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Breach of Trust and Confidence Must Pertain to Employee’s Work
- June 5, 2022
- Posted by: Atty. Elvin Villanueva
- Category: Labor Law
An employee must not be dismissed on the pretext of loss of trust for acts committed not in relation to his duty.
To constitute a just cause for dismissal, the act complained of must be work-related and shows that the employee concerned is unfit to continue to work for the employer.
Also, the act complained of should have arisen from the performance of the employee’s duties.
Thus, an accounting clerk of a bank whose duty in- volves opening of savings, current and/or time deposits and the payment of withdrawals cannot be dismissed for acts related to bank guarantees, which is the responsibility of the branch manager and the management personnel of the company’s head office.
In order to constitute as just cause for dismissal, loss of confidence should relate to acts inimical to the interests of the employer. Breach must be related to the performance of the employee’s function.
The position itself should require trustworthiness from an employee for breach of trust to prosper as a valid ground for dismissal. It must be a position reposed with trust and confidence.

Loss of confidence applies to: (1) employees occupying positions of trust and confidence, the managerial employees; and (2) employees who are routinely charged with the care and custody of the employer’s money or property which may include rank-and-file employees.
Examples of rank-and-file employees who may be dismissed for loss of confidence are cashiers, auditors, property custodians, or those who, in the normal routine exercise of their functions, regularly handle significant amounts of money or property.
The law defines position of trust and confidence as one where a person is entrusted with confidence on delicate matters, or with the custody, handling, or care and protection of the employer’s property.
As held in the case of Eats-Cetera Food Services vs. Myrna B. Letran And Mary Grace Espadero, a position of trust and confidence has been defined as one where a person is entrusted with confidence on delicate matters, or with the custody, handling, or care and protection of the employer’s property and/or
funds.
One such position is that of a cashier. A cashier is a highly sensitive position which requires absolute trust and honesty on the part of the employee.
It pertains to an employee where greater trust is placed by management and from whom greater fidelity to duty is correspondingly expected. The betrayal of this trust is the essence of the offense for which an employee is penalized.
Learn how to Validly Terminate Employee in the Philippines with this Tutorial Video of Atty. Elvin 
Read more on procedural due process discussion by Atty. Elvin:
Read more on procedural due process by Atty. Villanueva:
Twin Requirements of Notice and Hearing
Procedural Due Process for Other Types of Employment
Notice to Explain: Contents and Requirements