Dear Atty. Maan,

I have been working at a toy manufacturing company for the past decade. Last week, our team manager was caught with various valuable toy parts during a routine outgoing inspection for which she had no authorization to take from the warehouse. Although she was given a chance to explain, her employment was eventually terminated for stealing company property and loss of trust and confidence. She had been with the company for more than two decades. Do you think the termination was commensurate with the offense she committed, Atty?

Elaine

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Dear Elaine,

Article 297. [282] of the Labor Code of the Philippines provides: Termination by Employer. — An employer may terminate an employment for any of the following causes:

(c) Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative[.]

Further, the Supreme Court ruled in various cases that Two requisites must concur for a valid termination of employment due to loss of trust and confidence.

First. Breach of trust and confidence must be premised on the fact that the employee concerned holds a position of trust and confidence, where greater trust is placed by management and from whom greater fidelity to duty is correspondingly expected. The essence of the offense for which an employee is penalized is the betrayal of such trust.

In the case of Wesleyan University Phils. v Reyes, employees vested with trust and confidence were divided into two classes: (a) the managerial employees; and (b) the fiduciary rank-and-file employees. As explained by the Court:

To the first class belong the managerial employees or those vested with the powers or prerogatives to lay down management policies and to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees or effectively recommend such managerial actions.