Dear Atty. Gab

Musta Atty!

I am writing to you because I am facing a very confusing situation with my employer, ‘Sunrise Company’. I’ve been working there for over fifteen years, and recently, I was involved in an incident regarding company property that went missing. While I explained what happened, the company conducted an investigation. They told me they found me responsible for the loss, even though I believe it was an honest mistake and others were involved.

Instead of giving me a termination letter right away, the HR manager called me into a meeting and told me that based on their findings, termination was the decided penalty. However, they presented me with an option: I could sign a letter agreeing to resign effective at the end of the month, and in exchange, they would mark it as ‘voluntary resignation’ in my records and give me a slightly better separation package than required by law for termination. They also said if I didn’t agree, I would be terminated immediately for gross negligence, which could affect my future employment prospects.

Feeling immense pressure and fearing the ‘termination’ label, I signed the resignation letter they prepared, even though I didn’t want to leave my job. I felt I had no real choice. Now, I regret it. I feel like I was forced out. My colleagues are saying this amounts to illegal dismissal, while the company insists I resigned voluntarily.

Atty. Gab, I am so confused. Did I really resign, or was I actually dismissed? What are my rights in this situation? I need help understanding if what they did was legal and what steps I can take. Any guidance you can provide would be greatly appreciated.

Maraming salamat po.

Sincerely,

Maria Hizon

Dear Maria Hizon

Thank you for reaching out and sharing your situation. I understand how distressing and confusing it must be to face disciplinary action and then feel pressured into signing a resignation letter. Your concerns about whether your departure was truly voluntary or if it amounted to a dismissal under pressure are very valid. Let’s explore the legal principles that distinguish these two scenarios under Philippine labor law.

Under the law, there is a significant difference between voluntarily resigning from your job and being dismissed by your employer. This distinction has crucial implications for your rights, particularly regarding separation pay, benefits, and the legality of the termination process itself. What happened in your case, where you were given a choice between immediate termination for cause and resigning by a certain date, touches upon complex aspects of employment law.

When Leaving Your Job Isn’t Necessarily a Voluntary Act

In Philippine labor law, resignation is generally understood as the voluntary act of an employee who decides to leave their employment. This decision is driven by personal reasons, where the employee believes that staying is no longer feasible or desirable for them. It requires a clear intention to give up one’s office or position, coupled with an overt action demonstrating that intention. This means the act of resigning must truly come from the employee’s free will, without force, coercion, or undue pressure from the employer.

On the other hand, a situation might arise where an employee stops working, but it isn’t because they freely chose to leave. This is where the concept of constructive dismissal comes in. Constructive dismissal occurs when an employer’s act of clear discrimination, insensibility, or disdain becomes so unbearable for the employee that it leaves them with no reasonable option but to quit. It’s often described as a dismissal in disguise, where the employer makes continued employment impossible, unreasonable, or unlikely, forcing the employee’s hand.

The Supreme Court has consistently held that for a resignation to be considered voluntary, the intent to relinquish the office must concur with the act of relinquishment. The employee’s actions and circumstances before and after the alleged resignation are carefully examined to determine if they genuinely intended to sever their employment willingly.

Resignation is the voluntary act of an employee who is in a situation where one believes that personal reasons cannot be sacrificed for the favor of employment, and opts to leave rather than stay employed. It is a formal pronouncement or relinquishment of an office, with the intention of relinquishing the office accompanied by the act of relinquishment. As the intent to relinquish must concur with the overt act of relinquishment, the acts of the employee before and after the alleged resignation must be considered in determining whether, he or she, in fact, intended to sever his or her employment.

When an employer presents an employee with a choice between two undesirable outcomes – immediate termination for cause or ‘voluntarily’ resigning to avoid the negative consequences of termination – the voluntariness of the resignation becomes questionable. If the choice is effectively between being fired for a stigmatizing reason or leaving under slightly better terms to avoid that stigma, the employee’s decision may not be considered a product of free will.

There is constructive dismissal when there is cessation of work, because continued employment is rendered impossible, unreasonable or unlikely, as an offer involving a demotion in rank or a diminution in pay and other benefits. Aptly called a dismissal in disguise or an act amounting to dismissal but made to appear as if it were not, constructive dismissal may, likewise, exist if an act of clear discrimination, insensibility, or disdain by an employer becomes so unbearable on the part of the employee that it could foreclose any choice by him except to forego his continued employment.

In your situation, the critical factor is whether you felt you had a genuine choice or if the conditions presented by ‘Sunrise Company’ made continued employment (or leaving without the stigma of termination for cause) so difficult that resigning was the only viable path, despite your lack of desire to leave. The pressure you felt, the threat of immediate termination for negligence, and the potential negative impact on your future employment are elements that suggest your signing the resignation letter might not have been entirely voluntary.

However, employers are generally allowed to impose disciplinary actions, including termination, for just causes provided by law, such as serious misconduct or gross and habitual neglect of duties. If the company had a valid basis to terminate you for cause and followed the proper due process procedures, their decision might be legally sound. But even in such a case, offering a resignation option instead of proceeding with a potentially valid termination requires careful scrutiny to ensure the employee was not unduly coerced.

[A]cademic dishonesty is the worst offense a teacher can make because teachers caught committing academic dishonesty lose their credibility as educators and cease to be role models for their students… Dismissal from employment was the justified equivalent penalty. Having realized that, she asked for, and was granted, not just a deferred imposition of, but also an acceptable cover for the penalty.

While this quote from a different context (teacher dishonesty) highlights that certain offenses can justify dismissal, it also implies that an employee might bargain for a different outcome, like resignation, when faced with a valid ground for termination. The key is whether the employee genuinely initiated or freely agreed to this ‘bargain’ without being forced into it by unbearable conditions or severe pressure that removed true choice.

Practical Advice for Your Situation

• Review All Documentation: Carefully examine the resignation letter you signed and any other documents exchanged, including minutes of meetings or company policies cited.
• Gather Evidence: Collect any evidence that supports your claim of pressure, such as messages, emails, or testimonies from witnesses (if any).
• Consult a Labor Lawyer Promptly: A lawyer specializing in labor law can assess the specifics of your case, including the validity of the ground for termination cited by the company and the circumstances surrounding your signing of the resignation letter.
• Understand Due Process: Even if there was a valid cause, the company must follow due process (notice to explain, hearing, notice of decision). Review if these steps were properly observed before they presented the resignation option.
• Evaluate the ‘Offer’: Consider whether the alternative offered (resignation with a better package) was genuinely a benefit or simply a means to avoid a potentially problematic termination process for the company.
• Consider Filing a Complaint: If it is determined that you were constructively dismissed, you may have grounds to file a complaint with the National Labor Relations Commission (NLRC) for illegal dismissal, seeking reinstatement or separation pay, backwages, and damages.

Hope this helps!

Sincerely,
Atty. Gabriel Ablola

For more specific legal assistance related to your situation, please contact me through gaboogle.com or via email at connect@gaboogle.com.

Disclaimer: This correspondence is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please schedule a formal consultation.