Dear Attorney,

I hope this message finds you well. I am writing to seek legal advice regarding a workplace concern related to sick leave policies and their impact on employee performance metrics. Specifically, I work in a company where taking a single sick leave, even with complete documentation such as a medical certificate, significantly affects our monthly scores or metrics. This effect on scores leaves little room for recovery within the evaluation period.

I have raised this issue verbally with our supervisors, who attributed it to our work-from-home setup, suggesting that working from home somehow diminishes the justification for sick leaves. Recently, we have been working on-site for three months, but this rule concerning sick leaves has not been adjusted. To complicate matters, the company recently sent an email outlining new rules regarding sick leaves, though I am unsure if these rules will be fully implemented or applied selectively.

Furthermore, there are concerns about the transparency and consistency of our scorecard metrics, which are reportedly calculated manually by supervisors, raising questions about potential bias or human error.

Given these circumstances, I would like to understand if the company’s approach to sick leave policies and their effect on metrics is legally permissible under Philippine labor laws. I seek your guidance on the matter, including potential steps to address this issue.

Sincerely,
A Concerned Employee

A Comprehensive Legal Analysis of Sick Leave Policies and Employee Performance Metrics Under Philippine Law

1. Sick Leave as a Statutory or Contractual Benefit

In the Philippines, sick leave is not mandated under the Labor Code but is typically granted through employment contracts, company policies, collective bargaining agreements (CBAs), or by custom and practice within an organization. Employers are required to comply with their own policies as long as they do not contravene existing labor laws or regulations.

While there is no explicit statutory obligation to provide sick leave, the following legal principles and standards apply:

General Welfare Clause (Art. 279 of the Labor Code): Employers must treat employees fairly, adhering to good faith and equity in implementing workplace policies.
Occupational Safety and Health Standards (OSH Law, R.A. 11058): Employers are obligated to promote a safe and healthy workplace, including allowing employees time off for illness to prevent contagion or health deterioration.

If the company has explicitly provided for sick leave in its policies or employee handbook, any deviation that adversely affects employees could be considered a breach of contract or violation of the principle of good faith in employer-employee relations.

2. Impact of Sick Leave on Employee Metrics

Employers may establish performance evaluation systems that include criteria for assessing productivity, attendance, and other job-related metrics. However, these systems must align with principles of fairness, non-discrimination, and proportionality. Penalizing employees for taking documented sick leaves may raise the following legal and ethical issues:

Unjust Penalization: Imposing penalties on employees for absences due to valid and documented health reasons could be considered an unjust employer practice. Such a policy could be seen as violating the principle of good faith.
Health Discrimination: Penalizing sick employees disproportionately could run afoul of anti-discrimination principles under Article 3 of the Labor Code and international labor standards.

If a company's metrics system effectively punishes employees for exercising their right to sick leave, this may be challenged as an unreasonable or arbitrary workplace policy.

3. Legal Remedies for Arbitrary Sick Leave Policies

Employees adversely affected by such policies may consider the following remedies:

Filing a Complaint with the Department of Labor and Employment (DOLE): Employees can file a formal complaint for unfair labor practices or policies that contravene labor standards.
Seeking Mediation or Arbitration: Through the Single Entry Approach (SEnA) of DOLE, employees may request mediation to resolve disputes without resorting to litigation.
Challenging Unfair Policies Internally: Employees may raise formal grievances through company channels, such as the HR department, to seek policy amendments.

4. Manual Calculation of Metrics and Allegations of Bias

The manual computation of employee performance metrics raises questions about transparency and fairness. Supervisors tasked with such calculations must adhere to objective standards to avoid accusations of bias or favoritism. Relevant laws and principles include:

Good Faith and Fair Play: Employers must act in good faith in implementing performance evaluation systems.
Data Privacy Act (R.A. 10173): Ensures that employee data used for performance evaluations is handled securely and transparently.
Grievance Procedures: Employees may request documentation or clarification of scorecard metrics through formal grievance processes to ensure accountability.

5. Addressing Verbal Policy Statements

The statement that "work-from-home employees cannot get sick" reflects a verbal policy that lacks formal documentation. Employers are bound by written company policies and cannot enforce verbal rules that contradict established norms or disadvantage employees. In the absence of formal documentation, employees are entitled to challenge such informal directives.

6. New Rules on Sick Leave

The introduction of new sick leave rules via email raises several considerations:

Proper Notification: Employees must be formally informed of policy changes, typically requiring a memorandum or policy circular.
Non-Retroactivity: New policies should not retroactively penalize employees for prior absences.
Case-by-Case Exceptions: Employers are expected to consider individual circumstances, especially for unforeseen health-related absences.

7. Steps Employees Can Take

Document Issues: Maintain written records of all relevant communications, including emails, policy documents, and requests for clarification.
Request Policy Clarification: Formally request written clarification of the new sick leave rules, including their applicability and exceptions.
Seek Legal Support: Consult with legal counsel or DOLE representatives to assess whether the policies violate labor laws or employee rights.

8. Employer Best Practices

To avoid legal disputes, employers should:

Clearly define sick leave policies in writing.
Ensure performance metrics do not penalize legitimate health-related absences.
Provide mechanisms for employees to contest unfair evaluations.
Adopt automated systems to reduce errors or bias in performance evaluations.

Conclusion

Based on Philippine labor laws and principles of equity, penalizing employees for documented sick leaves raises serious concerns about fairness and legality. Employers are advised to align their policies with good faith and transparency, while employees have recourse through DOLE, internal grievance mechanisms, and legal consultation to challenge arbitrary or unfair practices.

It is recommended that you formalize your concerns through proper documentation and seek immediate clarification from your employer, while considering legal assistance to address systemic issues in workplace policies.