Professional Documents
Culture Documents
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PRELIMINARY TITLE
Chapter I
GENERAL PROVISIONS
Article 1: NAME OF DECREE
Article 2: DATE OF EFFECTIVITY
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1.1.Reason for According Greater Protection to
Employees
In the matter of employment bargaining,
there is no doubt that the employer stands on
higher footing than the employee.
This is because there is a greater supply than
demand for labor. Also, the need for
employment comes from vital, even
desperate, necessity.
1. MANAGEMENT RIGHTS
Management also has its own rights which are
entitled to respect and enforcement in the interest
of simple fair play.
1.1.Right to ROI
The employer has the right to recover his
investments and make profits. There is nothing dirty
about profit per se it is profit that creates jobs and
improves the workers lot.
1.1.Rights to Prescribe Rules
Employers have the right to make reasonable rules
and regulations for the government of their
employees, and when employees, with knowledge of
an established rule, enter the service, the rule
becomes a part of the contract of employment.
1.1.Right to Select Employees
An employer has the right to select his employees
and to decide when to engage them. He has the
right, under the law, to full freedom in employing
any person free to accept employment from him,
and this, except as restricted by valid statute and
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Chapter II
EMANCIPATION OF TENANTS1
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
1 Amended by R.A. No. 6657, June 10, 1988
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RA 8042: Migrant Workers and Overseas Filipinos Act
of 1995
1. OVERSEAS EMPLOYMENT POLICY
1.1.R.A. No. 8042
The State does not promote overseas
employment as a means to sustain economic
growth and achieve national development.
The existence of overseas employment
program rests solely on the assurance that the
dignity and fundamental human rights and
freedoms of the Filipino citizen shall not, at
any time, be compromised or violated.
1.1.Selective Deployment
RA 8042 requires certain guarantee of
protection for the overseas worker before
they are deployed in countries that meet
some criteria:
It has existing labor and social laws
protecting the rights of migrant
workers;
It is a signatory to multilateral
conventions, declarations or resolutions
relating to the protection of migrant
workers;
It has concluded a bilateral agreement
or arrangement with the government
protecting the rights of Filipino migrant
workers;
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a. Recruitment violation and related
cases consisting of all preemployment
cases which are administrative in
character, involving or arising out of
recruitment laws, rules and
regulations, including money claims
therefrom or violations of the
conditions for issuance of license to
recruit workers.
b. Employer-emploee relations cases
consisting of all claims arising out of
an employer-employee relationship or
b virtue of any law or contract
involving Filipino workers in overseas
employment.
c. Disciplinary action cases consisting of
all complaints against a contract
worker for breach of discipline.
1.1.Jurisdiction Transferred to NLRC
RA 8042 transferred to the NLRC the
jurisdiction over employer-employee
relations cases.
Section 10 of the said law provides
that Labor Arbiters shall have the
exclusive and original jurisdiction to
hear and decide claims arising out of
an employer-employee relationship or
by virtue of any law or contract
involving Filipino workers for overseas
employment including claims for
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salaries until compliance, suspension,
or dismissal from service.
1. EMPLOYER-EMPLOYEE RELATIONS CASES: TERMINATION
OF EMPLOYMENT
1.1.Contractual Employees
Sea farers are contractual
employees. (Millares and Lagda vs.
NLRC)
1.1.Premature Termination of Contract
Where the workers employment
contract is terminated before its
agreed termination date, and the
termination is not shown to be based
on lawful or valid grounds, the
employer will be ordered to pay the
workers their salaries corresponding
to the unexpired portion of their
employment contract. (Tierra
Construction vs. NLRC)
1.1. Pretermination Under R.A. No. 8042; July 15,
1995 Onward
The date of the employment
termination is material. If it occurred
on or after July 15, 1995, the law to
apply is RA 8042.
Under Section 10, a worker dismissed
from overseas employment without
just, valid or authorized cause as
defined by law or contract, is entitled
to a full reimbursement of his
placement fee with interest at 12%
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unsanitary surgical procedures they performed
on themselves. Hence, the death benefits
under the employment contract must be paid.
(NFD International Manning Agents vs. NLRC)
1.1.Overseas Compensation Benefits in Dollars
While it is true that RA 529 makes it unlawful
to require payment of domestic obligations in
foreign currency, this particular statute is not
applicable in the case at bar. The fixing of the
award in dollars was based on the parties
employment contract, stipulating that wages
and benefits in dollars, since private
respondent was engaged as an overseas
seaman on board petitioners foreign vessel.
(Philippine International Shipping Corp. vs.
NLRC)
1. DISCIPLINARY ACTION CASES
The POEA may motu propio undertake a
disciplinary action against a worker for breach
of discipline. It shall also establish a system of
watching and blacklisting OCWs.
1.1.Grounds for Disciplinary Action
a. Commission of a felony punishable by
Philippine laws or laws of host
country;
b. Drug addiction or possession or
trafficking of prohibited drugs;
c. Desertion or abandonment;
d. Gambling;
e. Initiating or joining a strike, where
prohibited;
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There is no absolute rule as to what constitute
laches; each case is to be determined according to
its particular circumstances. The question of laches
is addressed to the sound discretion of the court and
since it is an equitable doctrine, its application is
controlled by equitable considerations. It cannot be
worked to defeat justice or perpetrate fraud or
injustice.
Where the claim was filed within the three-year
statutory period, recovery therefore cannot be
barred by laches. Courts should never apply the
doctrine of laches earlier than the expiration of time
limited for the commencement of actions at law.
(Imperial Victory Shipping vs. NLRC)
1. MINIMUM EMPLOYMENT CONDITIONS
a. Guaranteed wages for regular working
hours and overtime pay
b. Free transportation to and from the
worksite, or offsetting benefit;
c. Free food and accommodation, or
offsetting benefit;
d. Just and authorized causes for
termination of contract taking into
consideration the customs and norms
of the host country.
1. FREEDOM TO STIPULATE
Parties are allowed to stipulate other terms and
conditions and other benefits not provided under
these minimum requirements, provided the whole
employment package should be more beneficial to the
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Such fees shall be collected from the hired worker
only after he has obtained employment through the
facilities of the recruitment agency.
1. REFUND FEES
POEA has the power to order the refund of illegally
collected fees.
Article 33: REPORTS ON EMPLOYMENT STATUS
Article 34: PROHIBITED PRACTICES
COMMENTS AND CASES
PROHBITED PRACTICES
Article 34(a) prohibits the charging or accepting of
fees greater than that allowed by regulations. It is
also a deterrant to loan sharks who lend money at
usurious interests.
Article 34(b) includes the act of furnishing fake
employment documents to a worker, and the act of
publishing false notice or information in relation to
recruitment or employment.
In Article 34(d), it is not necessary that the worker
was actually induced or did quit the employment.
Article 35: SUSPENSION AND/OR CANCELLATION OF
LICENSE OR AUTHORITY
COMMENTS AND CASES
1. SUSPENSION OR CANCELLATION OF LICENSE
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Contract contained a provision empowering the
agency to sue and be sued jointly and solidarily with
the foreign principal for any of the violations of the
recruitment agreement and the contracts of
employment. These contractual undertakings
constitute the legal basis for private agencies being
liable jointly and severally with its principal, for all
claims filed by recruited workers which may arise in
connection with the implementation of the service
agreements or employment contracts. (Royal Crown
Inernationale vs. NLRC)
1.1.Required Undertaking by Agent
1.2.Contract by Principal
It has been held that even if it was the petitioners
principal which entered into a contract with the
private respondent, nevertheless, petitioner, as the
manning agent in the Philippines, is jointly and
solidarily responsible with its principal. (Seagull
Maritime Corp vs. Balatongan)
1.1.Proper Party
A sister in the Philippines of a maltreated Filipino
domestic helper in Abu Dhabi is a proper party to file
a complaint.
1. SUABILITY OF A FOREIGN CORPORATION WHICH HIRES
FILIPINO WORKERS
A foreign corporation which, through unlicensed
agents, recruits workers in the country may be sued
in and found liable by Philippine courts.
1. DEREGULATION AND PHASE OUT
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holders of authority shall be deemed illegal and
punishable under Art. 39 of this Code. The DOLE or any
law enforcement officer may initiate complaints under
this Article.
(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.
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b)
c)
d)
e)
f)
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h)
i)
j)
k)
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Art. 39 - PENALTIES3
(A) 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;
(B) 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;
(C) 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;
(D) 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;
3 Amended by RA 8042, Section 7
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(E) 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.
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time of the application to perform the services for
which the alien is desired.
For an enterprise registered in preferred areas of
investments, said employment permit may be issued
upon recommendation of the government agency
charged with the supervision of said registered
enterprise.
Art. 41 Prohibition against transfer of employment
(a) After the issuance of the employment permit, the
alien shall not transfer to another job or change his
employer without prior approval from the Secretary
of DOLE
(b) Any non-resident alien who shall take up
employment in violation of provision of this Title
and its IRRs shall be punished in accordance with
Arts. 2894 and 290 of the Labor Code.
In addition, the alien worker shall be subject to
deportation after service of his sentence.
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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)
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ISSUED; except in cases of holders of MULTIPLE
POSITIONS IN ONE CORPORATION
Art. 42 Submission of List
Any employer employing non-resident foreign nationals
on the effective date of this Code, shall submit a list of
such nationals to the Secretary of Labor within thirty
(30) days after such date indicating their names,
citizenship, foreign and local addresses, nature of
employment and status of stay in the country. The
Secretary of Labor shall then determine if they are
entitled to an employment permit.
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
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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)
(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,
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Art. 63 Venue of Apprenticeship Programs
Art .64 - Sponsoring of Apprenticeship Program
Art. 65 -Investigation of Violation of Apprenticeship
Agreement
Art. 66 - Appeal to the Secretary of Labor
Art. 67 - Exhaustion of Administrative Remedies
Art. 68 - Aptitude Testing of Applicants
Art. 69 - Responsibility for Theoretical Instruction
Art. 70 - Voluntary Organization of Apprenticeship
Programs, Exceptions
Art. 71 - Deductibility of Training Costs
Art. 72 - Apprentices without Compensation
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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
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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
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Learner is not an apprentice, but an apprentice is
considered a learner.
Chapter III HANDICAPPED WORKERS
Art. 78 Definition
Handicapped workers are those whose earning capacity
is impaired by age, or physical or mental deficiency or
injury.
Art. 79 When Employable
Handicapped workers may be employed when:
a) their employment is necessary to prevent
curtailment of employment opportunities; and
b) it does not create unfair competition in labor
costs or impair or lower working standards.
Art. 80 Employment Agreement
Any employer who employs handicapped workers shall
enter into an employment agreement with them, which
agreement shall include:
a) the names and addresses of the handicapped
workers to be employed;
b) the rate to be paid the handicapped workers
to be employed which shall be not less than
seventy-five (75%) percent of the applicable
legal minimum wage;
c) the duration of the employment period; and
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of the employees under special laws or
under valid agreements
Excluded employees
1. govt employees governed by CSC rules EXCEPT
govt employees of govt agencies and govt
corporations incorporated under the Corporation
Code
2. managerial employees or staff
3. outside or field sales personnel
4. employers family members
5. domestic helpers
6. persons rendering personal service
7. workers paid by result
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should have been express agreement to that effect
and that the mathematical result shows that the
agreed legal wage rate and the overtime
pay,computed separately, are equal to or higher
than the separate amounts legally due
Compressed workweek (45 hours in 5 days) as an
exception to the non-waiver of overtime pay if the
following requisites are present:
1. agree in writing to work 9 hours a day from
Monday to Friday
2. no diminution in the salary and other fringe
benefits
3. value of the benefits that will accrue to the
employees under the proposed work schedule is
more than or at least commensurate with or
equal to the one-hour overtime pay that is due
them during weekdays
4. overtime pay of the employees will become due
and demandable if ever they are permitted or
made to work on weekend
5. work does not involve strenuous physical exertion
and are provided w/ coffee breaks
6. effectivity of proposed working time arrangement
shall be of temporary duration as determined by
DOLE
Art. 88 Undertime not offset by Overtime
Art. 89 Emergency Overtime Work
1. country is at war or when any national or local
emergency has been declared by Congress or
the President
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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 Compensation for rest day, Sunday, or
holiday work
at least 30% of regular wage
when such holiday falls on his rest day, addl
compensation of at least 50%
CBA may stipulate higher premium pay
3 special days (holidays) Nov.1, Dec. 31, Aug. 21
30%
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
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1.
2.
3.
4.
5.
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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
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1. woman gives birth as result of rape or
crime against chastity, provided she keeps
and raises the child
2. spouse has died
3. spouse is detained or is serving sentence
for at least 1 year
4. legally separated or de facto separated for
at least 1 year, provided s/he is entrusted
with custody
5. physical/mental incapacity of spouse
6. abandoned by spouse for at least 1 year
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 except those receiving more
than P2,000 a month
in case service charge is abolished, the share of
covered employees shall be considered as integrated
in their wages
basis shall be the average monthly share of each
employee for the past 12 months immediately
preceding the abolition or withdrawal of such
charges
pooled tips shall be monitored, accounted for, and
distributed in the same manner as service charge
Title II WAGES
Chapter 1 Preliminary Chapter
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
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distinguish facilities from supplements
(criterion: purpose)
supplements constitute extra
remuneration or special privileges or
benefits given to or received by the
laborers over and above their ordinary
earnings or wages.
Facilities items of expense
necessary for the laborers and his familys
existence and subsistence so that by
express provision of law, they form part of
the wage and when furnished by the
employer are deductible therefrom
HOWEVER, re: meals and snacks
deduction cannot be more than 70% of the
value of the meals and snacks, provided
that such deduction must be authorized in
writing by the employee; remaining 30%
has to be subsidized by the employer
Lodging facility value is determined to be
the cost of operation and maintenance,
including adequate depreciation plus
reasonable allowance
Requirements for deducting value of
facilities (Mabeza v NLRC)
1. proof must be shown that such
facilities are customarily furnished
by the trade
commissions and
computation of
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elimination
or
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Requisites for application of nondiminution rule
1. grant of the benefit is founded on a policy or has
ripened into a practice over a long period
2. the practice is consistent and deliberate
3. the practice is not due to error in the
construction or application of a doubtful or
difficult question of law
4. the diminution or discontinuance is done
unilaterally by the employer
Extent of the Rule
1. food and meal allowances
2. noncontributory retirement plan
3. monthly emergency allowance
Exceptions to the non-diminution rule
1. not established practice
2. benefit on reimbursement basis
3. negotiated benefits (i.e. CBA)
4. reclassification of position/promotion made in
good faith
ex: rank-and-file to supervisory lose overtime
pay and other benefits under A 82-96 but A 100 is
not violated (Natl Sugar Refineries Corp v NLRC)
5. contingent or conditional benefits/bonus
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
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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
computation of the 13th 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 endeavors],
includible in the 13th month pay
computation (Phil. Duplicators v NLRC); if
profit-sharing or productivity bonus type
[something extra for which no specific
additional services are rendered by any
particular employee], excluded (BoieTakeda Chemicals v Dela Serna)
employees
w/
guaranteed
wages/commissions entitled to 13th month
pay based on their total earnings during
the calendar year on both their fixed and
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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
within or outside 8 hours in a day] part of
basic pay for computing 13th month pay
an employee who has resigned or whose
services were terminated at any time
before the time for payment of the 13th
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)
distressed employer may be exempt from
paying the 13th month pay only upon prior
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basis of output rate the performance of an
ordinary worker of minimum skill or ability [aka
the average worker of the lowest producing group
representing 50% of the total number of
employees engaged in similar employment in a
particular establishment, excluding learners,
apprentices, and handicapped workers employed
therein
unsupervised piece-rate workers are not entitled
to night differential pay and service incentive
leaves
re: yearly commutation or cash conversion of the
service incentive leave of piece-rate workers
based on their average daily earnings during the
particular year of service which can be derived
by dividing the amount earned during the year by
the actual number of working days or the
statutory minimum rate, whichever is higher
in the absence of any agreement which provides
otherwise, the amount earned during the year
may exclude COLA, overtime pay, and premium
pay, holiday pay, night differential pay and
company fringe benefits
computation of service incentive leave of piecerate worker get actual wage earned for 1 year,
divide by 12 to get average monthly earnings
then divide by the average number of actual
worked days in a month, multiply result by 5; if
average daily rate is less than P36, basis for the
computation is P36, the minimum rate outside
Metro Manila.
Other entitlements:
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 costliving 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
a. Labor Congress v NLRC
Held:
piece-rate employees are entitled to night
shift differential, holiday pay, service
incentive leave, premium pay, and 13th
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
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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 from those
exempted from paying the 13th 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
1. minimum wage
2. service incentive leave of 5 days with pay
3. night differential pay
4. holiday pay
5. meal and rest periods
6.
7.
8.
9.
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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:
a. bec of deterioration of peace & order
b. by reason of actual or impending
emergencies caused by fire, flood,
epidemic or other calamity
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Bank shall issue a cert of the record of payment
of wages
Of particular worker/workers
For a particular pay period.
(Wage Rationalization act RA 6727)
Payment through ATM allowed.
(under a labor advisory dated
Nov 25, 1996)
Art. 105. Direct Payment of Wages
Art. 106. Contractor or Subcontractor
Art. 107. Indirect Employer
Art. 108. Posting of Bond
Art. 109 Solidary Liability
Contractor of Subcontractor
1. Contracting and Subcontracting in general
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
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
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2. 1st set of prohibition Labor only contracting (DO
18-02)
L.o.C = EE + (CE1 or CE2)
EE = essential element arrangement is merely
to recruit, supply or place workers to perform a
job, work or service for the principal
CE1 = confirming element 1 lack of substantial
capital or investment and performance of
activities directly related to the principals main
business
CE2 = confirming element 2 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)
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(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.
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.
1. Summary of prohibited labor contracting
2. 2nd set of prohibitions Arrangements that violate
public policy (DO 18-02)
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iii)
ii)
iii)
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i)
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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.
2. 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).
9.1 As to payment of wages/money claims
When a contractor fails to pay the wages of his
employees in accordance with the Labor Code, the
employer who contracted out the job becomes
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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
1. 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
Unpaid wages earned prior to declaration/liquidation
shall be given 1st 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
a. cases of unlawful withholding of wages
b. 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
1. Civil Code Provisions
a. Art 1705 CC: paid in legal currency
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b. Art 1706 CC: withholding of wages, except
for a debt due, shall not be made by the
employer
c. Art 1707 CC: Labors wages shall be a lien
on goods manufactured or work done.
d. Art 1708 CC: wages not subject to
execution or attachment, except for debts
incurred for food, shelter, clothing and
medical attenda.ce
e. Art 1709 CC: Employer shall neither seize
nor retain any tool or other articles
belonging to the laborer.
Art. 113. Wage Deduction
Wage deduction
Authorized deductions by law:
a. Value of means and other facilities
b. Premium paid by employer where insured with
employees consent
c. Union to check off recognized by employer/
authorized in writing by indiv employee
d. Employee is indebted to employer, due &
demandable
e. Subject to exection for debts incurred for
food, shelter clothing and medical attendance
f. Withholding tax
g. Salary deductions cooperative
h. SSS, Medicare, Pag-ibig
rd
Payment to 3 person
Authorized in writing by employee
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2 employers
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h. Fair return of capital
i. Effects on employment generation and
family income
j. Equitable distribution of income and
wealth
Wage distortion situation where an increase in
prescribed wage rates results in the elimination or
severe contraction of intentional quantitative
differences in wage of salary rates among employee
groups, obliterating the distinctions as to skills, length
of service or other logical bases of differentiation.
Distortion adjustment formula (Metro Bank v. NLRC):
Minimum wage / actual salary = % x prescribed increase
= distortion adjustment
See also equitable bank case
Art. 125 Freedom to Bargain
Art. 126 Prohibition against Injunction
Art. 127. Non-Dimunition of Benefits
Chapter VI Administration and Enforcement
Art. 128. Visitorial and Enforcement Power
If employer-employee relationship still exists regional
director has power to order and administer, after due
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Labor Standards Cases
DOLE Regional Director exercises both visitorial and
enforcement power over labor standard cases
emplowered to adjudicate money claims, provided
employer-employee relationship exists and finding are
not contested by employer (Maternity Childrens
Hospital v. sec of labor)
Art. 129. Recovery of wages, simple money claims
and other benefits
Money claims arising from complaint/routine inspection
Regional director refers case to Labor Standards and
Welfare Officer for field inspection. LSWO to submit
report to Regional Director through the Chief of the
Labor Standards Enforcement Division (LSED) with 24 hrs
after investigation or within a reasonable period as
determined by Regional Director.
Restitution
Plant Level restitution may be effected for money
claims not exceeding P50T. Report submitted to
Regional Director for verification and confirmation.
Compromise agreement
In writing, signed by parties in the presence of Regional
Director or his duly authorized rep.
Hearing
Where no proof of compliance submitted by employer
after 7 days from receipt of inspection, Regional
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We cannot agree to the respondent PALs proposition
that termination from employment of flight attendants
on account of marriage is a fair and reasonable standard
designed for their own health, safety, protection and
welfare, as no basis has been laid therefore. Actually,
respondent claims that its concern is not so much
against the continued employment of the flight
attendant merely by reason of marriage but rather on
the consequence of marriage pregnancy. Xxx The
sweeping intendment of the law, be it on special or
ordinary occupations is reflected in the whole text and
supported by Art 135 that speaks of nondiscrimination
on the employment of women.
PT&T v. NLRC
Similar to the Zialcita case except that the employer
did not admit that the employee was dismissed because
she was married. The cause of the dismissal, the
employer insisted, was her dishonesty in stating in the
job application that she was single though in fact she
was not.
PT&Ts policy that married women are not qualified for
employment in PT&T is not only in derogation of the
provisions of Art 136 on the right of women to be free
from any kind of stipulation against marriage in
connection with her employment, but it likewise
assaults good morals and public policy tending as it does
to deprive a woman of the freedom to choose her
statusl, a privilege that by all accounts inheres in the
individual as an intangible and inalienable right.
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Employee-employee but file case with company based
on company rules
Duty of employer or head of office
To prevent or deter the commission of acts of sexual
harassment and provide procedures for resolution or
prosecution of acts of sexual harassment
To promulgate rules and regulations prescribing
procedure for investigation of secual harassment cases
and admin sanctions therefor
To create committee on decorum and investiation of
cases on sexual harassment
BOOK FOUR
HEALTH, SAFETY AND SOCIAL
WELFARE BENEFITS
Title I
MEDICAL, DENTAL AND
OCCUPATIONAL SAFETY
Chapter I
MEDICAL AND DENTAL SERVICES
Article 156: FIRST-AID TREATMENT
Article 157: EMERGENCY MEDICAL AND DENTAL
SERVICES
Article 158: WHEN EMERGENCY HOSPITAL NOT
REQUIRED
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Number of
Employees
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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.
Personnel
First-aider
Nurse
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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
DOH
Institute of Public
Health of UP; OR
Any
organization
accredited by the
former
Passed the examination
given by the Board of
Examiners
Licensed to practice
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Physician
Dentist
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Number of
Employees
50 to 400 each
shift
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
20 to 200 each
shift
Training
Hazardous
Non-Hazardous
At least one of
the
supervisors
or
technical
personnel
shall
be trained in
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At least one of
its supervisors
or
technical
men shall be
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
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be trained and
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.
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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
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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 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.
1. 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
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its commission was finally abolished on March 31,
1976.
2. 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.
2.1.Trust Fund
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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
Abolished
Abolished
No need to controvert
because the claim is
against the SIF not the
employer
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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
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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
2. PROXIMATE CAUSE
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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.
2.2.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 status or condition temporarily by, e.g. going
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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.
2.4.The 24-Hour Duty Doctrine Requires WorkConnection; 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.
3. 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
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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.
1. 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 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
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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.
2. 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,
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incidents of employment and necessary to the health of
the employee, so that injuries sustained thereby are
compensable.
1.1.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 is
reasonable incident to the employment.
1.2.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
1.3.Union Meeting
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request of the employer, but not where it is there
performed voluntarily by the employee for his own
convenience or benefit.
3. 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
a. Which the employer has expressly ordered
to do by someone authorized to direct him
as to his work or;
b. Even in the absence of orders when such
act is reasonably necessary or incidental to
his regular work, particularly where an
emergency existed
c. 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
1. 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
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actively engaged, whether he was at the place where he
was authorized or required by such contract to be.
4.1.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.
4.2. 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.
4.3.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
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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
6. 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.
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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
7.1.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.
1. NPA VICTIMS; PRESUMPTIVE COMPENSABILITY
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Acts within the sphere of employment but carried out in
violation of some employer-promulgated rules are
compensable.
1. Where the violation of the rule itself did not
bring about the cause of the accident
2. Where there is serious doubt that the prohibition
was known to the employees injured.
3. Where the violation was not intentional but due
to carelessness or negligence.
Hawaiian-Philippine CO. vs. WCC: If the injury or death
was the result of horseplay or larking among employees,
the courts have declared the same as a compensable
accident. There can be no question that horseplay or
larking is unfortunately too common in factory life.
1. WHEN NOT COMPENSABLE
Although violation of company rules does not necessarily
defeat compensability it will be a different matter,
however, if the injury results from intoxication whether
or not the company rule is violated. It will be seen
under Art. 172 that the disability or death is not
compensable if it is caused by the employees
intoxication, willful intention to injure or kill himself or
another, notorious negligence, or otherwise excluded
from coverage of law.
2. SICKNESS, DEFINED; OCCUPATIONAL OR
COMPENSABLE DISEASE
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2.2.Duties of Employer Regarding Occupational
Disease
Under Rule III, Sec. 2 of the Amended ECC Rules, the
employer is bound to require preemployment
examination of employees exposed to occupational
diseases.
3. THEORY OF INCREASED RISK
Increased Risk Theory to establish compensability, the
claimant must show proof of reasonable workconnection, not necessarily direct causal relation. The
degree of proof required is merely substantial evidence
which means such relevant evidence as will support a
decision, or clear and convincing evidence. Although
strict rules of evidence are not applicable, yet the basic
rules that mere allegations is not evidence cannot be
disregarded.
3.1.Illustrative Case: Increased Risk Shown
Clemente vs. GSIS: Working as a cleaner in a skin clinic
whereas the deceased was exposed to different carriers
of viral and bacterial diseases.
Narazo vs. ECC: (Uremia) Deceased was a Budget
Examiner. From human experience, prolonged sitting
down and putting off urination result in stagnation of
urine. This encourages the growth of bacteria in the
urine, and affects the delicate balance between
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A teacher who works under a hazardous condition in farflung town and has to hike daily to his place of work, is
liable to contract schistosomiasis.
1.17.Senile Cataract*
1.18.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.
2. 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
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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
1. 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
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COMMENTS AND CASES
1. EXCLUSIONS
Self-Inflicted or Self-Courted contingencies
1.1.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.
1.2. 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.
1.2.a.Suicide or Provoked Death Not
Compensable
1.2.b.Death Not the Result of Workers Willful
Act
1.2.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
THE
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Answer:
Case of Ysmael Maritime Corporation vs.
Avelino (June 30, 1987)
In this case, the employer refused to grant the claim of
the deceased employees parents on the ground that
the claimants had already been compensated by the
Workmens Compensation Commission for the same
incident, for which reason they are now precluded from
seeking other remedies against the same employers
under the Civil Code.
Ruling: In the case of Robles vs. Yap, it was held that
the action is selective and the employee or his heirs
have a choice of availing themselves of the benefits
under the WCA or of suing in the regular courts under
the Civil Code for higher damages from the employer by
reason of his negligence. But once the election has
been exercised, the employee or his heirs are no longer
free to opt for the other remedy, i.e., the employee
cannot pursue both actions simultaneously.
2. RECOVERY UNDER THE LABOR CODE AND THE SOCIAL
SECURITY LAW
Simultaneous recovery of benefits under the
employees compensation program of the Labor Code
and under the Social Security Law is allowed.
ART. 174 LIABILITY OF THIRD PARTIES
ART. 175 DEPRIVATION OF BENEFITS
176
177
178
179
180
181
182
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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
- to minimize and control hazards in the working
environment.
- Two agencies involved in this program:
a. Bureau of Working Conditions (BWC)
- inspects work premises
b. Occupational Safety and Health Center
(OSHC)
- trains safety engineers, tests
safety equipment and undertakes
research work.
- the law provides that establishments having
high rate of incidents caused by
hazards of their working environment will be
liable to 25% of benefits due the
claimants. (To force the observance of the legal
requirement on occupational
health and safety.)
2. Compensative Thrust
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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
- medical services, appliances and supplies;
- rehabilitation services
b. Cash Income Benefit or Pension due to:
- temporary total disability;
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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
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Permanent Disability
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
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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
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.
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Permanent Partial
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Ruling:
He is considered permanently and totally
disabled to work when he was incapacitated or disabled
to perform any substantial amount of labor in the line
of work where he was formerly engaged, or any other
kind of work to which he could be assigned.
2. Vicente vs. ECC
Ruling: The test of determining whether or not an
employee suffers from permanent total disability is a
showing of the capacity of the employee to continue
performing his work notwithstanding the disability he
incurred. It does not mean an absolute helplessness but
rather an incapacity to perform gainful work which is
expected to be permanent.
Conversion from Permanent Partial to Permanent Total
1. GSIS vs. CA
Ruling: A persons disability may not manifest fully at
one precise moment in time but rather over a period of
time. It is possible that an injury which at first was
considered to be temporary may later on become
permanent or one who suffers a partial disability
becomes totally and permanently disabled from the
same cause.
NOTE:
-The compensation paid in 1936 on account of the
amputation of an employees foot, below the knee,
should NOT be deducted from the compensation due for
the dsability resulting from the amputation of the left
leg, above the knee in 1857.
CHAPTER VII
DEATH BENEFITS
ART. 194 DEATH
DEPENDENCY
does not mean absolute dependency for the
necessities of life, but rather, that the
plaintiff looked up to and relied on the
contribution of the decedent in whole or in
part, as a means of supporting and
maintaining herself in accordance with her
station in life.
A person may be dependent, according to this
view, although able to maintain himself
without any assistance from the decedent.
TEST OF DEPENDENCY
dependency
may
exist
although
the
dependent could have subsisted without the
assistance he received, if 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
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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.
CHAPTER IX
RECORDS, REPORTS AND PENAL PROVISIONS
ART.
ART.
ART.
ART.
205
206
207
208
Notes:
- Amount of income benefits shall be equivalent t the
monthly income benefits under PTD and PPD benefits.
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TITLE III
MEDICAL CARE
TITLE IV
ADULT EDUCATION
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