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WAH YUEN RESTAURANT v. PRIMO JAYONA

This case has been cited 2 times or more.

2008-04-30
VELASCO JR., J.
But while employers are given a wide latitude of discretion in the termination of services of managerial employees for loss of confidence, there must be substantial proof thereof. This means that the employer must clearly and convincingly establish the charges, or, in fine, the facts and incidents upon which the loss of confidence may fairly be made to rest,[22] that is, it must be based on a willful breach of trust and founded on clearly established or proven facts.[23] Moreover, loss of confidence, as a ground for termination, should not be (1) simulated; (2) used as a subterfuge for causes which are improper, illegal, or unjustified; (3) arbitrarily asserted; and (4) a mere afterthought to justify earlier action taken in bad faith.[24]