Short answer. Yes, if you are being terminated because you have a disease and continuing your employment is prohibited by law or prejudicial to your health or your co-workers' health. Article 284 of the Labor Code requires separation pay equal to at least one month's salary, or half a month per year of service, whichever is greater.

What the law says

An employer may terminate the services of an employee who has been found to be suffering from any disease and whose continued employment is prohibited by law or is prejudicial to his health as well as to the health of his co-employees: Provided, That he is paid separation pay equivalent to at least one (1) month salary or to one-half (1/2) month salary for every year of service, whichever is greater, a fraction of at least six (6) months being considered as one (1) whole year.

Labor Code, Article 284 — Disease As A Ground. Read the full provision →

When this ground for termination applies

Article 284 permits termination for illness only within a specific condition: an employer may terminate the services of an employee who has been found to be suffering from any disease and whose continued employment is prohibited by law or is prejudicial to his health as well as to the health of his co-employees. Both elements matter — there has to be a disease, and continuing to work has to be either legally prohibited or genuinely harmful to your own health or the health of the people you work with. A health condition on its own, without that second element, does not by itself fit what this article describes.

Separation pay is the condition attached to this ground

The article does not simply allow termination for illness — it makes separation pay a condition of it: Provided, That he is paid separation pay equivalent to at least one (1) month salary or to one-half (1/2) month salary for every year of service, whichever is greater. The word provided ties the two together. Termination on this ground without the required separation pay is not what the article authorizes; the payment is built into the ground itself, not a separate benefit you have to request afterward.

How the amount is calculated

The article sets a floor, not a fixed number: whichever is greater between one month's salary and half a month's salary for every year of service. It also specifies how partial years count — a fraction of at least six (6) months being considered as one (1) whole year. So if you have worked, say, five years and eight months, that extra eight months rounds up to a full additional year for purposes of the computation, rather than being dropped or prorated down.

What to check if you are being let go this way

The article's language centers on a disease that has actually been found and that meets the legal-prohibition-or-health-risk standard, so medical documentation is central to whether this ground genuinely applies to your case. If you are being separated for a health condition, confirm what finding the employer is relying on, and make sure the separation pay you are offered matches this article's minimum — one month's salary or half a month per year of service, whichever the calculation actually produces as the larger figure.

Related provisions

Note. Statute text quoted on this page is reproduced from the official enactment and is linked to the full provision. The explanation around it is general legal information from Vivas & Nobles Law Office, not legal advice. Whether it applies to your situation depends on facts only a lawyer reviewing them can assess.