A Comprehensive Discussion under Philippine Labor Law
I. Introduction
Annual physical examinations (APEs) are a common requirement in workplaces across the Philippines, serving as a means to monitor employees’ health and ensure fitness for continued employment. However, questions often arise as to whether employers may require employees to use their break time or leave credits—such as vacation or sick leave—for the conduct of such medical examinations.
This article examines the legal framework, jurisprudence, and labor standards governing APEs, focusing on the rights of both employers and employees under Philippine law.
II. Legal Basis for Annual Physical Examinations
1. Occupational Safety and Health (OSH) Standards
Under Department of Labor and Employment (DOLE) Department Order No. 198, Series of 2018, which implements Republic Act No. 11058 or the Occupational Safety and Health Standards Act, employers are mandated to ensure a safe and healthful workplace. This includes the obligation to provide free medical and health services, such as:
- Pre-employment medical examinations;
- Annual physical examinations (for continuing fitness); and
- Other necessary medical assessments related to work.
2. Employer’s Obligation
The conduct of an APE is therefore the employer’s responsibility, and the cost should be borne by the employer, not the employee. The examination is part of occupational health management, not a personal undertaking of the employee.
This means that the employer cannot legally deduct from the employee’s salary or leave credits the time spent for such mandatory examinations.
III. Use of Working Hours, Break Time, or Leave
1. APEs Conducted During Working Hours
If an annual physical exam is required by the employer, the time spent for it should be considered compensable working time. Under Article 84 of the Labor Code, working time includes “all time during which an employee is required to be on duty or to be at a prescribed workplace.”
Therefore, if an employee is required to report for an APE at a designated time and place, this is effectively time under the employer’s control, and must be treated as paid working time.
2. Break Time
Under Article 85 of the Labor Code, employees are entitled to a meal break of at least sixty (60) minutes, which is not compensable unless the employee is required to work during that time.
Employers cannot compel employees to undergo medical examinations during their meal or rest breaks, as this would constitute a deprivation of the employee’s statutory rest period. Doing so may be construed as an unlawful interference with employee rights and a violation of labor standards.
3. Use of Leave Credits
If the annual physical exam is mandatory, it should not be charged against the employee’s sick leave, vacation leave, or other leave credits. Requiring employees to use leave for an employer-mandated medical requirement contradicts the principle that APEs are an employer’s obligation under occupational safety and health laws.
However, if the APE is voluntary or employee-initiated (for example, the employee opts for an additional medical assessment beyond company requirements), then the employer may allow but not require the use of leave credits for such purpose.
IV. Practical Implementation and Company Policies
1. Scheduling and Coordination
Employers typically schedule APEs during regular working days, often on-site or at partner clinics. To minimize disruption, they may stagger schedules across departments. While flexibility is allowed, the employer must still ensure that employees do not lose compensation or benefits for participating in the APE.
2. Documentation and Consent
Employees should be informed in writing about the schedule, scope, and purpose of the APE. Under Republic Act No. 10173 (Data Privacy Act of 2012), medical results are confidential, and only authorized personnel may access them for legitimate occupational health reasons.
V. Jurisprudence and Administrative Guidance
While there is no Supreme Court case directly addressing the use of leave credits for APEs, DOLE policy interpretations and OSH enforcement guidelines consistently emphasize that medical examinations required by the employer form part of employer-initiated health programs.
Therefore, compelling employees to use break time or leave for APEs may be viewed as a violation of labor standards and could expose the employer to administrative penalties under the OSH Law.
VI. Summary of Key Rules
| Issue | Legal Treatment | Legal Basis |
|---|---|---|
| APE required by employer | Employer’s obligation | RA 11058; DO 198-18 |
| Cost of examination | Employer pays | OSH Standards |
| Time spent for exam | Compensable working time | Art. 84, Labor Code |
| Conduct during break | Not allowed; breaks must remain free | Art. 85, Labor Code |
| Use of leave credits | Not deductible if employer-mandated | DOLE practice; OSH principle |
| Employee-initiated checkup | May use leave credits with approval | Company policy discretion |
VII. Conclusion
In the Philippine labor context, annual physical examinations are an employer’s responsibility, both in terms of cost and time allocation. Employers cannot compel employees to use break time or leave credits for APEs that are required as part of occupational safety and health compliance.
To remain compliant, employers should ensure that:
- APEs are conducted on paid working time;
- Breaks and rest periods are respected; and
- Leave credits remain untouched unless the examination is voluntary.
This approach upholds both the employee’s welfare and the employer’s legal obligations under Philippine labor standards and occupational health laws.