- Advertisement -

Egay Uy .

LOSS of trust and confidence as a ground for termination of employment is valid and is allowed by law.  The Labor Code provides in Article 282 that “an employer may terminate an employment for x x x willful breach by the employee of the trust reposed in him by his employer or duly authorized representative.”

- Advertisement -

It is also settled that the breach of trust must be willful for the termination of employment to be valid.  According to the Supreme Court in Chuanico v. Legacy [2013], “a breach is willful if it is done intentionally and knowingly without any justifiable excuse, as distinguished from an act done carelessly, thoughtlessly or inadvertently.”

The first requisite for dismissal on the ground of loss of trust and confidence is that the employee concerned must be holding a position of trust and confidence.  In a case, the SC said that an employee who had immediate access to confidential files, papers and documents, held a position of trust and confidence.

The second requisite is that there must be an act willfully committed that would justify the loss of trust and confidence and the act must be convincingly established and founded on clearly established facts, although proof beyond reasonable doubt, as in the case of criminal prosecution, is not necessary.

The Supreme Court had ruled in several cases that “as firmly entrenched in our jurisprudence, loss of trust and confidence as a just case for termination of employment is premised on the fact that an employee concerned holds a position where greater trust is placed by management and from whom greater fidelity to duty is correspondingly expected.”

The SC continued, “on the other hand, loss of trust and confidence as a ground of dismissal, being subjective in nature, must not be abused.  The loss must be genuine, not merely an afterthought intended to justify an earlier wrongful action because what is at stake is the means of livelihood, the name, and the reputation of the employee.’

Employers have their own interest to protect. That is a given. It has to have that prerogative to dismiss employees for just, or any authorized cause. However, that prerogative must be exercised without abuse of discretion, and the burden to prove that in fact there are grounds to show that there indeed was a breach of trust and confidence rests on the employer.

In justifying the loss of trust and confidence, the SC said in Jerusalem v. Keppell [2011], “it is sufficient that there is some basis for the loss of trust or that the employer has reasonable ground to believe that the employee is responsible for the misconduct which renders him unworthy of the trust and confidence demanded of his position.”

Disclaimer

Mindanao Gold Star Daily holds the copyrights of all articles and photos in perpetuity. Any unauthorized reproduction in any platform, electronic and hardcopy, shall be liable for copyright infringement under the Intellectual Property Rights Law of the Philippines.

- Advertisement -