Loss of confidence is one of the just causes for termination of employment and may be used in the situation of an employee who occupies trust and confidence.
A position is said to be one of trust and confidence when the employee is entrusted with confidence in delicate matters such as the custody, handling, or care and protection of the employer’s property, such as a Bank Branch Manager.
A basic requirement for loss of confidence terminations is that the act complained of is “work-related” such as one that would show the employee’s unfitness to continue working for the employer.
In a case, the firing of a branch manager who issued 2 Certificates of Time Deposit (CTDs) knowing that these were unfunded was considered valid by the Supreme Court, even if the same branch manager later canceled the CTDs.
(Leandro M. Alcantara vs. PCIB, Oct. 20, 2010, GR No. 151349)