In Interadent Zahntechnik Philippines, Inc. v. Rebecca F. Simbillo, the Supreme Court held that an employee’s Facebook post, though critical of the company, did not constitute a valid ground for termination based on loss of trust and confidence. The Court emphasized that for such a ground to be valid, the breach of trust must be willful and intentional, which was not proven in this case. This decision clarifies the boundaries of permissible employee expression on social media and its impact on employment security, highlighting the need for employers to establish a clear connection between the employee’s actions and a tangible breach of trust.

From Finance Manager to Facebook Critic: When Does Online Opinion Justify Dismissal?

Rebecca F. Simbillo, a Finance and Accounting Manager at Interadent Zahntechnik Philippines, Inc., faced termination after posting a message on her Facebook account that the company interpreted as critical of its dealings with the Bureau of Internal Revenue (BIR). Interadent argued that this post, along with a prior alleged infraction, constituted a breach of trust, justifying her dismissal. Simbillo, however, contended that the post was a general expression of opinion and did not disclose any confidential company information. The central legal question before the Supreme Court was whether Simbillo’s Facebook post provided sufficient grounds for her termination based on a loss of trust and confidence.

The Supreme Court began its analysis by reiterating the principle that while employers have the right to dismiss employees for valid reasons, including loss of trust and confidence, this right is not absolute. The Court emphasized that for loss of trust and confidence to be a valid ground for dismissal, it must be based on a willful breach of trust, meaning the act must be intentional, knowing, and purposeful, without justifiable excuse. This standard differentiates between actions taken deliberately to harm the employer and those resulting from mere carelessness or oversight. As the Court explained:

It bears emphasizing that the right of an employer to dismiss its employees on the ground of loss of trust and confidence must not be exercised arbitrarily. For loss of trust and confidence to be a valid ground for dismissal, it must be substantial and founded on clearly established facts. Loss of confidence must not be used as a subterfuge for causes which are improper, illegal or unjustified; it must be genuine, not a mere afterthought, to justify earlier action taken in bad faith. x x

The Court then scrutinized the content of Simbillo’s Facebook post to determine whether it met the criteria for a willful breach of trust. The post in question read:

Sana maisip din nila na ang kompanya kailangan ng mga taong di tulad nila, nagtatrabaho at di puro #$,*% ang pinaggagagawa, na kapag super demotivated na yung tao nayun baka iwan narin nya ang kawawang kumpanya na pinagpepyestahan ng mga b_i_r_. Wala na ngang credibility wala pang conscience, portraying so respectable and so religious pa. Hay naku talaga, nakakasuka, puro nalang animus lucrandi ang laman ng isip.

Interadent argued that this post implied the company was involved in irregular transactions with the BIR, thereby compromising its reputation. However, the Court sided with the Court of Appeals’ observation that the Facebook entry did not contain any corporate record or confidential information. Moreover, it was a vague expression of feelings or opinion towards a person or entity, which was not even identified with certainty. The Supreme Court underscored that there was no actual leakage of information; Simbillo did not divulge any company information or corporate records. In other words, the connection between the post and any tangible harm to Interadent was speculative at best.

Building on this principle, the Court highlighted that in illegal dismissal cases, the burden of proof rests on the employer to demonstrate that the employee’s dismissal was for a valid cause. As such, the employer’s case must stand on the strength of its evidence, not on the perceived weaknesses of the employee’s defense. This allocation of the burden of proof reflects the principle that the scales of justice should be tilted in favor of the employee in cases of doubt. Even if Simbillo failed to conclusively prove that her post was about a friend’s situation or that “b_i_r_” meant “bwitre” (vulture), Interadent still had to prove that her post constituted a willful breach of trust.

The Supreme Court further addressed Interadent’s argument that Simbillo had a prior offense of divulging confidential company information. The Court found no concrete evidence to support this claim. In fact, the Court pointed out that Simbillo’s subsequent promotion to Finance and Accounting Manager and election as Treasurer contradicted the notion that she was untrustworthy. Additionally, the salary and merit increases she received during the period covering June 2009-May 2010 served as an indication of her satisfactory performance. Therefore, the Court concluded that Simbillo’s dismissal was unjustified, and the Court found that a lighter penalty would have sufficed for Simbillo’s actions, and the dismissal was a drastic measure.

FAQs

What was the key issue in this case?	The key issue was whether an employee’s Facebook post, critical of the company but not disclosing confidential information, constituted a valid ground for termination based on loss of trust and confidence.
What is “willful breach of trust”?	Willful breach of trust refers to an act that is intentional, knowing, and purposeful, without justifiable excuse. It is a necessary element for loss of trust and confidence to be a valid ground for employee dismissal.
Who has the burden of proof in illegal dismissal cases?	In illegal dismissal cases, the burden of proof lies with the employer to demonstrate that the employee’s dismissal was for a valid cause.
Did Simbillo disclose confidential information in her Facebook post?	The Supreme Court found that Simbillo’s Facebook post did not contain any corporate record or confidential information. It was a vague expression of opinion without specific details.
Was there evidence of a prior offense by Simbillo?	The Court found no concrete evidence to support Interadent’s claim that Simbillo had a prior offense of divulging confidential company information.
How did the Court view Simbillo’s subsequent promotion?	The Court noted that Simbillo’s promotion to Finance and Accounting Manager and election as Treasurer contradicted the notion that she was untrustworthy.
What was the final ruling in this case?	The Supreme Court affirmed the Court of Appeals’ decision, ruling that Simbillo’s dismissal was illegal because the allegation of loss of trust and confidence was not supported by substantial evidence.
Can employers monitor employees’ social media activity?	While employers can monitor public social media activity, using it as a basis for termination requires a clear link between the employee’s actions and a tangible breach of trust or harm to the company.
What is the significance of this ruling?	This ruling clarifies the boundaries of permissible employee expression on social media and its impact on employment security. It highlights the need for employers to establish a clear connection between an employee’s actions and a tangible breach of trust before terminating their employment.

The Supreme Court’s decision in Interadent v. Simbillo provides important guidance on the application of “loss of trust and confidence” as a ground for employee termination in the context of social media. It underscores the need for employers to exercise caution and ensure that any such termination is based on clearly established facts demonstrating a willful breach of trust, rather than mere speculation or disapproval of an employee’s opinions. The decision serves as a reminder that employees have a right to express themselves, even critically, without fear of losing their jobs, provided that their expressions do not cross the line into disclosing confidential information or causing tangible harm to the employer’s business.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Interadent Zahntechnik Philippines, Inc. v. Rebecca F. Simbillo, G.R. No. 207315, November 23, 2016