Employees Compensation

Program
Employees Compensation Commission
• The ECC is a government corporation. It is attached to
the Department of Labor and Employment for policy
coordination and guidance.
• It is a quasi-judicial corporate entity created to
implement the Employees’ Compensation Program
(ECP).
• The ECP provides a package of benefits for public and
private sector employees and their dependents in the
event of work-connected contingencies such as sickness,
injury, disability or death.
• As implementor of the Employees Compensation
Program, ECC is mandated by law to provide meaningful
and appropriate compensation to workers.
 Functions of ECC
• To formulate policies and guidelines for the
improvement of the employees'
compensation program;
• To review and decide on appeal all EC claims
disapproved by the Systems; and
• To initiate policies and programs toward
adequate occupational health and safety and
accident prevention in the working
environment
 Legal Mandate
• The ECC was created in November 1, 1974 by virtue
of PD 442 or the Labor Code of the Philippines. It,
however, become fully operational with the issuance of
PD 626 which took effect January 1, 1975.
• The Employee's Compensation Program is designed to
provide public and private sector employees and their
dependents with income and other benefits in the
event of a work-connected injury, sickness, disability or
death. It was created under P.D. 626 and became
effective on January 1975. It assures workers of total
protection through the provision of a comprehensive
benefit package encompassing preventive occupational
safety and health aspects, curative or medical and
compensatory grant, and rehabilitation of occupational
disabled workers.
 Powers and Functions (Art. 177, P.D.
626)
• To assess and fix a rate of contributions from all employers;
• To determine the rate of contribution payable by an
employer whose records show a high frequency of work
accidents or occupational disease due to failure by the said
employer to observe adequate measures;
• To approve rules and regulations governing the processing
of claims and the settlement of disputes arising therefrom
as prescribed by the System;
• To initiate policies and programs toward adequate
occupational health and safety and accident prevention in
the working environment, rehabilitation other than those
provided for under Article 190 hereof, and other related
programs and activities, and to appropriate funds therefor.
(As amended by Sec. 3, P.D. 1368).
• To make the necessary actuarial studies and calculations concerning
the grant of constant help and income benefits for permanent
disability and death, and the rationalization of the benefits for
permanent disability and death under the Title with benefits payable
by the System for similar contingencies; Provided; That the
Commission may upgrade benefits and add new ones subject to
approval of the President; and Provided, Further, That the actuarial
stability of the State Insurance Fund shall be guaranteed; Provided,
Finally, that such increases in benefits shall not require any increases
in contribution, except as provided for in paragraph (b) hereof. (As
amended by Sec. 3, P.D. 1641).
• To appoint the personnel of its staff, subject to civil service law and
rules, but exempt from WAPCO law and regulations;
• To adopt annually a budget of expenditures of the Commission and
its staff chargeable against the State Insurance Fund; Provided, that
the SSS and GSIS shall advance on a quarterly basis the remittance of
allotment of the loading fund for this Commission's operational
expenses based on its annual budget as duly approved by the
Ministry of Budget and Management. (As amended by Sec. 3, P.D.
1921).
• To have the power to administer oath and affirmation,
and to issue subpoena and subpoena duces tecum in
connection with any question or issue arising from
appealed cases under this Title.
• To sue and be sued in court;
• To acquire property, real or personal, which may be
necessary or expedient for the attainment of the
purposes of this Title;
• To enter into agreements or contracts for such services
or aid as may be needed for the proper, efficient and
stable administration of the program;
• To perform such other acts as it may deem appropriate
for the attainment of the purposes of the Commission
and proper enforcement of the provisions of this Title.
(As amended by Sec. 18, P.D. 850)
 Program Administration
There are three agencies involved in the implementation of
the Employees Compensation Program. These are: The
Employees’ Compensation Commission (ECC) which
is mandated to initiate, rationalize and coordinate policies of
the ECP and to review appealed cases from the Government
Service Insurance System (GSIS) and the Social Security
System(SSS). the administering agencies of the ECP.
• As administering agencies of the ECP, both GSIS and SSS are
tasked to:
– Evaluate all employees compensation (EC) claims filed within a
given period and pay the corresponding EC benefits;
– Collect EC premiums remitted by employers; and
– Manage the State Insurance Fund.
– Both Systems invest the funds in profitable ventures to generate
earnings which will form part of the State Insurance Fund from
where payments for employees compensation claims are sourced.
 Who are covered under the ECP?
• All public sector employees including those of
government-owned or corporations and local
government units ;
• All employees in the private sector covered by
the SSS; and
• Filipino Seamen compulsorily covered under the
SSS. Landbased contract workers are only subject
to coverage under the ECP if their employer,
natural or juridical, is engaged in any trade,
industry or business undertakings in the
Philippines.
 Personal Comfort Doctrine
• Acts performed by an employee within the time
and space limits of his/her/her employment to
minister to personal comfort, such as
satisfaction of his/her thirst, hunger or other
physical demands, or to protect himself/herself
from excessive cold, shall be deemed incidental
to his/her/her employment and injuries the
employee suffered in the performance of such
acts shall be considered compensable and
arising out of and in the course of employment.
 Excepting Circumstances
• Intoxication - refers to a person's condition in being
under the influence of liquor or prohibited drugs to the
extent that his/her acts, words or conduct is impaired
visibly, as to prevent him/her from physically and
mentally engaging in the duties of his/her
employment.
Notorious Negligence - is something more than mere
or simple negligence, It signifies a deliberate act of the
employee to disregard his/her own safety, or ignore
established warning or precaution.
Willful Intent to Injure or Kill Oneself or Another - This
contemplates a deliberate intent on the part of the
employee to inflict injuries on himself/herself or
another.
"Going to and Coming From The Place
Of Work" Rule
• Injuries or death suffered by employees resulting from
an accident while enroute to or coming from the
workplace are compensable provided that the
following conditions shall be established definitively:
• The act of an employee, going to or coming from the
workplace, must have been a continuing act, that is, an
employee had not been diverted therefrom by any
other activity, and he/she had not departed from
his/her usual route to or from his/her workplace; and
• In the case of an employee on special errand, the
special errand must have been official and in
connection with his/her/her work.
 What are the forms of compensation a
claimant may received for work-related injury,
sickness, disability or death?

• Cash Income Benefit - for disability or death;

• Medical and related services - for injury or
sickness; and
• Rehabilitation services (in addition to monthly
cash income benefit) for permanent disability.