Disclaimer: This article is provided for general informational and educational purposes only and does not constitute legal advice. For specific concerns about any case or situation, you should consult a licensed attorney in the Philippines.

Complaint for Unlawful Termination Over Illness-Related Absence in the Philippines

Terminating an employee on the basis of illness-related absence is a legally sensitive matter under Philippine labor laws. While employers have the right to discipline employees and manage their business operations, employees are likewise protected against unfair or unlawful dismissals. This article provides an overview of the legal framework, procedures, and remedies related to complaints for unlawful termination over illness-related absence in the Philippines.

1. Legal Framework for Termination in the Philippines

1.1 The Labor Code of the Philippines

The Labor Code (Presidential Decree No. 442, as amended) is the principal law governing employment relationships in the Philippines. It sets out:

Just Causes for Dismissal (Article 297, formerly Article 282):
- Serious misconduct or willful disobedience
- Gross and habitual neglect of duties
- Fraud or willful breach of trust
- Commission of a crime or offense against the employer or co-employees
- Other analogous causes
Authorized Causes for Dismissal (Articles 298 and 299, formerly Articles 283 and 284):
- Redundancy
- Retrenchment to prevent losses
- Closure or cessation of operation
- Disease (where the employee’s continued employment is either prohibited by law or prejudicial to their health or the health of their co-employees, and no cure is possible within six (6) months)

1.2 Constitutional Right to Security of Tenure

Article XIII, Section 3 of the 1987 Philippine Constitution mandates full protection to labor and provides for security of tenure. It implies that workers can only be terminated for just or authorized causes and upon observance of due process.

1.3 Magna Carta for Persons with Disability (R.A. 7277)

If the illness of the employee qualifies as a disability under the Magna Carta for Persons with Disability, the employer must observe anti-discrimination rules and provide reasonable accommodation unless it demonstrably causes undue hardship to the employer.

2. Illness as a Ground for Termination

2.1 Authorized Cause Under the Labor Code

Under Article 299 (formerly Article 284) of the Labor Code, an employer may validly terminate an employee for disease if:

A competent public health authority certifies that the employee’s disease is of such a nature or at such a stage that it cannot be cured within a period of six (6) months; and
The employee’s continued employment is either prohibited by law or is prejudicial to their health or the health of their co-employees.

2.2 Proper Certification Requirement

The law explicitly requires certification from a competent public health authority (for example, a licensed government physician).
Without this certification, an employer’s decision to terminate on grounds of disease is legally flawed and may be considered unlawful termination.

2.3 Due Process in Illness-Related Dismissals

Even when the ground is authorized (due to disease), the employer must still comply with procedural due process:

Notice to the employee: Explaining the ground (disease) for which dismissal is sought;
Opportunity to be heard: Allowing the employee to respond, submit medical documents, or clarify medical findings;
Notice of termination: If the employer decides to dismiss, the employer must formally notify the employee in writing with the effective date and reason for the termination.

A failure to observe these procedures could render the dismissal procedurally infirm, even if there was a valid ground.

3. Unlawful Termination Over Illness-Related Absence

If an employee is simply absent due to illness—particularly short-term or non-contagious illnesses—and is dismissed without fulfilling the specific requirements under Article 299 or without just cause, it can be grounds for illegal dismissal. Common scenarios:

Absence Due to Minor Illness
- If an employee takes a few days off to recover from a condition like the flu, migraine, or a short-term infection, and the employer terminates the contract simply due to absence, that typically does not constitute a valid dismissal ground.
- The employer must first ascertain whether the illness is grave, contagious, or detrimental to workplace health and safety.
Excessive Absenteeism or Abuse of Sick Leave
- While repeated or unexcused absences might be a ground for dismissal under “gross and habitual neglect of duties,” employers must substantiate that the employee was not genuinely ill, or that the absences were excessive and without notice or medical proof.
- Failing to do so could lead to a ruling of illegal dismissal.
Dismissal Without Certification From a Competent Public Health Authority
- Even if the illness is serious, an employer who does not secure the required certification stating that the illness cannot be cured within six (6) months and that continued employment is harmful, risks an illegal dismissal claim.
Harassment or Discrimination
- Employers who terminate or force the resignation of employees with serious illnesses out of mere prejudice or discrimination (e.g., HIV-positive employees, employees with chronic diseases but still capable of working) violate anti-discrimination principles and labor laws.

4. Legal Remedies and Entitlements for Wrongfully Dismissed Employees

4.1 Reinstatement and Back Wages

Under Article 294 (formerly Article 279) of the Labor Code, if the employee is found to have been illegally dismissed, the general relief is:

Reinstatement without loss of seniority rights;
Full back wages inclusive of allowances and other benefits from the time compensation was withheld (i.e., from the date of dismissal) up to actual reinstatement.

4.2 Separation Pay in Lieu of Reinstatement

If reinstatement is no longer viable (e.g., due to strained relations or the employer’s closure), the illegally dismissed employee may be awarded separation pay equivalent to at least one (1) month salary for every year of service, in addition to back wages.

4.3 Damages

Courts or labor tribunals may award:

Moral Damages: Where there is a finding of bad faith or oppression by the employer.
Exemplary Damages: Where the employer’s actions are particularly egregious or meant to set a public example.
Attorney’s Fees: If the employer’s act or omission compels the worker to incur legal expenses.

5. Steps in Filing a Complaint for Unlawful Termination

5.1 Single Entry Approach (SEnA)

Before formally filing a case, the employee may approach the Department of Labor and Employment (DOLE) under the Single Entry Approach to attempt an amicable settlement.
The SEnA procedure involves a mediator who will assist both parties in reaching a settlement within a 30-day period.

5.2 Filing a Complaint With the NLRC

If the matter is not resolved under SEnA, the employee can proceed to the National Labor Relations Commission (NLRC) to file a complaint for illegal dismissal.

Prepare a Verified Complaint: This should include the grounds for claiming illegal dismissal and attach supporting documents (medical certificates, notices of termination, etc.).
Submission of Position Papers: The labor arbiter will direct both parties to submit position papers detailing their claims and defenses.
Mandatory Conciliation and Mediation Conference: The arbiter may conduct a conference to see if the dispute can be amicably settled.
Decision: If no settlement is reached, the labor arbiter will decide the case based on the evidence and arguments presented.

5.3 Appealing the Decision

Labor Arbiter’s Decision → NLRC (National Labor Relations Commission)
NLRC Decision → Court of Appeals → Supreme Court

Each stage has strict deadlines and procedural rules.

6. Relevant Jurisprudence

PLDT vs. NLRC – Emphasizes that the burden of proof is on the employer to show that the dismissal was for a just or authorized cause.
Artificio v. NLRC – Reiterates that a valid medical certificate is necessary to dismiss an employee on the ground of disease.
Gaco vs. NLRC – Affirms that unjustified dismissal for alleged absenteeism may be ruled illegal if the employer fails to adequately prove the offense or observe due process.

Case law consistently underscores two-tiered due process (substantive and procedural) that employers must follow in termination cases.

7. Practical Tips for Employees and Employers

7.1 For Employees

Maintain Proper Documentation: Secure medical certificates, hospital records, or doctor’s notes justifying absences.
Communicate Promptly: Inform your employer as soon as possible about your illness or recovery period.
Know Your Rights: Be aware that short-term illnesses or recoverable conditions generally do not justify termination.
Seek Legal Counsel: If you believe you have been wrongfully dismissed, consult an attorney or your labor union representative.

7.2 For Employers

Obtain Competent Medical Certification: If you believe the employee’s illness is debilitating or a threat to workplace safety, secure the proper certification before taking any dismissal action.
Observe Due Process: Ensure the employee is given notice and the opportunity to respond.
Be Consistent and Documented: Keep clear records of the employee’s absences, communications, and attempts at accommodation.
Explore Reasonable Accommodations: Particularly where the illness may be temporary or medically manageable, consider reassigning duties, flexible work arrangements, or other accommodations.

8. Conclusion

Terminating an employee in the Philippines over illness-related absence requires strict adherence to both substantive and procedural requirements under the Labor Code. While the law recognizes an employer’s right to dismiss employees in certain authorized circumstances—such as when a serious disease is certified incurable within six months—the employer must do so only with valid grounds and clear proof. Dismissing an employee for short-term illnesses, without a proper medical certificate, or without observing due process can lead to an illegal dismissal claim.

Employees who feel they have been unlawfully terminated because of illness-related absence should gather documentation and seek appropriate legal redress through the labor tribunals. If found to have been wrongfully dismissed, the law entitles them to reinstatement, back wages, and possible damages. On the other hand, employers should carefully evaluate the nature of the employee’s illness, secure proper medical advice, and ensure full compliance with procedural due process to avoid liability.

Disclaimer: This article is not a substitute for legal advice. For any particular issue or dispute concerning illness-related termination, it is always recommended to consult with a qualified labor lawyer or the Department of Labor and Employment (DOLE) for personalized guidance.