Below is a comprehensive discussion on the topic of “Excessive Employee Absences Due to Sickness as a Ground for Termination” under Philippine labor law. Please note that this information is for general educational purposes only and does not constitute legal advice. For specific concerns, consult a qualified legal practitioner in the Philippines.

1. Overview of Grounds for Termination under Philippine Labor Law

In the Philippines, the Labor Code (Presidential Decree No. 442, as amended) recognizes two major categories for valid termination of employment:

Just Causes (Labor Code Article 297 [formerly Article 282]):
These are reasons attributable to the employee’s own wrongful acts or omissions (e.g., serious misconduct, willful disobedience, gross and habitual neglect of duty).
Authorized Causes (Labor Code Article 298 and 299 [formerly Articles 283 and 284]):
These pertain to business or health reasons beyond the employee’s misconduct, such as redundancy, retrenchment, closure of business, or disease.

Excessive absences due to sickness may be evaluated under either just causes or authorized causes, depending on the circumstances.

2. Excessive Absences Due to Sickness: When Can It Be a Just Cause?

2.1 Habitual Neglect of Duties

Under Article 297(b) of the Labor Code, “gross and habitual neglect of duties” may be a valid ground for dismissal. While sickness is typically beyond the employee’s control, repeated or chronic absences—even for valid medical reasons—can disrupt business operations and impact productivity. In practice, however:

Mere Occasional or Intermittent Absences are not sufficient to establish “gross and habitual neglect.”
Absences that are duly reported, supported by medical certificates, or otherwise authorized are less likely to form a strong basis for just-cause termination because the employee’s “neglect” is not willful or deliberate.

For dismissal based on excessive absences to be considered valid as a just cause, an employer must prove that the pattern of absences is so frequent and disruptive that it amounts to gross and habitual neglect of duty. Moreover, the employer must comply with procedural due process (the “two-notice rule,” explained below in Section 4).

2.2 Willful Disobedience or Violation of Company Rules

If the company’s established rules or policies require, for instance, proper notice, medical certificates, or specific leave procedures for absences due to sickness, repeated violations of such rules can constitute willful disobedience or insubordination. An employee’s refusal or failure to follow mandated absence-reporting protocols (even if sick) may expose them to disciplinary action, which can escalate to termination under just causes—if due process is followed and the violation is proven to be serious and repeated.

3. Excessive Absences Due to Disease: When Can It Be an Authorized Cause?

3.1 Disease as an Authorized Cause (Article 299 [Formerly 284])

The Labor Code explicitly identifies “disease” as a possible ground for termination under authorized causes. Article 299 states:

“An employer may terminate an employment if the employee suffers from any disease and his continued employment is prohibited by law or is prejudicial to his health as well as the health of his co-employees…”

For this rule to apply:

Certification from a Competent Health Authority
A company physician, or in the absence of one, a competent public health authority, must certify that the disease is of such nature or duration that continued employment would be harmful to the employee’s or co-workers’ health.
Reasonable Accommodation or Transfer
If the employee’s position can be modified or the employee can be transferred to a suitable role without risking the health of others and without undue hardship to the employer, the employer is encouraged to explore such measures.
Separation Pay
Unlike just-cause dismissals (which do not normally mandate separation pay), termination for disease under authorized cause entitles the employee to receive at least one month’s salary or one-half month’s salary for every year of service, whichever is greater.

3.2 Chronic Illness and “Excessive” Sick Leaves

Often, excessive absenteeism stems from a chronic or recurring illness. If the illness is such that the employee cannot fulfill the essential functions of the job despite reasonable accommodations, or if the continued employment poses a risk to the employee’s health or others in the workplace, the employer may consider termination under the authorized cause of disease. The key steps are:

Have the employee examined by a company-designated or competent public health authority.
Obtain a certification or medical finding that the employee cannot safely or effectively continue.
Comply with procedural due process for authorized causes, typically requiring 30 days of written notice to both the employee and the Department of Labor and Employment (DOLE), and payment of the required separation pay.

4. Due Process Requirements

4.1 Just Cause Termination (Two-Notice Rule)

If termination is pursued as a just cause (e.g., for gross and habitual neglect of duties due to absences):

First Notice (Show-Cause Memo)
The employer must notify the employee in writing of the specific acts or omissions constituting the ground for dismissal, and give the employee an opportunity to explain and present evidence.
Hearing or Conference
The employer should conduct a hearing or conference where the employee can defend themselves, clarify issues, or rectify misunderstandings.
Second Notice (Notice of Decision)
After evaluation, the employer issues a written notice informing the employee of the decision to dismiss (or impose a lesser penalty) and stating the reasons for it.

4.2 Authorized Cause Termination (30-Day Notice)

For authorized causes such as disease:

Notice to the Employee and DOLE
The employer must provide at least thirty (30) days’ prior written notice to both the employee and the Regional Office of the DOLE, stating the reason for termination.
Payment of Separation Benefits
The employee must be paid separation pay equivalent to at least one month’s salary or one-half month’s salary for every year of service (whichever is higher).
Medical Certification
The employer must secure the required medical certification that continued employment is not advisable.

Failing to comply with these procedural steps can render the dismissal invalid, even if the substantive grounds are legitimate.

5. Company Policies and Documentation

5.1 Crafting Clear Attendance and Leave Policies

Employers should have clear written policies on attendance, sick leave, medical certificates, and notice requirements. The policy should specify:

Procedures for notifying supervisors or HR about absences due to illness.
Proper documentation (e.g., medical certificate) if an employee is absent for a prescribed number of days.
The consequences of non-compliance (e.g., progressive discipline).

5.2 Progressive Discipline and Records

In dealing with excessive absences:

Progressive discipline usually starts with verbal or written warnings, followed by suspensions, and only leads to termination if the behavior persists.
Employers must maintain thorough records of absences, tardiness reports, medical certificates, and warnings issued. This documentation is critical if the employer eventually decides to dismiss the employee for just cause.

6. Relevant Jurisprudence

Several Supreme Court and appellate court decisions have addressed termination for excessive absences or due to illness. While each case is determined on its specific facts, the general principles include:

Mere occasional absences (especially if supported by medical documentation) do not automatically justify dismissal.
Consistency and uniformity in policy enforcement are important. If an employer penalizes one employee more harshly than others for the same attendance violations, it may face claims of illegal dismissal or discrimination.
Medical certification is crucial when terminating an employee for disease under authorized causes.
Due process is non-negotiable: even a valid ground can be invalidated by procedural lapses.

Examples of points from notable rulings (although the facts differ from case to case) often highlight that the employer’s prerogative to discipline and terminate must be balanced with the employee’s right to security of tenure.

7. Practical Considerations for Employers and Employees

Communication
- Employers should maintain open lines of communication with employees who have recurring health issues and try to accommodate them when feasible.
- Employees are encouraged to inform management as early as possible of any health complications requiring absences or modified work arrangements.
Medical & Social Security Benefits
- Employees who are frequently absent due to sickness may avail themselves of SSS sickness benefits (where applicable), company-provided health insurance, or mandated leave benefits under relevant laws (e.g., the Expanded Maternity Leave Law, the Magna Carta for Women, etc., if relevant).
Reasonable Accommodation
- If the job can be performed with adjustments (e.g., a flexible schedule, temporary assignment to lighter tasks), the employer should consider reasonable accommodations to retain the employee, provided it does not cause undue hardship on the employer.
Records and Consistency
- Both parties benefit from timely and accurate record-keeping. The employer’s clarity in consistently enforcing attendance policies reduces the risk of disputes.
- Employees, for their part, should keep copies of medical certificates and official receipts or documents proving their health conditions and treatments.

8. Summary of Key Points

Excessive absences due to sickness can be a basis for termination under Philippine labor law, but the validity of termination depends on whether the situation falls under a just cause (gross and habitual neglect of duty) or an authorized cause (disease).
Just cause termination for absences requires that the absenteeism be gross, habitual, and without valid justification or in violation of established policies—coupled with proper procedural due process.
Authorized cause termination for disease requires a medical certification that continued employment is harmful and necessitates proper notice (30 days) plus separation pay.
Due process is crucial. For just causes, the employer must issue two notices and conduct a hearing. For authorized causes, the employer must provide 30 days’ notice to the employee and DOLE and pay separation benefits.
Company policies on attendance, medical documentation, and notice requirements should be clear, consistently enforced, and known to employees.
Jurisprudence indicates that termination is a last resort and must be supported by substantial evidence, compliance with due process, and fairness in enforcement.

Disclaimer

This article is intended for informational purposes only and does not replace professional legal advice. Each situation may involve unique facts and nuances, and laws or regulations may change over time. Consult a qualified labor lawyer or the appropriate government agencies (e.g., DOLE) for advice specific to your circumstances.