G.R. No. 112963. July 20, 1999.
PHILIPPINE WIRELESS INC. (Pocketbell) and/or JOSE LUIS SANTIAGO, petitioners, vs. NATIONAL LABOR RELATIONS COMMISSION and GOLDWIN LUCILA, respondents.

FACTS

On January 8, 1976, respondent Goldwin Lucila was hired by petitioner Philippine Wireless Inc. as an operator/encoder. He received several promotions: to Head Technical and Maintenance Department on January 7, 1979; to Supervisor, Technical Services on September 11, 1987; and to Superintendent, Project Management on October 1, 1990. On December 28, 1990, he tendered his resignation. Subsequently, on December 3, 1991, he filed a complaint for illegal/constructive dismissal, alleging that his last promotion was demeaning, illusory, and humiliating because he was not given any secretary, assistant, or subordinates. The Labor Arbiter dismissed the complaint, ruling that Lucila had voluntarily resigned. On appeal, the National Labor Relations Commission (NLRC) reversed the Labor Arbiter, declared that Lucila had been constructively dismissed, and ordered the payment of back wages and separation pay. Petitioners’ motion for reconsideration was denied.

ISSUE

Whether or not respondent Goldwin Lucila was constructively dismissed from his employment.

RULING

No. The Supreme Court granted the petition, set aside the NLRC decision, and reinstated and affirmed the Labor Arbiter’s decision. The Court held that constructive dismissal is an involuntary resignation that occurs when continued employment becomes impossible, unreasonable, or unlikely due to demotion in rank, diminution in pay, or unbearable employer discrimination, insensibility, or disdain. In this case, the Court found that Lucila voluntarily resigned without any pressure. His claim of demotion was unfounded because there was no reduction in his position, rank, or salary; in fact, he had been promoted three times. The lack of support staff in his new position did not constitute demotion. Therefore, he was not constructively dismissed.