G.R. No. 173357; February 13, 2013
Rowena De Leon Cruz, Petitioner, vs. Bank of the Philippine Islands, Respondent.

FACTS

Petitioner Rowena De Leon Cruz was an Assistant Branch Manager at BPI’s Ayala Avenue Branch, overseeing the Trading Section. Her employment originated from Far East Bank and Trust Company, which merged with BPI in 2000. In July 2002, after 13 years of service, BPI terminated her employment on grounds of gross negligence and breach of trust. This stemmed from fraudulent transactions involving three depositors—Geoffrey Uymatiao, Maybel Caluag, and Evelyn Avila—where substantial dollar deposits were pre-terminated or withdrawn without authorization.
The investigation revealed that petitioner approved the pre-termination of Uymatiao’s US Dollar Certificate of Deposit (USD CD) and the reactivation and withdrawal from his dormant savings account based on documents bearing forged signatures. She similarly approved the pre-termination of Caluag’s USD CD and the withdrawal from Avila’s account. Petitioner defended herself by asserting she followed bank procedures, verified signature cards, and believed the presented documents were genuine. She also noted that during some transactions, she held a different position under the former FEBTC setup.

ISSUE

Whether the Court of Appeals correctly affirmed the NLRC’s ruling that petitioner’s dismissal was legal based on loss of trust and confidence.

RULING

The Supreme Court denied the petition and affirmed the dismissal as legal. The Court emphasized that in termination cases, the employer bears the burden of proving just cause. For dismissal based on loss of trust and confidence, the employee must hold a position of trust, and there must be an act justifying the loss of confidence. Petitioner, as Assistant Branch Manager, undeniably occupied a managerial role reposed with trust and confidence, involving the approval of significant financial transactions.
The legal logic centers on the standard of proof required. Loss of trust and confidence does not demand proof beyond reasonable doubt; it requires only a reasonable basis, as the employer’s business judgment is accorded respect. The Court found that BPI established a reasonable basis for its loss of confidence. Petitioner’s approval of the fraudulent transactions, despite glaring irregularities—such as approving pre-terminations where the original CDs were still held by the depositors and reactivating a dormant account without proper verification—constituted gross negligence. Her failure to exercise the high degree of diligence required of her fiduciary position breached the trust inherent in her role. Consequently, BPI acted within its management prerogative to dismiss an employee guilty of such breach, and the labor tribunals cannot deny this authority.