There must be some evidence to substantiate the claim and form a legal basis for loss of confidence. The employer cannot exercise arbitrarily and without just cause the right to dismiss an employee for loss of trust and confidence.

While it is true that loss of trust and confidence is a just cause for termination, it must not be simulated or concocted but must be supported by substantial evidence.

The evidence must be substantial and must establish clearly and convincingly the facts on which the loss of confidence rests and not on the employer’s arbitrariness, whims, caprices and suspicion. Substantial evidence is of critical importance and the burden rests on the employer to prove it.

The loss of trust and confidence must have some basis. Proof beyond reasonable doubt is not required. Thus, it is sufficient that there is reasonable ground to believe if not to entertain the moral conviction that the concerned employee is responsible for the misconduct and the nature of his participation therein rendered him absolutely unworthy of trust and confidence demanded by his position. (See the cases of Central Pangasinan Electric Cooperative, Inc. vs. Macaraeg, G.R. No. 145800, January 22, 2003, Sagales vs. Rustan’s Commercial Corp., supra; Uniwide Sales Warehouse Club vs. NLRC, G.R.

No. 154503, February 29, 2008, Norsk Hydro (Phils.), Inc., et al. vs. B. S. Rosales, et al., G.R. No. 162871, January 31, 2007 and Alcazaren vs. Univet Agricultural Products, Inc., G.R. No. 149628, November 22, 2005.)

Applying such rule, the dismissal of a managerial employee who sent e-mails to her company’s client informing the latter of her employer’s inefficient operations and poor services was justified. Her act exposed the company’s shortcomings which act is prejudicial to her employer’s business. She was expected to exercise her judgment and discretion with utmost care and concern for her employer’s business.

It is thus a settled rule that the mere existence of a basis for believing that a managerial employee has breached the trust of the employer justifies dismissal.

Simple allegation alone, without proven facts to back it up, could not and did not suffice as a basis for a finding of willful breach of trust. There was failure to prove the existence of a valid cause for the dismissal of respondent.

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