An employer may lawfully terminate an employee found to be suffering from a disease when the employee's continued employment is prohibited by law or is prejudicial to their health or the health of co-workers. But strict requirements apply: there must be a certification by a competent public health authority that the disease is of such nature or stage that it cannot be cured within six months even with proper treatment. If the disease can be cured within six months, the employer cannot dismiss but must instead give a leave. When dismissal on this ground is valid, the employee is entitled to separation pay of at least one month salary or one-half month salary per year of service, whichever is greater.
Illness alone does not automatically justify dismissal. The law allows termination due to disease only under narrow conditions, and with separation pay.
The Ground
An employer may terminate an employee found to be suffering from a disease when their continued employment is prohibited by law or is prejudicial to their health or to the health of co-workers. This is an authorized cause — it is not about the employee's fault.
The Key Requirement: the Medical Certificate
The decisive safeguard is a certification by a competent public health authority that the disease is of such nature or stage that it cannot be cured within six (6) months even with proper medical treatment. Without this certification, a dismissal on this ground is invalid. The employer cannot simply rely on its own assessment or that of the company doctor alone.
If the Disease Is Curable Within Six Months
If the disease can be cured within six months, the employer cannot dismiss the employee. Instead, the employer should not terminate but rather give the employee a leave and reinstate them once fit to return. Terminating a curable employee is illegal dismissal.
Separation Pay
When termination on this ground is valid, the employee is entitled to separation pay equivalent to at least:
- One (1) month salary; or
- One-half (1/2) month salary for every year of service,
whichever is greater, with a fraction of at least six months counted as a whole year.
Due Process Still Applies
Even for authorized-cause dismissals, the employer must observe notice requirements — notifying the employee (and, for authorized causes, the DOLE) of the ground. Skipping proper process can expose the employer to liability even if a valid ground exists.
Practical Takeaways
- Disease justifies dismissal only if a public health authority certifies it cannot be cured within six months;
- If it is curable within six months, the remedy is leave, not dismissal;
- A valid disease-based dismissal still requires separation pay and proper notice.
Frequently Asked Questions
Can an employer fire someone for being sick? Only under narrow conditions: the disease must make continued employment prohibited by law or prejudicial to health, and a competent public health authority must certify it cannot be cured within six months even with treatment.
What if the disease can be cured within six months? Then the employer cannot dismiss the employee. Instead, it should give the employee a leave and reinstate them once fit to return. Dismissing a curable employee is illegal dismissal.
Is separation pay required? Yes. A valid disease-based termination entitles the employee to separation pay of at least one month salary or one-half month salary per year of service, whichever is greater.
Is a company doctor's opinion enough? No. The law requires a certification by a competent public health authority that the disease cannot be cured within six months. Without it, the dismissal on this ground is invalid.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
If you have questions about your rights or options under Philippine law, our firm is available to assist. You may reach us via Viber or WhatsApp, call us at 0995 433 5550, or send an email to vivasnobles@gmail.com. We look forward to hearing from you.