BoardRoom Discussions

This is the 5th installment of the blog series that would hopefully add value on both employers and employees. And on this issue, we’ll focus on Art. 284 or termination due to sickness.

Losing one’s job for health reasons falls under authorized causes as stated on the Philippine Labor Code:

Art. 284. Disease as ground for termination. 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: Provided, That he is paid separation pay equivalent to at least one (1) month salary or to one-half (1/2) month salary for every year of service, whichever is greater, a fraction of at least six (6) months being considered as one (1) whole year.

Rules and Regulations Implementing the Labor Code:

SECTION 8. Disease as a ground for dismissal. — Where the employee suffers from a disease and his continued employment is prohibited by law or prejudicial to his health or to the health of his co-employees, the employer shall not terminate his employment unless there is certification by competent public health authority that the disease is of such nature of at such a stage that it cannot be cured within a period of six (6) months even with proper medical treatment. If the disease or ailment can be cured within the period, the employee 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

Ces, on my 4th installment of the series, left a comment and asked if I can enumerate the diseases that may be used as ground for termination. On my research, however, it was not spelled out. Each cases, are treated based on clinical correlation, i.e. one case of cancer may be a ground for dismissal while another is not. The law, instead, provided these parameters:

1. The job will only aggravate the health condition of the concerened employee.
2. His sickness is contagious and may put the health of other workers at risk.
3. The sickness will not be cured in six months time.
4. It must be certified by a public health authority (aside from the company doctor).

Otherwise, employer must allow the employee to take a leave for not more than six months and take him back as soon as he recovers.

Based on my experience and observation, some employers take a generous and benevolent stance– extending financial assistance on top of the company benefits rather than using this provision of the law.

However, employers are not prohibited from separating employees due to sickness if it satisfies the requirements of the law and must extend the separation pay of at least equivalent to one month salary, or 1/2 month salary for every year of service on which 6 months and more shall be counted as one full year or as prescribed on the CBA.

Aside: Readers outside the Philippines are advised to read their local labor code and related laws.

Disclaimer: the purpose of this blog is to exchange information, legal and medical advise should be sought prior to taking action on actual cases.