Legal Grounds for Termination Due to Habitual Absences from Illness in the Philippines
(Note: This discussion is for general informational purposes only and should not be taken as legal advice. For specific cases or concerns, consult a qualified legal professional.)

1. Introduction

Employee absenteeism—especially when frequent or habitual—can significantly affect business operations. In the Philippines, the Labor Code and relevant jurisprudence set out specific rules on when and how an employer may validly terminate an employee for absences, including those due to illness. This article provides an overview of these rules, the distinctions between “just” and “authorized” causes of termination, and the procedural due process requirements that employers must observe.

2. The Legal Framework

2.1 The Philippine Labor Code

The primary law governing employer-employee relationships in the Philippines is Presidential Decree No. 442, otherwise known as the Labor Code of the Philippines, as amended. Under the Labor Code, there are two main categories of causes for termination:

Just Causes (Article 297 of the renumbered Labor Code)
Authorized Causes (Articles 298 and 299 of the renumbered Labor Code)

While “gross and habitual neglect of duties” is a common ground under Just Causes (Article 297[b]), there is also a separate ground for termination due to “disease” under Authorized Causes (Article 299). Understanding which ground applies is crucial in addressing habitual absences due to illness.

2.2 Relevant DOLE Issuances and Jurisprudence

The Department of Labor and Employment (DOLE) implements the Labor Code via its Implementing Rules and Regulations (IRR). Moreover, the Supreme Court of the Philippines has issued numerous decisions clarifying how and when an employee may be validly terminated on grounds of frequent absenteeism or illness.

3. Just Cause vs. Authorized Cause for Termination

3.1 Just Cause

Just Causes for termination are typically fault-based grounds attributable to the employee’s own actions or omissions. These are found in Article 297 of the Labor Code and include:

Serious misconduct;
Willful disobedience of lawful orders;
Gross and habitual neglect of duties;
Fraud or willful breach of trust;
Commission of a crime against the employer or his family; and
Other analogous causes.

When habitual absenteeism (whether or not it is illness-related) is coupled with neglect or breach of duty—where the employee fails to observe prescribed leave policies or is absent so frequently as to compromise work performance—it may be considered “gross and habitual neglect of duties” or an “analogous cause.” The key here is the repeated nature of the absences and the detrimental effect on the employer’s operations.

3.2 Authorized Cause

Authorized Causes, on the other hand, are not fault-based. Under Article 299, an employee can be terminated if:

The employee has a disease and continued employment is either (1) prohibited by law or (2) prejudicial to his health or to the health of his co-employees.
A competent public health authority must certify that the disease is incurable within six (6) months, even with proper medical treatment.

This ground is generally invoked when an employee’s illness is serious and prolonged, to the extent that the employee can no longer fulfill his or her job responsibilities without endangering others or themselves. In this scenario, the employer may terminate the employee but must pay separation pay equivalent to at least one month’s salary or one-half month’s salary for every year of service, whichever is greater.

4. Habitual Absenteeism: When Does It Become a Valid Ground?

4.1 Defining “Habitual”

Philippine jurisprudence often interprets “habitual” as a repeated, frequent, and excessive pattern of behavior within a reasonable period. A single or occasional absence, even if unauthorized, usually does not qualify. However, if the absences are so frequent that the employee’s work performance is compromised, or if they violate clear company rules on leave usage, the employer may consider termination for just cause.

4.2 Company Policies and Notice

Companies typically have internal policies or “Codes of Conduct” detailing:

Acceptable reasons for absences;
Procedures for filing sick or vacation leaves;
Required documents (e.g., medical certificates);
Penalties or sanctions for excessive tardiness or absences.

Employers must communicate these policies to employees (e.g., through an employee handbook or orientation). Habitual absences that violate these documented policies, especially without valid justification or notice, may lawfully constitute just cause.

4.3 The Role of Illness and Medical Certification

If the employee frequently misses work and can present valid medical certificates or hospital records, the employer must carefully assess whether:

The illness is legitimate and properly documented;
The absence is covered by law-mandated or company-granted sick leaves;
The total absences exceed what is allowable under company policy and hamper operations.

If an employee’s absences remain within allowable sick leaves and are adequately supported by medical proof, the employer generally cannot terminate on grounds of habitual absenteeism alone. However, if the pattern of absences is exceedingly disruptive, not covered by proper documentation, and violates company rules, the employer may have a basis to initiate disciplinary action.

5. Disease as an Authorized Cause

An authorized cause for termination due to illness (Article 299) is distinct from termination due to frequent absences under a just cause. Here, the crucial factors are:

Medical or Public Health Authority Certification
- A competent health authority must certify that the disease is incurable within six months or that continued employment is a risk to the employee or co-workers.
Separation Pay
- If terminated under this ground, the employee is entitled to at least one month salary or one-half month salary for every year of service, whichever is higher.
No Fault of the Employee
- Since it is an authorized cause, the employee is not at fault, and the employer must follow the mandatory procedural and financial obligations.

This provision typically covers severe or chronic illnesses, not short-term or mild conditions that cause occasional absences.

6. Procedural Due Process Requirements

Regardless of whether termination is for just or authorized cause, Philippine labor law requires procedural due process:

For Just Causes (Two-Notice Rule):
- First Notice (Show-Cause Notice): The employer must issue a written notice specifying the grounds and the facts upon which the disciplinary action is based, giving the employee an opportunity to explain.
- Opportunity to be Heard: The employee must have the chance to respond in writing or during a hearing/investigation.
- Second Notice (Notice of Decision): After considering the employee’s explanation, the employer must issue a final decision in writing if it decides to terminate.
For Authorized Causes (One Notice + DOLE Notice):
- Written Notice to the Employee and DOLE: The employer must serve written notices to both the employee and the Department of Labor and Employment at least 30 days before the intended date of termination.
- Separation Pay Computation: The employer must properly compute and pay the separation pay if required by law.

Failure to adhere to these procedural steps may render the dismissal illegal, even if the ground for termination is otherwise valid.

7. Key Jurisprudence and Principles

Philippine Supreme Court rulings emphasize several principles in cases involving termination for habitual absenteeism or illness:

Consistency with Company Policy:
Employers must show that the employee was aware of and violated the company’s rules on absenteeism, and that similar cases were disciplined similarly (avoidance of selective punishment).
Proportionality of Penalty:
Dismissal should be commensurate with the gravity of the offense. In some cases, suspensions or other disciplinary measures might be more appropriate, especially if the absences are not excessively disruptive or are justifiable.
Good Faith Assessment of Illness:
When illness is cited, the employer must act in good faith by requiring credible medical documentation and giving the employee a chance to recover or correct the behavior. Immediate termination without exploring less severe remedies (e.g., temporary suspension, transfer to a lighter position) may be struck down as illegal dismissal.
Substantial Evidence Standard:
In labor disputes, the employer must prove by substantial evidence that the dismissal was for a just or authorized cause and that procedural due process was observed.

8. Practical Guidelines for Employers

Draft Clear Attendance Policies:
- Clearly define what constitutes “habitual” or “excessive” absenteeism.
- Specify the maximum allowable absences and tardiness, including how sick leaves and vacation leaves are computed.
Implement Progressive Discipline:
- Issue written warnings or suspensions before resorting to termination, especially if the absences are potentially justifiable.
- Keep accurate attendance records for each employee.
Obtain Proper Medical Documentation:
- Require valid medical certificates for absences due to illness.
- Conduct health evaluations if the employee’s health condition is repeatedly affecting performance.
Observe Procedural Due Process:
- Issue a notice to explain, hold a hearing if necessary, and provide a decision notice if terminating for just cause.
- For authorized cause (disease), secure certification from a competent public health authority and ensure payment of separation pay.
Seek Legal Counsel:
- Always consult with a lawyer or labor law consultant to ensure that any decision to terminate aligns with current labor laws and jurisprudence.

9. Tips for Employees

Know Your Company’s Attendance Policies:
- Familiarize yourself with the rules on allowable leaves and the process for reporting absences.
Maintain Accurate Records:
- Keep copies of medical certificates, doctor’s advice, and any relevant documents supporting your absences.
Communicate Promptly and Clearly:
- Notify your employer or HR department promptly when you need to be absent.
- Provide all required documents on time.
Consider Health and Wellness Options:
- If you suffer from a recurring illness, discuss possible accommodations with your employer (e.g., flexible work arrangement, remote work, lighter assignments).
Seek Legal Assistance if Necessary:
- If you believe you have been wrongfully terminated, consult a labor lawyer or approach the National Labor Relations Commission (NLRC) or DOLE for guidance.

10. Conclusion

Termination of employment for habitual absences—especially those due to illness—is a complex matter under Philippine labor law. Employers must distinguish between fault-based dismissals (just cause) and no-fault terminations (authorized cause) and strictly observe procedural due process. Employees, for their part, should be mindful of attendance policies and document their legitimate absences properly.

When both parties understand their rights and obligations, disputes can often be minimized or resolved fairly. In cases of doubt or potential conflict, seeking professional legal advice is strongly recommended to ensure that actions are in line with established Philippine labor laws and jurisprudence.