**DOLE Ruling on Termination for Prolonged Sickness

(Philippine legal perspective, 2025 update)**

Important note: This article is written for academic‑informational purposes. Always obtain case‑specific advice from a Philippine labor‑law practitioner before acting on it.

1 Statutory Framework

Source	Key provision
Labor Code, Art. 299 [formerly 284] – “Disease as a cause for termination”	Allows dismissal when a competent public health authority certifies that (a) the employee is suffering from a disease and (b) continued employment is either prohibited by law or prejudicial to the employee’s or co‑workers’ health, and (c) the illness cannot be cured within six (6) months even with proper medical treatment.
Book VI, Rule I, §8 of the 2022 IRR (restates DO 147‑15, s.2015)	Implements Art. 299; prescribes dual‑notice procedure, separation‑pay formula, and the requirement that the certification come from a public (government) health authority (not a private physician).
Department Order 147‑15	Clarifies that termination for disease is an authorized cause (not a just cause); therefore, the 30‑day written notice to both the employee and the DOLE Regional Office is required unless the employee requests immediate release for health reasons.
OSH Law (RA 11058) & DO 198‑18	Employer’s general duty to maintain a safe workplace; may support temporary removal/reassignment instead of outright dismissal.
Anti‑HIV Law (RA 11166), Mental Health Act (RA 11036), Magna Carta for PWDs (RA 7277, as amended)	For certain diseases (HIV, mental disorders, disabilities) discriminatory termination is prohibited; employer must show that all Art. 299 elements still exist and that no reasonable accommodation is possible.

2 Substantive Requirements

Existence of a disease.
Competent public health‑authority certification stating that the disease (a) is incurable within six months even with proper medical treatment and (b) continued employment is prohibited or poses health risks.
* Who qualifies? Municipal/city/provincial health officer, DOH‑accredited government physician, or public specialist (e.g., PGH, NKTI).
No suitable alternative work can be provided without undue hardship to the employer.
Separation pay of at least one‑month salary or one‑half‑month salary per year of service, whichever is higher (a fraction ≥6 months is considered one full year).
Good‑faith implementation: no bad‑faith targeting, no circumvention of security of tenure.

3 Procedural Requirements (Due‑Process “Twin‑Notice”)

Step	Timing	Content
Notice #1: Exploratory/medical notice	Immediately after learning of the illness	① Inform employee of medical findings; ② advise on right to present own doctor’s certificate; ③ explain possible outcomes (leave, transfer, or dismissal).
Notice #2: 30‑day authorized‑cause notice	At least 30 calendar days before effectivity and copied to DOLE	① Definitive ground (Art. 299); ② citation of gov’t doctor’s certification; ③ effectivity date; ④ computation of separation pay; ⑤ reference to final clearance procedure.
Opportunity to be heard	Any reasonable time within the 30‑day period	Conference or written exchange; employee may submit contrary medical opinion.
Service of separation pay & Certificate of Employment	On or before last working day	Full pay, pro‑rated 13th month, convertible leaves, etc.

Failure to comply with either substantive or procedural requisites renders the dismissal illegal, entitling the worker to reinstatement (if fit) or full back‑wages plus nominal damages.

4 Key DOLE Issuances & How They Operate

DOLE Issuance	Practical effect
DO 147‑15 (Rules on Termination)	Forms the “rule‑book” for labor inspectors and hearing officers. Provides templates for Notice #2 and outlines the six‑month decisional period.
Labor Advisory 06‑20 (COVID‑19)	Stressed that COVID infection alone is not a ground for dismissal; instead, use paid isolation or leave. Shows DOLE’s preference for temporary measures first.
Labor Advisory 04‑22 (Mental Health)	Requires interactive process and accommodation before disease termination for mental disorders.
Regional Office Guidelines (e.g., NCR RO Memo 2023‑04)	Many DOLE‑NCR and Region III memos instruct labor inspectors to demand the public doctor’s certificate during routine inspections.

5 Supreme Court & NLRC Jurisprudence

Case	G.R. No. / Date	Doctrine / Lesson
Asian Transmission Corp. v. Carating	143023, Feb 27 2003	Employer must first obtain gov’t certification; private‑doctor diagnosis insufficient.
Jaka Food Processing v. Pacot	151378, Mar 10 2005	Even authorized causes require twin‑notice; absence thereof → nominal damages (₱50k, now usually ₱30k‑₱100k).
Maxi‑Security & Services v. Joaquin	196388, Apr 2 2014	Disease ground is distinct from just causes; employer cannot invoke Art. 297 (serious misconduct) when the real issue is illness.
Shangri‑La Hotels v. Olivar	220385, Jul 4 2016	Dismissal reversed where “incurability” not proven; employee’s private cardiologist showed recovery within six months.
Ingersoll‑Rand Phils. v. Court of Appeals	167622, Aug 10 2016	Separation pay applies even if dismissal later found valid; it is a statutory grant, not a form of damages.
Makati Development Corp. v. Bosque	229101, Jan 30 2019	Mental illness may justify dismissal only if tasks cannot be reasonably accommodated.

Trends: The Court is increasingly health‑centric, often remanding to NLRC for assessment of actual fitness. Employers who skip a DOH/City‑Health Officer certificate almost always lose.

6 Interplay with Social‑Security & Employee‑Benefit Schemes

SSS Sickness & Disability benefits – Termination does not bar continued SSS disability pensions.
PhilHealth “Z‑Benefit‑Package” – May reduce employer’s cost of treatment, relevant to the six‑month curability analysis.
HMO / Company Medical Plans – Still payable until effectivity date; denying coverage earlier triggers E‑R liability under Art. 117.

7 Employer Options Short of Dismissal

Option	Authority	When advisable
Medical leave of absence (paid or unpaid)	Art. 297(e) analog, company policy	Prognosis reasonably curable within six months.
Light‑duty or alternate work	DO 147‑15, §9	Illness incompatible only with current position.
Telework arrangement	Telecommuting Act (RA 11165)	Contagious but stable conditions.
Temporary closure / suspension	Art. 301; DO 147‑15, §12	Plant‑wide outbreaks; requires DOLE notice.

Employers who demonstrably consider these alternatives before invoking Art. 299 fare much better in litigation.

8 Separation‑Pay Computation Examples

Scenario	Years of service	Last daily wage	Separation pay
Rank‑and‑File Clerk	3 yrs 4 mos	₱650	Higher of: • ₱650 × 26 × 1 = ₱16 900, or • ₱650 × 26 × 3.5 × 0.5 = ₱29 575 → ₱29 575
Supervisor	13 yrs	₱1 200	0.5 month/yr × 13 = 6.5 months → ₱1 200 × 26 × 6.5 = ₱202 800
Manager (CBA has “one‑month per year” clause)	9 yrs	₱2 500	Apply CBA (more beneficial): 9 mos → ₱2 500 × 26 × 9 = ₱585 000

Include: pro‑rated 13th‑month, unused SL/VL, and tax‑exempt de minimis.

9 Common Pitfalls Seen by DOLE Auditors

Private‑doctor certificate only – Fail.
No 30‑day DOLE notice – Fail.
Certificate issued after the dismissal date – Fail.
No exploration of alternative work – May invite finding of constructive dismissal.
Employee placed on “indefinite sickness leave” but never terminated – Eventually converts to illegal suspension exposing employer to wage arrears.

10 Best‑Practice Workflow (Employer)

Obtain employee’s written consent → company‑initiated physical exam.
Refer to DOH‑accredited government physician for confirmatory evaluation; request opinion on six‑month curability.
Serve Exploratory Notice #1 + give copy of medical findings.
Interactive meeting with employee and union rep; discuss light‑duty options.
If incurability confirmed, serve 30‑day Twin Notice (employee & DOLE).
Compute statutory + CBA benefits; prepare quitclaim (voluntary).
Release pay & COE on final day; keep proof of payment and DOLE‑RO receipt‑stamp.

11 Employee Remedies

If dismissal is contested:

NLRC Complaint (4 yrs prescriptive) for illegal dismissal, back‑wages, reinstatement/ separation pay in lieu, damages.
Writ of Preliminary Reinstatement pending appeal (Art. 229).
SSS Total Disability Claim even while case is pending.
City Health Office re‑examination to rebut employer’s certificate.

12 Frequently Asked Questions

Question	Short answer
Must the employee exhaust sick leave first?	Not legally required but highly persuasive of employer good faith.
Can we waive DOLE notice if the worker consents?	No; DOLE must still be notified unless the employee initiates the termination (Art. 300).
Is cancer always “incurable within six months”?	No. Certain early‑stage cancers are curable; you still need the gov’t doctor’s prognosis.
How about tuberculosis?	DOH DOTS protocol predicts cure within 6 mos; usually not a valid ground if the worker complies with treatment.
What if the employee refuses medical exam?	Document the refusal, set deadlines, and warn that persistent refusal may constitute insubordination, not disease‑based dismissal.

13 Sample Templates (extracts)

30‑Day Authorized‑Cause Notice
Date: ___
To: Mr./Ms. ____
Pursuant to Article 299 of the Labor Code and based on the attached Medical Certificate dated ___ issued by Dr. ___, City Health Officer of ___, we regret to inform you that your employment with ___ will be terminated effective ___ (30 days hence). … [state separation‑pay computation] …

Certificate of Public Health Authority
Findings: The examinee is suffering from ____. In my professional opinion, the illness cannot be cured within six months even with proper medical treatment, and his/her continued employment as ____ is prejudicial to health.
Signed: Dr. ___, License No. , City Health Office‑.

(Full templates omitted for brevity.)

14 Key Take‑aways

Termination for prolonged sickness is an authorized cause that demands both strict medical proof and the 30‑day twin‑notice procedure (employee + DOLE).
A public health‑authority certificate and a clear “incurable within six months” prognosis are indispensable.
Courts and DOLE routinely side with employees whenever employers skip even one step, so document every move and explore reasonable accommodation first.
Separation pay always accrues—even when the dismissal is upheld.
Compliance with DOLE Department Order 147‑15 and the latest DOH clinical guidelines is the safest road to a legally defensible dismissal.