ABELARDO P. ABEL VS PHILEX MINING CORPORATION

ABELARDO P. ABEL

VS

PHILEX MINING CORPORATION
594 SCRA 683 (2009)

Loss of trust and confidence, to be a valid ground for dismissal, must be based on willful breach of trust and must be founded on clearly established facts.

Abelardo P. Abel, an employee of the Philex Mining Corporation, was implicated in an irregularity occurring in the subsidence area of Philex’s mine site. An investigation was promptly launched by the corporation’s officers by conducting several fact-finding meetings. Philex found Abel guilty of (1) fraud resulting in loss of trust and confidence and (2) gross neglect of duty, and was meted out the penalty of dismissal from employment. Abel thus filed a complaint for illegal dismissal with the National Labor Relations Commission (NLRC) with claims for annual vacation leave pay.

The Labor Arbiter ruled that Abel was dismissed illegally. He found that Philex failed to prove by substantial evidence the alleged fraud committed by Abel, explaining that the suggestively incriminating telephone conversations would not suffice to lay the basis for Philex’s loss of trust and confidence. On the charge of gross negligence, the Labor Arbiter held that no negligence was present as Philex itself admitted that Abel reported the underloading to Tabogader, who was then in charge of the subsidence area where the alleged anomaly was happening.

The NLRC reversed the decision of the Labor Arbiter finding that Abel was guilty of gross and habitual neglect of duty as he approved the operations even with the gross underloading; and that he did not act on Lupega’s report concerning certain irregularities. Abel’s failure to perform his duty of inspecting ANSECA’s operations and vacillation on certain matters during the company investigation, among other things, constituted sufficient basis for Philex’s loss of trust and confidence. Abel appealed to the Court of Appeals via certiorari which dismissed the motion. Hence, this petition.

ISSUE:
Whether or not the dismissal of Abel is valid

HELD:
The law mandates that the burden of proving the validity of the termination of employment rests with the employer. Failure to discharge this evidentiary burden would necessarily mean that the dismissal was not justified and, therefore, illegal. Unsubstantiated suspicions, accusations, and conclusions of employers do not provide legal justification for dismissing employees. In case of doubt, such cases should be resolved in favor of labor pursuant to the social justice policy of labor laws and the Constitution.

The first requisite for dismissal on the ground of loss of trust and confidence is that the employee concerned must be holding a position of trust and confidence. Verily, the Court must first determine if Abel holds such a position.

The second requisite is that there must be an act that would justify the loss of trust and confidence. Loss of trust and confidence, to be a valid cause for dismissal, must be based on a willful breach of trust and founded on clearly established facts. The basis for the dismissal must be clearly and convincingly established but proof beyond reasonable doubt is not necessary. Philex Mining Corporation’s evidence against Abel fails to meet this standard.