Loss of trust and confidence


⦁ To be valid, the just cause of loss of trust and confidence should comply with prescribed standards.

1. Concept

[T]he language of Article 282(c) of the Labor Code states that the loss of trust and confidence must be based on willful breach of the trust reposed in the employee by his employer. Such breach is willful if it is done intentionally, knowingly, and purposely, without justifiable excuse, as distinguished from an act done carelessly, thoughtlessly, heedlessly or inadvertently. (Cruz, Jr. v. CA, G.R. No. 148544, 12 July 2006)

Generally, employers are given wide latitude in terminating the services of employees who perform functions which by their nature require the employer’s full trust and confidence. It is well established that an employer cannot be compelled to continue in employment an employee guilty of acts inimical to the interest of the employer and justifying loss of confidence in him. It has been held that when an employee has been guilty of breach of trust or his employer has ample reason to distrust him, a labor tribunal cannot deny the employer the authority to dismiss him. (University of the Immaculate Conception v. Office of the Secretary of Labor and Employment, G.R. Nos. 178085-178086, 14 September 2015)

As firmly entrenched in our jurisprudence, loss of trust and confidence, as a just cause for termination of employment, is premised on the fact that an employee concerned holds a position where greater trust is placed by manag...


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