Norkis Trading Co.

V Melvin Gnilo
Gnilo was the Credit and Collection Manager of Norkis Trading and is in charge o
f the Albay and Catanduanes branches of the company. In 2000, Gnilo was found to
be submitting overstated reports about his area of management which misled the
management into believing that Gnilo was doing a good job. He was subsequently t
ransferred from his position to being the marketing assistant of the company s sen
ior VP Albos. Gnilo took the position under protest. He sued Norkis until the ca
se reached the NLRC. The NLRC ruled that the transfer is actually a constructive
dismissal. Norkis assailed the decision of the NLRC alleging that Gnilo s previou
s and current position in the company is of equal rank.
ISSUE: Whether or not the transfer of Gnilo from being a Collections Manager to
a Marketing Assistant constitutes constructive dismissal.
HELD: Yes. While the transfer of respondent from Credit and Collection Manager
to Marketing Assistant did not result in the reduction of his salary, there was
a reduction in his duties and responsibilities which amounted to a demotion tant
amount to a constructive dismissal as correctly held by the NLRC. As Credit and
Collection Manager, Gnilo was clothed with all the duties and responsibilities o
f a managerial employee. On the other hand, the work of a Marketing Assistant is
clerical in nature, which does not involve the exercise of any discretion. Such
job entails mere data gathering on vital marketing informations relevant to Gni
lo s motorcycles and making reports to his direct supervisor. He became a mere sta
ff member in the office of the Senior Vice-President for Marketing.