In the Philippines, an employer’s act of tearing up an employee’s time card can be interpreted as an outright termination of employment, not just a symbolic gesture. This action can lead to a finding of illegal constructive dismissal if the employer’s conduct creates an unbearable working environment. The Supreme Court’s decision in Vicente Ang v. Ceferino San Joaquin, Jr., and Diosdado Fernandez underscores the importance of fair labor practices and employer accountability, protecting employees from oppressive actions that force them to leave their jobs.

When Hostility at Work Leads to an Unjust Exit: Can Tearing a Time Card Constitute Illegal Dismissal?

The case revolves around Vicente Ang, the proprietor of Virose Furniture and Glass Supply, and his employees, Ceferino San Joaquin, Jr. and Diosdado Fernandez. San Joaquin and Fernandez testified against Ang in criminal cases related to the non-remittance of Social Security System (SSS) contributions. Following their testimony, Ang’s behavior towards them turned hostile. The situation escalated when Ang tore up their time cards, leading San Joaquin and Fernandez to file complaints for illegal constructive dismissal.

Constructive dismissal occurs when an employer’s actions create a work environment so intolerable that an employee is forced to resign. The Supreme Court has defined constructive dismissal as “cessation of work because continued employment is rendered impossible, unreasonable or unlikely, as an offer involving a demotion in rank and a diminution in pay.” Additionally, it can be “a dismissal in disguise or an act amounting to dismissal but made to appear as if it were not.” The central question was whether Ang’s actions, particularly tearing up the time cards, constituted constructive dismissal.

The Labor Arbiter initially dismissed the employees’ complaints, a decision affirmed by the National Labor Relations Commission (NLRC). Both bodies found insufficient evidence of discrimination or that the loss of the time card equated to termination. However, the Court of Appeals (CA) reversed these decisions, finding that Ang’s act of tearing the employees’ time cards was a clear indication of dismissal. The CA also noted that the employees did not abandon their employment, as evidenced by their attempt to return to work and the immediate filing of illegal dismissal complaints. The Supreme Court, after reviewing the case, sided with the Court of Appeals.

The Supreme Court considered several factors, including the strained relationship between Ang and his employees following their testimony in the criminal cases. The Court noted that Ang’s silence on the issue of alleged verbal abuse and unfair assignments was telling, especially since he had the burden of proof to show that no illegal dismissal occurred. The Court referenced previous rulings, stating that the filing of criminal charges between employer and employee confirms strained relations, as noted in RDS Trucking v. National Labor Relations Commission. The court observed:

The Court can only imagine how the relationship between Ang and respondents deteriorated to a point where both parties began treating each other with disrespect and hostility, subjecting each other to indignities and resentful acts, thus making the store an insufferable place to be in for respondents, who are mere employees and as such were placed constantly under the mercy of petitioner. But it must be emphasized that this situation was not brought about by respondents; it appears without dispute that it was Ang who started treating the respondents unfairly and oppressively.

Building on this principle, the Court emphasized that Ang’s actions created an environment where continued employment was impossible for San Joaquin and Fernandez. The act of tearing up the time cards was particularly significant. The court reasoned that the time card is crucial for documenting work hours and ensuring proper payment and it is a mandatory requirement for inclusion in the payroll, and in the absence of an employment agreement, it constitutes evidence of employment. By destroying these records, Ang effectively removed the employees from the payroll, solidifying their dismissal.

Furthermore, the Court dismissed Ang’s claim that the employees had abandoned their jobs. For abandonment to be valid, the employer must prove both a failure to report for work without a valid reason and a clear intention to discontinue employment. The court cited Martinez v. B&B Fish Broker, stating that for a termination of employment on the ground of abandonment to be valid, the employer “must prove, by substantial evidence, the concurrence of [the employee’s] failure to report for work for no valid reason and his categorical intention to discontinue employment.”

In this case, the employees’ absence was a direct result of Ang’s oppressive treatment, and their prompt filing of labor complaints demonstrated their intent to contest the dismissal, not to abandon their positions. The Supreme Court, therefore, affirmed the Court of Appeals’ decision, recognizing the constructive dismissal of San Joaquin and Fernandez.

The ruling highlights the concept of constructive dismissal and what constitutes it. The Supreme Court emphasized that constructive dismissal can arise from acts of discrimination, insensibility, or disdain that make the workplace unbearable for an employee. As the court noted, constructive dismissal may 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.”

This decision serves as a reminder to employers in the Philippines to uphold fair labor practices and treat their employees with respect. It underscores the importance of creating a positive work environment and avoiding actions that could be construed as oppressive or discriminatory. For employees, it provides assurance that they are protected from employer misconduct and have recourse if their rights are violated. Employers must ensure that their actions do not force employees to resign involuntarily, as this can lead to legal repercussions. Employees should be aware of their rights and be prepared to take action if they experience constructive dismissal.

FAQs

What was the key issue in this case?	The key issue was whether the employer’s act of tearing up the employees’ time cards constituted constructive dismissal.
What is constructive dismissal?	Constructive dismissal occurs when an employer’s actions make the work environment so intolerable that the employee is forced to resign. It is considered an involuntary termination of employment.
What evidence did the Court consider in determining constructive dismissal?	The Court considered the strained relationship between the employer and employees, the act of tearing up the time cards, and the prompt filing of labor complaints by the employees.
What is the significance of a time card in employment?	A time card serves as a record of an employee’s work hours and is essential for calculating wages and benefits. Destroying it effectively removes the employee from the payroll.
What is required to prove abandonment of employment?	To prove abandonment, the employer must show that the employee failed to report for work without a valid reason and had a clear intention to discontinue employment.
Did the employees in this case abandon their employment?	No, the Court found that the employees did not abandon their employment. Their absence was due to the employer’s oppressive treatment, and their prompt filing of labor complaints indicated their intention to contest the dismissal.
What should employers do to avoid constructive dismissal claims?	Employers should ensure fair labor practices, treat employees with respect, and avoid actions that create a hostile or discriminatory work environment.
What recourse do employees have if they experience constructive dismissal?	Employees can file a complaint for illegal dismissal with the appropriate labor authorities, seeking remedies such as backwages, separation pay, and damages.

The Vicente Ang v. Ceferino San Joaquin, Jr., and Diosdado Fernandez case serves as a crucial precedent for labor law in the Philippines, emphasizing employer accountability and protecting employees from constructive dismissal. The Supreme Court’s decision reinforces the importance of fair labor practices and respectful treatment in the workplace.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Vicente Ang v. Ceferino San Joaquin, Jr., and Diosdado Fernandez, G.R. No. 185549, August 07, 2013