Bigger termination pay due to sickness eyed

A lawmaker is seeking a raise in the termination pay of employees separated from employment because of sickness.

Rep. Raymond Democrito Mendoza of Trade Union Congress of the Philippines party-list, author of House Bill 7023, or the proposal to increase the separation pay of employees with sickness, said the termination of ailing employees should be treated differently from the other causes of termination.

Mendoza cited that in terms of protecting employees’ right to security of tenure, the Labor Code of the Philippines lists and limits the authorized causes for employment termination.

Under Article 283, the employer may terminate employment or reduce the total number of personnel due to labor cost saving measures, redundancy and retrenchment to prevent losses or closure of the establishment according to Mendoza.

Mendoza explained that Article 284, on the other hand, allows termination on the ground of disease. He said in all the instances of authorized causes of termination, the separation pay ranges from payment of half month to one-month salary for every year of service.

Under House Bill 7023, the separation pay of terminated employees by reason of sickness shall be increased to the equivalent of at least six months or two months salary for every year of service, whichever is greater.

Also, it provides that a competent public health authority shall issue a certification that the disease is of such nature at such stage and that it cannot be cured within six months even with proper medical treatment before an employee can be terminated for this cause.

It mandates that should the terminated employee on such ground regain his health, he shall be entitled to reinstatement to his former position without loss of seniority. –Frank Lloyd Tiongson, Manila Times