Tag - Just Cause

Standards to Observe in Alleging Offenses in the Notice to Explain

Issuance of the Notice to Explain (NTE) is one of the steps required in employee dismissal. At least, insofar as avoiding payment of indemnity is concerned for violation of procedural due process. Not observing the proper NTE may also impress upon the tribunal the haphazard nature of the employer in issuing such legal requirement. The last thing that an employer, as respondent in a case, wants is to have a wrong impression in the eyes of the labor tribunal. So, [...]

No-Spouse Employment Policy that is Discriminatory is Illegal

One Network Bank, Inc. hired Catherine as an Accounting Specialist.On May 1, 2006, it implemented what it called an “Exogamy Policy,” which stated: Effective May 1, 2006, when two employees working for One Network Bank are subsequently married through Church or Civil Court rites, one must terminate employment immediately after marriage. This policy shall not affect co-employees of the bank who are already married to each other as of the end of April 2006. On October 31, 2009, Catherine married her [...]

Valid Termination due to Redundancy

For purposes of the Labor Code, redundancy exists where the services of an employee are in excess of what is reasonably demanded by the actual requirements of the enterprise. Succinctly put, a position is redundant where it is superfluous, and superfluity of a position or positions may be the outcome of a number of factors, such as over hiring of workers, decreased volume of business, or dropping of a particular product line or service activity previously manufactured or undertaken [...]

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 [...]

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. [...]

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 [...]

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