WEEK 7.
(CONTINUATION) Separation Pay must be at least one (1)
TERMINATION FROM
EMPLOYMENT DUE TO ILLNESS
Termination due to health reasons must
be according to the law:
An employer may terminate an employee
suffering from a disease if:
1. His continued employment is
prohibited by law;
2. Is prejudicial to his health as well as
those of his co-workers;
3. There is a certification by a
competent health authority that it is
of such a nature or such a stage that
it CANNOT BE CURED IN SIX (6)
MONTHS even with medical
treatment; and
4. The employee should be informed
and given the opportunity to respond
to the findings.
Note: If the disease CAN be cured within 6
months, the employer can ask the employee
to take a leave of absence. When the
employee returns to good health, he should
be reinstated to his former position.
Termination due to health reasons may
incur separation pay:
Note as well that, if you are terminating an
employee due to health reasons, you will
have to pay separation pay.
month salary or to one-half (1/2) month
salary for every year of service, whichever is
greater.
The law contemplates particular types of
diseases. These are some of the instances:
A. several heart attacks experienced by
an employee (because his continued
employment would further
compromise his health)
B. advanced tuberculosis with
certification from a public health
official (since his continued
employment may be prejudicial to
other employees)
C. a doctor certified that the employee’s
schizophrenia could not be cured in 6
months (prejudicial to his health as
well as those of his co-workers)
D. Leukemia and other type of cancer
where the employee-patient is
undergoing chemotherapy (cannot
be cured within 6 months)
NOTE: In cases where health is the reason
for termination, a certification from a
competent health authority is indispensable.
Process of termination due to illness:
The employer must furnish the employee
two written notices in terminations due to
disease, namely:
(1) the notice to apprise the employee of
the ground for which his dismissal is
sought; and
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 (2) the notice informing the employee of
his dismissal, to be issued after the
employee has been given reasonable
opportunity to answer and to be
heard on his defense.
Thus, due process in the form of the two-
notice rule has since applied to terminations
for health reasons.
For dismissal due to illlness to be valid, two
requirements must be complied with: (1) the
employee’s disease cannot be cured within
six (6) months and his “continued
employment is prohibited by law or
prejudicial to his health as well as to the
health of his co-employees”; and (2)
certification issued by a competent public
health authority that even with proper
medical treatment, the disease cannot be
cured within six (6) months.
because of chemotherapy. Fuji did not ask
her how her condition would affect her
work. Neither did it suggest for her to take a
leave, even though she was entitled to sick
leaves. Worse, it did not present any
certificate from a competent public health
authority. What Fuji did was to inform her
that her contract would no longer be
renewed. Thus, in this case, for the failure of
Fuji to comply with due process, Arlene was
considered illegally dismissed.
NOTE: Thus, due process requires not only
that the disease’s incurability within 6
months must be established, and this
supported by certification of a competent
public health authority, but also that

The burden of proving compliance with

these requisites is on the employer.
Noncompliance leads to the conclusion that
the dismissal was illegal.

ILLUSTRATION:
Arlene- employee
Fuji- employer
Disease- lung cancer

There is no evidence showing that Arlene

was accorded due process. After informing
her employer of her lung cancer, she was not
given the chance to present medical
certificates. Fuji immediately concluded that
Arlene could no longer perform her duties

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