Heirs of Sara Lee vs.

Rey
GR No. 149013, August 31, 2006

Facts:
Petitioner Sara Lee is engaged in the direct selling of a variety of product lines for
men and and women. Petitioner engages with dealers to sell their merchandises, called as
Independent Business Managers, depending on whether they sell individually or through
their own groups. Respondent held the position of Credit Administration Supervisor.
These dealers must remit to the petitioner the proceeds of their sales within 38 days or 52
days. Sometime, it was alleged that she allegedly instructed the Accounts Receivable
Clerk to change the credit term of one of several IBMs from 52-day limit to a term of 60
days. As a consequence of the alleged anomalous practice, respondent was dismissed for
breach of trust and confidence.

Issue:
Whether or not the respondent was dismissed for a just cause.

Held:
Yes. The law has recognized the right of employers to dismiss the employees by reason
of loss of trust and confidence. The treatment of managerial employees for rank-and-file
personnel in the application of the doctrine of loss of trust and confidence however must
be distinguished. With respect to rank-and-file personnel, loss of trust and confidence as a
ground for valid dismissal requires proof of involvement in the alleged events and
accusations. But as to managerial employees, the mere existence of a basis for believing
that such employee has breached the trust of his employer would suffice for his dismissal.
Hence, proof beyond reasonable doubt is not required. In the instant case, respondent is
not just an ordinary rank-and-file employee. Her position involves a high degree of
responsibility requiring trust and confidence. Hence, her continuance in the sensitive
position would be inimical to the interests of the petitioner.