salary, benefits, or other employee privileges. The court found that Asis's transfer to Calauan, Laguna, was a demotion since he was moved from a supervisory position to a non-supervisory role, which significantly altered his responsibilities.

The court also noted that the private respondents failed to provide credible evidence supporting their claim that Purefoods Corporation requested Asis's relief due to negligence. The last-minute presentation of a "Client's Monthly Assessment" was deemed self-serving and insufficient to justify the transfer. Furthermore, the court highlighted that the transfer would impose additional transportation costs on Asis, effectively resulting in a reduction of his earnings.

As a result, the court granted the petition, set aside the NLRC's decision, and remanded the case for the computation of backwages and separation pay.

Significant Legal Principles Established:

  1. Constructive Dismissal: The court reaffirmed that constructive dismissal occurs when an employee is forced to resign due to an employer's actions that significantly alter the terms and conditions of employment, such as demotion or unreasonable transfer.

  2. Management Prerogative: While management has the right to transfer employees, this prerogative must not result in demotion or reduction of benefits and must be exercised in good faith.

  3. Burden of Proof: The burden of proof lies with the employer to justify the transfer or reassignment of an employee, especially when claims of misconduct are made.