FACTS: Petitioner was a mechanic employed by Reynaldo’s Marketing Corporation. He was transferred to another plant of the company, and his supervisor’s allowance correspondingly withdrawn, allegedly due to his failure to meet his sales quota. He then filed a complaint for illegal dismissal, alleging constructive dismissal. Reynaldo’s denied the charge; it was simply carrying out a policy designed to encourage work efficiency and competitiveness by giving out extra allowances and choice assignments to employees who meet the required quota. Failure to maintain such quota simply means loss of the assignment and extra allowances.
ISSUE: Whether or not petitioner was constructively dismissed.
HELD: No. Constructive dismissal is an involuntary resignation resorted to by an employee when his continued employment becomes impossible, unreasonable, or unlikely or when there is demotion in rank or diminution in pay, or when a clear determination, insensibility or disdain by the employer becomes unbearable.
In the case at bar, there was a demotion and corresponding decrease in pay, but it was for cause (failure to meet the required quota). The right to demote falls within the employer’s prerogative, since an employer may set employment standards and appropriate sanctions for failure to meet the latter.
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