Disciplinary Process for Habitual Tardiness and Absenteeism in the Philippines

A practical guide for HR professionals, employers, union leaders, and counsel

1. Why it matters

Tardiness and absenteeism eat into productivity and morale, but badly handled discipline can expose employers to illegal-dismissal suits—including full back-wages, reinstatement, and nominal damages for violating procedural due process. Philippine labor law therefore marries management prerogative with painstaking procedural safeguards.

2. Governing legal framework

Source	Key provisions relevant to tardiness/absenteeism
Labor Code of the Philippines (PD 442, as amended)	• Art. 297 [formerly 283] – Just causes for termination (“gross and habitual neglect of duties”) • Art. 292(b) – Requirements of twin-notice and hearing; due process
DOLE Department Order 147-15 (Implementing Rules on Termination)	Details the “substantive” vs “procedural” due-process steps, minimum contents of notices, and reasonable periods
Company rules & regulations (CRR) / CBA	Must be communicated to workers; serves as primary yardstick for what constitutes “habitual”
Civil Service Commission (CSC) Memorandum Circular No. 23, s. 1998	Applies to government employees; 30 cumulative minutes tardy in a month = one (1) count; six (6) counts in a year = dismissal
Jurisprudence	St. Luke’s Medical Center v. Notario (G.R. 195909, 2020); Mansion Printing v. Bitara (G.R. 168120, 2009); Supreme Steel v. Nagkakaisang Manggagawa (G.R. 240218, 2022) – elaborate on “habitual,” tolerance, and progressive penalties

3. What counts as “habitual”

The Labor Code itself is silent on a numeric threshold; “habitual” is gauged by:

Company policy / CBA – safest route; e.g., “≥ 3 absences in a rolling 6-month period without approved leave” or “tardiness totaling 60 minutes within 30 days.”
Case law – Courts have sustained dismissal for as few as 7–10 unexcused absences in four months, 14 instances of late arrival in six months, or an average of 2–3 days a month when warnings had been issued.
Reasonableness test – pattern must show recalcitrance, voluntariness, and impact on operations. One-off or medically-excused absences do not qualify.

Tip: When policy is ambiguous the scale usually tilts in favor of labor. Put the numbers in writing.

4. Substantive due process: Just cause

To validly terminate, the employer must prove (a) neglect of duty, (b) that it is gross and habitual, and (c) that neglect was the real cause of dismissal. Meticulous documentation is therefore indispensable:

Daily Time Records (DTR) / biometric logs - seal loopholes (no blank fields, signed, time-stamped server).
Leave forms & approvals/denials - show absence of authorization.
Production or service disruption reports - link employee’s absence to operational loss.
Prior warnings and counseling forms - establish habituality.

5. Procedural due process: The “twin-notice, one-hearing” rule

Step	Timeline*	Contents / Best practice
1. First Notice (Notice to Explain, NTE)	Within reasonable time ( ≤ 5 days from discovery)	a) Specific acts—dates, minutes late, or absence dates; b) Rule violated (cite CRR article & Labor Code art. 297); c) Directive: submit written explanation within ≥ 5 calendar days
2. Administrative hearing	Optional if written explanation is comprehensive or employee waives; mandatory if requested	Panel of 1–3 impartial officers; employee may bring union rep/counsel; minutes must identify issues raised.
3. Second Notice (Notice of Decision)	Issued promptly after evaluation, normally within 30 days of NTE	State findings of fact, rule violated, penalty imposed, effectivity date, and recourse (appeal/grievance machinery).

*No statutory rigid deadlines exist, but DO 147-15 and case law view “five (5) calendar days” as minimum opportunity to explain.

Failure to observe these steps constitutes procedural infirmity; employer may still win on validity of cause but owes nominal damages (₱30 000 is common).

6. Graduated penalties: “Totality of infractions” principle

Philippine labor jurisprudence prefers progressive discipline unless policy labels the act a terminable offense per se:

Verbal counseling
Written reprimand
Suspension (3–10 days; each instance must itself follow the twin-notice rule)
Dismissal

Past infractions—even those already penalized—may be tallied to demonstrate the employee’s disregard for rules, provided they are related in nature (tardiness with tardiness; absenteeism with absenteeism) and warnings clearly stated that repetition could lead to dismissal (Digital Telecommunications v. Ayapana, 2009).

7. Defenses typically raised by employees & how to address them

Common defense	Employer counter-strategy
“I had medical emergencies / family matters.”	Require contemporaneous proof: medical certificate, affidavit of family member. Evaluate flexibility or accommodation policies.
“Time-keeping device malfunctioned.”	Maintain audit logs, CCTV corroboration, supervisor attestations.
“Management condoned lateness before.”	Show recent policy re-issuance, evidence of consistent enforcement across peers.
“COVID-19 quarantine restrictions.”	Document government-issued quarantine passes, company-provided shuttle schedules, remote-work options extended.

8. Special situations

Flexible work arrangements (FWAs) & remote work – Clearly define “core hours” in the enrollment agreement; track log-ins/outputs instead of biometrics.
Unionized workforce – Check CBA’s grievance machinery; some classify “tardiness grievances” as arbitrable first.
Pregnant & PWD workers – Additional protections exist; denial of reasonable accommodation may shift liability to discrimination.
Government sector – CSC rules override; metric is “counts” not hours/days. Progressive penalties: reprimand, suspension, dismissal at 6 counts/year.

9. Documentation toolkit (suggested forms)

Notice to Explain – Tardiness Template (header, facts matrix, rule invoked, 5-day reply directive).
Employee Written Explanation Form (guided questions: reason, evidence, commitment).
Administrative Hearing Minutes (attendance, issues, exhibits, findings).
Notice of Decision (dispositive portion first; factual basis; legal basis).
Tardiness & Absence Tracker – Excel sheet with automated flag once threshold reached.

10. Practical compliance tips

Policy clarity – Re-issue your Attendance Policy annually; get employee acknowledgments.
Automation – Use biometrics linked to payroll; alerts sent to HR after threshold breach.
Consistency – Penalize rank-and-file, supervisors, and managers alike; inconsistency breeds claims of discrimination.
Humane approach – Explore EAPs (Employee Assistance Programs) for underlying causes (transportation, health, mental-wellness).
Record retention – Keep DTRs and notices for at least 5 years (statute of limitations on money claims).

11. Consequences of non-compliance

Violation	Potential liability
Substantive defect (no just cause)	Reinstatement + back-wages (full wage differential until actual reinstatement)
Procedural defect only	Nominal damages (₱10 000–₱50 000), but dismissal stands
Discriminatory enforcement	Moral & exemplary damages, attorney’s fees
Failure to pay final pay within 30 days	DOLE Labor Advisory 06-20 penalties

12. Checklist before imposing dismissal

Confirm numeric threshold in policy/CBA met.
Verify no pending leave approvals cover the dates.
Issue NTE within 5 days of discovery.
Allow ≥ 5 days for written explanation.
Conduct hearing or secure waiver.
Deliberate with unbiased panel; prepare findings.
Issue final notice stating effectivity date.
Process final pay & certificate of employment within 30 days if dismissed.
File termination report with DOLE Field Office (RKS Form 5) within 30 days.

13. Key take-aways

Define “habitual” in writing—do not leave it to the court’s imagination.
Follow the twin-notice rule religiously. Even minor lapses cost money.
Document every step. It's the employer’s burden to prove lawful dismissal.
Apply rules uniformly across all levels to avoid discrimination suits.
Balance discipline with support. Persistent lateness may signal deeper issues solvable through engagement, not litigation.

Need a sample NTE or tracker? Let me know—happy to draft templates tailored to your company’s policy language or bargaining agreement.