Pedro was employed as a workshop supervisor by ABC Inc., a jewelry manufacturing company. In 2011, ABC discovered several irregularities among workers under his supervision, including theft of gold, gambling, and alcohol consumption inside company premises. Due to these incidents, Pedro was placed under preventive suspension and later charged with breach of trust and confidence, dishonesty, and negligence in the performance of his duties.

After an internal investigation, ABC found him liable for failing to prevent the misconduct of his subordinates. During the proceedings, ABC denied the accusations but later requested to resign to keep his record clean. The company allowed him to resign but denied his request for separation pay.

He didn’t receive a notice that his suspension was lifted.

He filed a complaint for illegal dismissal, claiming that he was constructively dismissed because he was not reinstated after his preventive suspension and was effectively forced to resign.

Was he constructively dismissed?

No. When the period of preventive suspension is extended, the totality of the circumstances must show that the prolonged suspension was tainted with bad faith or malice on the part of the employer to compel the employee to forego his or her employment, before the said extension may amount to constructive dismissal. The extension was not tainted with malice or bad faith, since it was meant to give petitioner a graceful exit from the company in lieu of termination. An employer’s decision to give their employees the chance to resign to save face rather than smear their employment records is perfectly within their discretion.

• Lagamayo v. Cullinan Group, G.R. No. 227718, November 11, 2021