16th Assignment:

Case #1:

M+W ZANDER PHILIPPINES, INC. and ROLF WILTSCHEK v TRINIDAD

ENRIQUEZ
Facts: On January 2002, M+W Zander relieved its General Manager, Mr. Stiegeren, and in his place
appointed Mr. Wiltschek. The appointment of Wiltschek as the Acting General Manager was
announced in a meeting held on January 31, 2002. On the same day, a Letter of Appeal was signed
by 29 employees of M+W Zander, opposing the appointment of Wiltschek. A day after the Letter of
Appeal was released, a number of employees did not report to work.
Petitioner allege that after the announcement of Wiltschek as the new General Manager,
respondent actively solicited signatures for a letter opposing the appointment of Wiltschek and
claimed that Enriquez used her influence and moral ascendancy to coerce several employees into
signing the letter of appeal. Upon discovering respondent Enriquez participation in drafting and in
circulating the Letter of Appeal, as well as in the alleged work stoppage that occurred a day after
the release of the Letter, M+W Zander sent a Notice] to respondent Enriquez, requiring her to
explain why no disciplinary action should be taken against her for willful breach of trust and using
her authority and/or influence as Administration Manager over her subordinates to stage a no
work day on February 1, 2002.

On March 1, 2002, a Notice of Termination was received by respondent informing her that
her services as Administration Manager and Executive Assistant to the General Manager of M+W
Zander are terminated effective the same day. On the same day of her receipt of the Notice of
Termination, respondent filed a Complaint for illegal dismissal with the Arbitration Office of the
NLRC.

ISSUE: Whether respondent was illegally dismissed by petitioners.

HELD: Yes, Respondent was illegally dismissed.
Article 282 (c) of the Labor Code allows an employer to terminate the services of an employee for
loss of trust and confidence. Certain guidelines must be observed for the employer to terminate an
employee for loss of trust and confidence.

The first requisite for dismissal on the ground of loss of trust and confidence is that the employee
concerned must be one holding a position of trust and confidence.

There are two classes of positions of trust: managerial employees and fiduciary rank-and-file
employees.

In the case at bar, respondent was employed as the Administration Manager and the
Executive Assistant General Manager of M+W Zander. Though respondents position is designated as
the Administration Manager, it does not automatically mean that she occupies a position of trust and
confidence. It is not the job title but the actual work that the employee performs that determines
whether he or she occupies a position of trust and confidence.

The second requisite of terminating an employee for loss of trust and confidence is that there must
be an act that would justify the loss of trust and confidence. To be a valid cause for dismissal, the loss
of confidence must be based on a willful breach of trust and founded on clearly established facts. We
find that it was not established that respondent used her authority to influence her subordinates to
stage a no work day; and assuming that she performed this act as alleged by petitioners, it does not
satisfy the jurisprudential requirements for valid termination due to loss of trust and confidence.

Loss of trust and confidence stems from a breach of trust founded on a dishonest, deceitful or
fraudulent act. In the case at bar, respondent did not commit any act which was dishonest or
deceitful. She did not use her authority as the Administration Manager to misappropriate company
property nor did she abuse the trust reposed in her by petitioners with respect to her responsibility
to implement company rules. The most that can be attributed to respondent is that she influenced a
single subordinate, without exerting any force or making any threats, not to report to work. This does
not constitute dishonest or deceitful conduct which would justify the conclusion of loss of trust and
confidence.