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Pls. read the cases stated below and/or do your own research to verify the information.

Loss of confidence arising from fraud or willful breach of trust by employee of the trust reposed
in him by his employer or his duly authorized representative is a just cause for termination of
employment under Article 282 of the Labor Code of the Philippines.
Fraud Meaning.
Fraud is any act, omission, or concealment which involves a breach of legal duty, trust, or
confidence justly reposed and is injurious to another.
Breach of Trust Meaning.
Breach of trust refers to the violation by the employee of the trust and confidence reposed in
him by his employer or duly authorized representative.
Elements of Loss of Confidence.
To determine whether the termination of employment based on loss of confidence is justified,
the following elements are generally considered:
Whether the fraud or breach of trust is in connection to the employees work; and
Whether the employee concerned is holding a position of trust and confidence.
Fraud or Breach must be in Connection to Employees Work.
To constitute just cause, fraud or breach of trust must be committed in connection with the
employees work or related to the performance of the employees functions.
Employee must Hold Position of Trust and Confidence.
The basic premise for dismissal on the ground of loss of confidence is that the employee
concerned holds a position of trust and confidence. It is the breach of this trust that results in the
employers loss of confidence in the employee. (See Natl Sugar Refineries Corp. vs. NLRC,
G.R. No. 122277 February 24, 1998.)
Thus, loss of confidence ideally applies only to cases involving employee occupying positions of
trust and confidence, e.g., managerial employees, and those situations where the employee is
routinely charged with the care and custody of the employers money or property, e.g., cashiers,
auditors, property custodian, etc.
Title not Conclusive Indicator of Trust and Confidence.
However, the title or appellation of the employees position is not a conclusive indicator as to
whether or not an employee holds a position of trust and confidence. The determination should
hinge on the authority actually possessed by employee.
Breach of Trust must be Willful.
Ordinary breach will not suffice. It must be willful and without justifiable excuse, there must be
basis therefor, and it must be supported by substantial evidence and not merely by the whims or
caprice of the employer. (SeeFalguera vs. Linsangan, G.R. No. 114848 December 14, 1995.)
Substantial evidence is defined as such amount of relevant evidence which a reasonable
mind might accept as adequate to justify a conclusion. See TRAVELAIRE & TOURS
COMMISSION and NENITA I. MEDELYN, respondents. G.R. No. 131523 August 20, 1998