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 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.
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Managerial personnel and other employees occupying 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.
An employee who rose from the ranks to become a managerial employee will be gauged accordingly for purposes of applying the doctrine of loss of trust and confidence. So much trust is reposed in managers 
that a simple act of breaching such trust may result in his dismissal. The same act may not constitute a terminable offense when he is just a rank-and-file employee.
Thus, when an employee accepts a promotion to a managerial position or to an office requiring full trust and confidence, she gives up some of the rigid guaranties available to ordinary workers. Infractions which if commit- ted by others would be overlooked or condoned or penalties mitigated may be visited with more severe disciplinary action. A company’s resort to acts of self- defense would be more easily justified.
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