Involuntary Resignation – A Form of Constructive Dismissal | 15 March 2024

Constructive dismissal is an involuntary resignation resorted to when continued employment is rendered impossible, unreasonable or unlikely; or when there is a demotion in rank and/or a diminution in pay. (Jonald Torreda vs. Investment and Capital Corporation of the Philippines, G.R. No. 229881, September 5, 2018)

Involuntary Resignation- A Form of Constructive Dismissal

Constructive dismissal is an involuntary resignation resorted to when continued employment is rendered impossible, unreasonable or unlikely; or when there is a demotion in rank and/or a diminution in pay. (Jonald Torreda vs. Investment and Capital Corporation of the Philippines, G.R. No. 229881, September 5, 2018)

Resignation is a pivotal part of the employment lifecycle of an employee, typically driven by personal factors thus, should stem from the voluntary choice devoid of any external pressures such as coercion, intimidation, or undue influence from the employer. However, when an employee is compelled to resign against his/her own volition, questions arise regarding the validity of such resignation and its implications – Is the resignation legally binding? Or does it signify a situation of constructive dismissal, indicating a breach of employment rights by the employer?

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