An employer in the Philippines may require employees to undergo an annual physical exam when it is part of a lawful workplace health and safety program. But for existing employees, the employer generally cannot make the employee shoulder the cost of a required annual physical exam. Under Philippine occupational safety and health rules, medical examinations required because of employment are part of the employer’s duty to maintain a safe and healthful workplace, and required worker examinations must be provided free of charge to workers. (Lawphil)

This issue commonly comes up when HR tells employees to pay for an “APE,” deducts the clinic fee from salary, requires reimbursement only after several months, or refuses clearance unless the employee completes a company medical exam. The correct answer depends on the purpose of the exam, whether the person is already an employee or only an applicant, what tests are being required, and how the employer handles the results.

Quick Answer: Can Employers Require Annual Physical Exams at the Employee’s Expense?

Yes, an employer may require an annual physical exam if it is reasonable, work-related, and part of occupational safety and health compliance.

No, the employer should not require existing employees to pay for a mandatory company annual physical exam.

In simple terms:

Situation	Can the employer require it?	Who should pay?
Annual physical exam for current employees	Yes, if reasonable and part of workplace health/safety rules	Employer
Special exam because the job involves health risks, chemicals, food handling, driving, healthcare, construction, or similar risks	Yes, if job-related	Employer
Fit-to-work exam after illness, injury, or prolonged absence	Usually yes, if genuinely needed for safety or work fitness	Employer if required by the company
Employee’s personal checkup with their own doctor	Employee may choose to do it	Employee, unless company policy/HMO covers it
Pre-employment medical exam for applicants	Often allowed, subject to limits	May differ depending on company policy and applicable rules
Salary deduction for mandatory APE fee	Generally not allowed without legal basis	Employer should not deduct

The key distinction is this: a company-required medical exam during employment is not an employee’s personal expense. It is usually part of the employer’s legal duty to manage workplace health and safety.

Why Employers Require Annual Physical Exams in the Philippines

Annual physical exams are common in Philippine workplaces, especially in:

BPOs and call centers
Factories and manufacturing plants
Construction companies
Hospitals, clinics, dental offices, and laboratories
Food service, hotels, restaurants, and commissaries
Logistics, delivery, driving, and transport operations
Security agencies
Mining, energy, chemical, and industrial workplaces
Schools and childcare-related workplaces
PEZA-registered and export-oriented companies

Employers use APEs to check whether employees are fit for work, detect early signs of illness, monitor workplace-related health risks, and comply with occupational safety and health requirements.

A lawful APE is not supposed to be a fishing expedition into an employee’s private life. It should be tied to legitimate workplace purposes, such as:

Determining whether an employee can safely perform the job
Detecting occupational diseases early
Monitoring exposure to hazards
Protecting co-workers, customers, patients, or the public
Complying with DOLE occupational safety and health standards
Supporting proper job placement, reassignment, or reasonable work restrictions

Under the Occupational Safety and Health Standards, workplace health programs include entrance, periodic, special, transfer, and separation examinations. Periodic annual medical examinations are recognized as a way to follow up earlier findings, detect disease early, and monitor the effects of workplace health hazards.

The Main Legal Basis: Employer Duty to Provide a Safe Workplace

The central law is Republic Act No. 11058, or the Occupational Safety and Health Standards Law, enacted in 2018. It requires covered workplaces to provide a safe and healthful workplace and comply with occupational safety and health standards. The law applies broadly to establishments, projects, sites, and places where work is being undertaken, subject to the law’s stated exceptions. (Lawphil)

RA 11058 requires employers to:

Provide workers a place of employment free from hazardous conditions likely to cause death, illness, or physical harm
Inform workers about workplace hazards, health risks, and preventive measures
Comply with occupational safety and health standards, including required training, medical examination, and protective equipment when necessary
Maintain an occupational safety and health program appropriate to the workplace
Provide occupational health personnel and facilities proportionate to workplace risk and number of workers

The law also treats the cost of safety and health programs as part of operations, especially in construction, contracting, and subcontracting arrangements. This supports the practical rule that OSH compliance is an employer cost, not a charge to workers. (Lawphil)

The Rule on Cost: Required Employee Medical Exams Should Be Free to Workers

The clearest rule comes from the Occupational Safety and Health Standards on physical examinations. The standards provide that workers must undergo physical examinations before employment, periodically or as necessary because of work risks, upon transfer or separation when needed, and when injured or ill. These examinations must be complete and thorough, and they must be rendered free of charge to workers.

For annual or periodic exams, the rules recognize that the exam may include special examinations when needed due to the nature of employment. For workers exposed to hazards, required examinations, chest X-rays when feasible, and biochemical monitoring for exposure to toxic substances or pesticides are treated as employer-provided examinations.

This means an employer should not say:

“APE is mandatory, but employees must pay the clinic.”
“We will deduct the annual physical exam fee from your salary.”
“You cannot get clearance unless you pay for the company medical exam.”
“The company requires the test, but it is your responsibility because it concerns your health.”
“You must pay first and maybe we will reimburse later, depending on approval.”

If the company requires the exam because of employment, the cost should generally be shouldered by the employer.

Salary Deductions for APE Fees Are Usually a Problem

Aside from occupational safety rules, mandatory employee-paid APEs may also raise wage deduction issues.

Under the Labor Code, employers are generally prohibited from making deductions from employee wages except in limited situations, such as insurance premiums with the employee’s consent, union dues where applicable, or deductions authorized by law or regulations. The Labor Code also prohibits employers from indirectly withholding wages or requiring workers to give up part of their wages through improper means. (AMSLAW)

A company-required APE fee is not automatically a lawful salary deduction just because HR announced it in a memo. A signed acknowledgment is also not always enough if the deduction effectively shifts an employer’s legal OSH expense to the worker.

Practical examples

Example	Likely legal issue
HR deducts ₱800 from every employee’s payroll for APE	Possible unlawful wage deduction and OSH cost-shifting
Employee is told to pay the clinic directly for a company-mandated annual exam	Possible violation of the rule that required worker exams are free
Company requires a fit-to-work exam after hospitalization but charges the employee	Questionable if the exam is employer-required for return to work
Employee voluntarily gets a second opinion from a private doctor	Usually employee’s expense unless company policy covers it
Employer offers free APE but employee chooses another clinic for convenience	Employee may have to pay the outside clinic unless reimbursement is approved

What Tests Can an Employer Include in an Annual Physical Exam?

A standard Philippine APE may include:

Medical history and physical examination
Blood pressure, height, weight, and body mass index
Complete blood count
Urinalysis
Fecalysis
Chest X-ray
Blood chemistry tests
Vision test
Hearing test
ECG for certain ages or job risks
Drug testing, if covered by a lawful workplace drug policy
Special tests for employees exposed to specific workplace hazards

The test should match the purpose. A food handler may reasonably be required to undergo health screening related to food safety. A driver may be required to undergo tests related to fitness to drive. A worker exposed to chemicals may need special monitoring. A purely office-based worker should not automatically be subjected to highly intrusive testing unless the employer has a legitimate reason.

The Occupational Safety and Health Standards allow special examinations when necessary because of the nature of employment, especially where the employee is exposed to hazards or where the exam is needed to protect the worker’s health.

Limits: What Employers Cannot Do With Annual Physical Exams

Even if the employer may require an APE, the power is not unlimited.

The exam must be reasonable and work-related

A company cannot use an APE to harass employees, target union members, pressure pregnant workers, screen out employees with disabilities without proper basis, or look for excuses to terminate people.

The exam should be connected to a legitimate workplace purpose. The more intrusive the test, the stronger the employer’s reason should be.

Medical results must be kept confidential

Medical records are sensitive. The Occupational Safety and Health Standards state that employee medical records must be under the custody and control of occupational health personnel and should not be used in a discriminatory or prejudicial way. Results and medical information from occupational health personnel are also treated as strictly confidential.

The Data Privacy Act of 2012, Republic Act No. 10173, also requires personal information controllers to implement reasonable organizational, physical, and technical measures to protect personal information. Health information is sensitive personal information, so employers should collect only what is necessary and protect it carefully. (National Privacy Commission)

In practice, HR usually does not need the employee’s full laboratory results. What the company commonly needs is a fitness assessment, such as:

Fit to work
Fit to work with restrictions
Temporarily unfit, for reassessment
Needs referral or further evaluation
Not fit for a particular hazardous assignment

Results should not be used for discrimination

Employers should be very careful when an APE reveals pregnancy, HIV status, tuberculosis history, mental health issues, chronic illness, disability, or other sensitive conditions.

For example, under Republic Act No. 11166, the Philippine HIV and AIDS Policy Act, termination solely on the basis of HIV status is unlawful. In Bison Management Corporation v. AAA and Pernito, G.R. No. 256540, the Supreme Court emphasized that firing an employee solely because of an HIV-positive result violates Philippine law and public policy. (Supreme Court of the Philippines)

A failed APE does not automatically justify termination

An abnormal finding is not the same as being legally dismissible.

If an employee has a disease, the Labor Code allows termination on the ground of disease only under strict conditions. The disease must be of such nature, or at such stage, that continued employment is prohibited by law or prejudicial to the employee’s health or to co-workers’ health. Separation pay is also required. (Labor Law PH Library)

Labor rules and Supreme Court doctrine also require a certification from a competent public health authority that the disease cannot be cured within the required period even with proper medical treatment. If the condition is curable within the relevant period, the employee should generally be allowed medical leave and reinstatement upon recovery. (Labor Law PH)

In real workplace practice, the proper sequence is usually:

Review the APE result through the company physician or occupational health personnel.
Ask for confirmatory testing if needed.
Determine whether the condition affects the employee’s actual job.
Consider temporary restrictions, medical leave, reassignment, or accommodation.
Use termination only when the legal requirements are clearly met.

Current Employees vs. Job Applicants: Why the Distinction Matters

The rules are clearer for existing employees: required medical exams connected with employment should be free to workers.

For job applicants, the situation can be more complicated. Pre-employment medical exams are often required before hiring or deployment, especially for jobs involving health, safety, food handling, transport, overseas work, or physical labor. Some employers shoulder the cost; others require applicants to pay unless hired or reimbursed later. Older occupational health rules contain specific treatment for certain pre-employment examinations, including situations where applicants may bear some costs unless covered by employer arrangements.

For ordinary employees already on payroll, however, the argument for employer payment is much stronger. Once the exam is required as part of employment, workplace health monitoring, fitness-for-work, or OSH compliance, the employer should not pass the cost to the employee.

What Employees Can Do If They Are Required to Pay for APE

If your company requires you to pay for an annual physical exam, handle it calmly and document everything. Many issues are resolved once HR, finance, or the safety officer realizes that the exam is an employer OSH cost.

Step 1: Get the instruction in writing

Save or request copies of:

HR memo requiring the APE
Email or chat instruction from HR, supervisor, clinic, or admin
Clinic referral slip
Company policy on annual physical exams
Payslip showing deduction
Official receipt from the clinic
Reimbursement denial
Clearance form showing unpaid APE charge

Avoid relying only on verbal instructions. Written proof matters if the issue later reaches DOLE.

Step 2: Ask what the legal or policy basis is

A simple written request is often enough:

May I respectfully ask for clarification on the basis for requiring employees to shoulder the cost of the company annual physical examination? Since the APE is company-required and related to employment, may I request confirmation that the cost will be shouldered or reimbursed by the company?

Keep the tone professional. The goal is to create a clear record, not start a fight.

Step 3: Ask for reimbursement or cancellation of the deduction

If you already paid, request reimbursement and attach the receipt. If the amount was deducted from salary, request correction in the next payroll.

Useful documents include:

Document	Why it helps
Payslip	Shows actual deduction
Clinic receipt	Shows amount paid
HR memo	Shows exam was mandatory
Company referral	Shows the clinic visit was employer-directed
Email request for reimbursement	Shows you tried to resolve internally
HR denial or silence	Helps if you file with DOLE

Step 4: Raise it through the safety officer, OSH committee, or HR

For workplaces covered by RA 11058, the employer’s OSH program should be communicated and available to workers. The law also recognizes worker participation in workplace safety and health matters. (Lawphil)

You may ask:

Is the APE part of the company OSH program?
Who is the occupational health physician or clinic?
Why are employees being charged?
How are medical records protected?
Will HR receive only a fit-to-work certification or full results?
What happens if an employee cannot afford to pay?

Step 5: File a Request for Assistance through DOLE SEnA if unresolved

If the company still refuses to reimburse or continues deducting APE fees, employees may file a Request for Assistance, commonly called an RFA, through DOLE’s Single Entry Approach or SEnA.

SEnA is a mandatory conciliation-mediation process for labor and employment issues. DOLE describes it as a speedy, impartial, inexpensive, and accessible settlement procedure. Under current DOLE information, labor and employment issues covered by SEnA go through a 30-day mandatory conciliation-mediation period. (Sena Webb App)

An RFA may be filed by an aggrieved worker, a group of workers, or a union. It may be filed with the appropriate DOLE regional, provincial, or field office, or through the relevant DOLE online facility where available. (Sena Webb App)

Step 6: Consider a DOLE labor standards or OSH complaint

If the issue involves many employees, repeated deductions, unsafe workplace practices, or refusal to comply with OSH rules, DOLE may also exercise visitorial and enforcement powers. Under RA 11058, the Secretary of Labor and authorized representatives may inspect workplaces, examine records, investigate facts and conditions, and issue appropriate orders within their authority. (Lawphil)

For urgent health or safety risks, employees should not wait for payroll disputes to pile up. OSH concerns can be raised with DOLE, especially where there is a serious workplace hazard, lack of medical facilities, or retaliation against workers who report safety issues.

What If the Employee Refuses the Annual Physical Exam?

An employee should not ignore a valid company APE requirement. If the exam is reasonable, job-related, free, properly scheduled, and handled confidentially, refusal may lead to a memo or administrative process under company rules.

But the employee may have legitimate concerns, such as:

The employee is being asked to pay
The schedule falls on rest day without pay or adjustment
The clinic is too far and transport is not addressed
The test includes sensitive items not related to the job
HR wants full lab results without explanation
The employee has religious, medical, disability, or privacy concerns
The employee is afraid the result will be used for discrimination

In those situations, the better approach is not simply to refuse. The employee should ask for clarification in writing and propose a reasonable alternative, such as a company-paid clinic schedule, a fit-to-work certificate from the company doctor, or rescheduling within work hours.

A lawful order must still be implemented lawfully. The employer should not discipline an employee for questioning an unlawful deduction or asking how sensitive medical information will be handled.

Should the APE Be Done During Paid Working Time?

Philippine rules are clearer on who pays for the exam than on every possible scheduling arrangement. In practice, the safer and fairer approach is for a mandatory company APE to be scheduled during paid working time or with reasonable adjustment if done outside normal hours.

This is especially important for:

Night-shift BPO employees
Minimum wage workers
Employees assigned far from the clinic
Workers who must travel to the company clinic on a rest day
Employees whose pay is affected by being absent from production or operations
Agency workers or project employees who are told “no APE, no deployment”

A mandatory workplace medical exam should not cause an employee to lose wages or spend personal funds just to comply with the employer’s OSH requirement.

Common Real-Life Scenarios

“HR says the APE is mandatory but we must pay first and reimburse later.”

This is risky for the employer, especially for low-wage employees. If the exam is required, the company should ideally arrange direct billing with the clinic or provide a clear, prompt reimbursement process. Delayed reimbursement can effectively shift the cost to employees.

“The company says the APE is covered by HMO, but the clinic charged a co-pay.”

If the company requires the APE and selected the clinic or HMO process, the employer should address the co-pay issue. Employees should keep receipts and request reimbursement.

“The employer will not release clearance or final pay unless I pay the APE fee.”

A separation or clearance process should not be used to collect a questionable company-required medical exam fee. If there is a genuine, documented, lawful debt, that is a separate issue. But an employer-required APE cost should not simply be converted into a final pay deduction.

“I work from home. Can the company still require an annual physical exam?”

Yes, a work-from-home employee may still be required to undergo an annual physical exam if the policy is reasonable and applied consistently. But the employer should still shoulder the cost if the exam is required, and it should avoid unreasonable burdens such as requiring distant travel without practical arrangements.

“Can the employer require pregnancy testing?”

A pregnancy test is highly sensitive and should not be a routine requirement unless the employer has a very specific and lawful basis, such as a genuine safety concern involving exposure to hazards. It should never be used to deny employment benefits, pressure resignation, or discriminate against women.

“Can the employer require HIV testing as part of the APE?”

Mandatory HIV testing is a sensitive area and must comply with Philippine HIV law, consent, confidentiality, and anti-discrimination rules. Terminating an employee solely because of HIV status is unlawful under RA 11166, as emphasized by the Supreme Court in Bison Management Corporation v. AAA and Pernito. (Supreme Court of the Philippines)

“Can foreign employees in the Philippines be required to undergo APE?”

Foreigners employed in the Philippines are generally subject to Philippine labor and occupational safety rules for work performed in the country. A Philippine employer cannot avoid OSH obligations simply because the worker is a foreigner or because the company is foreign-owned, PEZA-registered, or part of an international group.

For overseas Filipino workers or workers deployed abroad, additional rules from foreign law, the employment contract, and Philippine migrant worker regulations may apply. But Philippine public policy, especially on health discrimination and worker protection, may still be relevant in disputes involving Philippine recruitment or employment relationships.

Practical Checklist for Employees

Before paying for a company-required APE, check the following:

Are you already an employee? If yes, a mandatory APE should generally be employer-paid.
Is the exam required by the company? If yes, ask for the company-paid clinic process.
Is there a salary deduction? Ask for the legal basis before signing any deduction authorization.
Is the exam job-related? Ask why special tests are needed if they seem unrelated to your work.
Who will see the results? Ask whether HR will receive only a fit-to-work certification.
Will the results be confidential? Medical records should be handled by health personnel and protected as sensitive information.
What happens if you are found unfit? Ask about reassessment, medical leave, restrictions, reassignment, or referral before assuming termination.
Do you have proof? Keep memos, receipts, payslips, and HR messages.

Frequently Asked Questions

Is an annual physical exam mandatory for employees in the Philippines?

It can be mandatory if it is part of a lawful occupational safety and health program, company policy, or job-related medical surveillance. Philippine OSH rules recognize periodic annual medical examinations, especially where needed to monitor employee health and workplace hazards.

Can my employer make me pay for my annual physical exam?

For existing employees, a company-required annual physical exam should generally be free to the worker. Required physical examinations under the Occupational Safety and Health Standards are part of workplace health compliance and must be rendered free of charge to workers.

Can my employer deduct the APE fee from my salary?

A mandatory APE salary deduction is generally questionable. Labor Code rules allow wage deductions only in limited situations, and an employer-required OSH medical exam is not normally an employee expense. (AMSLAW)

What if I signed an authorization allowing the deduction?

A signed form does not automatically make the deduction lawful. If the deduction shifts a required employer OSH cost to the employee, the employee may still question it. The surrounding facts matter, including whether the exam was mandatory, whether refusal affected employment, and whether the employee had a real choice.

Can I refuse the annual physical exam?

You should not refuse a valid, reasonable, company-paid, job-related APE without first asking for clarification. If your concern is cost, privacy, schedule, or irrelevant testing, raise those concerns in writing and ask for a lawful arrangement. Refusal of a valid company directive may lead to administrative action, but the employer must still act lawfully and observe due process.

Can the employer require me to submit my full lab results to HR?

Usually, HR should not need full medical results. Medical records should be handled by occupational health personnel and kept confidential. For many employment purposes, a fit-to-work certification or medical recommendation is enough.

What if the APE shows I have an illness?

An abnormal APE result does not automatically mean you can be dismissed. The employer should assess whether the condition actually affects your job and whether leave, treatment, reassignment, restrictions, or accommodation are possible. Termination due to disease has strict requirements under the Labor Code and implementing rules. (Labor Law PH Library)

Can the company include drug testing in the annual physical exam?

Drug testing may be required if it is part of a lawful drug-free workplace policy and is conducted under applicable rules on random testing, confidentiality, and proper procedure. It should not be used as an arbitrary or discriminatory tool. DOLE’s drug-free workplace rules recognize random drug testing in private establishments as part of workplace risk reduction, with confidentiality of results. (Supreme Court E-Library)

Is a pre-employment medical exam also free?

Not always. Pre-employment medical exams for applicants can be treated differently from annual exams for current employees. Some employers pay for them, some reimburse after hiring, and some require applicants to pay depending on the circumstances. But once the person is already an employee and the exam is required because of employment, the employer-payment rule is much stronger.

Where can employees complain about being charged for APE?

Employees may first raise the issue with HR, the company safety officer, the occupational health physician, or the OSH committee. If unresolved, they may file a Request for Assistance through DOLE’s SEnA process or raise an OSH/labor standards concern with the appropriate DOLE office. SEnA provides a 30-day mandatory conciliation-mediation mechanism for labor and employment disputes. (Sena Webb App)

Key Takeaways

Employers in the Philippines may require annual physical exams when they are reasonable, job-related, and part of workplace health and safety compliance.
For existing employees, a mandatory company APE should generally be paid by the employer, not the employee.
Required worker physical examinations under Philippine OSH rules must be free of charge to workers.
Salary deductions for APE fees are legally risky and may violate Labor Code limits on wage deductions.
Medical records and lab results must be handled confidentially and should not be used for discrimination.
A failed or abnormal APE does not automatically justify termination.
Employees should keep written proof, ask HR for the basis of any charge, request reimbursement, and use DOLE SEnA or OSH channels if the issue remains unresolved.