1) Why this topic matters

In the Philippines, persons with disability (PWDs) enjoy general labor protections under the Labor Code and related rules, plus specific anti-discrimination and reasonable accommodation rights under disability laws. In practice, disputes often arise when an employer claims a termination is for a “just” or “authorized” cause, while the employee argues the action is discriminatory, procedurally defective, or a pretext to remove a PWD employee.

This article lays out the controlling framework: (a) lawful grounds for termination, (b) procedural due process, (c) redundancy and separation pay, and (d) disability rights principles, including non-discrimination and accommodation—then ties them together into practical issues, computations, and remedies.

2) The governing legal framework (big picture)

A. Labor standards and security of tenure

Security of tenure means an employee may be dismissed only for:

Just causes (employee fault)
Authorized causes (business reasons or health reasons) and only with observance of due process.

B. Disability rights overlay

For PWDs, termination and workplace treatment are also judged through:

Non-discrimination rules (no adverse action “because of disability”)
Equal opportunity in employment
Reasonable accommodation (job adjustments enabling work, unless undue hardship)
Accessibility and inclusion commitments in the workplace

A termination that is nominally “authorized” (e.g., redundancy) can still be unlawful if disability discrimination is shown.

3) Lawful grounds for termination in the Philippines

A. Just causes (employee fault)

Typical grounds include serious misconduct, willful disobedience, gross and habitual neglect, fraud or breach of trust, commission of a crime against the employer or its representatives, and analogous causes.

Key points:

The employer bears the burden to show the employee committed the act and that it warrants dismissal.
For PWD employees, the employer must be careful not to treat disability-related conduct (e.g., limitations, symptoms, treatment schedules) as “misconduct” when it is actually a disability-related issue that should be addressed through accommodation or medical management.

B. Authorized causes (business reasons or health reasons)

Common authorized causes:

Redundancy
Retrenchment (to prevent losses)
Closure or cessation of business (not due to serious losses in some cases)
Installation of labor-saving devices
Disease (employee has a disease not curable within six months and continued employment is prejudicial to health or that of co-employees, and termination is supported by medical certification in the legally required manner)

PWD intersection: Some terminations are mislabeled as “authorized” to mask discriminatory motives. Redundancy and retrenchment, in particular, require real business justification and fair selection criteria.

PART I — REDUNDANCY (and why it’s often litigated)

4) Redundancy: concept and legal requirements

A. What redundancy is

Redundancy exists when a position becomes in excess of what is reasonably demanded by the employer’s operations. It is typically driven by:

Reorganization
Downsizing
Merger or consolidation
Reallocation of functions
Efficiency measures

Redundancy focuses on the job position being superfluous, not necessarily the employee’s performance.

B. Substantive requirements (validity)

For redundancy to be valid, employers generally need to show:

A genuine business decision to reorganize or streamline, in good faith
The redundancy is real, not simulated
The termination is necessary to the redundancy program
There are fair and reasonable criteria in selecting which employees are affected if not all employees in a classification are terminated

C. Procedural requirements

Redundancy is an authorized cause, so procedural due process includes:

Written notice to the employee and
Written notice to the Department of Labor and Employment (DOLE) served at least 30 days before the intended effectivity of termination.

Failure to comply with the notice requirement generally exposes the employer to monetary liability even if the cause is valid.

5) Fair selection criteria (crucial for PWD cases)

When redundancy affects only some employees, the employer should adopt objective criteria such as:

Efficiency / performance metrics (supported by records)
Seniority (length of service)
Fitness for the position
Less preferred status based on documented job requirements

Disability-rights caution: Selection criteria must not penalize disability (e.g., lower “attendance” because of medically necessary therapy or check-ups) unless the employer has:

explored accommodations, and
used a standard that is genuinely job-related and consistent with business necessity.

If a PWD employee is disproportionately selected without defensible, well-documented criteria, the redundancy may be attacked as a pretext for discrimination.

6) Separation pay in redundancy (computation and common issues)

A. Baseline rule

For redundancy, separation pay is typically:

At least one (1) month pay, or
One (1) month pay for every year of service, whichever is higher.

A fraction of at least six months is commonly treated as one whole year.

B. What counts as “one month pay”

“Month pay” is usually anchored on the employee’s latest salary rate and may include components considered part of the wage for separation pay purposes. Disputes arise on whether to include:

Regular allowances integrated into wage
Regularly paid benefits treated as wage equivalents
Commissions (if they are wage in nature and regularly earned)

Because payroll structures vary widely, employers and employees often litigate what should be included in the base.

C. Timing

Separation pay is expected to be paid at or around termination, subject to normal payroll processing, and reflected in final pay computations. Delays can create money claims and labor disputes.

D. Release and quitclaims

Employers often require a quitclaim in exchange for payment. Quitclaims may be scrutinized, especially if:

Consideration is unconscionably low
There is fraud, coercion, or undue pressure
The employee did not understand the waiver

For PWD employees, any indication of unequal bargaining pressure or lack of meaningful choice can weaken a waiver.

PART II — TERMINATION RULES THAT OFTEN AFFECT PWDs

7) Termination due to disease vs disability

A “disease” termination is an authorized cause with strict requirements, often misunderstood.

A. Disease termination essentials

A lawful disease-based termination typically requires:

The employee has a disease not curable within six months even with proper medical treatment, and
Continued employment is prejudicial to the employee’s health or that of co-workers, and
There is appropriate medical certification and observance of procedure.

B. Disease is not automatically a disability, and disability is not automatically a disease

A PWD may have a disability that is stable and compatible with work with proper accommodations.
A disease may be temporary or manageable.
Terminating simply because someone is a PWD (or perceived as one) is discriminatory.

Practical result: employers should not default to disease-based termination when accommodation or reassignment can address the concern.

8) Procedural due process: non-negotiable

A. For just causes: the “two-notice rule”

Typically:

Notice to explain (with details of the charge and opportunity to respond)
Notice of decision (with reasons after considering the response) plus an opportunity to be heard (which may be written or via hearing depending on context).

B. For authorized causes (including redundancy)

Typically:

30-day advance written notice to the employee and DOLE.

C. Disability-rights lens on due process

Process must be meaningful. In practice, this can include:

Communication in accessible formats when needed
Sufficient time for response if disability affects processing speed or comprehension (where reasonable)
Allowing a support person in discussions (where appropriate)

These are not “special favors”—they are part of ensuring equal access to the process.

PART III — DISABILITY RIGHTS IN EMPLOYMENT (PH)

9) Core protections for PWD employees

A. Non-discrimination in employment

Key principle: A PWD must not be treated less favorably in hiring, training, promotion, compensation, benefits, and termination because of disability.

Discrimination can be:

Direct: “We’re letting you go because you’re disabled.”
Indirect: A facially neutral policy that disproportionately harms PWDs (e.g., a rigid attendance rule) when reasonable adjustment could be made.
Failure to accommodate: Not providing reasonable workplace adjustments when needed to perform essential job functions.

B. Reasonable accommodation

Accommodation may include:

Modified work schedules for therapy or medical appointments
Accessible workplace facilities
Modified equipment or assistive devices
Reassignment to a vacant position the employee is qualified for (when appropriate)
Adjusted performance evaluation methods that focus on essential functions
Leave policies aligned with medical needs, within reason

Accommodation is not limitless. Employers may decline if it creates undue hardship—but that is not a vague claim. It should be supported by real cost/operational impact.

C. Equal opportunity and inclusion

PWD employment laws encourage integration into the workforce, and employers are expected to avoid policies that unnecessarily exclude.

10) How redundancy interacts with disability rights

A. Redundancy is not a free pass

Even if a redundancy program is facially legitimate, it can still violate disability rights if:

Selection criteria target or disadvantage PWDs without justification,
The employer ignores accommodation possibilities that would allow a PWD to remain employed, or
The redundancy is used to remove a PWD employee who has asserted rights (retaliation).

B. Common “pretext” indicators in PWD redundancy cases

These patterns tend to raise red flags:

Only the PWD employee in a unit is “redundant” despite others with similar roles retained
“Restructuring” happens only after the employee requests accommodation or files a complaint
The job reappears under a new title shortly after termination
No written reorganization plan, headcount analysis, or documentation exists
Selection criteria are invented after the fact, or applied inconsistently
Performance issues are mixed into redundancy without proper documentation and due process

C. Best-practice approach (compliance-oriented)

A compliant redundancy process typically includes:

A documented business rationale and organizational plan
Position analysis and headcount justification
Transparent, job-related selection criteria
Consideration of reassignment to available roles
Proper notices and timely separation pay
Clean documentation trail

PART IV — SEPARATION PAY AND MONEY CLAIMS IN PWD TERMINATIONS

11) Separation pay: when it applies and when it doesn’t

Authorized causes usually trigger separation pay (redundancy, retrenchment, closure in many instances, labor-saving devices, disease).
Just causes generally do not require separation pay (though there are exceptional equitable considerations in some situations, but they are not guaranteed and depend on case-specific equities).

For PWD employees, separation pay rules do not automatically increase because of disability, but liabilities can increase if discrimination or illegal dismissal is found (backwages, damages, attorney’s fees, etc.).

12) Illegal dismissal consequences (typical remedies)

A. Reinstatement and backwages

If dismissal is illegal, the usual labor remedy includes:

Reinstatement (without loss of seniority rights), and
Full backwages from dismissal to actual reinstatement (or finality of decision in certain configurations, depending on the remedy).

If reinstatement is no longer viable (strained relations, position abolition in good faith, or other recognized reasons), the remedy can shift to separation pay in lieu of reinstatement, plus backwages.

B. Monetary awards related to procedural defects

Even if a ground exists, failure to follow due process can lead to monetary liability.

C. Damages and attorney’s fees

If the dismissal is tainted by bad faith, discrimination, or oppressive conduct, additional awards may be imposed under labor and civil law principles and disability-rights statutes, depending on the proven facts.

PART V — SPECIAL ISSUES THAT COME UP A LOT

13) Probationary vs regular PWD employees

PWD status does not erase lawful probation rules, but it affects how performance and fitness are evaluated:

The employer must still communicate reasonable standards.
If performance gaps are disability-related and could be addressed by accommodation, the employer should engage in that process rather than simply terminating.

14) “Fitness to work” and medical exams

Medical evaluations should be:

Job-related and consistent with business necessity
Not used to screen out PWDs where accommodation would allow performance
Handled confidentially, with respect to privacy rights

15) Attendance, productivity, and “essential functions”

A central question in disability employment disputes is:

What are the essential functions of the job?
Can the PWD perform them with reasonable accommodation?

Policies that treat non-essential tasks as “essential” can become discriminatory when used to justify termination.

16) Mental health disabilities

Mental health conditions may qualify as disabilities and require accommodation (e.g., schedule adjustments, workload structuring, leave for treatment, modified supervision methods). Employers must be careful not to equate symptoms with misconduct without proper evaluation and accommodation analysis.

17) Remote work and hybrid arrangements

If remote work is feasible and already used in the organization, refusing it for a PWD employee who needs it may raise accommodation issues—especially where physical presence is not essential. Conversely, if physical presence is essential and remote work would undermine operations, an employer may have defensible grounds to deny it.

18) Harassment, hostile environment, and constructive dismissal

Termination is not the only actionable harm. If an employer makes working conditions intolerable so the employee is forced to resign, that can be treated as constructive dismissal. Disability-based ridicule, exclusion, or punitive scheduling can support such claims.

PART VI — HOW A PWD REDUNDANCY OR TERMINATION DISPUTE IS обычно ANALYZED

19) The decision tree lawyers and tribunals often follow

Step 1: Identify the claimed ground

Just cause? Authorized cause? Redundancy? Retrenchment? Disease?

Step 2: Test substantive validity

Is there credible evidence supporting the ground?
For redundancy: Is the position truly superfluous?
For disease: Are legal medical requirements met?

Step 3: Test procedural due process

Two notices (just cause) or 30-day notices to employee + DOLE (authorized)?
Was the employee given a real chance to respond?

Step 4: Overlay disability rights

Was the employee treated adversely because of disability?
Was there a failure to accommodate?
Were criteria neutral, job-related, and consistently applied?
Any retaliation for asserting rights?

Step 5: Determine monetary consequences

Separation pay due?
Backwages / reinstatement?
Damages / attorney’s fees?

PART VII — PRACTICAL GUIDANCE

20) For PWD employees: protective steps (without escalating unnecessarily)

Keep records of accommodation requests, medical recommendations, and communications.
Ask (in writing, politely) for the redundancy basis, selection criteria, and organizational changes.
Document how duties are redistributed or whether the role reappears.
Review final pay and separation pay computations carefully.
Be cautious with quitclaims signed under pressure or without understanding.

21) For employers: compliance practices that reduce legal risk

Create written accommodation processes and train managers.
Document redundancy planning and selection criteria before implementation.
Ensure criteria are job-related, consistent, and audited for adverse impact.
Explore reassignment to vacant roles where feasible.
Comply strictly with 30-day notices and final pay requirements.
Avoid retaliatory behavior after accommodation requests or complaints.

22) Key takeaways

Redundancy is lawful only when genuine, necessary, and fairly implemented.
PWD status adds a strong anti-discrimination and accommodation layer: even a valid business reason can become unlawful if used as a pretext or if reasonable accommodations are ignored.
Procedure matters: notice requirements are mandatory and failures are costly.
Separation pay in redundancy is typically the higher of one month pay or one month per year of service, with disputes often focusing on the correct “month pay” base.
Remedies can escalate from separation pay to reinstatement, backwages, and damages when illegality or discrimination is proven.