Philippine Bar review · Question

Practice question: Constructive Dismissal vs. Demotion

Multiple Choice Hard

Practice question

An employee voluntarily accepts another job, initiates resignation negotiations, receives a fair settlement with full understanding and signs a resignation without coercion. Later the employee alleges constructive dismissal solely because a lawful equivalent transfer had been proposed. No evidence of threats, demotion, benefit loss or unreasonable conditions exists. Which is best?
  1. Every resignation after a proposed transfer is automatically constructive dismissal
  2. A signature alone always defeats any possible coercion claim
  3. The entire evidence supports voluntary resignation on these stipulated facts; an unsupported assertion of compulsion does not establish constructive dismissal
  4. The settlement alone allows every illegal employer act
  5. A transfer proposal automatically establishes discrimination

Legal references

  • https://lawphil.net/judjuris/juri2010/oct2010/gr_163091_2010.html — Coca-Cola Bottlers Philippines, Inc. v. Del Villar, G.R. 163091, October 6, 2010, main decision: equivalent transfer versus demotion, duties, rank, benefits and bad faith.
  • https://lawphil.net/judjuris/juri2025/jul2025/gr_245269_2025.html — Saudi Arabian Airlines v. Castells, G.R. 245269, July 28, 2025, main decision: reasonable-person test, proof and voluntary resignation.
  • https://lawphil.net/judjuris/juri2021/nov2021/gr_227718_2021.html — Lagamayo v. Cullinan Group, Inc., G.R. 227718, November 11, 2021, main decision: employee’s initial proof of dismissal and employer justification.

Answer this question in flashcards to review your response and continue practicing.