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PRELIMINARY TITLE
Chapter I
GENERAL PROVISIONS
Article 1: NAME OF DECREE
Article 2: DATE OF EFFECTIVITY
COMMENTS AND CASES
1. LABOR LEGISLATION; DEFINITIONS
Broadly divided into labor standards and labor relations
Labor standards law is that which sets out the minimum terms, conditions, and benefits of employment that
employers must provide and comply with and to which employees are entitled to as a matter of right.
Labor relations law is that which defines the status, rights and duties, and the institutional mechanisms, that
govern the individual and collective interactions of employers, employees or their representatives.
Labor is understood as physical toil, although it does not necessarily involve the application of skill. Skill, by
dictionary definition, is the familiar knowledge of any art or science, united with readiness and dexterity in
execution or performance or in the application of the science or art to practical purposes.
Work is broader than labor as work covers all forms of physical or mental exertion, or both combined, for
the attainment of some object other than recreation or amusement per se.
2. LABOR LAW AND SOCIAL LEGISLATION
Social legislation includes laws that provide particular kinds of protection or benefits to society or segments
thereof in furtherance of social justice. In that sense, labor laws are necessarily social legislation.
3. SOCIAL JUSTICE AS THE AIM
The aim, reason, and justification for labor laws is social justice.
Section 3 of Article XIII says that the State shall afford full protection to labor, local and overseas,
organized and unorganized, and promote full employment and equality of employment opportunities for all.
This is because without the improvement of economic conditions, there can be no real enhancement of the
political rights of the people.
4. CONSTITUTIONAL RIGHTS AND MADNESS
The basic rights of workers guaranteed by the Constitution are: the rights to organize themselves, to
conduct collective bargaining or negotiation with management, to engage in peaceful concerted
activities, including to strike in accordance with law, to enjoy security of tenure, to work under humane
conditions, to receive a living wage, to participate in policy and decision making processes affecting
their rights and benefits as may be provided by law.
4.1.Balancing of Rights; the Constitutional Principle of Shared Responsibility
While labor is entitled to a just share in the fruits of production, the enterprise has an equally
important right not only to reasonable returns in investment but also to expansion and growth. The
Constitution commands the State to promote the principle of shared responsibility between employers
and workers and the preferential use of voluntary modes of settling disputes, including conciliation, and
to enforce their mutual compliance therewith to foster industrial peace.
Constitutional outlook suggests a balanced treatment.
5. POLICE POWER AS THE BASIS
The right of every person to pursue a business, occupation or profession is subject to the paramount right of
the government as a part of its police power to impose such restrictions and regulations as the protection of
the public may require.
6. BIRTH OF THE LABOR CODE
Writing began under Blas Ople, Father of the Labor Code
The objective was not merely to consolidate the then existing pieces of social legislation, but also to reorient
them to the needs of economic development and justice.
7. PRINCIPLES UNDERLYING THE CODE
Must be both responsive and responsible to national development
Must substitute rationality for confrontation in times of national emergencies
Must be made expeditious without sacrificing due process
Manpower development and employment must be regarded as a major dimension of labor policy
Availability of a global labor market to qualified Filipinos
Must command adequate resources and acquire capable machinery for effective and sustained
implementation
There should be popular participation in national policy making through what is now called tripartism
8. SOME LABOR LAWS BEFORE THE PASSAGE OF THE CODE
Act 1874 or the Employers Liability Act
Act 2549 which prohibited payment of wages in non-cash form
RA 1054 which required emergency medical treatment for employees
Chapter II
EMANCIPATION OF TENANTS
Article
Article
Article
Article
Article
7: STATEMENT OF OBJECTIVES
8: TRANFER OF LANDS TO TENTN-WORKERS
9: DETERMINATION OF LAND VALUE
10: CONDITION OF OWNERSHIP
11: IMPMENTING AGENCY
COMMENTS AND CASES
1. LEGISLATIVE HISTORY
There is an acute imbalance in the distribution of land among our people. Hence, the Constitution of 1987 adopted
a whole article containing provisions for the uplift of the common people, thus: The State shall, by law, undertake
an agrarian reform program founded on the right of farmers and regular farmworkers, who are landless, to own
directly or collectively the land they till or, in the case of other farmworkers, to receive a just share of the fruits
thereof.
2. SHARE TENANCY ABOLISHED
RA 3844 abolished and outlawed share tenancy and put in its stead the agricultural leasehold system.
RA 6389, amending RA 3844, declared share tenancy as contrary to law and public policy.
The phasing out of share tenancy was the first step towards the ultimate status of owner-cultivator, a goal sought
to be achieved by the government program of agrarian reform.
3. CONSTITUTIONAL PROVISIONS
4. COMPENSATION SCHEME
Title to all expropriated properties shall be transferred to the State only upon full payment of compensation of the
respective owners.
5. RETENTION LIMITS
in no case shall retention by the landowner exceed 5 hectares.
6. LANDS NOT COVERED
6.1.Lands Obtained Through Homestead Patent
The Philippine Constitution respects the superiority of the homesteaders rights over the rights of the tenants.
Homestead Act has been enacted for the welfare and protection of the poor. The law gives a needy citizen a piece
of land where he may build a modest house for himself and his family and plant what is necessary for subsistence
and for the satisfaction of lifes other needs.
6.2.Residential
6.2.
Residential Subdivisions
An agricultural leasehold cannot be established on land which has ceased to be devoted to cultivation or
farming because of its conversion to a residential subdivision. (Gonzales vs. CA)
6.3.Livestock, Poultry and Swine Raising Lands
There is simply no reason to include livestock and poultry lands in the coverage of agrarian reform.
BOOK ONE
PRE-EMPLOYMENT
Article 12: STATEMENT OF OBJECTIVES
COMMENTS
1. THE UNEMPLOYMENT PROBLEM
In a list of 18 countries, the Philippines unemployment rate is the highest, at 10.2%, meaning more than
three million jobless.
The unemployment problem is exacerbated by population growth that appears unchecked.
2. THE DOLE: ITS RESPONSIBILITY
The Administrative Code mandates the DOLE to assume primary responsibility for:
a. The promotion of gainful employment opportunities and the optimization of the development and
utilization of the countrys manpower resources;
b. The advancement of workers welfare by providing for just and humane working conditions and terms of
employment;
c. The maintenance of industrial peace by promoting harmonious, equitable and employment relations that
assure protection for the rights of all concerned parties.
Title I
RECRUITMENT AND PLACEMENT OF WORKERS
Chapter I
GENERAL PROVISIONS
COMMENTS
1. COMPOSITION OF THE POEA
Article 24: BOARDS TO ISSUE RULES AND COLLECT FEES
Chapter II
REGULATIONS OF RECRUITMENT AND
PLACEMENT ACTIVITIES
Article 25: PRIVATE SECTOR PARTICIPATION IN THE RECRUITMENT AND PLACEMENT OF WORKERS
COMMENTS AND CASES
1. VALIDITY OF POEA REGULATIONS
Valid under the principle of subordinate legislation
1.2.POEA
1.2.
POEA Circular No. 11 (1983) Unenforceable
This circular has not yet been published or filed with the National Administrative Register, hence, cannot be used as
a basis for the imposition of administrative sanctions.
Article 26: TRAVEL AGENCIES PROHIBITED TO RECRUIT
COMMENTS
The POEA rules also disqualify persons with derogatory records such as those convicted for illegal recruitment or
other crimes involving moral turpitude, an official or employee of DOLE, POEA, OWWA, DFA and other government
agencies directly involved in the implementation of RA 8042 or any of their relatives within the fourth civil degree.
Article 27: CITIZENSHIP REQUIREMENT
Article 28: CAPITALIZATION
COMMENTS
The required capitalization, according to POEA rules, is a minimum of two million pesos in case of single
proprietorship or partnership and a minimum paid-up capital of the same amount for a corporation.
Article 29: NON-TRANSFERABILITY OF LICENSE OR AUTHORITY
COMMENTS
PLACE OF RECRUITMENT
Licensees or holders of authority or their duly-authorized representatives may, as a rule, undertake recruitment and
placement activities only at their authorized official address.
Under existing regulations, however, they may be allowed to conduct provincial recruitment only upon written
authority from the POEA.
Recruitment of workers for overseas employment cannot be lawfully undertaken on a house-to-house basis, in
residences, or secluded places.
Article 30: REGISTRATION FEES
Article 31: BONDS
COMMENTS AND CASES
The POEA possesses the power to enforce liability under cash or surety bonds.
These are means of ensuring prompt and effective recourse against such companies when held liable for applicants
and workers claims. (Finman General Assurance vs. Innocencio)
Article 32: FEES TO BE PAID BY WORKERS
COMMENTS AND CASES
1. CHARGEABLE FEES
Unless otherwise provided, the principal shall be liable to pay for the ff:
a. visa fee;
b. airfare;
c. POEA processing fee; and
(b) Illegal Recruitment, when committed by a syndicate or in large scale shall be considered an
offense involving economic sabotage and shall be penalized in accordance with Art. 39 hereof.
Illegal Recruitment is deemed committed by a syndicate if carried out by a group of three (3) or more persons
conspiring and/or confederating with one another in carrying out any unlawful of illegal transaction, enterprise or
scheme, defined under the first paragraph hereof. Illegal Recruitment is deemed committed in large scale if
committed against three (3) or more persons individually or as a group.
(c) The Secretary of Labor and Employment or his duly authorized representatives shall have the
power to cause the arrest and detention of such non-licensee or non-holder of authority if after investigation it is
determined that his activities constitute danger to national security and public order or will lead to further
exploitation of job-seekers. The Minister shall order the search of the office or premises and seizure of documents,
paraphernalia, properties and other implements used in illegal recruitment activities and the closure of companies,
establishments and entities found to be engaged in the recruitment of workers for overseas employment without
having been licensed or authorized to do so.
Now, under RA 8042, the abovementioned article has been amended to also include LICENSED or AUTHORIZED
entities; the list of ACTS CONSIDERED AS ILLEGAL RECRUITMENT has also been EXPANDED as found in SECTION 6, RA
8042:
Definition: xxx Illegal Recruitment shall mean any act of canvassing, enlisting, contracting, transporting,
utilizing, hiring, or procuring workers and includes referring contract services, promising or advertising for
employment abroad, whether for profit or not, when undertaken by a non-licensee or non-holder of
authority as contemplated under the Labor Code; Provided, that any such non-licensee or non-holder
who, in any manner, offers or promises for a fee employment abroad to two or more persons shall be
deemed so engaged. It shall likewise include the following acts whether committed by any person,
WHETHER A NON-LICENSEE, NON-HOLDER, LICENSEE OR HOLDER OF AUTHORITY:
a.) To change or accept directly or indirectly any amount greater than that specified in the
schedule of allowable fees prescribed by the DOLE Secretary, or to make a worker pay any
amount greater than that actually received by him as a loan or advance;
b.) To furnish of publish any false notice or information or document in relation to recruitment or
employment;
c.) To give any false notice, testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority under the Labor Code;
d.) To induce or attempt to induce a worker already employed to quit his employment in order to
offer him another unless the transfer is designed to liberate a worker from oppressive terms and
conditions of employment;
e.) To influence or attempt to influence any person or entity not to employ any worker who has not
applied for employment through his agency;
f.) To engage in the recruitment or placement of workers in jobs harmful to public health or
morality or to the dignity of the Republic of the Philippines;
g.) To obstruct or attempt to obstruct inspection by the DOLE Secretary or by his duly authorized
representative;
h.) To fail to submit reports on the status of employment, placement vacancies, remittance of
forex earnings, separation from jobs, departures and such other information as may be required
by the DOLE Secretary;
Persons Liable: Principals, Accomplices, and Accessories; for Juridical Persons: the officers HAVING CONTROL,
MANAGEMENT, OR DIRECTION of their business
General Rule: Employees who have no control, do not manage nor direct the business may not be held liable;
UNLESS, it is shown that such employees ACTIVELY AND CONSCIOUSLY PARTICIPATED in the illegal recruitment
LACK OF RECEIPTS: will not defeat the purpose of criminal prosecution AS LONG AS THE WITNESSES CAN POSITIVELY
SHOW THROUGH THEIR RESPECTIVE TESTIMONIES that the accused was the one involved in the prohibited
recruitment; credible testimonies suffice
ECONOMIC SABOTAGE: IR committed by syndicate and IR committed in large scale; each is an independent and
separate category that can stand on their own and need not coincide or concur within the same case
ESTAFA: CONVICTION for Illegal Recruitment is not a bar for filing suit against such person for ESTAFA under the
RPC as long as the requisites for said felony are present
THE POWER TO ISSUE SEARCH AND ARREST WARRANTS AS FOUND IN ART. 38 (C) DEEMED UNCONSTITUTIONAL see
Salazar v. Achacoso and Marquez, G.R. No. 81510, March 14, 1990
- under the Constitution (Art. III, Sec. 2, 1987 Constitution) only a judge may issue a warrant of arrest or a
search warrant
- the Secretary of Labor is not a judge hence is no longer granted the power to issues said warrants.
Authorities must now undergo judicial process
- Exception: Deportation or Illegal and Undesirable Aliens Casesthe President or the Commissioner of
Immigration may order arrested following a final order of deportation for the purpose of deportation
SUBJECT TO ARREST: Illegal Recruiters are still subject to arrest, upon compliance with the procedure as provided
for by law namely through a warrant of arrest issued by a judge of an RTC where a criminal information was filed
after preliminary investigation; also RULES ON WARRANTLESS ARRESTS under Rule 113, Section 5 of the ROC may
still apply to illegal recruiters when they fall under the circumstances enumerated therein; WARRANTLESS
SEARCHES: INCIDENTAL to lawful arrest; PLAIN VIEW; with INDIVIDUALS CONSENT
CLOSURE ORDER: DOLE Secretary or his duly authorized representative still has power or authority to issue and
order closure of illegal recruitment establishes, this being an ADMINISTRATIVE and REGULATORY action; Issuance
after an ex parte preliminary examination to determine whether the activities of a non-licensee constitute a
danger to national security and public order or will lead to further exploitation of job seekers
PROCEDURE FOR CLOSURE: Rules Secs. 14 27; these cover the POEAs Anti-Illegal Recruitment Programs;
Provision for Legal Assistance; Complaints Desk; Surveillance; Issuance of Closure Order; Implementation of Closure
Order; Report on CO, Institution of Criminal Action; Motion to Lift CO; Who may file such Motion; Grounds for
Lifting or Re-opening; Appeal and Re-padlocking of Office
Art. 39 - PENALTIES
() The penalty of life imprisonment and a fine of One Hundred Thousand Pesos (P100,000) shall be imposed if illegal
recruitment constitutes economic sabotage as defined herein;
() Any licensee or holder of authority found violating or causing another to violate any provision of this Title or its
implementing rules and regulations shall upon conviction thereof, suffer the penalty of imprisonment of not less
than two years nor more than five years or a fine not less than P10,000 nor more than P50,000, or both such
imprisonment and fine, at the discretion of the court;
() Any person who is neither a licensee nor a holder of authority under this Title found violating any provision thereof
or its IRRS shall, upon conviction thereof, suffer the penalty of imprisonment of not less than four years nor more
than eight years or a fine not less than P20,000 nor more than P100,000 or both such imprisonment and fine, at the
discretion of the court;
() If the offender is a corporation, partnership, association, or entity, the penalty shall be imposed upon the officer
or officers of the corporation, partnership, association, or entity responsible for the violation, and if such officer is
an alien, he shall, in addition to the penalties herein prescribed, be deported without further proceedings;
() In every case, conviction shall cause and carry the automatic revocation of the license or authority and all the
permits and privileges granted to such person or entity under this Title, and the forfeiture of the cash and surety
bonds in favor of the Overseas Employment Board or the National Seamen Board, as the case may be, both of
which are authorized to use the same exclusively to promote their objectives.
VENUE (Sec. 9, RA 8042): Criminal Action arising from IR shall be filed with the REGIONAL TRIAL COURT of the
province or city WHERE THE OFFENDED PARTY ACTUALLY RESIDES AT THE TIME OF THE COMMISSION OF THE
OFFENSE
MANDATORY PERIODS for Resolution of IR cases (Sec. 11, RA 8042): terminate within 30 days from date of filing:
preliminary investigation; file information within 24 hours from termination of investigation; file information within
48 hours from the date of receipt of case records if preliminary investigation conducted by judge and prima facie
case is established
PRESCRIPTIVE PERIODS (Sec. 12, RA 8042): General IR: five (5) years; IR involving Economic Sabotage: twenty (20)
years
RESIDENT ALIENS: NOT required to have employment permits; instead, they need an ALIEN EMPLOYMENY
REGISTRATION CARD (AERC)
NATIONALIZED INDUSTRIES and the ANTI-DUMMY LAW (C.A. no. 108 as amended by PD715) Foreigners may not be
employed in certain nationalized industries; law provides and subjects reservation of ownership and control of
such corporations to the 60% requirement, i.e. public utility, natural resources; financing companies; however,
media and advertising requires 100% Filipino ownership and management (Consti)
DOJ OPINION 143, series 1976: provides instances when aliens may be allowed to engage in employment within
nationalized industries: a.) where the DOJ Secretary specifically authorizes the employment of foreign technical
personnel, or, b.) where the aliens are elected members of the Board of Directors or governing body of
corporations or associations in proportion to their allowable participation in the capital of such entities
DEPARTMENT ORDER no. 12, SERIES 2001: Omnibus Guidelines for the Issuance of Employment Permits to Foreign
Nationals; the following are required to apply for an Alien Employment Permit (AEP):
1.) All foreign nationals seeking admission to the Philippines for the purpose of employment;
2.) Missionaries or religious workers who intend to engage in gainful employment;
3.) Holders of Special Investors Resident Visa (SIRV), Special Retirees Resident Visa (SRRV), Treaty Trades Visa,
or Special Non-Immigration Visa, who occupy any advisory, supervisory, or technical position in any
establishment;
4.) Agencies, organizations, or individuals whether public or private, who secure the services of foreign
professional to practice their professions in the Philippines under reciprocity and international agreements;
5.) Non-Indo Chinese Refugees who are asylum seekers and given refugee status by the UN High Commissioner on
Refugees (UNHCR) of the DOJ under the DOJ Department Order no. 49, 1998.
6.) Resident foreign Nationals seeking employment in the Philippines (see D.O. no. 21-02 which suspends until
further notice the requirement for Resident Foreign Nationals to secure AEP)
D.O. 12-01 further, EXEMPTS the following from AEP requirements:
1.) All members of the diplomatic services and foreign government officials accredited by the Philippine
Government;
2.) Officers and staff of the international organizations of which the Philippine government is a cooperating
member, and their legitimate spouses desiring to work in the Philippines;
3.) Foreign nationals elected as members of the Governing Board who do not occupy any other position, but
3.) Foreign nationals elected as members of the Governing Board who do not occupy any other position, but
have only voting rights in the corporation, and
4.) All foreign nationals granted exemption by special laws and all other laws that may be promulgated by
Congress
BOOK TWO
HUMAN RESOURCES DEVELOPMENT
TITLE I:
MANPOWER DEVELOPMENT PROGRAM
CHAPTER 1
NATIONAL POLICIES AND ADMINISTRATIVE MACHINERY FOR THEIR IMPLEMENTATION
Articles 43 56; pertaining to National Manpower and Youth Council has been replaced and absorbed by the TESDA
(Technical Education and Skills Development Authority) created under RA7796 which was approved on August 25, 2994.
For the complete copy of Republic Act 7796: The TESDA Act of 1994,
see Appendix II-1 of Azucenas Labor Book
For the complete copy of the Implementing Rules for R.A. 7796,
see Appendix II-1.1. of Azucenas Labor Book
Declaration of Policy: It is the declared policy of the State to provide relevant, accessible, high quality and efficient
technical education and skills development in support of the development of high quality Filipino middle-level
manpower responsive to and in accordance with Philippine development goals and priorities.
Private Sector Participation The State shall encourage the active participation of various concerned sectors,
particularly private enterprises, being direct participants in and immediate beneficiaries of a trained and skilled
workforce, in providing technical education and skills development opportunities.
TITLE II TRAINING AND EMPLOYMENT OF SPECIAL WORKERS
Chapter 1: APPRENTICES
Art. 57 Statement of Objectives
Art. 58 Definition of Terms
As used in this Title: a.) Apprenticeship means any practical training on the job supplemented by related theoretical
instruction; b.) An Apprentice is a worker who is covered by a written apprenticeship agreement with an individual
employer or any entities recognized under this Chapter; c.) An Apprenticeable Occupation means any trade, form of
employment or occupation which requires more than three (3) months of practical training on the job supplemented by
related theoretical instruction; (see R.A. 7796) d.) Apprenticeship Agreement is an employment contract wherein the
employer binds himself to train the apprentice and the apprentice in turn accepts the terms of training.
Art. 59 Qualifications of an Apprentice
To qualify as an apprentice, a person shall:
(a) Be at least fourteen (14) years of age; (but under the IRR, its 15 years)
(a) Be at least fourteen (14) years of age; (but under the IRR, its 15 years)
(b) Possess vocational aptitude and capacity for appropriate tests; and
(c) Possess the ability to comprehend and follow oral and written instructions.
Trade and industry associations may recommend to the Secretary of Labor appropriate educational requirements for
different occupations.
Art. 60 Employment of Apprentices
Apprenticeship is the arrangement and the period when an upcoming worker undergoes hands-on training, more or
less formal, to learn the ropes of a skilled job. It is usually the point of entry to the world of work.
Department Order no. 8; March 9, 1989 DOLE Policy on Apprenticeship; by virtue of which, the DOLE is required to
undertake the review of trades, occupation, and jobs in all sectors of the economy to determine the
apprenticeability, after which it shall submit a list of apprenticeable occupations.
The apprenticeable age under this Article is 14, but under the IRR, its 15, now under R.A. 7610 there is an explicit
prohibition on employment of children below 15 years of age, although the said law recognizes certain exceptions,
an apprenticeship is not included in the enumeration.
Art. 61 Contents of Apprenticeship Agreements
Art. 62
Art. 63
Art .64
Art. 65
Art. 66
Art. 67
Art. 68
Art. 69
Art. 70
Art. 71
Art. 72
Implementing Rules (Section X, Rule 14) provide, in relation to Art. 72: There is no employer-employee relationship
between students on one hand and schools, colleges or universities, on the other, where there is a written
agreement between them under which the former agree to work for the latter in exchange for the privilege to
study free of charge, provided the students are given real opportunities, including such facilities as may be
reasonable and necessary to finish their chosen courses under such agreement.
- Filamer Christian Institue v. Hon. Intermediate Appellate Court, et a, (G.R. no. 75112) August 17, 1992
- Section 14, Rule X, Book III of the IRR of the Labor Code was promulgated by the Secretary of Labor and
Employment only for the purpose of administering and enforcing the provisions of the Labor Code on
conditions of employment. Particularly, Rule X of Book III provides guidelines on the matter by which the
powers of the Labor Secretary shall be exercised; on what records should be kept or maintained, etc Rule X
is merely a guide to the enforcement of the substantive law on labor. The case does not deal with a labor
dispute on conditions of employment between an alleged employer and employee reliance of petitioner on
the IRR is misplaced. An IRR on labor cannot be used by an employer as a shield to avoid liability under the
substantive provisions of the Civil Code.
Chapter II LEARNERS
Art. 73 Definition
Learners are persons hired as trainees in semi-skilled and other industrial occupations which are non-apprenticeable
and which may be learned through practical training on the job in a relatively short period of time which shall not
exceed three (3) months.
Art. 74 When Learners may be hired
Learners may be hired when:
a.) no experienced workers are available,
b.) the employment of learners is necessary to prevent curtailment of opportunities; and
c.) the employment does not create unfair competition in terms of labor costs or impair or lower working
standards.
Art. 75 Learnership Agreement
Any employer desiring to employ learners shall enter into a learnership agreement with them, which agreement shall
Any employer desiring to employ learners shall enter into a learnership agreement with them, which agreement shall
include:
a.) the names and addresses of the learners;
b.) the duration of the learnership period, which shall not exceed three (3) months;
c.) the wages or salary rates of the learners which shall begin at not less than seventy-five (75%) percent of the
applicable legal minimum wage; and
d.) a commitment to employ the learners if they so desire, as regular employees upon completion of the
learnership. All learners who have been allowed or suffered to work during the first two (2) months shall be
deemed regular employees if training is terminated by the employer before the end of the stipulated period
through no fault of the learner.
The learnership agreement shall be subject to inspection by the Secretary of Labor, or his duly authorized
representatives.
Art. 76 Learners in Piecework
Learners employed in piecework or incentive-rate jobs during the training period shall be paid in full for the work
done.
Art. 77 Penalty Clause
Any violation of this Chapter or its IRRs shall be subject to the general penalty clause provided for in this Code.
Learnership v. Apprenticeship:
BOTH: Training periods for jobs requiring skills that can be acquired through actual work experience; both
learner and apprentice may be paid wages twenty-five (25%) percent lower than the applicable legal minimum
wage
Learnership
- training in semi-skilled
job; industrial occupations
that require training for
less than 3 months
- job is non-apprenticeable
because its practical skills
can be learned in 3 (not 6)
months
- commitment to hire a
learner after the period
- no need for prior
approval from DOLE in
terms of hiring
Apprenticeship
- training in highly-skilled
job; job found in highlytechnical industry; training
period exceeds 3 months
- minimum period is 6
months
- no commitment to hire
an apprentice even after
completion of period
- prior DOLE approval
required
for
hiring
apprentices
The MAGNA CART FOR DISABLED PERSONS- Republic Act no. 7277, March 24, 1992 insures equal opportunities for
disabled persons and prohibits discrimination against them
Book 3
Conditions of Employment
Title I
Working Conditions and Rest Periods
Chapter 1
HOURS OF WORK
predominantly for the employers benefit or for the emmployees; considered as working time if waiting is an
integral part of his work or if the employee is required or engaged by an employer to wait
not compensable if completely freed from duites even though he remains in the workplace
Working while sleeping may be considered working if it is subject to interruption or takes place under conditions
Working while eating
compensable; within reach through cellphone or other contact device not compensable
compensable; within reach through cellphone or other contact device not compensable
Travel from home to work not worktime EXCEPT when employee receives an emergency call outside of his regular
on call
working hours and is required to travel to his regular place of business or some other work site, all of the time
spent in such travel is working time
travel away from home travel that keeps an employee away from home overnight; worktime
attendance at lectures, meetings, training programs and other similar activities not considered worktime if it is
outside employees regular working hours, it is voluntary, and the employee does not perform productive work
during such attendance
time spent in grievence meetings considered worktime
regular full-time teachers are entitled to salary and emergency cost-of-living allowance during semestral breaks
(UPang Faculty Union vs UPANG)
a laborer need not leave the premises of the workplace in order that his rest period shall not be counted; it is
enough that he ceases to work (case in point: seamen)
hours worked: employer has burden of proof
Chapter II
WEEKLY REST PERIODS
Art. 91 Right to weekly rest day
rest period of not less than 24 hours after every 6 consecutive normal work days
Art. 92 When employer may require work on a rest day
1. necessary to prevent loss of life or property or in case of imminent danger to public safety due to
impending emergency caused by accidents, fire, flood, typhoon, earthquake, epidemic, or other disaster
or calamity
2. urgent work to be performed on the machines, ect. In order to avoid loss or damage to employer
3. abnormal pressure of work due to special circumstances, where the employer cannot ordinarily be
expected to resort to other measures
4. prevent loss or damage to perishable goods
5. nature of work requires continuous operations and stoppage of work may result in irreparable injury or
loss to the employer
6. similar circumstances as determined by DOLE Sec.
Art. 93
Chapter III
HOLIDAYS, SERVICE INCENTIVE LEAVES, AND SERVICE CHARGES
Art. 94 Right to (Regular) Holiday
100% addl compensation
10 regular holidays
1. New Year (Jan.1)
2. Maundy Thursday
3. Good Friday
4. Araw ng Kagitingan (Apr 9)
5. Labor Day (May 1)
6. Independence Day (Jun 12)
7. National Heroes Day (Last Sunday of Aug)
8. Bonifacio Day (Nov 30)
9. Christmas Day (Dec 25)
10. Rizal Day (Dec 30)
11. Eidul Fitras - 1st day after 30-day fasting period
12. Eidul Adha regl holiday in the ARMM
Muslim Holidays
shall be observed in the provinces of Basilan, Lanao del Norte/ Sur, Maguindanao, North Cotabato, Sultan
Kudarat, Sulu, Tawi-tawi, Zamboanga del Norte/Sur, cities of Cotabato, Iligan, Marawi, Pagadian, and
Zamboanga, and in such other Muslim provinces and cities as may be created. Upon proclamation by the
President, Muslim holidays may also be officially observed in other provinces and cities
PP 1198 all private corps, offices, and agencies operating within the provinces and cities enumerated
1.
2.
3.
4.
5.
herein shall observe the legal holidays as proclaimed, provided, that all Muslim employees working
outside of the Muslim provinces and cities shall be excused from work during the observance of Muslim
holidays as recognized by law, without diminution of salary during said period
Both Muslim and Christian employees within the Muslim areas may not report for work on the designated
Muslim holidays
amun jadid (new year)
mauled-un-nabi (birthday of Mohammed)
lailatul isra wal mi rai (nocturnal journey and ascension of the Prophet Mohammed)
id-ul-fitr (hari raja pausa) end of fasting season
id-ul-adha (hari raha haji)
covered employees are entitled to at least 200% of their basic wage even if said holiday is
employer-school is exempted from paying hourly paid faculty members their pay for regular holidays, whether
the same be during the regular semester or during semestral, Christmas, or Holy Week vacations
employer-school must pay said faculty members their regular hourly rate on days declared as special holidays
or for some reason classes are called off or shortened for the hours they are supposed to have taught, whether
extension of class days be ordered or not; in case of extensions said faculty mems shall likewise be paid their
hourly rates should they teach during said extension (JRC vs NLRC)
field personnel not entitled to holiday pay
Art. 95 Right to Service Incentive Leave
coverage: every employer who has rendered at least 1 year of service shall be entitled to a yearly SIL of 5
days with pay
SIL not applicable to those already enjoying the benefit herein provided, those enjoying vacation leave with
pay of at least 5 days, and those employed in establishments regularly employing less than 10 employees
1 year of service service within 12 months, whether continuous or broken, reckoned from the date the
employee started working, including authorized absences and paid regular holidays, unless the number of
working days in the establishment as a matter of practice or policy, or provided ini the employment contract
is less than 12 months, in which case said period shall be considered as 1 year for the purpose of determining
entitlement to the SIL
SIL of part-time workers proportionate to the daily work rendered and the regular salary, respectively
(DOLE Explanatory Bulletin dated January 2, 1996)
on contract workers entitled to SIL
Commutation of SIL valid; basis of conversion shall be the salary rate at the date of commutation; availment
and commutation of the SIL benefit may be on a pro-rata basis
SIL is mandatory
Vacation and sick leaves are voluntary benefits
Leave credits are normally converted into their cash equivalent based on the last prevailing salary received
by the employee
Paternity leave available only for the 1st four deliveries of the legitimate spouse with whom the husband is
cohabiting; delivery includes childbirth, miscarriage, or abortion
woman gives birth as result of rape or crime against chastity, provided she keeps and raises the child
spouse has died
spouse is detained or is serving sentence for at least 1 year
legally separated or de facto separated for at least 1 year, provided s/he is entrusted with custody
physical/mental incapacity of spouse
abandoned by spouse for at least 1 year
unmarried mother/father
7. unmarried mother/father
8. any other person who solely provides parental care and support to a child
9. any family mem who assumes the responsibility of head of family
Art. 96 Service Charges
covered employees
Art. 97 - Definitions:
a. person
b. employer
c. employee
d. agriculture
e. employ
f. wage
g. fair and reasonable value
WAGE applies to the compensation for manual labor, skilled or unskilled, paid at
stated times, and measured by the day, week, month, or season
indicates inconsiderable pay for a lower and less responsible character of employment
includes sales commissions
includes facilities (include articles or services for the benefit of the employee or his family but shall not
include tools of the trade or articles or service primarily for the benefit of the employer or necessary to
the conduct of the employers business) or commodities (employer may provide them but he may deduct
their values from the employees wages
distinguish facilities from supplements (criterion: purpose)
Agricultural work
if highly mechanized and carries on processing activities not merely incidental to purely farming operations,
deemed industrial employees
Agri and non-agri prescribed by the Regional Tripartite Wages and Productivity Boards
MINIMUM WAGE
-
lowest wage rate fixed by law that an employer can pay his worker
adopted to reduce the evils of the sweating system
raises standard of competition among employers
employers ability to pay is immaterial; cant exempt himself to pay minimum wages
acceptance by an employee of the wages paid him without objection does not give rise to
estoppel precluding him from suing for the difference between the amount received and the
amount he should have received pursuant to a valid minimum wage law
bonus is an amount granted and paid to an employee for his industry and loyalty which contributed to the
success of the employers business and made possible the realization of profits; bonus is not a demandable and
enforceable obligation BUT it is when made part of the wage or salary or compensation
equity or long practice as basis of bonus even if bonus is not demandable; long and regular concession; fixed
equity or long practice as basis of bonus even if bonus is not demandable; long and regular concession; fixed
hope
services rendered as basis of bonus right is not defeated by a release and quitclaim upon termination
(Marcos v NLRC redundancy benefits))
reduction of bonus not diminution of benefits; no profit, no bonus. Granting of bonus is basically a
management prerogative (Traders Royal Bank v NLRC)
bonus as productivity incentives; employees share is in the nature of salary bonus proportionate to increases
in current productivity over the average for the preceding 3 consecutive years; bonus is not gratuity but the
computed result of joint planning and effort; claimable only on the basis of predefined output level
PD 851 13
-
TH
MONTH PAY
issued during the Martial Law, requires all employers to pay their rank-and-file employees
receiving a basic salary of not more than P1000 a month, regardless of the nature of employment,
th
a 13 month pay not later than December 24 of every year
th
President Aquino removed the P1000 ceiling, entitled to 13 month pay all rank-and-file
employees, regardless of salary rate, but still excluding managerial or supervisory employees
equivalent (i.e. Christmas bonus, mid-year bonus, profit-sharing payments, and other cash
bonuses amounting to not less than 1/12 of the basic salary but shall not include cash and stock
dividends, cost-of-living allowances and all other allowances enjoyed by the employees, as well
th
as non-monetary benefits) or bonuses may be credited as 13 month pay (Natl Federation of
Sugar Workers v Ovejera year-end productivity bonus of 1/12 of basic salary plus difference)
If the CBA did provide for bonus in graduated amounts depending on the length of service of the
employee, bonus provided in the CBA was meant to be in addition to the legal requirement
(Universal Corn Products v NLRC graduated Christmas bonus)
th
Absence of an express provision in the CBA obligating the employer to pay the employees a 13
th
month pay is immaterial; PD 851 is mandatory, 13 month pay is deemed written in contract
th
Supplements or other employees benefits or favorable practice not substitute for 13 month pay
th
Computation of 13 month pay 1/12 of basic salary within a calendar year
Basic salary include all remunerations or earnings paid by an employer to an employee for
services rendered but may not include cost-of-living allowances, profit-sharing payments and all
allowances and monetary benefits which are not considered or integrated as part of the basic
salary of the employee;
overtime pay and other remunerations are excluded as part of basic salary and in the
th
computation of the 13 month pay (San Miguel Corp v Inciong)
commissions are included or excluded, depending on what kind of commissions are involved; if
wage-or-sales-percentage type [intimately related to the extent or energy of an employees
th
endeavors], includible in the 13 month pay computation (Phil. Duplicators v NLRC); if profitsharing or productivity bonus type [something extra for which no specific additional services are
rendered by any particular employee], excluded (Boie-Takeda Chemicals v Dela Serna)
th
employees w/ guaranteed wages/commissions entitled to 13 month pay based on their total
earnings during the calendar year on both their fixed and guaranteed wage and commissions
(Phil. Agricultural and Industrial Workers Union v NLRC drivers and conductors)
commissions recompense, compensation, reward of an employee, agent, salesman, executor,
broker or bailee, when the same is calculated as a percentage on the amount of his transactions
or on the profit of the principal
teachers overload pay performed during or within the 8 hours in a day [the load in excess of the
normal load of private school teachers as prescribed by DECS or the policies, rules, and standard
of particular private schools; work in excess of the regular teaching load; may be performed
th
within or outside 8 hours in a day] part of basic pay for computing 13 month pay
an employee who has resigned or whose services were terminated at any time before the time for
th
payment of the 13 month pay is entitled to this monetary benefit in proportion to the length of
time he worked during the year, reckoned from the time he started working during the calendar
year up to the time of his resignation or termination from service (Intl School of Speech v NLRC)
th
distressed employer may be exempt from paying the 13 month pay only upon prior authorization
from Labor Sec (Dentech Manufacturing Corp v NLRC)
th
difference of opinion on how to compute the 13 month pay does not justify a strike
th
nonpayment of 13 month pay is not an issue of unfair labor practice but one of money claim
PD 851 only applies to private employers and their employees; no intention to cover persons
working in the govt service (Alliance of Govt Workers v Minister of Labor and Employment)
1.
2.
3.
4.
5.
6.
7.
8.
9.
1. holiday pay
2. 13th month pay (if he has rendered at least 1 month work or service during the calendar year)
Variant Jurisprudence on Piece-rate workers entitlement to statutory benefits
a. Makati Haberdashery v NLRC
Held:
- workers are regular employees although paid on piece-rate basis
- entitled to minimum wage
- as regular employees, they can claim cost-living allowances, 13th month pay
- not entitled to service incentive leave pay and holiday pay because they fall under one of the
exceptions stated in Section 1(d), rule 5, Implementing Regulations, Book 3, Labor Code for being
paid at a fixed amount for performing work irrespective of time consumed in the performance
thereof
b. Labor Congress v NLRC
Held:
- piece-rate employees are entitled to night shift differential, holiday pay, service incentive leave,
th
premium pay, and 13 month pay because they do not fall within the group of workers who are
field personnel and other employees whose time and performance is unsupervised by the
employer, including those who are engaged on task or contract basis, purely commission basis, or
those who are paid a fixed amount for performing work irrespective of the time consumed in the
performance thereof.
- entitled to overtime pay if their output pay rate is not shown to be in accordance with the
standards prescribed under the Implementing Rules [Rule 7-A, Sec.5] or by the Secretary of Labor
- further, piece workers are specifically mentioned as being entitled to holiday pay (Sec 8-B, Rule
4, Book 3)
- Revised Guidelines on the Implementing of the 13th Month Pay Law, in view of the modifications
to P.D. 851 by Memorandum Order No. 28, clearly exclude the employer of piece-rate workers
th
from those exempted from paying the 13 month pay
- Entitled to overtime pay because respondent company did not allege adherence to the standards
set forth in Sec 8, Rule 7, Book 3
Summation of benefits payable to Piece-rate workers
minimum wage
service incentive leave of 5 days with pay
night differential pay
holiday pay
meal and rest periods
overtime pay (conditional)
premium pay (conditional)
th
13 month pay
other benefits granted by law, by individual or collective agreement or company policy or practice
IF output rates conform with the standards prescribed by the Labor Code, employer is not required to grant
the piece-rate workers the benefits under the Rule on Hours of Work nor to pay the wage differentials if their
daily earnings do not amount to the applicable statutory minimum daily wage.
Chapter III Payment of Wages
Where the employee alleges non-payment of wages and/or commission, the employer has the burden to prove
payment.
Jimenez et al v. NLRC (1996)
Facts:
Employee Juanatas sued for full payment of his 20% commission of the gross income. There were cash advances
may by the employee as evidenced by a notebook presented by the employer.
Held:
Although the employer submitted a notebook showing the alleged vales, the same is inadmissible considering the it
is not properly accomplished undated, unsigned and is thus uncertain as to its origin and authenticity.
The employer has the burden of proof to establish full payment of wages.
The Implementing Rules require every employer to keep a payroll showing length of time to be paid, the pay rate,
amt actually paid, etc. The employee should sign the payroll
Art. 103. Time of Payment
Art. 104. Place of Payment
Place of Payment
GR should be near place of undertaking
E 1. Payment cannot be effected at or near the place of work:
epidemic or
Co. A engaged in resto business concludes contract with const co. B which in turn hires the services of another
contractor C to handle certain aspect of construction project. B & C hires people.
GR Employer-employee relationship (see Art 82)
Bet B and his workers
Bet C and his workers
A is not an employer to B or C
to their respective groups of workers
E employment arrangement unlawful
A is indirect employer
D.O. 18-02
Contracting or subcontracting as an arrangement whereby a principal agrees to put out or farm out with a
contractor or subcon the eprformance or completion of a specific job, work or service within a definite or
predetermined period, regardless of whether such job, work or service is to be performed or completed within or
outside the premises of the principal.
4 features of legit contracting
i. Parties principal enters into a contract with subcon.
ii. Specific Job performance or completion of a specific job, work or service
iii. Period definite or predetermined period
iv Location performed within or outside principals premises
1.3 Trilateral relationship
3 parties principal, contractor and contractual employees
Bet principal and contractor Civil code & pertinent commercial law
Bet contractor & employee Labor code and special labor laws
contractor does not exercise control over the performance of the employees
L.o.C. by presumption of law a full-pledged legitimate labor contractor has to be registered with DOLE, otherwise
he is presumed to be an L.o.C.
Substantial capital or investment capitalization, tools, eqpt, implements, machineries and work premises, actually
and directly used by the contractor or subcon in performance or completion of the jobm work or service contracted
out.
Neri v. NLRC (1993)
Law does not require both substantial capital and investment in the form of tools, eqpt, machineries, etc.
Filipinas Synthetic Fiber v. NLRC (1996)
Where the contractor is a going concern duly registered with the SEC with substantial capitalization of P1.6M,
P400T of which is actually subscribed, such contractor cannot be considered as engaged in LoC being a highly
capitalized venture.
Control right reserved to the person for whom the service of contactual workers are performed, to determine not
only the end to be achieved but also the manner and means to be used in reaching that end.
Insular Life v. NLRC (1989)
The fact that the complainant worker was required to solicit business exclkusively for the alleged employer could
hardly be considered as control in labor jurisprudence. Under the memo issued by the Insurance Commission,
insurance agents are barred from serving more than 1 insurance company.
AFP MBAI v.NLRC (1997)
Exclusive servicing does not necessarily mean being under the control, or employment of the entity being served.
2.1 Consequence of LoC Worker supplied by Agency becomes employee of client company
2.1 Consequence of LoC Worker supplied by Agency becomes employee of client company
PBCOM v. NLRC (1986)
There is of course nothing illegal about hiring persons to carry out a specific project or undertaking the completion
or termination of which (was) determined at the time of the engagement of the employee, or where the work or
service to be performed is seasonal in nature and the employment is for the duration of the season.
Given te circumstances of this case, CESI was engaged in LoC vis--vis the petitioner bank. The bank is liable to the
employee as if the employee had been directly employed not only by CESI but also by the bank. But the bank may
in turn proceed against CESI to obtain reimbursement of, or some contribution to, the amounts which the bank will
have to pay to Orpiada.
2.2 Consequence of LoC Agency hired employee becomes entitled to benefits under CBA of client company
Tabas v. California Manufacturing Co (1989)
The existence of an employer-empoyee relation is a question of law and being such, cannot be made the subject of
agreement.
Employee is reinstated with the full status and rights of regular employees; all benefits as may be provided by
existing CBA or other relations or by law.
3. Summary of prohibited labor contracting
4. 2nd set of prohibitions Arrangements that violate public policy (DO 18-02)
Not LoC but are likewise prohibited because they contravene public policy:
Prohibitions:
a) Contracting not done in good faith and not justified by the exigencies of the business and the same results in
the termination of regular employees and reduction of work hours or reduction or splitting of the bargaining
unit
b) Contracting with cabo
c) Contracting with in house agency
d) Contracting bec of strike or lockout
e) Contracting that constitutes ULP under Art 248
5. 3RD set of prohibitions Exploitative acts
Taking undue advantage of the economic situation or lack of bargaining strength of the contractual employee or
undermining his security of tenure or basic rights, or circumventing the provisions of regular employment, in any
of the ff instances:
i)
in addition to his assigned functions, requiring the contractual employee to perform functions done by
regular employees
ii)
Requiring him to sign as a precondition to employment/continuance: antedated resignation letter; blank
payroll; waiver of labor standards incl min wage, social or welfare benefits; quitclaim
iii)
Contract with period of employment shorter than term of contract bet principal & contractor/subcon,
unless contract is divisible into phases for w/c substantially different skills are reqd & this known to
employee at time of engagement
6. Extent of employer;s liability in invalid contracting and violation of other pohibitions
Liability is immediately and directly imposed upon the principal, as if directly hired by the employer. (Broadway
Motors v. NLRC)
Rosewood Processing
If the liability is in the nature of a penalty, such as backwages and separation pay because of a wrongful dismissal,
the liabilithy should be solely that of the contractor if there is no proof that the principal conspired with the
contractor in committing the wrongful dismissal of the contractors worker.
7. Legitimate Contracting Independent Contractor/Job Contracting
Legitimate when the ff circumstances concur:
i)
Contractor carries on a distinct and independent business & undertakes to perform job, work or service on its
own account and under its own resp, accdg to its own manner and method and free from the control and
direction of the principal in all matter connected with the perf of work except as to the results thereof
ii)
Contractor has substantial capital or investment
iii)
Contractual agreement assures contractual employees entitlement to all labor, occupational safety and
health standards, right to self organization, security of tenure, social and welfare benefits.
In legitimate or valid contracting, what is contracted is the performance of a job and the contractor is an
independent businessman capable of doing the job by his own means and methods. (Andovo v. MRR)
An independent contractor is one who exercises independent employment and contracts to do a piece of work
accdg to his own methods and without being subject to control of his employer except as to the result of the work.
(Mafinco Trading v. Ople)
independent
Commission Agent
Insular Life v. NLRC
Under the contract, Basiao is not an employee of Insular life but a commission agent, an independent contractor
whose claim for unpaid commissions should have been litigated in an ordinary civil action.
Messengerial/Janitorial Service
Rhone-Poulenc Phils v. NLRC
The respondents themselves admitted that they were selected and hired by CSI and were assigned to Union Carbide.
[Union Carbide was bought by Rhoune Poulenc.]
The janitors drew their salaries from CSI which exercised control over them. Moreover, CSI had the power to assign
its janitors to various clients and to pull out.
Independent Operator
Ushio v. NLRC
Severino is one of those independent, free lance operators who offer services to customers of auto parts shops
along Banawe.
The power to control the employees conduct is absent, with respect to the means and methods by which his work
was to be accomplished.
Private respodent was free to offer his services to other stores along Banawe.
7.1 Judicial Notice of Job Contracting
Neri v. NLRC
Judicial notice of general practice adopted in govt & privateinstitutions of hiring independent contractings to
perform special services janitorial, security or even technical or other specific services.
8. A manpower company may be a LoC in one case but an independent contractor in another
Coca Cola Bottlers v. Hingpit
st
In 1 case, it failied to prove that Lipercon has substantial capital, investment, tools, etc. In present case,
Lipercon established its character as an independent contractor.
Escario v. NLRC
In earlier case of Tabas v. CMC, Livi was determined to be an LoC. But reliance of Tabas case is misplaced because
Livi was a mere placement agency that had simply supplied CMC with manpower necessaru tp carry oiut the
companys merchandizing activity.
But in this case, applying the 4-fold test in determining employer-employee relationship, the status of Admark as
the true employer of the petitioners is further established.
9. Extent of Principals liability in legit contracting
Contractor considered to be the employer of the contractual employee for purposes of enforcing the provisions of
the Labor cCode and other Social legislation. (DO 18-02)
The principal shall be solidarily liable with the contractor in the event of any violation of the provisions of the Labor
Code, including failure to pay wages. (DO 18-02).
(PBCOM v. NLRC)
Legislated wage increases are deemed amendments to the contract. (Rosewood Processing; also NFA)
9.2 As to other violations
Under DO 18-02, Sec 7 par 1, indirect employer is solidarily liable.
Rosewood Processing v. NLRC
Liability does not extend to the payment of backwages and separation pay of employees who were constructively or
illegally dismissed by thec ontractor no showing that principal conspired in effecting illegal dismissal.
An order to pay backwages and separation pay is invested with a punitive character such that an indirect employer
should not be made liable without a finding that it had committed ot conspired in the illegal dismissal.
Solidary Liability - Limitation to extent of work performed under contract, to perf of any work, task job or
project, to extent of their civil liability on payment of wages.
10. Rights of contractual employees
Contractual employees entitled to all rights and privileges due a regular employee as provided under labor code to
include:
a) safe and healthgul working conditions
b) Labor standards
c) Social security and welfare benefits
d) Self organizations, CBA, peaceful concerted action
e) Security of Tenure
10.1 Security of Tenure
In case of pre-termination of contract bet principal & contractor governed by applicable laws
Expiration of contract bet principal & contractor not entitled to separation pay
11. Registration of Contractors
Registration of contractor with DOLE regional office.
An unregistered contractor is presumed to be a labor-only contractor.
Art. 110 Worker Preference in case of bankruptcy
Worker preference in case of bankruptcy
Prereq- declaration of bankruptcy or judicial liquidation of employers business
st
Unpaid wages earned prior to declaration/liquidation shall be given 1 preference for payment, even ahead of claims
of govt.
Preference even to claims of govt for taxes (DBP v. NLRC)
Coverage of Preference
Termination pay, separation pay, all other monetary claims.
Art. 111 Attys Fees
Attorneys fees
1. Attys fees assessed
b. cases of unlawful withholding of wages
c. arising from CBA negotiations
(Reahs Corp)
2. Awarded Attys fee may not exceed 10%, but between lawyer and client quantum meruit may apply (TRB EU v.
NLRC)
3. Non lawyers not entitled to attys fees (Five J Taxi v. NLRC)
4. Since the union president is not the lawyer for the workers, he cannot be allowed
to share in the atty fees.
(Amalgated Laborers Assoc v. CIR)
5. Pao Lawyers
PAO lawyers disqualified from being awarded atty fees (Lambo v. NLRC)
Chapter IV Prohibition Regarding Wages
Art. 112. Non-interference in disposal of wages
Payment to 3 person
Authorized in writing by employee
Employer agrees to make deduction
Employer must not receive any pecuniary benefit, directly or indirectly from transaction.
Art. 114. Deposits for Loss or Damage
Art. 115. Limitations
Deductions for Loss or Damage
(1) employee clearly shown to be responsible for loss or damage
(2) employee given ample opprotunity to show cause why deduction should not be mde
(3) deduction fair and reasonable and shall not exceed actual loss or damage
(4) deduction not exceed 20% of employees wages in a weel
Deductions for absences
Deductions for unpaid absences are allowed.
Illegal Deposit
Art. 114 provides the rule on deposits for loss or damage to tools, materials or eqpt supplied by employer. It does
not permit daily deposits which taxi drivers are required to make to defray any shortage in their boundary. No
Showing that the DOLE Sec recognized such deposit as a practice in taxi industry. Hence illegal. (5-J Taxi v.
NLRC)
Art. 116 Withholding of wages and kickbacks prohibited
Art. 117. Deduction to Ensure employment
Art. 118 Retaliatory Measures
Are retaliatory measures (Art 118) striakeable?
Acts under Art 118 are broad, and can lead to a ULP case if employer retaliated against testifying employee. If
ULP, striekable.
Reprisal for Silent Testimony
Art 118 equally applies to implicit or unspoken testimony by an employee.
Art. 119. False Reporting
Composed of:
DOLE Regional Director
NEDA Regional Director
DTI Regional Director
2 workers
2 employers
While the RTWPB has the power to issue wage orders under Art 122 (b) of the Labor Code, such orders are subject to
the guidelines prescribed by the National Wages and Productivity Commission (NWPC), who has the power to prescribe
the rules and guidelines for the determination of appropriate wages in the country.
Where employer contests finding of labor standards and welfare officers and
Raises issues which cannot be resolved without considering evidentiary matters
That are not verifiable in the normal course of inspection.
Regional director can enforce a labor standards law even if the compliance issue is not raised in the complaint.
(Aboitiz Shipping v. dela Serna)
See also Univ of Immaculate Conception case
But Regional director without authority to declare an order or law unconstitutional; only duty to enforce the laws,
which stands valid.
Sexual Harassment
RA 7877
Victim may be male or female.
Elements: DRR AIMA
Demand/Request/Require sexual favor
Authority, influence or moral ascendancy over victim
Article
Article
Article
Article
Article
Article
156:
157:
158:
159:
160:
161:
FIRST-AID TREATMENT
EMERGENCY MEDICAL AND DENTAL SERVICES
WHEN EMERGENCY HOSPITAL NOT REQUIRED
HEALTH PROGRAM
QUALIFICATIONS OF HEALTH PERSONNEL
ASSISTANCE OF EMPLOYER
COMMENTS
The Implementing Rules in Book IV, Rule I, provide details additional to those in the above codal provisions:
Coverage: The Rule shall apply to ALL employers whether operating for profit or not, including the Government
and any of its political subdivisions and government-owned or controlled corporations, which employ one or
more workers
Bureau of Dental Health Services of DOH: in charge of the development of dental standards
Definition:
o First Aid Treatment ADEQUATE, IMMEDIATE, and NECESSARY, medical and dental attention or remedy
given in case of injury o sudden illness suffered by a worker during employment, irrespective of whether
or not such injury or illness is work-connected, BEFORE more extensive medical and/or dental treatment
can be secured. It does not include continued treatment or follow-up treatment for any injury or illness.
o Workplace OFFICE, PREMISES or WORKSITE where the workers are HABITUALLY employed and shall
include the office or place where the workers who have no fixed or definite worksite REGULARLY REPORT
for assignment in the course of their employment.
o First Aider any person trained and duly certified as qualified to administer first aid by PHILIPPINE
NATIONAL RED CROSS or any other organization accredited with the former.
Medicines and Facilities:
o An employer shall keep in or about his workplace firs-aid medicines, equipment and facilities prescribed
by the Department of Labor 5 days from issuance of regulation
o The list may be revised anytime by the Bureau of Labor Standards, subject to approval of the Secretary of
Labor.
Emergency Medical and Dental Services:
Number of
Employees
Hazardous
Non-Hazardous
Graduate First-aider, and may be one
10 to 50 in a of the workers in the workplace AND
workplace
who has immediate access to the firsaid medicine prescribed in Section 3
Exceeds 50 but Full-time
Full-time
Firstnot more than Registered Nurse aider IF a Nurse is
200
not available
Full-time Registered Nurse
Part-time Physician
Part-time Dentist
Exceeds
200
Emergency Clinic
but not more
than 300
The Physician and the dentist shall
stay in the premises for at least 2
hours a day.*
Full-time
Full-time
Nurse
Registered
Full-time
Nurse
Part-time
Physician
Full-time
Physician
Part-time
Exceeds 300
Dentist
Dental
Dentist
Clinic and Shall have same
Infirmary
responsibilities as
OR
those provided in
Emergency previous box
Hospital
with One
bed
capacity
for every
100
workers
The
Physician
and the Dentist
shall stay in the
premises of the
workplace for at
least 8 hours a
day*
*Where the establishment has more than one
workshift a day, the required two-hour stay shall be
devoted to the workshift which has he biggest
number of workers and they shall, in addition to the
requirements of this Rule, be subject to call at
anytime during the other workshifts to attend to
emergency cases.
** In all workplaces where there are more than one
workshift in a day, the employer shall, in addition to
the requirements of this rule, provide for the
services of a full-time first-aider for each workshift.
Emergency Hospital: An employer need not put up and emergency hospital or dental clinic in the following
situations:
o Urban Area where there is a hospital or dental clinic not more than 5 kilometers away from the
workplace OR which can be reached by motor vehicle in 25 minutes of travel
o Rural Area - the employer has facilities readily for transporting a worker to the hospital or clinic in case
of emergency
o The employer must enter into a written contract with the hospital or dental clinic for the use thereof in
the treatment of workers in case of emergency.
Training and Qualifications of Medical and Dental Personnel:
Personnel
First-aider
Nurse
Physician
Dentist
Requirements
Must be able to read
and write
Completed a course in
first-aid duly certified
by the National Red
Cross or any other
organization
accredited by the same
Passed
the
examinations given by
the Board of Examiners
Duly
licensed
to
practice nursing in the
Philippines
and
preferably
with
at
least 50 hours of
training
in
occupational
nursing
conducted by
o DOH
o Institute
of
Public Health of
UP; OR
o Any organization
accredited
by
the former
Passed the
examination given by
the Board of Examiners
Licensed to practice
medicine in the
Philippines
Preferably a graduate
of a training course in
occupational medicine
conducted by the
o Bureau of Labor
Standards
o Institute of
Public Health of
UP
o Or any
organization
accredited by
the former
Passed
the
examinations given by
the Board of Examiners
Licensed to practice in
the Philippines
Preferably
has
completed a training
course in occupational
dentistry conducted
o Bureau of Dental
Services of DOH
o OR
any
organization
duly accredited
by the former
Coverage: The Rule shall apply to ALL establishments, workplaces and other undertakings except:
o Those engaged in land, sea and air transportation
Provided: that their dry docks, garages, hangars, maintenance and repair shops and offices, shall
be covered by this Rule
o Residential places exclusively devoted to dwelling purposes
*GR: Department of Labor has jurisdiction to inspect all establishments, workplaces and undertakings.
Exception: Chartered cities may be allowed to assume responsibility for technical safety inspection upon
compliance with such standards and guidelines as the Secretary of Labor may promulgate
*Technical Safety Inspection includes inspection for purposes of safety determination of boilers, pressure,
wheels, internal combustion engines, elevators (passenger and freight), dumbwaiters, escalators, and electrical
installations in all workplaces.
Work Condition not covered by standards: Any specific standards applicable to a condition, practice, means,
method, operation, or process shall also apply to other similar work situations for which NO specific standards
have been established.
Training of Personnel in safety and Health: Every employer shall take steps to train a sufficient number of his
supervisors or technical personnel in occupational safety and health.
Number of
Employees
Training
Hazardous
50 to 400 each
shift
Non-Hazardous
At least one of
the supervisors
or
technical
personnel shall
be trained in
occupational
health and safety
and
shall
be
assigned as parttime safety man.
Such safety man
shall
be
the
secretary of the
safety committee
At least two of
its
supervisors
shall be trained
and a full time
safety man shall
be provided
At least one of
its supervisors
or
technical
20 to 200 each
men shall be
shift
trained
who
shall work as
part-time
safety man. He
shall be the
secretary of the
safety
committee
At least two of
its supervisors
or
technical
personnel shall
Over 200 workers be trained and
each shift
one of them
shall
be
appointed fulltime
safety
man
and
secretary
of
safety
committee
therein.
* The employment of a full-time safety man may not be
required where the employer enters into a written
contract with a qualified consulting organization which
shall develop and carry out his safety and health
activities. Provided, that the consultant shall conduct
plant visits at least four hours a week and is subject to
call any time to conduct accident investigations and is
available during scheduled inspections or surveys by the
Secretary of Labor or his authorized representatives.
* The provisions of this Section shall be made mandatory
upon orders of the Secretary of Labor as soon as he is
satisfied that the adequate facilities on training in
occupational safety and health are available in the
Department of Labor and other public or private
entities duly accredited by the Secretary of Labor
devices in establishments or workplaces shall comply with the provisions of this Rule and all regulations issued
by the employer in compliance with the provisions of this Rule and other subsequent issuances, of the Secretary
of Labor.
Training
TITLE II
EMPLOYEES COMENSATION AND STATE
INSURANCE FUND
Chapter I
POLICY AND DEFINITIONS
Article 166: POLICY
COMMENTS AND CASES
1. OVERVIEW: WORKMENS COMPENSATIONS PROGRAM AND SIF
Workmens Compensation is a general and comprehensive term applied to those laws providing for compensation for
loss resulting from the INJURY, DISABLEMENT, or DEATH of workmen through INDUSTRIAL ACCIDENT, CASUALTY or,
DISEASE.
Compensation means the money relief afforded according to the scale established under the statute, as differentiated
from compensatory damages recoverable in an action at law for breach of contract or for tort
Amount of Compensation generally determined in accordance with a definite schedule, based on the loss of earning
power, the usual provision being for the payment of a specified amount at regular intervals over a definite period.
Provision is also made, in most instance, for the furnishing of medical, surgical, hospital, nursing, and burial services in
addition to independently of the payment of compensation.
Primary Purpose is to provide compensation for disability or death resulting from occupational injuries or diseases, or
accidental injury to, or death of, employees. It is for the benefit of the EMPLOYEES and not the employer
It is not Charity but a recognition of a moral duty and erection of it into a legal obligation of the PUBLIC not only of
that of the employer.
Based on the Idea that liability arising out of employers negligence is inapplicable to modern conditions of
employment because of highly organized and hazardous industries of modern times. The causes of injuries are often so
obscure and complex that it is usually impossible to ascertain the fact to from an accurate judgment. Further litigation
causes expense and delays that defeats justice and antagonisms between employer and employee. Basically, the theory
of negligence is discarded as the basis of liability, and in general a right to compensation is given for all injuries
incident to the employment, the amount is limited to a given schedule.
Purpose
Improve the economic status of the worker
Obviate uncertainties, delay, expense, and hardship attendant upon the enforcement of court remedies
Transfer from the worker to the industry in which he is employed, and ultimately to the consuming public, a
greater proportion of the economic loss due to industrial accidents and injuries.
Improve the relations between employers and employees by avoiding or reducing the friction incident to
litigation.
Provide, not only for employees a remedy which is both expeditious and independent of proof of fault, but also
for employers a liability which is limited and determinate.
Statutorily given Right which both create and measure the right
Source of Compensation:
1. Direct Payment Statutes payment by the employer
2. Insurance Statutes
a. require the employer to take out insurance either with
i. an insurance bureau operated by the state
ii. private company
b. require and employer to contribute to a compensation fund
State Insurance Fund the Labor Code adopts the compensation fund type. All covered employers are required to remit
State Insurance Fund the Labor Code adopts the compensation fund type. All covered employers are required to remit
to a common fund a monthly contribution equivalent to one percent of the monthly salary credit of every covered
employee. The employee pays NO contribution into the fund; agreement to the contrary is VOID and PROHIBITED.
Compensation is in the form of medical supplies and services and/or cash income if employee is unable to earn because
of injury of disease. Death benefits and funeral benefits are also given.
Process:
1. Injury befalls the employee
2. Within 5 days must notify employer, if notification is required, who in turn ,must enter notice in the logbook
3. Within 5 days after entry report the sickness, injury or death deemed work connected to:
a. SSS in private sector or;
b. GSIS in public sector
Note: The employer INITIALLY decided whether the injury, sickness or death is work related or not.
4. The claim is decided by the SSS or GSIS. Decisions of the two administering agencies are appealable to the
Employees Compensation Commission, which is the policy making body, within 30 days.
a. If the result of the appeal is favorable to the employee becomes final and executory, appealable to the
SC in limited cases
b. If SSS or GSIS is reversed the two systems cannot appeal to the high court.
2. PD 626 AND ITS EFFECTIVE DATE
PD 626 amended extensively the Labor Code provisions on ECC and SIF. It applies only prospectively. Because it took
effect on January 1, 1975 it applies to illness contracted on or after that date. For those contracted before said
date the applicable law is the workmens compensation act its commission was finally abolished on March 31, 1976.
3. VALIDITY OF PD 626: NATURE OF THE STATE INSURANCE FUND
Jose B. Sarmiento vs. Employees Compensation Commission, et. al. - PD 626 does not infringe upon the workers
constitutional rights. The said new law discarded the concepts of presumption of compensability and aggravation
to restore what the law believes as a sensible equilibrium between the employers obligation to pay and the
employees right to receive reparation
The new law establishes a state insurance fund built up by the contributions of employers base don the salaries of their
employees. The injured workers does not have to litigate his right to compensation. No employer opposes his claim.
There is no notice of injury nor requirement of controversion. The sick worker simply files a claim with a new neutral
ECC which then determines on the basis of employees supporting papers and medical evidence whether or not
compensation may be paid. The payment of benefits is more prompt. The cost of administration is low. The amount of
death benefits has also been doubled.
3.1.Trust Fund
It is now the trust fund and not the employer that suffers if benefits are paid to the claimants who are not entitled
under the law. The employer joins the employee in trying to have their claims approved. The employer is spared the
problem of proving a negative proposition that the disease was not caused by employment.
3.2.Social Insurance
Employees compensation is based on social security principles. All covered employers throughout the country are
required to contribute fixed and regular premiums or contributions to a trust fund for their employees. Benefits are
paid from this trust fund. At the time the amount of the contributions was being fixed, actuarial studies were
undertaken. The actuarially determined number of workers who would probably file claims within any given year is
important in insuring the stability of the trust fund and making certain that the system can pay its benefits due to all
who are entitled and in the increased amounts fixed by law. Thus, if diseases no intended by the law to be
compensated are inadvertently or recklessly included the integrity of SIF is endangered.
4. WORKMENS COMPENSATION ACT DISTINGUISHED FROM EMPLOYEES COMPENSATION LAW
Workmens Compensation
Act
Presumption of
Compensability once it is
proven that injury or
disease arose in course of
employment
Rule that if ailment
aggravated by work
employer becomes liable
Requires the employer to
controvert the claim within
14 days from disability or
10 days from knowledge
otherwise considered
waived
Employees Compensation
Law
Abolished
Abolished
No need to controvert
because the claim is
against the SIF not the
employer
The old law destroyed the parity or balance between the competing interests of employer and employee with respect
to workmens compensation. The balance was tilted unduly in favor of the workmen since it was possible to stretch the
work-related nature of an ailment beyond the seemingly rational limits.
Under the present law for an employee to be entitled to sickness, injury or death benefits, it must be result form or
must have resulted:
1. Any illness definitely accepted as an occupational disease listed by the Commission
2. Any illness caused by employment subject to proof that the risk of contracting the same is increased by working
conditions
The list of occupational diseases is in Annex A of the ECC Rules in the Appendix.
4.1.Presumptive Compensability for AFP Members and Policemen
In a limited sense, Presumption of Compensability has been restored through Resolution No 3906, adopted on July 5,
1988 by the ECC which states:
This board resolves, as it hereby resolves, to approve the adoption of a policy that the moment an AFP member suffers
a contingency, the presumption is that it is because of the nature of his work; provided that the evidentiary details of
his injury, or death, are clearly established through duly issued medical certifications on his injury or injuries, or
death, by the attending physician or duly authorized representatives of the hospital where he is brought for medical
treatment.
5. LIBERAL INTERPRETATION
The ECC should adopt a liberal attitude in favor of the employee in deciding claims for compensability, especially
where there is some basis in the facts for inferring a work-connection to the accident. This kind of interpretation gives
meaning and substance to the compassionate spirit of the law as embodied in Article 4 of the New Labor Code.
However, it is not the intention of the legislature the insurer against all accidental injuries which might happen to an
employee while in the course of the employment, but only for such injuries arising from, or growing out of, the risks
peculiar to the nature of the work in the scope of the workmens employment or incidental to such employment, and
accidents in which it is possible to trace the injury to some risk or hazard to which the employee is exposed in a special
degree by reason of such employment.
Article 167: DEFINITION OF TERMS
COMMENTS AND CASES
1. COMPENSABLE WORK-RELATED INJURY DEFINED
What is compensated is not the injury or the disease itself but the attendant loss or impairment of earning capacity.
Rule III, Section 1(a):
For the injury and the resulting disability or death to be compensable, the injury must be the result of an
employment accident satisfying all the following grounds:
1. the employee must have been injured at the place where his work requires him to be;
2. the employee must have been performing his official functions; and
3. if the injury is sustained elsewhere, the employee must have been executing an order for the employer
3. if the injury is sustained elsewhere, the employee must have been executing an order for the employer
2. MEANING OF ARISING OUT OF AND IN THE COURSE OF THE EMPLOYMENT
Although it has been said that the coverage formula is composed of two separate tests, the basic concept of
compensation is unitary and is best expressed by the word, work-connection. An uncompromising insistence on an
independent application of each of the two portions of the test can exclude clearly work-related injuries.
Arising out of refer to the origin or cause of the accident and are descriptive of its character
In the course of the Employment when it takes place within the period of the employment, at a place where the
employee reasonable may be, and while he is fulfilling his duties or is engaged in doing something incidental thereto
Accident need not be foreseen or expected it is sufficient that after the event it appears to have its origin in a risk
connected with employment, and to have flowed from that source as a rational consequence.
Nature and Degree of relation there is an existing conflict of views whether should be inherent to the employment
(conservative view) or it is sufficient that employee was exposed by reason of employment, not necessary that inherent
(liberal view). It has been stated that an accident arise out of employment if it ensues from a risk reasonably incident
to the employment, and if it is in some sense due to the employment. Again, the view has been taken that an injury
arises out of the employment if the employment is one of the contributing causes without which the accident which
actually happened would not have happened. The position has also been taken that an accident arises in the course of
employment if it had its origin there in the sense that it was the end-product of a force or cause set in motion in the
course of employment.
No Precise Formula for Sphere of Employment: Generally, time and place of and the circumstances surrounding its
occurrence. Sphere of Employment varies, dependent upon the nature of the work and terms and conditions in the
hiring contract.
Not necessary it should have occurred during hours of active labor or in premises or within control of employer,
employment includes not only the actual doing of work, but also reasonable margin of time and space necessary to be
used in passing to and form the place where the work is to be done, where the latter is expressly included in the terms
of employment
3. PROXIMATE CAUSE
It is the sufficient cause, which may be the most remote of an operation chain. It must be that which sets the others in
motion and is to be distinguished from a mere preexisting condition upon which the effective cause operates, and must
have been adequate to produce the resultant damage without the intervention of an independent cause.
Where the primary injury is shown to have arisen in the course of employment, every natural consequence that flows
from the injury likewise arises out of the employment, unless it is the result of an independent intervening cause
attributable to claimants own negligence or misconduct. Simply stated, all medical consequences and sequels that
flow from the primary injury are compensable.
3.1.Illustrative Case: Proximate Cause
Belarmino vs. Employees Compensation Commission The condition of the classroom floor caused Mrs. Belarmino to
slip and fall and suffer injury as a result. The fall precipitated the onset of recurrent abdominal pains which
culminated in the premature termination of her pregnancy with tragic consequences to her. Her fall on the classroom
floor brought about her premature delivery which caused the development of septicemia postpartum which resulted in
death. Her fall was the proximate or responsible cause that set in motion an unbroken chain of events leading to her,
demise. True, that she probably would not have suffered lacerations of the vagina and would not have contracted the
fatal infection. But she is not to blame for her inability to afford a hospital delivery and the services of a trained
doctors and nurses. Penury compelled the deceased to scrimp by delivering her baby at home instead of the hospital.
3.2.Arising Out/In the Course of Employment
Hinoguin vs. Employees Compensation Commission The death of Sgt. Hinoguin that resulted from his being hit by an
accidental discharge of his companions rifle arose out of and in the course of his employment as a soldier on active
duty status in the AFP, and hence compensable. The concept of workplace cannot always be literally applied to a
soldier on active duty status. A soldier must go where his company is stationed. Sgt. Hinoguin and his companions had
permission to proceed to Aritao. This is a place where soldiers have secured lawful permission to be and cannot be very
different from a place where they are required to go by their commanding officer. Hinoguin and his companions were
not on vacation leave. They are authorized to carry their firearms with which they were to defend themselves if NPA
elements happen to attack them.
A soldier should be presumed to be on official duty unless he is shown to have clearly and unequivocally put aside that
A soldier should be presumed to be on official duty unless he is shown to have clearly and unequivocally put aside that
status or condition temporarily by, e.g. going on approved vacation leave. Even vacation leave may be preterminated
by superior officers.
3.3.The 24-Hour Duty Doctrine and Its Qualifications; Moonlighting Policemen
Soldiers and policemen and even firemen by the nature of their work may be considered on duty round-the-clock. But
this doctrine, while it relaxes the workplace factor does not dispense with the work-connection requisite.
GSIS vs. CA and F. Alegre From the cases (Hinoguin vs. ECC, Nitura vs. ECC and ECC vs. CA), it can be gleaned that
the Court did not justify its grant of death benefits merely on account of the rule that soldiers or policemen, as the
case may be, are virtually working round-the-clock. Note that the court likewise attempted in each case to find
reasonable nexus between the absence of the deceased from his assigned place of work and the incident that led to his
death.
Obviously, the matter SPO2 Alegre was attending to at the time he met his death that of ferrying passengers for a fee,
was intrinsically private and unofficial in nature proceedings as it did from no particular directive or permission from
his superior officer. In the absence of such as in the case of Hinoguin and Nitura, or peacekeeping nature of the act
attended to by the policeman at the time he died even without the explicit permission or directive of a superior
officer, as in Alavaran, there is no justification for holding that SPO2 Alegre met the requisites set forth in the ECC
guidelines.
At any rate the 24-hour duty doctrine serves more as an after-the-fact validation of their acts to place them within the
scope of the guidelines rather than a blanket license to benefit them in all situations that may give rise to their deaths.
In other words, the doctrine should not be sweepingly applied to all acts and circumstances causing the death of the
police officer but only to those which, although not on official line of duty, are nonetheless, basically police service in
character.
3.4.The 24-Hour Duty Doctrine Requires Work-Connection; Police Service Activities
Valeriano vs. Employees Compensation Commission and GSIS Petitioner Valeriano was not able to demonstrate
solidly how his job as a firetruck driver was related to the injuries he has suffered. That he sustained the injuries after
pursuing a purely personal and social function having dinner with some friends. Because he was neither at his
assigned work place nor in pursuit of the orders of his superiors when he met an accident and more importantly was
not doing an act within his duty and authority as a firetruck driver, or any other act of such nature, at the time he
sustained his injuries. There is not any reasonable connection between his injuries and his work as a firetruck driver.
4. INGRESS-EGRESS/PROXIMITY RULE
The general rule in workmens compensation law known as going and coming rule, simply stated, is that in the
absences of special circumstances, an employee injured in, going to, or coming from, his place of work is excluded
from the benefits of workmens compensation acts.
Exceptions:
1. Where the employee is proceeding to or from his work on the premises of his employer
2. Where the employee is about to enter or about to leave the premises of his employer by way of the
exclusive customary means of ingress and egress (Proximity Rule)
3. Where the employee is charged, while on his way to or from his place of employment or at his home,
or during his employment, with some duty or special errand connected with his employment.
4. Where the employer, as an incident of the employment, provides the means of transportation to and
from the place of employment.
Iloilo Dock & Engg. Co. vs. WCC The point where Pablo was shot was barely twenty meters away from the main
IDECO gate, certainly nearer that a stones throw therefrom. The spot is immediately proximate to the IDECOs
premises. Considering the fact, and further facts that Pablo has just finished overtime work at the time, and was killed
barely two minutes after dismissal from work and the place was immediately proximate to the place of work, the
accident in question must be deemed to have occurred within the zone of employment and therefore arose out of and
in the course thereof.
Bountiful Brick Company vs. Giles Employment includes not only the actual doing of work, but reasonable margin of
time and space necessary to be used in passing to and from the place where the work is to be done. If the employee be
injured while passing, with the express or implied consent of the employer, to or from his work by a way over the
employers premises, or over those of another in such proximity and relation as to be in practical effect a part of the
employers premises, the injury is one arising out and in the course of the employment as much as though it had
happened while the employee was engaged in his work at the place of its performance.
5. GOING TO OR COMING FROM WORK RULE
Resolution No. 3914-A, July 5, 1988 extending the compensable coverage of off-premises injury from near the
Resolution No. 3914-A, July 5, 1988 extending the compensable coverage of off-premises injury from near the
premises up to the residence of the employee. The resolution provides that an injury or death of a covered member in
an accident while he is going to, or coming from, the workplaces, shall henceforth be duly considered compensable
provided the following conditions are established definitely:
1) The act of the employee of going to, or coming from, the workplace, must have been a CONTINUING ACT, that
is, he had not been diverted therefrom by any other activity, and he had not departed from his usual route to,
or from, his workplace; and
2) Re: an employee on an special errand, the special errand must have been official and in connection with his
work.
5.1.Accident on the Way to Work
Alano vs. ECC Dedication was a school principal. Her tour of duty was from 7:30am to 5:30pm. While waiting for a
ride at a public plaza on her way to school, she was bumped and run over by a speeding bus which caused her death.
The deceased died while going to her place of work. She was at the place where her job necessarily required her to be
if she was to reach her place of work on time. There was nothing private or personal about her being at the place of
the accident. She was there because her employment required her to be there.
5.2.Accident on the Way Home
Lazo vs. Employees Compensation Commission Here Lazo left his station at the Central Bank several hours after his
regular time off, because the reliever did not arrive, and so he was asked to go on overtime. After permission to leave
was given, he went home. There is no evidence that eh deviated from his usual, regular homeward route or that
interruptions occurred in the journey. Employment includes not only the actual doing of the work, but a reasonable
margin of time and space necessary to be used in the passing, with the express or implied consent of the employer, to
or from his work by a way over the employers premises, or over those of another in such proximity and relation as to
be in practical effect a part of the employers premises, the injury is one arising out of and in the course of the
employment as much as though it had happened while the employee was engaged in his work at the place of its
performance.
6. INJURY AT PLACE OF EMPLOYMENT NOT NECESSARY ELEMENT OF COMPENSABILITY
For an injury to be compensable, it is not necessary that the cause therefore shall take place within the place
employment. If a workman is acting within the scope of his employment, his protection in the course of employment
usually continues regardless of the place of injury
The use of streets by the workman merely to get to or from his work stands on a different footing altogether, but as
soon as it is established that the work itself involves exposure to the perils of the streets, the workman can recover
for any injury so occasioned. The fact that street perils are common to all mankind is immaterial
In fine, the general rule is that the accident should have occurred at the place of work and this is known as the direct
premises rule. Exceptions among others are the Coming-and-going rule and the Ingress and egress/proximity rule
7. INCIDENTS OF EMPLOYMENT
It is settled that injuries sustained in connection with acts which are reasonably incidental to the employment are
deemed as arising out of such employment.
1) Acts of personal ministration for the comfort or convenience of the employee
2) Acts for the benefit of the employer
3) Acts done to further the goodwill of the business
4) Slight deviations from work, from curiosity or otherwise
5) Acts in emergency
8. ACTS OF MINISTRATION
Acts of Ministration are those done by a person for the purpose of satisfying the call of nature, such as: quenching his
thirst, relieving himself by way of urination or excretion etc. They are deemed to be incidents of employment and
necessary to the health of the employee, so that injuries sustained thereby are compensable.
8.1.Rest or Refreshment
The general rule is that injuries occurring to an employee during an intermission or break for rest or refreshment arise
in the course of the employment and are compensable. Such rule is not affected by the fact that the employee is paid
by the hour and receives no pay for the period covered by such intermission. Whether an employee, by resting during
work hours, departs from, abandons, or breaks his employment so as to deprive himself of the right to compensation
for any injury sustained while so resting generally depends upon whether such resting, in view of all the circumstances
for any injury sustained while so resting generally depends upon whether such resting, in view of all the circumstances
is reasonable incident to the employment.
8.2.Lunch Period
Thus, while generally an accidental injury to an employee is not covered by workmens compensation as being one
arising out of and in the course of employment if it occurs OFF the employers PREMISES while the employee is going or
coming from lunch on UNPAID TIME, there are exceptions
8.3.Union Meeting
It has been held that an injury received at a union meeting held during a lunch period at the plant for the purpose of
electing a shop steward, the shop steward system being recognized by the employer in its contract with the union, was
not an injury arising out of and in the course of employment
9. ACTS FOR THE BENEFIT OF EMPLOYER
The relation of master and servant is ordinarily suspended during the period that the employee is off duty and.
Therefore, the general rule is that injuries occurring before or after regular working hours are not within the course of
employment. However, an injury sustained by an employee outside his regular working hours or during a temporary
stoppage or cessation of work may, nevertheless, under some circumstances, be compensable as arising out of and in
the course of the employment, and is generally held to be so where the employee was at the time engaged in the
performance of some service for the benefit of the employer in connection with his usual duties.
9.1.While Doing Work at Home
Injuries sustained by an employee at his own home or upon his own premises, in connection with the performance of
the duties of his employment, are generally held to be compensable where such work is done there pursuant to the
terms of the contract, express or implied, or pursuant to the direction or request of the employer, but not where it is
there performed voluntarily by the employee for his own convenience or benefit.
10. ACTS DURING EMERGENCY
According to many authorities the following are injuries arising out of and in the corus of his employment and entitling
the employee to compensation:
1) Outside the scope of his usual duty
b. Which the employer has expressly ordered to do by someone authorized to direct him as to his work or;
c. Even in the absence of orders when such act is reasonably necessary or incidental to his regular work,
particularly where an emergency existed
d. Even without emergency, direct orders or reasonable necessity, if it was done in the furtherance of the
employers business or in pursuance of a habit or custom
11. EXTRA-PREMISES RULE
a.k.a. Shuttle Bus Rule Where a company which provides the means of transportation in going to and coming from the
place of work is liable for the injury sustained by employees while on board said means of transportation. This is
because the company vehicle is an extension of its premises
12. SPECIAL ERRAND RULE
An injury sustained by an employee outside the company premises is compensable if his being out is covered by an
office order or a locator slip or pass for official business.
13. WHILE LIVING, BOARDING, OR LODGING ON PREMISES OF EMPLOYER, OR AT WORKING PLACE
The mere fact that an employee was living on the employers premises at the time of injury does not ordinary of itself,
render such injury compensable as arising out of or in the course of the employment where such residence on the
employers premises is merely permissive and not required, or where the injury results from a risk or danger which is
not reasonable incidental to employment.
14. WHILE TRAVELING
The right to compensation depends, as in other cases generally, upon whether the injury results from a risk which is
inherent in the nature of the employment, or which is reasonably incidental thereto, or which the employee is
specially exposed, and upon whether the employee, at the time of the occurrence of the accident, was engaged in the
exercise of some functions or duties reasonably necessary or incidental to the performance if the contract of
exercise of some functions or duties reasonably necessary or incidental to the performance if the contract of
employment, or, if not actively engaged, whether he was at the place where he was authorized or required by such
contract to be.
14.1.
Where Employee Uses Own Vehicle Which He Also Uses in Performance of Duties
In some cases in which it appeared that an employee was using his own vehicle at the time he was injured in an
accident while going to or from work, and that he used such vehicle in the performance of his duties to his employer, it
was held that his it was held that such injuries arose out of and in the course of employment.
14.2.
Effect of Deviation from Route, Schedule, or Mode of Travel
Non Compensability of Deviation depends upon the Extent, Purpose and Effect Thereof - An unauthorized deviation
may preclude recovery of compensation for an injury caused by an added peril to which the employee is thereby
exposed during the period of the deviation, but the compensability of an injury occurring after the deviation has ended
and the employee is again in the course of his employment is not ordinarily affected thereby.
14.3.
Effect of Mingling of Purposes of Employer and Employee; Dual Purpose
Dual Purpose Doctrine considers as compensable an injury that an employee sustains while on a trip undertaken for the
benefit of the employer even if in the course thereof the employee pursues also a personal purpose
Resolution No. 99-08-0469, August 31, 1999 the doctrine may be applied in the adjudication of employees
compensation claims. The application, however, is subject to the following guidelines:
The Test in the applicability of the dual purpose doctrine:
The test is that is ordinarily employed for determining liability in such a case is that if the work of the
employee tends to create necessity for travel, he or she is deemed in the course of employment, albeit the
employee serves at the same time some personal purpose. The requirement is that the services of the
employer is at least a concurrent cause of the trip of the employee
15. EMPLOYER-SPONSORED ACTIVITIES
The Test
Whether the recreation was for the employees exclusive benefit, or whether the employer had some interest
in the activity. Where an employee is injured while at recreation during a temporary cessation of work, the
injury is compensable as arising out of and in the course of employment where the recreation indulged was
fostered and encourages by the employer to the end of efficiency of the service.
Recreational Activities fall under the so-called special engagement rule which is one of the exceptions to the direct
premises rule. This exception covers field trips, intramurals, outings, and picnics when initiated or sanctioned by the
employer. Accidents befalling employees on those occasions are compensable. *Considered as an incident of
employment
16. ACTS OF GOD OR FORCE MAJEUR
General Rule: The employer is not responsible for accidents arising from force majeur or an act of God, when the
employee has not been exposed to a greater danger than usual.
Exception: Positional and Local Risks, when one in the course of his employment is reasonably required to be at a
particular place at a particular time and there meets an accident, although one which any other person then and there
present would have met irrespective of his employemtn, that accident is one arising out of the employment of the
person so injured. Employer is held liable for compensation because were it not for the order the employee would not
have been at said position or location which exposed him to the said danger.
In investigating whether or not the death of an employee arose out of his employment, all of the circumstances present
in the case should be taken into consideration in order to be able to determine whether or not a causal connection
exist between his death and the conditions under which he necessarily had to fulfill his duties. Liberal Interpretation
17. ASSAULT
Assault although resulting from a deliberate act of the slayer, is considered an accident within the meaning of the
Workmens Compensation Act, since the word accident is intended to indicate that the act causing the injury shall
Workmens Compensation Act, since the word accident is intended to indicate that the act causing the injury shall
be casual or unforeseen, an act for which the injured party is not legally responsible
Where the duties of an employee entail his presence (at a place and a time) the claim for an injury there occurring is
not to be barred because it results from a risk common to all othersunless it is also common to the general public
without regard to such conditions, and independently of place, employment, or pursuit.
Jurisprudence is to the effect that injuries sustained by an employee while in the course of his employment, as the
result of an assault upon his person by another employee, or by a third person, no question of the injured employees
own culpability being involved, is compensable where, from the evidence presented, a rational mind is able to trace
the injury to a cause set in motion by the nature of the employment, or some condition, obligation or incident therein,
and not by some other agency.
When a quarrel had its origin at work, injury from assault committed outside the work premises is deemed
compensable. The SC reasoning that it was merely a continuation or extension of the quarrel that begun within; that
continuity of the case had been so combined with continuity in time and space that the quarrel from origin to ending
must be taken as one
17.1.
Increased Risk Jobs
1. Jobs having to do with keeping the peace or guarding property
2. Jobs having to do with keeping or carrying of money which subject the employee to the risk of assault
because of the increased temptation to robbery
3. Jobs which expose the employee to direct contact with lawless and irresponsible members of the community,
like that of a bartender; and
4. Work as bus driver, taxi driver, or street car conductor.
22.2.
Illustrative Case: Increased Risk Not Shown
Quantum of Evidence: to prove the cause of the ailment or the increased risk from the job can obviously be
determined only on a case-to-case basis
Limbo vs. ECC: Absence of the sickness from the list of Occupational Diseases is not a bar to petitioner to claim so long
as he can probe that the risk of contracting the illness was increased by his working conditions. In determining whether
a disease is compensable, it is enough that there exists a reasonable work connection as the workmens claim is based
on probability and not on certainty.
Dabatian vs. GSIS: Aside from the undisputed fact that deceased was a heavy coffee drinker, which was his way of
warding off sleepiness; no evidence was ever adduced by claimant to bolster the theory that her husbands work
increased the risk of contracting the ailment. The Supreme Court takes notice of the fact that the conditions in this
case are not peculiar to the work mentioned therein. Many, if not most, employees are equally exposed to similar
conditions but have not been victims of peptic ulcer.
Sarmiento vs. ECC: Parotid carcinoma or cancer of the salivary glands is not an occupational disease considering the
deceaseds employment as accounting clerk and later as manager of the budget division. The petitioner must,
therefore, prove that his wifes ailment was caused by her employment or that her working conditions increased the
risk of her contracting fatal illness. The evidence presented by petitioner that her field trips necessitated her to take
frequent plane travels which caused defeaning and numb sensation in the ears were held by the court as mere
conjectures and not sufficient to grant her relief.
23.13.
Intestinal Obstruction Partial
It is a condition in which the passage of intestinal contents is arrested or seriously impaired. This is due to causes
which are either mechanical, vascular or neurogenic. Mechanical causes are intrinsic factors as adhesions and tumors,
and hernia and such factors as impacted foreign body of feces, parasites, and gallstones.
23.14.
Leprosy
23.15.
Parotid Carcinoma*
23.16.
Peptic Ulcer*
23.17.
Rheumatoid Arthritis*
23.18.
Schistosomiasis
A teacher who works under a hazardous condition in far-flung town and has to hike daily to his place of work, is liable
to contract schistosomiasis.
23.19.
Senile Cataract*
23.20.
Tuberculosis
It is an occupational disease or work-connected in such occupations as that of a teacher, laborer, driver, land inspector
and other similar occupations; hence compensable.
*Not an occupational disease, hence must prove that the risk of contracting the disease was increased by the working
conditions.
24. EVIDENCE; DEGREE OF PROOF
Proof of direct causal relation is not, however, indispensably required. It is enough that the claimant adduces proof of
reasonable work connection, whereby the development of the disease was brought about largely by the conditions
present in the nature of the job. Strict rules of evidence are not demanded. The degree of proof required is merely
substantial evidence, which has been held to be such relevant evidence as a reasonable mind might accept as sufficient
to support a conclusion.
Under the law, it is not required that the employment be the sole factor in the growth development or acceleration of
claimants illness to entitle him to the benefits provided for. It is enough that his employment had contributed even in
a small degree.
25. PROOF IS REQUIRED ONLY IF CAUSE IS KNOWN; OLD DOCTRINE
The Necessity of Proof is present only when the cause of the disease is known. If not known, there is no duty to present
proof, for the law does not demand an impossibility. Thus, the requirement that the disease was caused or aggravated
by the employment or work applies only to an illness where the cause can be determined or proved.
Where the causes of an ailment are unknown to and/ or undetermined even by medical science, the requirement of
proof of any causal link between the ailment and the working conditions should be liberalized so that hose who have
less in life will have more in law.
26. NEW DOSCTRINE; PROOF IS REQUIRED
Raro vs. ECC: It is not correct to say that all cancers are not compensable. The list of occupational diseases prepared
by the ECC includes some cancers as compensable.
Cancer is still a disease of still unknown origin which strikes people in all walks of life, employed or unemployed.
Unless it be shown that a particular form of cancer is caused by specific working conditions. The court cannot conclude
that it was the employment which increased the risk of contracting the disease.
Orate vs. CA: It is well to remember that if diseases not intended by the law to be compensated are inadvertently or
recklessly included, the integrity of the State Insurance Fund is endangered. Compassion for the victims of diseases not
covered by the law ignores the need to show a greater concern for the trust fund to which the tens of millions of
workers and their families look to for compensation whenever covered accidents, diseases and death occur. This stems
from the development in law that no longer is the poor employee still arrayed against the might and power of his rich
corporate employer, hence the necessity of affording all kinds of favorable presumptions to the employee. This
reasoning is no longer good policy. It is now the trust fund and not the employer which suffers if benefits are paid to
claimants who are not entitled under the law.
Chapter II
Chapter II
COVERAGE AND LIABILITY
Article
Article
Article
Article
168:
169:
170:
171:
COMPULSORY COVERAGE
FOREIGN EMPLOYMENT
EFFECTIVE DATE OF COVERAGE
REGISTRATION
COMMENTS
1. COVERAGE
Employees
Covered from first day of employment
All employees, public or private, including casual, emergency, temporary or substitute employees
It includes a member of the Armed Forces of the Philippines (Article 167(g) of the Labor Code as amended and
Section 4(b)(1) of Rule 1 as amended of the implementing rules on employees compensation
Not over 60 years of age, or over 60 if he had been paying contributions to the System prior to age 609 and has
not been compulsorily retired.
Employer
Covered compulsorily from first day of operation
2. FOREIGN EMPLOYMENT
Filipinos working abroad for employers doing business in the Philippines are covered by the employees compensation
law. They are entitled to the same benefits as for those working in the Philippines. Considering their situation, the
application for the rule on accreditation of hospitals and physicians and the rule requiring notice to employer is
relaxed.
Article 172: LIMITATIONS OF LIABILITY
COMMENTS AND CASES
1. EXCLUSIONS
Self-Inflicted or Self-Courted contingencies
1.2.Intoxication or Drunkenness
To the extent that one is not entirely himself or so that his judgment is impaired and his act, word, or conduct is
visibly impaired.
1.3.Self-Inflicted Injuries
The injury must be intentionally self-inflicted, which contemplates a deliberate intent on the part of the employee,
not a failure on his part to realize the probable consequences to himself of his foolish act.
a.c.a.
Suicide or Provoked Death Not Compensable
a.c.b.
Death Not the Result of Workers Willful Act
a.c.c.
Suicide, When Compensable
According to American authorities, suicide is compensable in the following cases:
1. when it results from insanity resulting from compensable work injury or disease
2. when it occurs during a delirium resulting from compensable disease
NAESS Shipping Phil. Vs. NLRC: No law or rule would make it illegal for an employer to assume the obligation to pay
death benefits in favor of his employee in their contract of employment. Since, NAESS freely bound itself to a contract
which on its dace makes it unqualifiedly liable to pay compensation benefits for Dublins death while in its service,
regardless or whether or not it intended to make itself the insurer, in the legal sense, of Dublins life, NAESS cannot
escape liability.
1.4.Notorious Negligence
Notorious Negligence something more than simple or contributory negligence. It signifies a deliberate act of the
employee to disregard his own personal safety. Disobedience to rules and/or prohibition does not in itself constitute
notorious negligence, if no intention can be attributed to the injured to en his life. It exempts the State Insurance Fund
from liability for injuries suffered by the former by notorious negligence.
176
177
178
179
180
181
182
TWO APPOINTIVE MEMBERS: a. one representing the employers (for a term of 6 yrs. each)
b. another representing the employees
ECC the policy-making body of the Employees Compensation Program and also the
appeal body. ( Decisions of SSS or GSIS, if unfavorable to the claimant, are
appealable to the ECC).
THREE THRUSTS OR COMPONENTS OF THE ECC PRGRAM:
1. Preventive Thrust
hazards of their working environment will be liable to 25% of benefits due the
may suffer in line of duty as well as rehabilitation of those who are disabled.
Note: For medical services, the ECC conduct accreditation of qualified physicians, clinics and hospitals where EC
patients may be referred to for admission and treatment.
REHABILITATION SERVICES consist of
a. medical treatment;
b. surgical treatment; or
c. hospital treatment, including appliance.
2. TWO SEPARATE FUNDS
The ECC may not augment the SIF in the GSIS with funds from the SIF in the SSS because these are two separate funds.
CHAPTER IV
CONTRIBUTIONS
ART. 183 EMPLOYERS CONTRIBUTIONS
ART. 184 GOVERNMENT GUARANTEE
The penalties to the employer who is delinquent in paying ECC contributions include imprisonment and/or fine and a
3% penalty per month from the date the contribution falls due until paid.
CHAPTER V
MEDICAL BENEFITS
ART. 185 MEDICAL SERVICES
ART.186 LIABILITY
ART. 187 ATTENDING PHYSICIAN
ART. 188 REFUSAL OF EXAMINATION OR TREATMENT
ART. 189 FEES AND OTHER CHARGES
ART. 190 REHABILITATION SERVICES
1. E.C. BENEFITS SUMMARIZED
THREE KINDS OF COMPENSATION EXTENDED TO THE EMPLOYEE:
a. Services
the period during which the employer may furnish or pay for medical, surgical,
as long as such services are required to cure or relieve the injured employee
- The services, appliances and supplies may be acquired by the employee himself,
in the event of failure of the employer to furnish the same promptly, at the
upon his death but is transmitted to his legal heirs, unless personal in nature or
The reimbursable medical expenses are not only those incurred for the primary illness but even those for its
complications developed after the employees retirement.
Case: Godofredo Alvero, Sr. vs. GSIS (Dec. 4, 1991)
Ruling: The complications that arose from appellants primary illnesses, PTB and COPD were brought about by the
intake of several medications like steroids, antibiotics, and diuretics. For this reason, we believe that appellant is
entitled to reimbursement of medications used in treating the complications, Diabetes Mellitus and Stomach
Ulcerations.
3. REHABILITATION SERVICES
THREE STAGES OF REHABILITATION UNDER THIS PROGRAM:
a. Physical rehabilitation
-involves physical therapy by the rehab center of the ECC accredited hospital, furnishing of prosthesis and
appliances all paid by the ECC.
b. Vocational Assessment
CHAPTER VI
DISABILITY BENEFITS
ART. 191 TEMPORARY TOTAL DISABILITY
ART. 192 PERMANENT TOTAL DISABILITY
ART. 193 PERMANENT PARTIAL DISABILITY
1. DISABILITY
Disability does not refer to the injury nor to the pain and suffering it has occasioned
- it refers to the loss or impairment of earning capacity
- there is disability when there is a loss or diminution of earning power because of actual absence from work
due to the injury or illness arising out of and in the course of employment.
- The basis of compensation is reduction of earning power
- As long as the employee goes on working (even if he suffers service-connected injury or illness) without any
reduction whatsoever in his earning capacity, there is no disability and , therefore, he is not entitled to any
income benefit.
Art. 167 (n) defines disability as loss or impairment of a physical or mental function resulting from injury or
sickness.
2. CATEGORIES OF DISABILITY
Case: Vicente vs. ECG (Jan. 23, 1991)
3 Distinct Categories of of Employees Disability:
1. temporary total disability
2. permanent total disability
3. permanent partial disability
Kind of Disability
Temporary Disability
Permanent Disability
b. temporary
Kind of Disability
Descriptions
1.
TEMPORARY - employee is unable to perform
TOTAL
any gainful occupation for a
continuous period not exceeding
120 days, except as otherwise
provided in Rule X of these Rules.
- income benefit equivalent to 90
percent of his average daily salary
credit, subject to the following
conditions:
1. the daily income benefit shall
not be less than P10 or more than
P90 nor paid longer than 120 days
for the same disability, unless the
in jury or sickness requires more
extensive treatment that lasts
beyond 120 days, but not to
exceed 240 days from onset of
disability, in which case he shall
be paid benefit for temporary
total
disability
during
the
extended period.
2. the monthly income benefit
shall be suspended if the
employee fails to submit a
monthly medical report certified
by its attending physician.
- Maximum Daily Income Benefit :
P200.00
- Paid beginning on the 1st day of
disability.
- The system may declare the
total and permanent status at any
time after 120 days of continuous
temporary disability as may be
warranted by the degree of actual
loss or impairment of physical or
mental functions as determined
by the system.
Note:
-After an employee has fully
recovered from an illness, the
period covered by any relapse he
suffers, or recurrence of his
illness
shall
be
considered
independent of, and separate
from, the period covered by the
original disability. Such a period
shall not be added to the period
covered by his original disability
in the computation of his income
benefit for temporary total
disability.
2.
PERMANENT -employee is unable to perform
TOTAL
for a continuous period exceeding
120 days except as otherwise
provided for in Rule X of the ECC
Rules.
- incapacity to perform gainful
work which is expected to be
permanent.
- does not require a condition of
complete helplessness
PERMANENT TOTAL DISABILITIES
(ART. 192):
1. Temporary total disabilities
lasting continuously for
more than 120 days;
2. Complete loss of sight of
both eyes;
3. Loss of two limbs at or
above the ankle or wrist;
4. Permanent
complete
4. Permanent
complete
paralysis of two limbs;
5. Brain injury resulting in
incurable imbecility and
insanity; and
6. Such cases as determined
by
the
System
and
approved
by
the
Commission.
- The full monthly income benefit
shall be paid for all compensable
months of disability. The monthly
income
benefit
shall
be
guaranteed for 5 years, except as
otherwise provided.
GROUNDS FOR CANCELLATION OF
PTD:
1. Failure of employee to
present
himself
for
examination at least once a
year upon notice by the
System;
2. Failure
to
submit
a
quarterly medical report
certified by his attending
physician as required under
Sec. 5 of Rule IV hereof;
3. Complete or full recovery
from
his
permanent
disability; or
4. Upon
being
gainfully
employed. (ECC Rules)
Amount of Benefits:
a. SSS- monthly income benefit as
defined in Sec. 9 (a), Rule VI
b. the number of months of paid
coverage shall be the number of
monthly contributions remitted to
the System including contributions
other
than
for
Employees
Compensation if paid before
March 31, 1975. The full monthly
income benefit shall be paid for
all compensable months of
disability.
c. The first day preceding the
semester of temporary total
disability shall be considered for
purposes of computing the
monthly income benefit for
permanent total disability.
Note:
-Each dependent child, but not
exceeding 5, counted from the
youngest
and
without
substitution, shall be entitled to
10% percent of the monthly
income benefit of the employee.
-Except the benefit to dependent
children under Sec.4 of this Rule,
the aggregate monthly benefit
payable, in the case of the GSIS,
shall in no case exceed the
monthly wage or salary actually
received by the employee as of
the date of his permanent total
disability.
3.
PERMANENT -employee suffers a permanent
PARTIAL
partial loss of the use of any part
of his body
- see art. 193 (body parts/period)
-monthly income benefit for the
Permanent Partial
such contributions were relied on by claimant for his means of living as determined by his position in life.
one need not be a part of the deceaseds household in oreder to be a dependent.
SPOUSE AS DEPENDENT
- arises from fact that marriage exists
- showing of marital status is essential
TWO WIVES AS CLAIMANTS
- the Commission must resolve the dispute
- determine who the legal wife is
PARENTS AS DEPENDENT
- a parent cannot claim as a dependent in a compensation case where the deceased employee is an abandoned
child.
DEATH BENEFIT AND BENEFICIARIES
Death benefits are paid in the form of cash monthly pension:
a. for life to the primary beneficiaries, guaranteed for 5 yrs.;
b. for not more than 60 months to the secondary beneficiaries in case there are no primary beneficiaries;
c. in no case shall the total benefit be less than P1,500
The Beneficiaries
Primary
a. Dependent spouse
until
he/she
remarries
b. Dependent children
(legitimate,
legitimated,
natural-born,
or
legally adopted)
a.
b.
Secondary
Illegitimate
children
and
legitimate
descendants
Parents,
grandparents,
grandchildren.
Notes:
- Amount of income benefits shall be equivalent t the monthly income benefits under PTD and PPD benefits.
- Under the ECC Rules, the death benefit shall accrue to the Employees Compensation Fund if the deceased employee
has no beneficiaries at the time of his death.
- Funeral benefit is paid to the survivor or to whoever shouldered the burial expenses
ART. 195 RELATIONSHIP AND DEPENDENCY
ART. 196 DELINQUENT CONTRIBUTIONS
ART.197 SECOND INJURIES
ART. 198 ASSIGMENT OF BENEFITS
ART. 199 EARNED BENEFITS
ART. 200 SAFETY DEVICES
ART. 201 PRESCRIPTIVE PERIOD
ART. 202 ERROMEOUS PAYMENT
ART. 203. PROHIBITION
ART. 204 EXEMPTION FROM LEVY, TAX, ETC.
CHAPTER IX
RECORDS, REPORTS AND PENAL PROVISIONS
ART.
ART.
ART.
ART.
205
206
207
208