Hence, it does not seem to be in accord with the decision of the management to charge an employee for loss of trust and confidence after he was being promoted.

The promotion of an employee who was dismissed for loss of trust and confidence contradicts the claim of the company that the employee deserves to be terminated. This self-contradictory position of the employer negates its claim of loss of confidence in its employee. (See the case of Easycall Communications Phils., Inc. vs. King, G.R. No. 145901, December 15, 2005.)

Further, an employee who was promoted several times and was given bonuses for his collection efforts and a compensation adjustment for his excellent performance cannot be validly dismissed on the ground of loss of trust and confidence. Such promotion, bonuses and compensation negate the allegations of inefficiency and loss of trust and confidence.

Loss of confidence has no basis if the fact shows that:

1. The employee was the recipient of numerous awards, commendations and promotions from the

   

   employer which he had served for two (2) decades; and

2. In his entire service to the company, he was never implicated in any irregularity or anomaly.

But in another case, the employee’s claim of having served the company for 16 years backfired because the long years of service reflected a regrettable lack of loyalty on the part of the employee. Loyalty should have been strengthened instead of betrayed.

If an employee’s length of service is to be regarded as a justification for moderating the penalty of dismissal, it will actually become a prize for disloyalty, perverting the meaning of social justice and undermining the efforts of labor to cleanse its ranks of all undesirables.

Unlike other just causes for dismissal, trust in an employee, once lost is difficult, if not impossible, to regain. (Salvador vs. Philippine Mining Service Corporation, G.R. 148766, January 22, 2003.)

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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