Notified means they and their manager were told that the sick leave taken exceeded the norm, there was no retaliation, just as a check of reasonableness of leave. I am not sure how longer duration illness were treated, may be put on short-term disability benefit.
I don't understand what notified means? Notified of termination? So each year the company measured which people had the most sick days, which would of course be those dealing with cancer treatments as such, and fired them? IF so, it is reminiscent of Jack Welch's notorious dictat to fire the 10% "at the bottom" each year.
No doubt I am misunderstanding the policy you are describing, which is why I am asking for clarification.