{"id":6016,"date":"2019-06-08T12:43:00","date_gmt":"2019-06-08T04:43:00","guid":{"rendered":"https:\/\/pnl-law.com\/blog\/?p=6016"},"modified":"2020-06-03T13:23:04","modified_gmt":"2020-06-03T05:23:04","slug":"fraud-or-willful-breach-of-trust-authorized-cause-in-employment-termination","status":"publish","type":"post","link":"https:\/\/pnl-law.com\/blog\/fraud-or-willful-breach-of-trust-authorized-cause-in-employment-termination\/","title":{"rendered":"Fraud or Willful Breach of Trust: Just Cause in Employment Termination"},"content":{"rendered":"\n<p>Article 297(c) of the Labor Code provides that an employee may be dismissed for &#8220;fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative.&#8221; This particular provision speaks of two grounds: (a) fraud; and (b) <a href=\"https:\/\/pnl-law.com\/blog\/loss-of-trust-and-confidence-authorized-cause-in-employment-termination\/\">loss of trust and confidence<\/a>. The latter is discussed in a separate post.&nbsp;<\/p>\n\n\n\n<!--more-->\n\n\n\n<figure class=\"wp-block-image size-large is-style-rounded\"><img loading=\"lazy\" decoding=\"async\" width=\"897\" height=\"670\" src=\"https:\/\/pnl-law.com\/blog\/wp-content\/uploads\/2020\/06\/Fraud-or-Willful-Breach-of-Trust-Just-Cause-Termination-Philippines.png\" alt=\"Fraud or Willful Breach of Trust Just Cause Termination Philippines\" class=\"wp-image-7687\"\/><\/figure>\n\n\n\n<p>For <strong>fraud<\/strong> to be a valid ground for termination, the following must be present:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>1. There must be an act, omission, or concealment;<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>2. The act, omission or concealment involves a breach of legal duty, trust or confidence justly reposed;<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>3. It must be committed against the employer or his\/her representative; and<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>4. It must be in connection with the employee\u2019s work.<\/li><\/ul>\n\n\n\n<p>In order to constitute a just cause for dismissal, the act complained of must be &#8220;work-related&#8221; such as would show the employee concerned to be unfit to continue working for the employer.<\/p>\n\n\n\n<p>Employees in the Philippines enjoy <a href=\"https:\/\/pnl-law.com\/blog\/glossary-labor-code-of-the-philippines\/#Security-Tenure\">security of tenure<\/a>. Under the Labor Code, no <a href=\"https:\/\/pnl-law.com\/blog\/glossary-labor-code-of-the-philippines\/#Employee\">employee<\/a> may be terminated or dismissed, except for <a href=\"https:\/\/pnl-law.com\/blog\/glossary-labor-code-of-the-philippines\/#Just-Causes\">just<\/a> or <a href=\"https:\/\/pnl-law.com\/blog\/glossary-labor-code-of-the-philippines\/#Authorized-Causes\">authorized causes<\/a>. The <a href=\"https:\/\/pnl-law.com\/blog\/glossary-labor-code-of-the-philippines\/#Employer\">employer<\/a> has the <a href=\"https:\/\/pnl-law.com\/blog\/glossary-labor-code-of-the-philippines\/#Burden-Proof\">burden of proving<\/a>, among others, that the facts support the elements of the cause used by the company to justify the employment termination. Each ground has specific elements. It is important, therefore, for management, or at least the HR staff, to be familiar with these factors.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Just causes:<\/strong><br \/>* 1.&nbsp;<a href=\"https:\/\/pnl-law.com\/blog\/serious-misconduct-just-cause-in-employment-termination\/\">Serious misconduct<\/a><br \/>* 2.&nbsp;<a href=\"https:\/\/pnl-law.com\/blog\/willful-disobedience-authorized-cause-in-employment-termination\/\">Willful disobedience or insubordination<\/a><br \/>* 3.&nbsp;<a href=\"https:\/\/pnl-law.com\/blog\/gross-and-habitual-neglect-of-duties-authorized-cause-in-employment-termination\/\">Gross and habitual neglect of duties<\/a><br \/>* 4.&nbsp;<a href=\"https:\/\/pnl-law.com\/blog\/fraud-or-willful-breach-of-trust-authorized-cause-in-employment-termination\/\">Fraud or willful breach of trust<\/a><br \/>* 5.&nbsp;<a href=\"https:\/\/pnl-law.com\/blog\/loss-of-trust-and-confidence-authorized-cause-in-employment-termination\/\">Loss of trust and confidence<\/a><br \/>* 6.&nbsp;<a href=\"https:\/\/pnl-law.com\/blog\/commission-of-a-crime-or-offense-authorized-cause-in-employment-termination\/\">Commission of a crime or offense<\/a><br \/>* 7.&nbsp;<a href=\"https:\/\/pnl-law.com\/blog\/analogous-causes-authorized-cause-in-employment-termination\/\">Analogous causes<\/a>&nbsp;<\/td><td><strong>Authorized causes:<\/strong><br \/>* 1.&nbsp;<a href=\"https:\/\/pnl-law.com\/blog\/installation-of-labor-saving-devices-authorized-cause-in-employment-termination\/\">Installation of labor-saving devices<\/a><br \/>* 2.&nbsp;<a href=\"https:\/\/pnl-law.com\/blog\/redundancy-authorized-cause-in-employment-termination\/\">Redundancy<\/a><br \/>* 3.&nbsp;<a href=\"https:\/\/pnl-law.com\/blog\/retrenchment-or-downsizing-authorized-cause-in-employment-termination\/\">Retrenchment or downsizing<\/a><br \/>* 4.&nbsp;<a href=\"https:\/\/pnl-law.com\/blog\/closure-or-cessation-of-operation-authorized-cause-in-employment-termination\/\">Closure or Cessation of Operation<\/a><br \/>* 5.&nbsp;<a href=\"https:\/\/pnl-law.com\/blog\/disease-authorized-cause-in-employment-termination\/\">Disease<\/a>&nbsp;<br \/><br \/>* Also:&nbsp;<a href=\"https:\/\/pnl-law.com\/blog\/twin-notice-rule-and-procedural-requirements-in-employment-termination-proceedings\/\">Due Process in termination cases<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>[Sources: D.O. 147-15; Jerusalem vs. Hock, G.R. No. 169564, 6 April 2011]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Article 297(c) of the Labor Code provides that an employee may be dismissed for &#8220;fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative.&#8221; This particular provision speaks of two grounds: (a) fraud; and (b) loss of trust and confidence. The latter is discussed in [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7687,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[371],"tags":[136,1446,87,405,138,121,1448,85,155,135,244,1449,134],"class_list":["post-6016","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hr-and-labor","tag-authorized-causes","tag-dismissal-of-employee","tag-employees","tag-employers","tag-employment","tag-fraud","tag-fraud-or-willful-breach-of-trust","tag-hr","tag-intellectual-property-code-of-the-philippines","tag-just-causes","tag-labor-code","tag-labor-laws","tag-termination-of-employment"],"_links":{"self":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts\/6016","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/comments?post=6016"}],"version-history":[{"count":4,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts\/6016\/revisions"}],"predecessor-version":[{"id":7688,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts\/6016\/revisions\/7688"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/media\/7687"}],"wp:attachment":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/media?parent=6016"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/categories?post=6016"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/tags?post=6016"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}