Flashcards Studio

In a mid-sized private manufacturing company, Vega Tech, after 8 years of service, Luisa Dizon is demoted from Senior Quality Assurance Manager to QA Analyst II, with a 12% salary reduction, and transferred to a distant plant 140 kilometers away with new duties and reporting lines. No misconduct is alleged, no disciplinary process is followed, and Luisa does not consent to the demotion. She continues to work for six weeks, then resigns and sues for constructive dismissal and back wages. The company defends by invoking legitimate management prerogative during restructuring, arguing that Luisa’s continued employment indicates tacit acceptance of the change. (a) Identify the central doctrine at issue. (b) Distinguish the controlling rule for constructive dismissal versus legitimate demotion. (c) Apply the rule to the facts and determine whether Luisa’s relationship was constructively dismissed and what remedies may be available.