Termination cause

Dear Atty. Kathy,

I work as a procurement officer. I am being investigated by my employer because of a P1,000 cash shortage in the Procurement Department’s revolving cash fund, which is one of my main responsibilities as the custodian and approving and releasing authority. The Notice to Explain said that I could be dismissed for loss of trust and confidence. But, even before I received the Notice to Explain, I already apologized for my negligence and also agreed that the P1,000 be deducted from my salary. Does my employer have enough grounds to dismiss me, even if I already returned the P1,000?

Mark

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Dear Mark,

Loss of trust and confidence may be a just cause for termination of employment only upon proof that: (1) the dismissed employee occupied a position of trust and confidence; and (2) the dismissed employee committed an act justifying the loss of trust and confidence.

Based solely on your narration, it appears that the first element was met, since as a Procurement Officer, you hold a position of trust and confidence, by virtue of your responsibilities as the custodian and approving and releasing authority of the revolving cash fund.

With regard to the second element, for the loss of trust and confidence to be a valid ground of dismissal, it must be substantial, and not arbitrary, whimsical, capricious, and concocted; and demands that a degree of severity attends the employee’s breach of trust.

As ruled by the Supreme Court, your cash shortage of P1,000 cannot be considered substantial and severe, as would justify your employer’s loss of trust and confidence in you. In addition, not only did you apologize for your negligence, it appears that you have returned the said cash shortage to your employer through salary deduction. Based on the foregoing, your employer does not have sufficient grounds to dismiss you, and it would be a clear injustice to terminate your employment for such an insignificant amount which you have already returned.

(Systems and Plan Integrator and Development Corporation, et al. vs Michelle Elvi C. Ballesteros, G.R. No. 217119, 25 April 2022)

Atty. Kathy Larios