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16 Jun

Termination Due to Authorized Cause

Article 298 of the Labor Code, as amended, provides causes which are grounds for the termination of employees. It is one of the authorized causes for termination. Thus: “Art. 298. Closure of establishment and re- duction of personnel. The employer may also terminate the employment of any employee due to the installation of labor- saving devices, redundancy, retrenchment to prevent losses or the closing or cessation of operation of the establishment or undertaking unless the closing is for the purpose of circumventing [...]

By Atty Elvin Labor Law article 298, Authorized Cause, termination 0 Comments Read more...

15 Jun

Criminal Aspects of Incidents Leading to Loss of Trust and Confidence

Loss of trust and confidence is one of the grounds for dismissal of employees under the Labor Code. This may arise from incidents of fraud, theft, etc. which are criminal in nature. The question is what would be the effect of the criminal aspects on the labor dispute stemming from loss of trust and confidence? The violation of company policy may involve a criminal act for which the employee may be charged by the employer in a criminal court. Non-conviction in [...]

By Atty Elvin Labor Law atty. elvin, employee discipline, employee dismissal, Just Cause, loss of trust and confidence, termination 0 Comments Read more...

13 Jun

Effect of Long Employment Tenure Against the Charge of Loss of Trust and Confidence

There is a thought that an employee who has rendered several years of service is accorded leniency in disciplinary situations. However, this is not always the case since under certain circumstances, long years of service may aggravate the offense involving loss of trust. In a case where the two employees had spent twenty-two (22) and nineteen (19) years of service with the company respectively and although they committed their only first offense, the Supreme Court upheld their dismissal nonetheless. The [...]

By Atty Elvin Labor Law atty. elvin, dismissal, Just Cause, labor, Labor Code, labor law, loss of trust and confidence, tenure 0 Comments Read more...

12 Jun

Loss of Trust and Confidence Applies to Confidential Employees

There are rank-and-file employees who hold highly confidential positions due to their fiduciary responsibilities and proximity to the management that makes important decisions pertaining to labor relations. In one of my clients’ organizational setup, an employee who used to be a holder of supervisory position being an assistant to the SVP for Marketing was demoted to rank-and-file status. But he was classified as a confidential employee. This kind of confidential employee is not a holder of a trusted position but [...]

By Atty Elvin Labor Law article 297, atty. elvin, confidential employee, dismissal, employee discipline, labor, Labor Code, labor law, loss of trust, termination 0 Comments Read more...

11 Jun

Holiday Pay Rules with Sample Computation for Independence Day Holiday June 12, 2022 Using NCR New Minimum Wage

Holiday pay should be paid accordingly, particularly the regular holiday. On 29 October 2021 a Proclamation No. 1236 was issued, declaring, among others, June 12, 2021 (Sunday) as a regular holiday nationwide. See PDF copy of Proclamation No. 1236 here. On 8 June 2022, the Department of Labor and Employment (DOLE) issued a Labor Advisory 14, Series of 2022 providing for rules on the payment of wages for the regular holiday on 12 June 2022. View the PDF file of the Labor [...]

By Atty Elvin Labor Law 2022, atty. elvin, benefits, compensation, compensation and benefits, employee, holiday, holiday pay, Independence day, june 12, labor, Labor Code, labor law, regular holiday 0 Comments Read more...

10 Jun

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 [...]

By Atty Elvin Labor Law article 297, atty. elvin, breach of trust, command responsibility, discipline, dismissal, employee dismissal, loss of trust and confidence, managerial employee, termination, willful breach of trust 0 Comments Read more...

08 Jun

Loss of Trust and Confidence Based on Employee Position

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 [...]

By Atty Elvin Labor Law article 297, atty. elvin, dismissal, employee discipline, Just Cause, labor, Labor Code, labor law, loss of trust and confidence 0 Comments Read more...

07 Jun

Classes of Positions of Trust

In a case involving breach of trust and confidence, it is required that the employee being investigated holds a position of trust. There are two classes of positions of trust. The first class consists of managerial employees and the second. class consists of cashiers, auditors, property custodians, etc. (Abelardo P. Abel vs. Philex Mining Corporation, G.R. No. 178976, July 31, 2009 citing Mabeza vs. National Labor Relations Commission, G.R. No. 118506, April 18, 1997, 271 SCRA 670, 682.) Managerial employees are [...]

By Atty Elvin Labor Law article 297, atty. elvin, discipline, dismissal, employee, employee termination, employer, Just Cause, labor, Labor Code, labor law, position of trust, position of trust and confidence, trust and confidence 0 Comments Read more...

05 Jun

Loss of Trust and Confidence as Ground for Termination Must have Reasonable Grounds

For loss of trust and confidence to constitute a sufficient ground for termination, the employer must have a reasonable ground to believe, if not to entertain the moral conviction, that the employee was responsible for the misconduct, and that the nature of his participation therein rendered him absolutely unworthy of the trust and confidence demanded by his position. As can be deduced from Article 297 of the Labor Code, as amended, the breach of trust and confidence must be willful. [...]

By Atty Elvin Labor Law article 297, atty. elvin, dismissal, employee, employer, Just Cause, loss of trust and confidence, willful breach of trust 0 Comments Read more...

02 Jun

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 [...]

By Atty Elvin Labor Law article 297, atty. elvin, discipline, dismissal, employee, employer, fraud, Just Cause, labor, Labor Code, labor law, loss of trust, loss of trust and confidence, termination 0 Comments Read more...