Allegation of ‘LOSS OF TRUST AND CONFIDENCE’ – is NOT a valid reason for dismissal

Nov 1, 2023

If an employer dismisses a worker expressing only ‘loss of trust and confidence’, this will be an Unfair Dismissal giving the worker the right to apply for Unfair Dismissal.

Employers have an obligation to respect the rights of workers and a nebulous statement such as ‘loss of trust and confidence’ is not a specific allegation that anyone can answer.

The employer must first identify some underlying deficiency in the worker’s work performance or some misconduct and this must be communicated to the worker with the opportunity to respond and provide evidence to counter it or improve. If an investigation is to be held, the scope of the investigations must be known to the worker.

Otherwise, no matter how valid the employer’s concerns, the dismissal may well be overturned for procedural unfairness.

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