Tag - article 297

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 [...]

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 [...]

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 [...]

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 [...]

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 [...]

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 [...]

Claim of Abandonment vs Claim of Illegal Dismissal

Contrasting allegations may be presented in court involving employee who claims to have been verbally dismissed from service and employer who denies having done so and instead alleges that the employee abandoned his job. If so, how it should be resolved? In the August 2013 case of MZR Industries vs. Colambot, the Supreme Court held, in sum: The Court recognized the rule that in illegal dis- missal cases, the employer bears the burden of proving that the termination was for a [...]

Filing of Illegal Dismissal as Against Denial of Termination in Abandonment Cases

Substantial evidence proffered by the employer that it had not terminated the employee should not be ignored on the pretext that the employee would not have filed the complaint for illegal dismissal if he had not really been dismissed. The Court held that such non sequitur reasoning cannot take the place of the evidence of both The lapse of time between the dismissal of an employee for abandonment and the filing of a complaint for illegal dismissal is not [...]

Evidence Required in Abandonment Cases

Abandonment of work is a ground for dismissal under Article 297 of the Labor Code, as amended. However, is mere claim of abandonment already substantial evidence to support the dismissal? The issue of whether the employee has abandoned his work is factual. The law does not enumerate what specific overt acts can be considered as strong evidence of the intention to sever the employer-employee relationship. Failure of the employer to present attendance record even when this was readily available to it [...]

Separation Pay Cannot be Awarded to Employee Dismissed for Gross and Habitual Neglect of Duty; Other issues on this ground

Gross and habitual neglect of duty is one of the grounds for dismissal under Article 297 of the Labor Code, as amended. In certain termination, employee is entitled to payment of separation pay. This applies to grounds found under Article 298 of the Labor Code such as installation of labor saving devices, redundancy, retrenchment, and closure. But this does not apply to dismissal due to the fault of the employee like those grounds in Article 297. In one case, in view [...]

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