The provision
ARTICLE 284. Disease as ground for termination. An employer may terminate the services of an employee who has been found to be suffering from any disease and whose continued employment is prohibited by law or is prejudicial to his health as well as to the health of his co-employees: Provided, That he is paid separation pay equivalent to at least one (1) month salary or to one-half (1/2) month salary for every year of service, whichever is greater, a fraction of at least six (6) months being considered as one (1) whole year.
Key points
Article 284 (renumbered Article 299) allows an employer to terminate an employee found to be suffering from a disease whose continued employment is prohibited by law or is prejudicial to the employee's health or that of co-employees.
The employee is entitled to separation pay of at least one month's salary, or one-half month's salary for every year of service, whichever is greater, with a fraction of at least six months counted as one whole year. Implementing rules require a certification that the disease cannot be cured within six months. It is read with the other authorized-cause provisions.
The provision is an authorized cause, so termination does not stem from employee fault and carries separation pay. Implementing rules require a certification by a competent public health authority that the disease is of such nature, or at such a stage, that it cannot be cured within six months even with proper treatment; without that certification, a dismissal on this ground is not validly effected. It is read with the other authorized-cause provisions and with the procedural requirements for a valid termination.