Fraud and Loss of Trust and Confidence
A managerial employee is conferred with full trust and confidence by his employer. While as a manager he could exercise some discretion, such does not cover acts of betrayal of trust and confidence of his employer. He cannot reimburse his family’s personal travel expenses out of company funds. His act amounted to fraud or deceit which led to the loss of trust and confidence of his employer.
An employee, the Officer-in-Charge of the company in its boutique misappropriated the amount collected representing cash sales. The sum involved was receipted but was not deposited in the company’s account with the bank. Her dismissal was upheld, as her act was fraudulent.
The employer’s filing of the criminal case against the employee and the public prosecutor’s finding of a prima facie case for the offense charged after preliminary investigation amounted to substantial evidence of managerial employee’s breach of the trust and confidence reposed in him, a just cause to terminate the employment based on loss of trust and confidence.
In a company, certain positions are reposed with trust and confidence. Hence, not all designations are expected to observe such level of fidelity. Since a corporation cannot perform all acts alone by itself, it has to delegate some tasks and repose trust in the process.
The stakes are high in a position imbued with trust.
If there is sufficient evidence to show that the employee has been guilty of breach of trust or that his
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employer has ample reason to distrust him, the labor tribunal cannot justly deny to the employer the authority to dismiss such employee, more so in cases where the latter occupies a position of responsibility.
Law and jurisprudence have long recognized the right of employers to dismiss employees by reason of loss of trust and confidence.
Loss of confidence as a just cause for termination of employment is premised from the fact that an employee concerned holds a position of trust and confidence. This situation holds where a person is entrusted with confidence on delicate matters, such as the custody, handling, or care and protection of the employer’s property. But, in order to constitute a just cause for dismissal, the act complained of must be “work-related” such as would show the employee concerned to be unfit to continue working for the employer.
It cannot be over emphasized that there is no substitute for honesty for sensitive positions which call for 
utmost trust. Fairness dictates that the employee should not be allowed to continue with the employment of the employer who has breached the confidence reposed on him.
To validly dismiss an employee on the ground of loss of trust and confidence, the following guidelines must be followed:
- The loss of confidence must not be simulated;
- It should not be used as a subterfuge for causes
which are illegal, improper or unjustified;
- It may not be arbitrarily asserted in the face of overwhelming evidence to the contrary;
- It must be genuine, not a mere afterthought, to justify earlier action taken in bad faith; and
5. The employee involved holds a position of trust and confidence.
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