Dear Attorney,

I am working in a private company, and I am wondering whether I have a legal right to demand a health card or any similar healthcare benefit from my employer. Are there any laws that obligate companies to provide such benefits to their employees? I would appreciate your insights on this matter.

Concerned Employee

Insights

In the Philippines, the right to demand health care benefits, such as a health card (commonly referred to as HMO or Health Maintenance Organization coverage), from a private employer is an important legal consideration. However, the provision of such benefits is largely governed by contractual agreements and policies set by the company, rather than being explicitly mandated by law. Let’s explore the legal framework surrounding the issue.

Employment Law and Benefits

The Philippine Labor Code primarily serves as the backbone of employment regulations. It outlines various minimum benefits that employers must provide to their employees, including but not limited to wages, hours of work, and other mandatory benefits such as Social Security System (SSS) coverage, Pag-IBIG, and PhilHealth. These are government-mandated benefits designed to ensure the general welfare of workers.

However, private health cards, typically issued through HMOs, are not part of the mandatory benefits required under the Labor Code. Employers are not legally obligated to provide health card coverage to their employees unless such a benefit has been specifically stipulated in the employment contract, the collective bargaining agreement (CBA) in case of unionized workplaces, or in the company's policies as part of an employee welfare program.

Voluntary Employer Benefits

Although not legally mandated, many companies, especially in competitive industries, provide health cards as part of their employees' benefit package. This can be seen as part of a company’s incentive program aimed at attracting and retaining talent. These benefits can also be part of what is often referred to as a "fringe benefit"—those that go beyond the legally mandated minimums, providing employees with additional financial support for health-related concerns.

In these cases, the provision of a health card is a matter of company discretion, dependent on its policies, financial standing, and its desire to provide additional benefits to employees.

Collective Bargaining Agreements (CBA)

For unionized workplaces, employees may negotiate for additional benefits, including health cards, as part of their CBA. The CBA is a legally binding contract between the employer and the employee's union, detailing the terms and conditions of employment, including salaries, hours, leave policies, and additional benefits.

If the CBA explicitly provides for health card coverage, the employer is legally bound to comply with this provision. The lack of compliance can be a ground for filing a grievance or demand through the union, potentially leading to legal action in cases of disputes.

Contractual Obligations

Aside from the CBA, an individual employment contract can also serve as the basis for demanding health card benefits. If a health card is explicitly mentioned in the employment contract, the employee has a legitimate expectation and right to receive it. Employers who fail to comply with these contractually agreed-upon terms can be sued for breach of contract.

Legal Recourse

If an employee feels aggrieved due to the lack of a health card despite its inclusion in the employment contract or CBA, they can take the following steps:

Internal Company Remedies: The employee should first address the concern through internal mechanisms, such as speaking with the human resources department or filing a grievance if a union is involved.
Filing a Complaint with the DOLE: If the internal remedies fail, the employee may file a complaint with the Department of Labor and Employment (DOLE), which handles cases related to employee welfare and benefits.
Civil Action: If the issue involves a breach of contract, the employee may consider filing a civil action to enforce the terms of the contract and seek damages for non-compliance.

Health Coverage under PhilHealth

While private companies are not obligated to provide health cards, employees are entitled to government-mandated health insurance through PhilHealth. The Philippine Health Insurance Corporation (PhilHealth) provides basic health insurance coverage to all Filipino workers, and both the employer and the employee are required to contribute to this. PhilHealth covers various medical expenses such as hospitalizations, surgeries, and outpatient care. While PhilHealth does not offer the same comprehensive benefits as an HMO, it is a legal requirement, unlike private health cards.

Conclusion

In summary, an employee of a private company in the Philippines does not have an automatic right to demand a health card from their employer unless such a benefit is included in the employment contract, a collective bargaining agreement, or a company policy. While health cards are often provided voluntarily by employers, they are not mandated by Philippine labor laws. Nonetheless, government-mandated PhilHealth coverage ensures that basic health care is available to all employees, regardless of whether or not an HMO is provided.

Employees who feel entitled to a health card based on their employment agreements should seek legal counsel to ensure their rights are protected and to determine the appropriate course of action based on their specific circumstances.