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Casa Cebuana Incorporada v.

Casa Cebuana: Furniture Manufacturer
Leuterio: hired as HR Manager

Casa lent P1M to Leuterio so he could by a lot;

PN by Leuterio; 5k deduction from his monthly
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
didnt submit a resignation letter; but that even
so, he was barred from entering company

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
5. did not address DOLE safety
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

Only evidence is the handwritten memorandum
of security guard during the day Leuterio was
taking out his belongings
The Guards 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
However, Leuterio never made such
resignation letter
Moreover, Leuterio filed his complaint with the
NLRC, which is inconsistent with voluntary
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