Facts:
– **Petitioner Background**: ICT Marketing Services, Inc., rebranded as Sykes Marketing Services, Inc., specializes in outsourced customer relations management and business process outsourcing.
– **Respondent’s Employment**: On February 22, 2006, Mariphil L. Sales was hired as a Customer Service Representative (CSR); became a regular employee on August 21, 2006, with salary and allowances.
– **Work History**: Initially assigned to Capital One account, moved to Washington Mutual account on February 21, 2007, where she received a performance award in April 2007.
– **Complaint**: On July 3, 2007, she wrote to the Vice President of ICT, Glen Odom, about alleged fund mismanagement. Subsequently, she was transferred to the Bank of America account on July 30, 2007, and put on immediate training scheduled for July 30 to August 6, 2007.
– **Floating Status**: Sales missed the third day of training (August 1, 2007) due to medical reasons and was not certified due to this absence. She was placed on “floating status” subsequently and was not given further assignments.
– **Resignation**: On September 28, 2007, Sales resigned, citing “floating status” and discriminatory acts in her resignation letter.
– **Complaint Filing**: On October 2, 2007, Sales filed a constructive dismissal complaint.
Procedural Posture:
– **Labor Arbiter Decision**: The Labor Arbiter found constructive dismissal, awarding backwages, separation pay, damages, and attorney’s fees to Sales.
– **NLRC Appeal**: ICT appealed and the NLRC reversed the decision, finding no constructive dismissal and dismissed the complaint.
– **Court of Appeals**: Sales petitioned for certiorari. The CA reversed the NLRC decision, reinstating the Labor Arbiter’s findings with an added award of backwages and monetary benefits.
Issues:
1. Whether the transfer of Sales to another account without notice and proper cause constituted constructive dismissal.
2. Whether placing Sales on “floating status” amounted to constructive dismissal.
3. Whether the resignation of Sales was voluntary or forced (constructive dismissal).
4. Whether the awards of separation pay, backwages, moral and exemplary damages, and attorney’s fees were justified.
Court’s Decision:
**Transfer to Another Account**:
– The Court found the transfer of Sales without prior notice and for an alleged insignificant derogatory record, as unreasonable and motivated by discrimination—therefore constituting constructive dismissal.
**Placement on Floating Status**:
– The Court adjudicated that placing Sales on “floating status” without a valid suspension of the business and while hiring new CSRs corroborated the claim of constructive dismissal.
**Involuntariness of Resignation**:
– The Court held that the resignation of Sales was involuntary due to the unbearable employment conditions created by the petitioner, thus indicating constructive dismissal.
**Pecuniary Awards**:
– Upheld and modified the CA’s decision, confirming Awards: Backwages, separation pay, moral and exemplary damages, and attorney’s fees plus interest.
Doctrine:
The jurisprudence affirmed that constructive dismissal exists:
– When an employee’s transfer is motivated by discrimination or bad faith, performed to punish, and hence, unreasonable and without valid cause.
– When placing an employee on floating status is used improperly or arbitrarily against an employee without showing a bona fide suspension of operations.
Class Notes:
– **Constructive Dismissal**: The resignation forced by employer’s unreasonable conduct is deemed as termination.
– **Management Prerogative**: Right to transfer employees must be exercised justly and genuinely without discrimination.
– **Floating Status**: Valid only during legitimate business suspension, and if imposed to undermine employee rights, may be classified as constructive dismissal.
– **Pecuniary Relief**: Illegally dismissed employees are entitled to backwages and, in certain cases, separation pay instead of reinstatement.
Historical Background:
– **Labor Rights Context**: This case illustrates the protection against abusive exercise of management prerogatives under Philippine law, reinforcing the judiciary’s role in safeguarding employee welfare against unjust dismissals.
This case remains a precedent in demonstrating stringent scrutiny of employer actions impacting employees’ job security and fair treatment.
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