Termination Due to Disease with Sample Notice

Termination Due to Disease with Sample Notice

Termination of employment requires the observance of substantive and procedural due process requirements.

The post below is based on the book Guide to Valid Dismissal of Employees Second Edition by Atty. Elvin B. Villanueva.

The law authorizes termination of employment on the ground of disease found in Article 284 [now Article 299 in a renumbered Labor Code] of the Labor Code.

This is one of the authorized causes for termination in addition to those under Article 298.

Not all diseases are grounds for termination. Certain conditions must be complied with pursuant to the Labor Code as regards the nature of the disease that is subject of termination.

Based on the said provision, the important things to be considered in termination on the ground of disease are the following:

Renumbered Labor Code 2018 Edition by Atty. Villanueva is now available online and in all branches of National Bookstore and Fully Booked

  1. The disease must be of such nature that the employee’s continued employment is prohibited by law; and
  2. The disease must be of such nature that the employee’s continued employment is prejudicial to his health as well as to the health of his co-employees;

Moreover, Section 8 of Rule I, Book VI of the Rules to Implement the Labor Code provides that where the employee suffers from a disease and his continued employment is prohibited by law or prejudicial to his health or to the health of his co-employees, the employer shall not terminate his employment unless there is a certification by a competent public health authority that the disease is of such nature that it cannot be cured within a period of six (6) months even with proper medical treatment.

If the disease or ailment can be cured within the period, the employer shall not terminate the employee but shall ask the employee to take a leave. The employer shall reinstate such employee to his former position immediately upon the restoration of his normal health.

Hence, the following must also be observed by the employer:

  1. A certification by a competent public health authority that the disease is of such nature that it cannot be cured within a period of six (6) months even with proper medical treatment;
  2. If curable within the period, the employer shall not terminate but ask employee to take a leave; and
  3. In case the disease is curable, to reinstate the employee upon restoration of his normal health.

The term “competent public health authority” refers to a government doctor whose medical specialization pertains to the disease being suffered by the employee. For instance, an employee who is sick of tuberculosis should consult a government-employed pulmonologist who is competent to make an opinion thereon. If the employee has cardiac symptoms, the competent physician in this case would be a cardiologist.

As always, the burden of proving that the termination due to disease is valid lies with the employer. Hence, the company must produce the medical certificate issued by a competent physician that the employee cannot be cured of the disease despite six months of proper medical treatment.

What if the employee refuses to undergo examination how can the employer obtain the certificate?

In the book Human Resource Forms, Notices and Contracts Volume 2, the sample notice ordering employee to undergo medical examination is provided. Below is the template.

Form No. 171 Order requiring employee to undergo medical examination with competent public health authority

Dear Mr. _____________,

Our records show that you have been absent on __________ (date) _______ due to ________ (name of disease or sickness), for which your continued employment may be prejudicial to your health or to the health of your fellow employees.

Consistent with existing labor laws, you are hereby instructed to undergo medical examination and obtain a certification from a competent public health authority stating the following:

1. nature or stage of your medical condition 2. whether or not your sickness or disease can be cured within a period of six (6) months through appropriate medical treatment 3. whether or not continued employment while suffering from the same sickness or disease will be prejudicial to your health and/or of the people you work with.

Your continued employment may depend on the outcome of your medical examination so that you are encouraged to submit the required certification at the soonest time possible.

Very truly yours,

HR Manager

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