Can an Employer Terminate a Trainee After Medical Clearance? Probationary Employee Rights (Philippines)

Can an Employer Terminate a Trainee After Medical Clearance?

A Comprehensive Guide to Probationary Employee Rights in the Philippines

Scope. This article explains how Philippine labor law treats trainees and probationary employees, what “medical clearance” means in employment decisions, and when termination is lawful. It draws from the Labor Code (as renumbered), DOLE rules, and leading jurisprudential principles.


1) First, clarify the worker’s status: trainee, apprentice/learner, or probationary?

Trainee” is used loosely in workplaces, but the legal consequences differ depending on the actual arrangement:

  1. Apprentices (under an approved apprenticeship program)

    • Governed by the Labor Code’s apprenticeship provisions and TESDA rules.
    • Term may lawfully exceed six months only if covered by a duly approved apprenticeship agreement.
    • Stipends/wages and training content are regulated; termination standards are typically embedded in the agreement and the program.
  2. Learners (for semi-skilled work, up to 3 months)

    • Also a distinct category under the Code.
    • Narrow scope and shorter duration; specific wage and program requirements.
  3. Probationary employees (the most common “trainee” in practice)

    • Default limit: six (6) months from the date the employee actually started working, unless an approved apprenticeship agreement lawfully sets a longer period.

    • The employer must communicate reasonable, job-related standards at the time of engagement; otherwise the worker is deemed regular from Day 1.

    • During probation, the employer may end employment only for:

      • a just cause (misconduct, willful disobedience, fraud, etc.),
      • an authorized cause (redundancy, retrenchment, closure, disease), or
      • failure to meet the pre-announced standards of the probationary position.

Practical test: If there is no TESDA/DOLE-approved program and the person performs ordinary productive work under supervision, the “trainee” is very likely a probationary employee—with security of tenure protections.


2) Medical clearance: what does it do—and what it doesn’t

A return-to-work medical clearance typically means a competent physician has assessed the worker fit to work (either fully or with restrictions). Its legal effects differ by ground of termination:

  • You generally cannot dismiss for “disease” (an authorized cause) when a medical clearance says the employee is fit.

    • Termination on account of disease requires certification by a competent public health authority that:

      1. the employee suffers from a disease;
      2. continued employment is prohibited by law or prejudicial to the employee’s or co-workers’ health; and
      3. the disease cannot be cured within six (6) months even with proper medical treatment.
    • If an employee presents a recent fit-to-work clearance, those statutory elements are usually not satisfied.

  • Fitness does not immunize against other lawful grounds. An employer may still lawfully terminate for just causes (e.g., serious misconduct) or for failure to meet probationary standardsbut the employer’s decision cannot be because of past illness or disability if the worker is fit to work. Discriminatory motive is unlawful.

  • Conflicting medical opinions. Company physicians’ findings are relevant but not conclusive. Workers may present their own physician’s clearance. For “disease” terminations, the law looks for a competent public health authority’s certification (e.g., a public health/DOH facility), not merely an in-house HMO note.


3) Termination pathways and required procedures

A) Just causes (fault-based)

Examples: serious misconduct, willful disobedience, gross and habitual neglect, fraud, commission of a crime against the employer or co-worker, analogous causes.

Procedure (“twin-notice” + hearing/opportunity to be heard):

  1. First notice: detailed charge(s), specific facts and rule violated, reasonable time to explain.
  2. Opportunity to be heard: written explanation and/or hearing/meeting.
  3. Second notice: decision explaining the reasons for dismissal.

Key point: Medical clearance is irrelevant unless the alleged misconduct relates to health protocols. The employer must prove the charge, not rely on illness history.

B) Authorized causes (business- or health-based)

Examples: redundancy, retrenchment to prevent losses, closure, disease.

Procedure:

  • 30-day prior written notice to the employee and to DOLE.

  • Separation pay:

    • Redundancy/closure not due to serious losses: at least 1 month pay or 1 month per year of service, whichever is higher (often redundancy is 1 month per year by jurisprudence/policies).
    • Retrenchment/closure due to serious losses: at least 1 month pay or 1/2 month per year, whichever is higher.
    • Disease: at least 1/2 month pay per year of service.
  • Good-faith business basis must be shown (e.g., redundancy study; audited losses for retrenchment).

If there is a recent fit-to-work clearance, disease is typically not available as a ground. The employer must then rely on another valid authorized cause (e.g., genuine redundancy) and meet its documentation and notice requirements.

C) Failure to meet probationary standards

  • Precondition: Standards must have been made known at hiring (e.g., job offer, contract, employee handbook acknowledged, KPIs given at onboarding).
  • Standards must be reasonable, measurable, and job-related.
  • Procedure: Provide written notice that the employee failed to meet the communicated standards, with the specifics of deficiency, and the effective date. (Best practice is to allow response and to show objective appraisals, coaching/PIP records.)
  • Timing: Must be within the probationary period. If the employer keeps the worker beyond six months (and there is no valid apprenticeship exception), the worker becomes regular and can no longer be dismissed on the “failure to qualify” ground.

Health angle: A termination labeled as “failure to meet standards” cannot secretly be about the employee’s past illness once a fit-to-work clearance exists. That risks a finding of pretext and discrimination.


4) Anti-discrimination and disability rules to remember

  • Magna Carta for Persons with Disability (RA 7277, as amended) prohibits discrimination in hiring, promotion, and dismissal of qualified PWDs who can perform the essential functions of the job with or without reasonable accommodation.
  • Terminating a fit employee because they previously had an illness—or because they might relapse—can be treated as discriminatory, absent a valid, objective ground unrelated to the disability.
  • Reasonable accommodation (when feasible) should be explored—e.g., temporary light duty, scheduling adjustments, or PPE—especially where the medical clearance recommends restrictions.

5) Documentation employers should have (and what employees should look for)

For employers (compliance checklist):

  • At hiring: written probationary period and specific performance standards (KPIs/competencies), acknowledged by the employee.
  • During probation: objective appraisals, coaching logs, PIP (if any), attendance/productivity records.
  • For health issues: medical reports/clearance, and if invoking “disease,” a public health authority certification satisfying the statute’s elements.
  • If terminating: the proper notices (and DOLE notice for authorized causes), final pay computation, and Certificate of Employment.

For employees (what to request/keep):

  • Job offer/contract, onboarding packet (standards/KPIs), evaluation forms, copies of notices, and medical clearance documents.
  • If the employer cites “disease,” ask for the public health authority certification (not just an HMO memo).
  • If the employer cites “failure to meet standards,” ask for the specific standards, how they were measured, and the records used.

6) Special notes on timing and computation

  • Six-month cap on probation runs from actual start of work; if the last day falls on a weekend/holiday and you work the next working day without action from the employer, jurisprudence often treats continued service as regularization.
  • Absences and authorized leaves can complicate counting; employers should avoid playing close to the deadline and must act in good faith.
  • For apprentices, rely on the approved agreement’s duration and terms (it can exceed six months if validly approved).

7) Remedies and consequences if termination is illegal

When termination of a trainee/probationary employee is found illegal (e.g., disguised “disease” dismissal despite fitness to work, or lack of communicated standards, or due-process defects):

  • Reinstatement (or separation pay in lieu, if reinstatement is no longer viable);
  • Full backwages from dismissal until actual reinstatement or finality of judgment;
  • Moral/exemplary damages and attorney’s fees may be awarded in cases of bad faith or discrimination;
  • Administrative liability can arise for certain violations (e.g., failure to give DOLE notice for authorized causes, OSH breaches).

8) Decision tree: may an employer terminate a trainee after medical clearance?

  1. Is the “trainee” really an apprentice/learner under an approved program?

    • Yes: Follow the agreement and the Code’s training rules. “Disease” ground still needs public health authority certification. A fit-to-work clearance generally undercuts a “disease” termination.
    • No → likely probationary: proceed to #2.
  2. Ground relied on?

    • Disease (authorized cause): Not valid if the employee is fit to work and no qualifying public health authority certification shows incurability within six months and risk to health.
    • Redundancy/closure/retrenchment: Possible if genuine, with 30-day DOLE/employee notices and separation pay.
    • Just cause: Possible with proof and twin-notice + hearing.
    • Failure to meet probationary standards: Possible only if standards were clearly disclosed at hiring, are reasonable, and the employer can show objective non-compliance, with proper notice before the 6-month mark.
  3. Any sign of pretext/discrimination because of prior illness/disability?

    • If yes, the dismissal risks being struck down and may trigger damages under labor and anti-discrimination laws.

9) Employer and employee best practices

Employers

  • Put KPIs/standards in the job offer and onboarding packets; obtain signed acknowledgment.
  • Use neutral, job-related metrics; avoid health-based assumptions once clearance is issued.
  • If health-related limitations exist, assess reasonable accommodations; document the interactive process.
  • Choose the correct legal ground and follow the correct procedure; do not “shoehorn” a health issue into performance or redundancy.

Employees

  • Keep copies of all medical clearances and evaluations.
  • If you suspect a health-based motive post-clearance, ask the employer to identify the exact ground and show the records.
  • If dismissed, act quickly: file a complaint with the DOLE Single Entry Approach (SEnA) for conciliation; unresolved cases go to the NLRC or voluntary arbitration as applicable.

10) Quick answers to common scenarios

  • “I had pneumonia, now cleared fit to work; HR says I’m a risk and ends my probation.” Likely illegal if the real ground is the past illness. Without the required public health authority certification for “disease,” the employer must rely on another valid ground and proper process.

  • “HR says I didn’t meet standards, but they never told me the standards at hiring.” Termination for failure to qualify is invalid; you may be deemed regular if standards were not disclosed at engagement.

  • “Company doctor says unfit; my specialist cleared me.” For disease terminations, the decisive document is a competent public health authority’s certification meeting the statute’s criteria. Conflicting private medical opinions usually won’t suffice by themselves.


Bottom line

  • Medical clearance generally blocks “disease” as a ground for termination.
  • A “trainee” is often a probationary employee; security of tenure still applies.
  • Lawful termination during probation requires a proper legal ground and strict compliance with procedurenot a generalized fear about health once the worker is medically cleared.
  • When in doubt, document, disclose, and accommodate; decisions must be objective, job-related, and non-discriminatory.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.