[G.R. No. 100168. July 8, 1992.

SAN MIGUEL CORPORATION, CARLATAN B-MEG DIVISION AND ROMEO

BABAO, Petitioners, v. NATIONAL LABOR RELATIONS COMMISSION AND
RAFAELITO JUICO, Respondents.

FACTS:

1. Juico is employed by SMC, Carlatan B-Meg Division as checker.

He was tasked to inform Sales Office Supervisor of daily
collections. However, an incident ensued where company vault was
opened and cash collection of ₱25k was missing.

2. Juico was investigated several times and was reassigned to

Manila. An unfortunate event happened, her mother died. In the
wake of her mother, she was arrested for qualified theft.

3. He posted bail and was subsequently released. He asked the

company to dismiss the case since he has nothing to do with the
missing cash collection.

4. He was also questioned for unauthorized absences which the

employee promptly responded. After the case was dismissed by
prosecutor, he asked for reinstatement to former position but was
instead terminated for serious misconduct for possible
involvement in the burglary incident; and (b) abandonment of work
for failure to report for work for nine (9) days after
investigation.

5. LA favored company. Due process was observed since several

investigations were conducted by company. LA supported the
grounds stated by company as indeed present and justifies
dismissal.

6. NLRC reversed decision of LA. The termination for employment

illegal, there being no proof other than possession by Juico of a
set of keys and knowledge of the safety vault’s combination.

ISSUE : WoN employee’s dismissal is justified for breach of

trust?

HELD: DISMISSAL IS ILLEGAL

Art. 283(c) of the Labor Code allows an employer to terminate an

employment for "willful breach by the employee of the trust
reposed in him by his employer or duly authorized
representative," the basic premise for dismissal on this ground,
is that the employee concerned holds a position of trust and
confidence and it is the breach of this trust that results in the
employer’s loss of confidence in the employee

Cash collection is not one of the duties of Juico and was just
simply assigned to him by his supervisor. The expected trust and
confidence, inherent in an employer-employee relationship, is
therefore not present, since Babao is not Juico’s employer, but
merely his supervisor.

Employers are generally allowed a wider latitude of discretion in

terminating managerial personnel, or those of similar rank,
performing functions which, by their nature, require the
employer’s full trust and confidence. However, the termination of
employment of ordinary rank and file employee based on the same
ground requires proof of involvement in the events in question.