“A” worked for company “B” as a rank and file employee until April 1990 when A’s services were terminated due to loss of confidence in A. However, before effecting A’s dismissal, B accorded A due process including full opportunity to answer the charges against him in the course of the investigation. Was B justified in dismissing A after the investigation? Why?


Suggested Answer:

Yes, loss of confidence is one of the just causes for termination under Article 282 of the Labor Code. However, for the dismissal to be valid (in addition to complying with the due process requirements), the following guidelines must be complied with:

  1. Loss of confidence should not be simulated;
  2. It should not be used as a subterfuge for causes which are improper, illegal, or unjustified;
  3. Loss of confidence may not be arbitrarily asserted in the face of overwhelming evidence to the contrary; and
  4. It must be genuine, not a mere afterthought to justify earlier action taken in bad faith. (M+W Zander Philippines vs. Enriquez, G.R. No. 169173, June 5, 2009.)


Be the first to comment

Add your comment now