Casa Cebuana Incorporada v.

Leuterio

Casa lent P1M to Leuterio so he could

by a lot; PN by Leuterio; 5k deduction
from his monthly salary
Casa wanted Leuterio to execute a
REM over the lot, but Leuterio
refused, saying there was no such
agreement for a REM when the loan
was contracted

Casa and Leuterio had a meeting

Casa said during the meeting they
wanted to fire Leuterio because they
lost trust and confidence in him, and
that Leuterio pleaded to be allowed to
resign
But Leuterio denies offering to resign;
says he didn’t submit a resignation
letter; but that even so, he was barred
from entering company premises

Loss of trust and confidence: reasons:

1. lost of credibility among employees
2. value formation series not
conducted
3. did not discipline AWOLs
4. did not teach 5s program; required
for ISO certification
5. did not address DOLE safety
recommendations
6. mishandled a security guard case
7. too much attention for HUNAT
movement against Corona del mar

Casa says after he obtained the loan,

he failed to report for work on time
and observe working hours; failed to
do his job; prioritized his extra-
curricular activities
LA: Leuterio did not voluntarily resign
NLRC: illegal dismissal; MR
NLRC: grants MR; Leuterio voluntarily
resigned when he told the company
security guard that he was quitting;
he was in the middle of removing his
belonging; was preparing his
handwritten memorandum
CA: Casa Cebuana Incorporada is
guilty of illegal dismissal; must
reinstate Leuterio

Issue: Did Leuterio voluntarily resign?

Held/Ratio: NO.

No substantial proof to prove that

Leuterio resigned
Only evidence is the handwritten
memorandum of security guard during
the day Leuterio was taking out his
belongings
The Guard’s report does not
conclusively establish the fact of
resignation, but merely narrates the
standard procedure employed by
guards in checking vehicles that pass
throgh company gates
During the meeting, if Leuterio indeed
offered to resign, Casa should have
made Leuterio give them a
resignation letter at this very
moment.
However, Leuterio never made such
resignation letter
Moreover, Leuterio filed his complaint
with the NLRC, which is inconsistent
with voluntary resignation
In Fungo v. Lourdes School of
Mandaluyong: Resignation is the
voluntary act of employees who are
compelled by personal reasons to
disassociate themselves from their
employment. It must be done with the
intention of relinquishing an office,
accompanied by the act of
abandonment.
In this case, evidence shows Leuterio
did not voluntarily resign; in fact
evidence shows that he was being
forced or pressured to resign, which
is tantamount to illegal dismissal