Labor Law

Disease as an Authorized Cause for Termination of Employment

Article 299 of the Labor Code of the Philippines, as amended, provides that an employer may terminate the services of an employee who has been found to be suffering from any disease and whose continued employment is prohibited by law or is prejudicial to his health as well as to the health of his co-employees.

Employees must be made aware that their employment cannot just be terminated because they contracted a disease and that there is a procedure to be followed before they can be legally dismissed from work. Employers, on the other hand, must faithfully observe the requirements of the law to avoid protracted litigation, shelling out unnecessary litigation costs, and paying damages. 

REQUISITES: 

For disease to be a valid ground for termination, the following must be present (Omanfil International Manpower Development Corporation v. Mesina, G.R. No. 217169, 04 November 2020):

  1. The employee suffers from a disease which cannot be cured within six months and his/her continued employment is prohibited by law or prejudicial to his/her health or to the health of his/her co-employees, and 
  2. A certification to that effect must be issued by a competent public health authority.

NOTE: If the disease or ailment can be cured within the six (6)-month period, the employer shall not terminate the employee but shall  ask the employee to take  a  leave   of absence. The employer  shall reinstate such employee to his former position immediately upon the restoration of his normal health.

PROCEDURE:

The employer must undertake these steps in terminating an employee on the ground of disease:

  1. First notice: Furnish the employee a notice to apprise the employee of the ground for which his dismissal is sought and to direct him to submit a written explanation within a reasonable period of at least five (5) calendar days from receipt of the notice.
  2. Hearing: Give the employee a reasonable opportunity to answer and to be heard on his defense.
  3. Second notice: Furnish the notice informing the employee of his dismissal if it is found that there is a valid ground for termination.
  4. Separation pay: at least one (1) month salary or one-half (1/2) month salary for every year of service, whichever is greater. A fraction of at least six (6) months shall be considered one (1) whole year.

NOTE: Statutory procedural process must strictly be followed as noncompliance may warrant the employer to pay indemnity in the form of nominal damages of Fifty Thousand Pesos (Php 50,000.00).

Understanding authorized causes in the Labor Code is crucial for both employers and employees. Employees must be protected from illegal termination of their employment. There are safeguards in our Labor Code to ensure that terminations are conducted fairly and legally, protecting employees from unjust dismissal while allowing employers to manage their workforce effectively. 

Disclaimer: This article is for informational purposes only and should not be considered legal advice. For specific guidance on labor law concerns in the Philippines, consult with a legal professional.

Padin & Partners Law Offices is a full-service law firm that caters to labor law concerns, including employee dismissal in Cebu City, Philippines. For consultations: book an appointment or reach us at +63 (32) 316-1540 or +63 917 188 0361.

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