Breach of Trust is a Factual Issue
Breach trust must be proven as a fact.
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, or 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.
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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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The dismissal must be deemed contrary to the provisions of the Labor Code thus illegal.
Loss of trust and confidence is premised on the fact that the employee holds a position whose functions may only be performed by someone who has the confidence of management.
Such employee may be managerial or rank-and-file, but the nature of his position determines the requirements for a valid dismissal.
With respect to a managerial employee, the mere existence of a basis for believing that such employee has breached the trust of his employer would suffice for his dismissal. Proof beyond reasonable doubt is not required, only substantial evidence which must establish clearly and convincingly the facts on which the loss of confidence rests.
It being sufficient that there is some basis for such loss of confidence, such as when the employer has reasonable ground to believe that the employee concerned is responsible for the purported misconduct, and the nature of his participation therein renders him unworthy of the trust and confidence demanded by his position.
Employers are allowed wide latitude of discretion in cases of termination of managerial employees, who perform functions that by their nature require full trust and confidence.
Managerial personnel and other employees occupy- ing positions of trust and confidence are entitled to security of tenure, fair standards of employment, and the protection of labor laws. However, the rules on termination of employment, penalties for infractions, and resort to concerted action are not necessarily
the same as those for ordinary employees.
Of course, it must be stressed that loss of confidence as a just cause for the termination of employment is based on the premise that the employee holds a position of trust and confidence, as when he is entrusted with responsibility involving delicate matters, and the task of a janitor does not fall squarely under this category.
Thus, with respect to rank-and-file personnel, loss of trust and confidence as ground for valid dismissal requires proof of involvement in the alleged events in question, and that mere uncorroborated assertions and accusations by the employer will not be sufficient.
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