Doctrine of Command Responsibility for Managerial Employees and Breach of Trust by Rank and File Employees

In the case of a Chief Purser of a passenger ship, the established facts show that although he did not participate in the commission of anomalies, he was still liable due to his failure to detect those irregularities. (See Vicente C. Etcuban, Jr. vs. Sulpicio Lines, Inc., G.R. No. 148410, January 17, 2005.)

Interestingly, jurisprudence has made a connection between neglect of duty and loss of trust and confidence involving a managerial employee or a rank-and-file holding a fiduciary position.

In the case of Azul vs. Banco Filipino Savings and Mortgage Bank, the alleged good faith of the branch accountant in the face of illegal transactions was not sufficient to save him from dismissal. His participation of typing his password to complete the “over-ride” was indispensable in the perpetration of the prohibited transactions.

The same principle was adopted in the case where the questionable involvement of an employee in the manipulation of company records facilitated the transfer of a telephone line which was obtained through highly irregular means.

As earlier mentioned, the loss of trust and confidence is a doctrine generally applicable to managerial employees. However, the rule was made to apply to non- managerial positions which by reason of the

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nature of the positions, are reposed with trust and confidence.

Route Salesmen are rank-and-file employees but they are highly individualistic personnel who roam around selling products, deal with customers and are entrusted with large assets, funds and property of the employer. There is high degree of trust and confidence reposed on them and when such confidence is breached, the employer may take proper disciplinary action on them.

However, when a driver-helper was temporarily as- signed as a Route Salesman for three (3) days, he does not automatically become a holder of a position of trust, for breach of which he shall be meted the penalty of dismissal. Despite his additional duties (as a Route Salesman), he remained a driver-helper of the company. He cannot be dismissed on loss of trust and confidence.

A food attendant who was found to have drunk the beer stolen from the company’s beer dispenser was validly dismissed since his position involves trust and confidence. Where the employee has access to the employer’s property in the form of merchandise and articles for sale, the relationship of the employer and the employee necessarily involves trust and confidence.

A rank-and-file employee cannot argue that he cannot be dismissed on the ground of loss of trust and confidence provided there is a high proof of his involvement in the offenses committed.

As a general rule, employers are allowed wide latitude of discretion in terminating the employment of managerial personnel or those who, while not of similar rank, perform functions which by their nature require the employer’s full trust and confidence. Proof beyond reasonable doubt is not required. It is sufficient that there is some basis for 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. This must be distinguished from the case of ordinary rank-and-file employees, whose termination on the basis of these same grounds requires a higher proof of involvement in the events in question; mere uncorroborated assertions and accusations by the employer will not suffice.

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