Employee Rights Regarding Salary During Sickness Absence in the Philippines

Query: Can a company withhold an employee's salary for more than a month due to sickness absence?

Understanding Employee Rights During Sickness Absence

In the Philippines, employee rights during sickness absence are protected under the Labor Code and related regulations. It is crucial to understand how these laws impact both employees and employers when it comes to salary withholding due to illness.

Sick Leave and Salary Entitlements

1. Sick Leave Benefits:

   • Many companies provide sick leave benefits as part of their employment contract or collective bargaining agreements. The standard practice involves granting employees a certain number of paid sick leave days annually. These benefits can vary depending on company policy.
   • According to the Labor Code, there is no statutory requirement for private sector employers to provide paid sick leave. However, this benefit is often included in the employment contract or company policy.

2. SSS Sickness Benefit:

   • Employees who are members of the Social Security System (SSS) can avail of the SSS sickness benefit. This benefit is applicable if the employee has been unable to work due to illness for at least four consecutive days.
   • The sickness benefit from SSS provides a daily cash allowance for the number of days a member is unable to work due to sickness or injury. The employer initially advances the benefit, which is later reimbursed by the SSS.

Legal Grounds for Salary Withholding

1. Absence Without Paid Leave:

   • If an employee exhausts their paid sick leave and other applicable leave benefits, any further absence due to sickness can be considered unpaid leave. In such cases, employers are not obligated to pay the salary for the days beyond the entitled paid leave.

2. Notification and Documentation:

   • Employees must inform their employers of their illness and provide necessary medical documentation to justify their absence. Failure to comply with these requirements can be a ground for salary withholding.

3. Prolonged Absence:

   • For prolonged absences, such as those exceeding the usual duration of sick leave benefits, the employer can withhold the salary for the period not covered by paid leave or SSS benefits. However, this should be communicated clearly to the employee.

Prohibition Against Salary Deductions Without Basis

1. Labor Code Provisions:

   • The Labor Code prohibits employers from making unauthorized deductions from an employee’s salary. Employers must ensure that any salary withholding due to sickness is justified and in compliance with company policy and legal requirements.

2. Prompt Payment of Wages:

   • Employers are mandated to pay wages on time. Withholding an employee’s salary beyond the acceptable period without valid reason can be deemed illegal. If the withholding extends beyond the agreed timeframe or lacks proper justification, employees can seek recourse through the Department of Labor and Employment (DOLE).

Remedies for Employees

1. Filing a Complaint:

   • Employees who believe their salary has been unjustly withheld can file a complaint with the DOLE. The DOLE provides a mechanism for resolving disputes related to wage issues.

2. Legal Action:

   • In cases of unresolved disputes, employees may seek legal action through the appropriate courts to claim unpaid wages and any other entitlements.

Conclusion

Employers must handle salary withholding due to employee sickness with transparency and adherence to legal standards. Employees should be aware of their rights and the proper procedures for addressing any grievances related to salary withholding. Understanding these rights ensures fair treatment and helps maintain a harmonious employer-employee relationship.