Key Takeaway: Absence Alone Does Not Constitute Abandonment of Employment

Fernando C. Gososo v. Leyte Lumber Yard and Hardware, Inc., and Ruben L. Yu, G.R. No. 205257, January 13, 2021

Imagine walking into your workplace, ready to serve your clients, only to be met with accusations and hostility from your manager. This was the reality for Fernando Gososo, a sales representative who found himself at the center of a legal battle over his employment status. The central question in this case was whether Gososo had been illegally dismissed or if he had abandoned his job. The Supreme Court’s ruling in this case sheds light on the nuances of employment law, particularly the concept of abandonment of work.

The case revolves around Gososo’s alleged violations of company policies at Leyte Lumber Yard and Hardware, Inc. After being reprimanded for stepping into a restricted area and leaving his work station without permission, Gososo was asked to sign a document admitting to these offenses. When he refused, he claimed he was fired on the spot. The company, on the other hand, argued that Gososo had abandoned his job by not returning to work after an unauthorized leave.

Legal Context: Understanding Abandonment and Constructive Dismissal

In Philippine labor law, abandonment of work is considered a form of resignation and can be a valid ground for termination. However, it requires two elements: failure to report for work without valid reason and a clear intention to sever the employer-employee relationship. This intention must be manifested by overt acts, not merely inferred from absence alone.

Constructive dismissal, on the other hand, occurs when an employee is forced to resign due to unbearable working conditions. The Supreme Court has defined it as a situation where continued employment becomes impossible, unreasonable, or unlikely due to acts of discrimination, insensibility, or disdain by the employer.

Key to understanding these concepts is Article 285 of the Labor Code, which states that an employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement.

For example, if an employee suddenly stops coming to work without any communication, the employer might assume abandonment. However, if the employee files a complaint for illegal dismissal shortly after, this action contradicts the notion of abandonment and suggests a different narrative.

Case Breakdown: The Journey of Fernando Gososo

Fernando Gososo’s journey began when he was hired as a sales representative at Leyte Lumber Yard and Hardware, Inc. in 1996. His work involved assisting clients with their orders, a role that required him to navigate the company’s strict policies regarding access to storage areas and leaving the designated work station.

On October 6, 2008, Gososo was stopped by the general manager, Ruben Yu, while attempting to check on a customer’s order in the storage area. The following day, another incident occurred where Gososo left the store without permission. These actions led to a series of reprimands and demands for apologies from Yu.

Gososo’s refusal to sign a document admitting to these violations on October 11, 2008, allegedly resulted in his termination. He claimed that Yu threw scissors at him in anger, though he was not hit. The next day, Gososo filed a complaint for illegal dismissal, arguing that he was constructively dismissed.

The procedural journey saw the Labor Arbiter dismiss Gososo’s complaint, ruling that he had abandoned his job. The National Labor Relations Commission (NLRC) reversed this decision, finding Gososo to have been illegally dismissed. However, the Court of Appeals (CA) reinstated the Labor Arbiter’s ruling, leading Gososo to appeal to the Supreme Court.

The Supreme Court’s analysis focused on the lack of substantial evidence to prove either dismissal or abandonment. As Justice Hernando stated, “Mere acts of hostility, however grave, committed by the employer towards the employee cannot on their lonesome be construed as an overt directive of dismissal from work.” The Court also noted that “absence must be accompanied by overt acts pointing definitely to the fact that the employee simply does not want to work anymore.”

Ultimately, the Supreme Court found no basis to declare Gososo dismissed but also ruled that he had not abandoned his job. The decision to award separation pay in lieu of reinstatement was based on the impracticality of reinstatement after a prolonged legal battle.

Practical Implications: Navigating Employment Disputes

This ruling emphasizes the importance of clear communication and documentation in employment disputes. Employers must be cautious not to infer abandonment from mere absence without substantial evidence of the employee’s intent to quit. Employees, on the other hand, should promptly file complaints if they believe they have been unjustly dismissed.

For businesses, this case highlights the need for well-defined policies and procedures for handling employee misconduct and termination. It also underscores the potential financial implications of failing to prove abandonment, as the employer may be required to pay separation pay.

Key Lessons:

• Document all instances of employee misconduct and the corresponding actions taken by the employer.
• Employees should communicate their reasons for absence and seek approval for leaves in advance.
• Both parties should maintain open lines of communication to prevent misunderstandings that could lead to legal disputes.

Frequently Asked Questions

What constitutes abandonment of work?

Abandonment requires the employee to fail to report for work without a valid reason and show a clear intention to sever the employment relationship through overt acts.

Can an employee be considered to have abandoned their job if they file a complaint for illegal dismissal?

No, filing a complaint for illegal dismissal shortly after the alleged incident suggests that the employee did not intend to abandon their job.

What is constructive dismissal?

Constructive dismissal occurs when an employee is forced to resign due to unbearable working conditions created by the employer’s actions.

What should an employee do if they believe they have been wrongfully terminated?

Employees should immediately file a complaint with the appropriate labor tribunal and gather evidence to support their claim.

How can employers protect themselves from wrongful termination claims?

Employers should ensure clear policies, document all disciplinary actions, and maintain open communication with employees to avoid misunderstandings.

ASG Law specializes in labor and employment law. Contact us or email hello@asglawpartners.com to schedule a consultation.