Sonnie’s Porch

Finally, my How To Lose Your Job series can be closed

On August 29, 2007, it was an honor to handle one of the break out sessions of the 1st HR Philippines National Convention and I handled the discussion on Employee Discipline. Using the same approached I employ with fellow HR practitioners, I would like to close this series by discussing Due Process of law from the point of view of management.

In the Philippines, Employee Discipline is one of the rights an investor or capitalist can use to ensure a profitable operations.

“Success of industries is the foundation upon Which just wages may be paid. There can be no success without efficiency. There can not be efficiency without discipline…”

Batangas Transportation Co., et al vs. Bagong Pagkakaisa ng mga employees and Laborers of BTCo., GR No. L-1706 March 10, 1949

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The end of this series is now on sight, a couple of more posts and we’ll be able to conclude this one. For several weeks, we have been discussing the different grounds where an employee can lose his job.

There are two approaches to end employer-employee relationship:

1. Employee initiated or what we know as resignation.
2. Employer initiated or what we know as termination.

On item # 2, an employer is allowed to end the employer- employee relationship on the following reasons:

1. Just Causes or termination because of employee behavior, and
2. Authorized Causes or termination brought about by other factors aside from employee behavior.

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This is the 5th installment of the blog series that would hopefully add value on both employers and employees. And on this issue, we’ll focus on Art. 284 or termination due to sickness.

Losing one’s job for health reasons falls under authorized causes as stated on the Philippine Labor Code:

Art. 284. Disease as ground for termination. 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.

Rules and Regulations Implementing the Labor Code:

SECTION 8. Disease as a ground for dismissal. — 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 certification by competent public health authority that the disease is of such nature of at such a stage 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 employee shall not terminate the employee but shall ask the employee to take a leave of absence. The employer shall reinstate such employee to his former position immediately upon the restoration of his normal health

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This is the 4th installment to my blog series “How To Lose Your Job”. The intention of this series is to guide entrepreneurs how to weed their organization of the “pasaways” the proper way, and at the same time educate employees of their rights and the parameters governing security of tenure and due process of law. Either way, I hope to add value to readers.

In an earlier post, we have discussed about the the valid causes to terminate an employee — (1) the just causes or the acts of the employee that can lead to termination and (2) the authorized causes or the other factors, aside from the act of the employee, that may also lead to termination.Part i and part ii of this series has focused on the just causes, and on this issue, we’ll look into the authorized causes.

Art. 283 and 284 of the Philippine Labor Code

Art. 283. Closure of establishment and reduction of personnel. The employer may also terminate the employment of any employee due to the installation of labor-saving devices, redundancy, retrenchment to prevent losses or the closing or cessation of operation of the establishment or undertaking unless the closing is for the purpose of circumventing the provisions of this Title, by serving a written notice on the workers and the Ministry of Labor and Employment at least one (1) month before the intended date thereof. In case of termination due to the installation of labor-saving devices or redundancy, the worker affected thereby shall be entitled to a separation pay equivalent to at least his one (1) month pay or to at least one (1) month pay for every year of service, whichever is higher. In case of retrenchment to prevent losses and in cases of closures or cessation of operations of establishment or undertaking not due to serious business losses or financial reverses, the separation pay shall be equivalent to one (1) month pay or at least one-half (1/2) month pay for every year of service, whichever is higher. A fraction of at least six (6) months shall be considered one (1) whole year.

Art. 284. Disease as ground for termination. 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.

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