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Loss of trust and confidence

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Summary

  • To be valid, the just cause of loss of trust and confidence should comply with prescribed standards.

Legal basis

The legal basis is the P.D. 442, otherwise known as the Labor Code, Supreme Court Decisions, and DOLE Regulations.

Standards have been set or prescribed for each authorized cause through Supreme Court Decisions and DOLE regulations, such as Department Order No. 147, series of 2015 (DOLE D.O. 147-15).

Standards for loss of trust and confidence

The standards are:

1) There must be an act, omission or concealment;

2) The act, omission, or concealment justifies the loss of trust and confidence of the employer to the employee;

3) The employee concerned must be holding a position of trust and confidence;

4) The loss of trust and confidence should not be simulated;

5) It should not be used as a subterfuge for causes which are improper, illegal, or unjustified; and,

6) It must be genuine and not a mere afterthought to justify an earlier action taken in bad faith. (Section 5.2[e], Rule I-A, DOLE D.O. 147-15)

References

  • 1987 Constitution
  • Presidential Decree No. 442, a.k.a. Labor Code
  • DOLE Department Order No. 147, Series of 2015
  • Jurisprudence or Supreme Court Decisions
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