Philippine Bar review · Question

Practice question: Constructive Dismissal vs. Demotion

Multiple Choice Medium

Practice question

For a genuine operational need, an employee is moved to an equivalent post with unchanged rank, salary, benefits and meaningful duties. The transfer is stipulated to be reasonable, nonprejudicial and in good faith. Is the employee’s personal preference for the old desk alone enough to establish constructive dismissal?
  1. Yes, employees have an absolute right to one desk
  2. Yes, every transfer is a demotion
  3. No; the stated lawful equivalent transfer and mere preference do not establish objectively intolerable employment conditions
  4. Yes, if the employee has worked there for a year
  5. No, because constructive dismissal can never arise from a transfer

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.

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