Library of PH Labor Law

5 – Loss of trust and confidence

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1. Summary

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

2. 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)

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References

▪ 1987 Philippine Constitution

▪ Presidential Decree No. 442, a.k.a. Labor Code

▪ Department of Labor and Employment, Department Order No. 147, Series of 2015

▪ Jurisprudence or Supreme Court Decisions

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