Tag - managerial employee

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 [...]

Is it Really Easy to Terminate Managerial Employees?

It has been a common impression that managerial employees are easy to terminate. The cause of this view is the concept of loss of trust and confidence or willful breach of trust under Article 297 of the Labor Code, as amended. While an employer has its own interest to protect, and pursuant thereto, it may terminate a managerial employee for a just cause, such prerogative to dismiss or lay off an employee must be exercised without abuse of discretion. Its [...]

LOSS OF TRUST AND CONFIDENCE AS GROUND FOR TERMINATION OF A MANAGERIAL EMPLOYEE; LACK OF PREVIOUS RECORD OF INFRACTION CANNOT SERVE AS JUSTIFICATION TO REDUCE THE SEVERITY OF THE PENALTY

Loss of trust and confidence is a ground for dismissal. To justify a valid dismissal based on loss of trust and confidence, the concurrence of two (2) conditions must be satisfied: (1) the employee concerned must be holding a position of trust and confidence; and (2) there must be an act that would justify the loss of trust and confidence. These two requisites are present in this case. Thus, the Supreme Court held in the following case: SM Development Corporation, et [...]

Company Practice Exists If The Act Of Extending Benefits Has Been Practiced For A Long Period Of Time And Shown To Be Consistent And Deliberate

Company practice or policy to exist, it must be proven that the act of extending benefits of the CBA to managerial employees must have been practiced for a long period of time and must be shown to be consistent and deliberate. Thus, the SC held that to be considered a company practice, the giving of the benefits should have been done over a long period of time, and must be shown to have been consistent and deliberate. The test or [...]

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