Cases: Fraud

1. Conviction of a crime

The employer may validly dismiss for loss of trust and confidence an employee who commits an act of fraud prejudicial to the interest of the employer. Neither a criminal prosecution nor a conviction beyond reasonable doubt for the crime is a requisite for the validity of the dismissal. Nonetheless, the dismissal for a just or lawful cause must still be made upon compliance with the requirements of due process under the Labor Code; otherwise, the employer is liable to pay nominal damages as indemnity to the dismissed employee. (Concepcion v. Minex Import Corporation, G.R. No.153569, 24 January 2012)

In Concepcion v. Minex Import Corporation, the rule was reiterated that conviction was not required to validly dismiss an employee of a criminal offense. Thus:



• [The employee – a Store Supervisor. She was subjected to an arrest and a criminal case for qualified theft after a sum went missing. When she got out of jail, the employer refused to see her again.]


• The NLRC held that the termination of the petitioner was due to loss of trust and confidence. Sustaining the NLRC, the CA stated:

With the finding of probable cause not only by the investigating prosecutor but by the Secretary of Justice no less, it cannot be validly claimed, as the Petitioner does, in her Petition at bench, that there is no lawful cause for her dismissal xxx.


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