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CHINA CITY RESTAURANT CORPORATION v. NLRC

This case has been cited 2 times or more.

2015-08-03
LEONEN, J.
The position an employee holds is not the sole criterion. More important than this formalistic requirement is that loss of trust and confidence must be justified. As with misconduct as basis for terminating employment, breach of trust demands that a degree of severity attend the employee's breach of trust. In China City Restaurant Corporation v. National Labor Relations Commission,[34] this court emphasized the need for caution:For loss of trust and confidence to be a valid ground for the dismissal of employees, it must be substantial and not arbitrary, whimsical, capricious or concocted.
2005-06-08
CALLEJO, SR., J.
However, loss of trust and confidence or grave misconduct must not be based on unsubstantiated suspicions, conjectures or surmises.[28] Loss of trust and confidence as a just cause for termination of employee must rest on a breach of duty committed by the employee and not on the caprices of the employer. In China City Restaurant Corporation v. National Labor Relations Commission,[29] this Court issued guidelines for the application of the doctrine of loss of confidence: (a) loss of confidence should not be simulated; (b) it should not be used as a subterfuge for causes which are improper, illegal or unjustified; (c) it may not be used arbitrarily in the face of overwhelming evidence to the contrary; and (d) it must be genuine, not a mere afterthought, to justify earlier action taken in bad faith.