1. Summary
▪ To be valid, the just cause of loss of trust and confidence should comply with prescribed standards.
2. Standards for loss of trust and confidence
The standards are:
1) There must be an act, omission or concealment;
2) The act, omission, or concealment justifies the loss of trust and confidence of the employer to the employee;
3) The employee concerned must be holding a position of trust and confidence;
4) The loss of trust and confidence should not be simulated;
5) It should not be used as a subterfuge for causes which are improper, illegal, or unjustified; and,
6) It must be genuine and not a mere afterthought to justify an earlier action taken in bad faith. (Section 5.2[e], Rule I-A, DOLE D.O. 147-15)
3. Applies only to specific employees
The just cause of loss of trust and confidence applies only to specific employees, namely:
1) Managerial employees; and,
2) Confidential employees.
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References
▪ 1987 Philippine Constitution
▪ Presidential Decree No. 442, a.k.a. Labor Code of the Philippines
▪ DOLE Department Order No. 147, Series of 2015
▪ Jurisprudence or Supreme Court Decisions
