Philippine labor law balances the employer’s right to expect full attendance and productivity with the employee’s fundamental right to health and protection from undue financial penalties when illness strikes. The rules on attendance deductions for employees who must leave work due to sickness derive primarily from the Labor Code of the Philippines (Presidential Decree No. 442, as amended), principles of “no work, no pay,” wage protection provisions, Department of Labor and Employment (DOLE) policies, Social Security System (SSS) regulations, and established jurisprudence from the Supreme Court and the National Labor Relations Commission (NLRC).

Legal Foundations

The 1987 Constitution (Article XIII, Section 3) guarantees full protection to labor and promotes just and humane conditions of work. The Labor Code operationalizes this through several key provisions:

Article 83 establishes the normal eight-hour workday. Work performed beyond or short of this is compensated or deducted accordingly.
Article 113 strictly limits wage deductions. Employers may not make deductions from wages except for SSS, PhilHealth, Pag-IBIG contributions, withholding taxes, union dues, or other deductions authorized in writing by the employee or required by law. Prorating pay for actual hours not worked due to sickness is not considered an illegal “deduction” but a proper computation of wages earned.
“No Work, No Pay” Principle: Firmly upheld in cases such as Philippine Airlines v. NLRC and San Miguel Brewery v. Democratic Labor Organization, this doctrine means employees are entitled to pay only for services actually rendered unless the absence is covered by authorized leave or company policy.

Sick leave itself is not statutorily mandated for the private sector under the Labor Code. Paid sick leave exists only when granted by:

Employment contract
Company policy or employee handbook
Collective Bargaining Agreement (CBA)
Voluntary employer practice that has ripened into company policy

Where no such benefit exists, absence due to sickness is generally without pay.

When an Employee Leaves Work Due to Sickness During the Day

An employee who feels ill and needs to leave before the end of the shift must follow these established rules:

Immediate Notification
The employee must promptly inform the supervisor or HR, preferably through official channels (phone, email, or messaging system with read receipt). Failure to notify may render the absence unauthorized, exposing the employee to disciplinary action and full prorated deduction.
Medical Documentation
- For absences of one day or less, many companies accept a self-certification or immediate medical consultation slip.
- For absences exceeding one day (or as specified in company policy), a medical certificate from a licensed physician is generally required. The certificate must state the nature of the illness, the date examined, and the recommended rest period.
- DOLE policy and NLRC decisions emphasize that the medical certificate serves as the best evidence of legitimate sickness. Employers may not arbitrarily disregard a valid certificate.
Approval and Charging to Leave
If the employer maintains a sick leave policy, the time absent is charged against the employee’s sick leave credits. While on approved sick leave, no deduction from pay occurs for the covered period.
If sick leave credits are exhausted or no policy exists, the employer may deduct pay corresponding to the actual hours (or fraction of the day) the employee was absent.

Computation of Deductions

Deductions must be proportionate to time actually missed:

Daily-rated or hourly-paid employees: Deduction equals the rate for the exact hours absent (e.g., leaving 3 hours early = deduction of 3 hours’ pay).
Monthly-paid employees: The hourly rate is typically computed as monthly salary divided by the total number of working hours in the month (usually 173.33 hours for a 5-day workweek or 208 hours for a 6-day workweek). Deduction is then applied to the hours missed.
Full-day deduction for partial absence: Generally disallowed if the employee rendered substantial work before leaving due to verified sickness. Courts and the NLRC have ruled that imposing a full-day penalty for a few hours of legitimate sickness constitutes an illegal deduction or undue penalty.

Employers may adopt a “no undertime” policy, but it must be reasonable, uniformly applied, and communicated in advance. Even then, a documented medical emergency usually warrants exception or charging to leave rather than outright penalty.

SSS Sickness Benefit

Separate from employer obligations, qualified SSS members may claim SSS Sickness Benefit:

Requires at least three months of contributions in the 12-month period before the semester of sickness.
Payable for up to 120 days per calendar year.
Minimum of four days of incapacity.
The daily benefit amount is 90% of the member’s average daily salary credit.
The employer is not required to pay the employee during the SSS-covered period unless the CBA or company policy provides for salary continuation. Many employers advance the pay and seek reimbursement from SSS where applicable.

Employees must notify the employer within five calendar days from the start of confinement (or as soon as practicable) and file the claim with SSS.

Special Situations

Contagious or Workplace-Related Illness: If the sickness is work-related (occupational disease) or the employer directs the employee to leave to prevent spread, the absence is often treated as paid or charged to company leave. Employers have a duty under the Occupational Safety and Health Standards to protect the workforce.
Pregnancy-Related Sickness: Covered under Republic Act No. 11210 (105-Day Expanded Maternity Leave Law) and related SSS rules. Any illness connected to pregnancy is treated as maternity-related and cannot be charged against ordinary sick leave.
Chronic or Recurring Conditions: Repeated absences require consistent medical documentation. Employers may require a fitness-to-work certificate upon return. Excessive absences, even with certificates, may be addressed through due process if they disrupt operations, but termination must be for just cause (serious misconduct or gross neglect) and after observance of twin-notice rule.
Public Sector Employees: Government workers under Civil Service Commission rules enjoy mandatory paid sick leave (15 days per year, cumulative). Deductions are rare when proper leave is filed.

Prohibited Practices

Employers violate the law when they:

Refuse to accept a valid medical certificate without reasonable grounds.
Impose full-day deductions for verified partial-day sickness absences.
Penalize the employee with demerits or disciplinary points solely for legitimate sickness without due process.
Deduct amounts exceeding the actual time missed.
Retaliate against employees who exercise the right to seek medical attention.

Such actions may be challenged before the NLRC as illegal deduction, underpayment of wages, or constructive dismissal.

Employer Best Practices

Maintain a clear, written sick leave and early-departure policy in the employee handbook.
Require immediate notification protocols.
Accept medical certificates from any licensed physician (unless the company has a retained physician for verification).
Apply deductions proportionally and transparently.
Allow charging to sick leave or vacation leave when available.
Provide wellness programs and flexible arrangements to reduce unnecessary absences.

Employee Obligations and Protections

Employees must:

Notify the employer at the earliest opportunity.
Submit required medical documentation.
Use the privilege in good faith; abuse (e.g., patterned absences) may lead to disciplinary measures.

Employees enjoy security of tenure. Legitimate sickness cannot be used as basis for termination without just cause and due process.

Philippine labor jurisprudence consistently favors a humane interpretation that protects workers from financial hardship caused by genuine illness while respecting the employer’s legitimate business interests. Policies and deductions must always align with the constitutional mandate for social justice and the protective spirit of the Labor Code.