Digest: G.R. No. 191460 & 191464 : Perfecto Pascua v. Bank Wise Inc. AND Philippine Veterans Bank

 Perfecto Pascua v. Bank Wise Inc. AND Philippine Veterans Bank

G.R. No. 191460 & 191464 | January 31, 2018

LEONEN, J

 

Facts:

For resolution are two separate Petitions for Review on Certiorari by Perfecto Pascua and Bank Wise, respectively assailing the Court of Appeals’ Decision that Perfecto Pascua was constructively dismissed and that only Bank Wise Inc. is liable to Perfecto Pascua for his money claims and absolved Philippine Veterans Bank of the same.

 

Pascua was employed by Bank Wise as its Executive Vice President for Marketing on July 1, 2002.

 

On September 29, 2004, Philippine Veterans Bank and Bank Wise entered into a Memorandum of Agreement for the purchase of Bank Wise's entire outstanding capital stock. Philippine Veterans Bank allegedly assumed full control and management of Bank Wise. Pascua was then reassigned to a Special Accounts Unit but his duties, functions, and responsibilities were not clearly delineated or defined.

 

Pascua was informed by Roberto A. Buhain (Buhain), President of Bank Wise, that as part of the merger or trade-off agreement with Philippine Veterans Bank, he should tender his resignation. Buhain assured Pascua that he would be paid all his money claims during this transition. Seeing as Pascua had yet to submit his resignation, the director of Bank Wise told Pascua that it was imperative that he submit his resignation and assured his continued service with Philippine Veterans Bank. Thereafter Pascua tendered his resignation letter on February 22, 2005.

 

Despite repeated demands for his money claims, Philippine Veterans and Bankwise failed to release Pascua’s remuneration. Pascua then filed a complaint for illegal dismissal, non-payment of salary, overtime pay, holiday pay, premium pay for holiday, service incentive leave, 13th-month pay, separation pay, retirement benefits, actual damages, moral damages, exemplary damages, and attorney’s fees against the Bank Wise Inc. and Philippine Veterans Bank.

 

The Labor Arbiter dismissed the case on the ground that Pascua had voluntarily resigned.

The NLRC reversed the decision and held that Pascua was constructively dismissed.

The Court of Appeals partially upheld the NLRC’s decision and held that Pascua was constructively dismissed but only held Bank Wise Inc. as solely liable for Pascua’s money claims.

 

Issue/s:

Whether or not Pascua was constructively dismissed. And if Pascua was constructively dismissed, whether or not Philippine Veterans Bank should be held solidarily liable with Bank Wise Inc for the money claims. 

 

Ruling:

No, Pascua was not constructively dismissed. 

 

The employer has the burden of proving, in illegal dismissal cases, that the employee was dismissed for a just or authorized cause. Even if the employer claims that the employee resigned, the employer still has the burden of proving that the resignation was voluntary. There is constructive dismissal when an employee is compelled by the employer to resign or is placed in a situation where there would be no other choice but to resign. An unconditional and categorical letter of resignation cannot be considered indicative of constructive dismissal if it is submitted by an employee fully aware of its effects and implications.

 

Pascua held a highly technical position in the company and he would have supervised several employees in his long years in service and might have even processed their resignation letters. He would have been completely aware of the implications of signing a categorically worded resignation letter. If he did not intend to resign, he would not have submitted a resignation letter. He would have continued writing letters to Bank Wise signifying his continued refusal to resign. 

 

Instead, Pascua’s resignation letter was unconditional. It contained no reservations that it was premised on his subsequent claim for severance pay and other benefits. His resignation was also accepted by his employers. In this instance, Pascua is not considered to have been constructively dismissed. The court held that Bank Wise, Inc. and Philippine Veterans Bank are absolved from the payment of Perfecto M. Pascua's money claims.