LBC Express-Vis, Inc. vs. Monica C. Palco, G.R. No. 217101 (Philippines)

The Supreme Court ruled that constructive dismissal occurs when an employer makes an employee's continued employment impossible, unreasonable or unlikely, or has made an employee's working conditions or environment harsh, hostile and unfavorable, such that the employee feels obliged to resign from his or her employment. One of the ways by which a hostile or offensive work environment is created is through the sexual harassment of an employee. 

The Supreme Court further noted that the lack of prompt action by the employer reinforced a hostile work environment and that this insensibility towards respondent is a ground for constructive dismissal. Thus, petitioner was held liable to respondent for separation pay, back wages, damages and attorney's fees due to the constructive dismissal.