[REVIEWER] Labor Relations

ARTICLE 106. CONTRACTOR OR SUBCONTRACTOR

The law only prohibits “labor-only” contracting and creates an EER between the Er and the contractor’s worker for the protection of the laborer.

Article 106 provides that a principal is permitted by law to engage the services of a contractor for the performance of a particular job.

However, the principal becomes solidarily liable with the contractor for the wages of the contractor’s employees.

Article 106 empowers the Sec. of Labor to make distinctions between permissible job contracting and labor-only contracting which is a prohibited under A.106 last par.

Q. WHAT IS THE COVERAGE OF D.0 174-17?

A. It covers the following:

1. All parties of the contracting and subcontracting arrangements where EER exists; and

2. Cooperatives engaging in contracting or subcontracting arrangements.

Q. DOES D.O 174-17 COVERS CONTRACTING IN CONTRUCTION INDUSTRIES?

A. No. Contracting or subcontracting arrangement in the construction industry, under the licensing coverage of the Phil Construction Accreditation Board (PCAB), shall not be covered by the provisions of D.O 174-17 and shall be continued to be governed by D.O 19 s. 1993, among others.

Note: Industries covered by a separate regulation of the DOLE or other government agency, contracting therein shall be governed by D.O 174-17 unless expressly provided otherwise.

Q. WHAT IS CONTRACTING OR SUBCCONTRACTING?

A. Refers to an arrangement whereby a principal agrees to put out or farm out with a contractor the performance 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.

Q. WHO ARE THE PARTIES IN THE JOB CONTRACTING ARRANGEMENTS (Trilateral Relationship)?

A. The three (3) parties in these arrangements are:

1. The principal (owner of the project) who decides to farm out a job, work, or service to a contractor;

2. the job contractor who has the capacity to independently undertake the performance of the job, work and service;

3. the contractual workers engaged by the contractor to accomplish the job, work, or service.

Q. WHAT ARE THE TWO KINDS OF CONTRACTS IN A TRILATERAL RELATIONSHIP?

A. In a trilateral relationship, there are two (2) kinds of contracts that should be executed:

1. Employment Contract between the contractor and its Ee, which is governed by the LC; and

2. Service Agreement between the principal and contractor containing the terms and conditions governing the performance or completion of a specific job, work or service being farmed out for a definite or predetermined period, which is governed by the CC.

Q. WHAT ARE THE CONTENTS OR STIPULATIONS OF THE EMPLOYMENT CONJTRACT?

A. Notwithstanding any oral or written stipulations to the contrary, the employment the employment contract between the contractor and its Ee shall be governed by As. 294 and 295 of LC. It shall include the ff stipulations:

1. The specific description of the job, work or service to be performed by the Ee;

2. The place of work and terms of conditions of the employment, including a statement of the wage rate applicable to the individual Ee;

3. The term or duration of employment that must be co-extensive with the SA or with the specific phase of work for which the Ee is enjgaged;

4. The duty of contractor to inform the EE of the foregoing terms and conditions of employment in writing on or before the first day of his/her employment.

NOTE: The contractor shall inform the Ee of the foregoing T&C of employment in writing on or before the first day of his/her employment.

Q. WHAT SHOULD SERVICE AGREEMENT INCLUDE?

A. The SA should include the ff:

1. The specific description of the job, work, or service being subcontracted;

2. The place of work and terms and conditions governing the contracting arrangement, to include the agreed amount of the services to be rendered and the standard administratrive fee of not less than ten percent (10 %) of the total contract cost;

3. A provision on the issuance of a bond under A. 108 of the LC that the principal (owner of the project) may require from the job contractor to be posted equal the cost of labor under contract.

Q. WHAT IS THE EFFECT OF VIOLATION OF ANY CONTRACTS OR CONTRACTOR’S EMPLOYEES RIGHT?

A. A finding by competent authority of violation of any of the contract (EC and SA) or contractor’s right shall render the principal the direct employer of the Ees of the contractor or subcontractor pursuant to A. 109 of the LC.

Q. WHAT ARE THE EFFECTS OF TERMINATION OF EMPLOYMENT?

A. The termination of the contractor/subcontractor’s Ee prior to the expiration of the SA shall be governed by As. 297-299 of LC.

1. In case the termination of the employment is caused by the pre-termination of the SA not due to authorized causes under A.298, the right of the contractor/subcontractor’s Ee to unpaid wages and other unpaid benefits shall be borne by the party at fault, without prejudice to the solidary liability of the parties to SA.

2. When the termination results from the expiration of the SA or the completion of the phase of the job or work for which the Ee is engaged, the Ee may opt to wait for re-employment within (3) months to resign and transfer to another contract-employer.

Q. WHAT IS THE EFFECT OF FAILUURE OF THE CONTRACTOR TO PROVIDE NEW EMPLOYMENT?

A. The failure of the contractor to provide new employment for the Ee shall entitle the Ee to payment of separation benefits as provided by law or the SA whichever is higher, without prejudice to his/her entitlement to completion bonuses or other emoluments, including retirement benefits whenever applicable.

NOTE: The mere expiration of the SA shall not be deemed as a termination of employment of the contractor’s/subcontractor’s Ee who are regular Ees of contractor’s/subcontractor’s.

Q. WHEN LEGITIMATE JOB CONTRACTING IS PERMISSIBLE?

A. Job contracting/subcontracting shall be allowed only if the ff circumstances concur:

1. the contractor must be duly registered with the DOLE;

2. the contractor carries a distinct and independent business and undertakes to perform the job, work or service on its own responsibility, according to its own manner and method, and free from the control and direction of the principal in all matters connected with the performance of the work except to the results thereof;

3. the contractor has substantial capital and/or investment in the form of tools, equipment, machineries, work premises, and other materials which are necessary in the conduct of the business.

4. the Service Agreement between principal and contractor should ensure compliance with all the rights and benefits of the worker under the Labor Laws such as:

a. labor and occupational safety and health standards;

b. free exercise of the right to self-organization;

c. security of tenure; and

d. social and welfare benefits.

Q. WHAT ARE THE FOUR TEST IN DETERMINING THE LEGITIMACY OF JOB CONTRACTING ARRANGEMENT?

A.

1. Registration test – which requires the contractor to be registered with the DOLE.

Otherwise, failure toregister shall give rise to presumption that the contractor is engaged in labor-only contracting.

2. Right of control test – which is used in determining WON the contractor’s manner and methods of performing his job contracting is free from the control and direction of the principal in all matters connected with the performance of the work except as to the results thereof.

3. Substantial capital or investment test – which addresses the issue of whether the contractor has substantial capital or investment in the form of tools, equipment, machineries, work premises and other material which are necessary in the conduct of its business.

4. Legal rights and compliance test – which addresses the issue of whether SA between the principal and contractor is complaint with the rights and benefits of workers under the labor law.

Q. WHAT IS THE AMOUNT OF SUBSTANTIAL CAPITAL TEST TO DETERMINE SUBSTANTIALITY?

A. The amount of substantial capital is fixed under D.O 174-17:

1. Corporations, partnership, or cooperative (CPC) – paid up capital stocks/shares of at least five (5) million (5M)

2. Single Proprietorship – net worth of at least Five million pesos (5M)

Note: Substantial capiutal or investment refers not only contractor’s financial capability but also encompasses tools, equipment, implements, machineries, and work premises, actually and directly used by the contractor or subcontractor in the performance or completion of the job, work or service contracted.

Q.  WHAT ARE THE RIGHTS OF CONTRACTOR’S EMPLOYEE?

A. All contractor’s /subcontractor’s Ees, shall be entitled to security of tenure and all the rights and privileges as provided for in the LC to include the ff:

1. Safe and healthful woking conditions;

2. Labor standards such as but not limited to SIL, RD, OTP, HP, 13^th MP, and SP;

3. Retirement Benefits under SSS or retirement plans of the contractor/subcontractor

4. Social Security and welfare benefits; and

5. Self-organization, CBA and peaceful concerted activities including the right to strike.

Q. WHAT IS THE DIRECT RELATION TO PRINCIPAL’S BUSINESS TEST?

A. Under the DRTPBT the issue to be determined is WON the Ees recruited, supplied, or placed by a contractor to the principal are performing activities which are directly related to the main business of the principal.

Q. WHAT IS THE LEGAL EFFECT OF LABOR-ONLY CONTRACTING?

A. The contractor/subcontractor (said person or intermediary) is considered merely an agent of the employer.

Thus, under labor-only contracting arrangement, there is an EER between the owner of the project and the Ee of the labor-only contractor. The labor-only contractor being considered merely as an agent of the employer.

In other words, the principal employer is the direct Er of the Ee.

Q. WHAT ARE THE DISTINCTIONS OF LEGITIMATE JOB CONTRACTING AND LABOR-ONLY CONTRACTING?

A. The distinctions are as follows:

	LJC	LOC
Existence of EER	No EER exist between the contractual Ees of the mjob contractor and the principal	An EER is creted by law between the principal and the contractual Ees supplied by the LOC.
Principal as direct or direct employer	Principal is considered only an indirect employer (A. 107)	Principal is considered the direct employer of the contractual Ee (A.106)
Joint and Several liability	The JSL of the principal and the legitimate job contractor is only for limited purpose i.e to ensure that the Ee are paid of their wages. Thus, the prikncipal is not responsible for any claim made by the contractual employees.	Principal becomes joint and severally  liable with the manner and extent that the principal is liable to employees directloy hired by him/her as provided in A.106
What job contractor provides	Job contractor undertakes and perform a specific job for the principal   Thus, provides services.	The labor-only contractor merely provides, supplies, result and places the personnel to work for the principal.   Thus, provides only manpower.

 

Q. WHAT ARE THE OTHER ILLICIT FORM OF EMPLOYMENT ARRANGEMENTS?

A. Notwithstanding the prohibition on labor-only contracting, the ff are declared prohibited for being contracting to law or public policy under D.O 174-17:

1. When the principal farms out work to a “Cabo”;

2. Contracting out of job or work through an in-house agency;

3. Contracting out of job or work through an in-house cooperative which are merely supplies workers to the principal;

4. Contracting out of a job, work by reason of a strike or lockout whether actual or imminent;

5. Contracting out of a job or work being performed by union members and such will interfere with, restrain, or coerce Ees in the exercise of their rights to self-organization as in A. 259 of LC;

6. Requiring the contractor’s/subcontractor’s employees to perform functions which are currently being performed by the regular employees of the principal;

7. Requiring the contractor’s/subcontractor’s employees to sign, as a precondition to employment or continued employment, an antedated resignation letter, a blank payroll; a waiver of labor standards including minimum wages and social or welfare benefits; or a quitclaim releasing the principal or contractor from liability as to payment of future claims; or require the employee to become member of a cooperative;

8. Repeated hiring by the contractor/subcontractor of Ee under an employment contract of short duration;

9. Requiring Ees under a contracting/subcontracting arrangement to sign a contract fixing the period of employment to a term shorter than the term of the SA, unless the contract is divisible into phases for which substantially different skills are required and this is made known to the Ee at the time of engagement; and

10. Such other practices, schemes, or employment arrangements designed to circumvent the right of workers to security of tenure.

Q. IS REGISTRATION MADATORY?

A. It is mandatory to all persons or entities acting as contractors to register with the Regional Office of the DOLE where it principally operates.

Q. WHAT IS THE EFFECT OF FAILURE TO REGISTER?

A. Failure to register shall give rise to the presumption that the contractor is engaged in labor only contracting

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IRR OF R.A 11210

Q. WHAT INCLUDES “FEMALE MEMBERS WHO ARE VOLUNTARY CONTRIBUTORS TO SSS”?

A.

1. A spouse of a member who:

a. devotes full time to managing the household and family affairs

b. but does not engage in other vocation or employment

- which is subject to compulsory or mandatory coverage (Non-working Spouse)

2. An OFW upon termination of her employment overseas who continues to pay her contributions; and

3. A covered employee who was separated from employment who continues to pay her contributions; and

4. A self-employed member who realizes no income in any given month who continues to pay her contribution.

Q. WHO ARE COVERED BY THE 105-DAY EXPANDED MATERNITY LEAVE LAW (EMLL)?

A.

1. Female workers in the Public Sector;

2. Female workers in the Private Sector;

3. Female workers in the Informal Economy

4. Female members who are voluntary country; and

5. Female National Athletes

Q. WHAT ARE THE BENEFITS GRANTED?

A.

1. Paid leave benefit granted to a qualified female worker in the public sector, for the duration of:

a. 105 days for live childbirth, regardless of the mode of delivery.

a.1 In case she qualifies as a solo parent, an additional of 15 days paid leave (R.A 8972)

b. 60 days paid leave for miscarriage and emergency termination of pregnancy

2. Paid leave benefit granted to a qualified female worker in the private sector covered by SSS, including those informal economy for the duration of:

a. 105 days for live childbirth, regardless of the mode of delivery.

a.1 In case she qualifies as a solo parent, an additional of 15 days paid leave (R.A 8972)

b. 60 days paid leave for miscarriage and emergency termination of pregnancy

Note:  Employed female workers shall receive full pay which consist:

1.      SSS maternity benefit computed based on their average daily salary credit; and

2.      Salary differential to be paid by the employer, if any.

3. An option to extend for an additional 30 days without pay in case of live childbirth.

4. Paid maternity leave, allowances and benefits granted to female national athletes; and

5. Health care services for pre-natal, delivery, postpartum and pregnancy-related conditions granted to female workers., particularly those who are neither voluntary nor regular members of the SSS, as governed by the existing rules and regulations of the PHIC.

 Note: All covered females regardless of civil status, employment status and the legitimacy of her child shall be granted of the EML.

Q. WHAT IS THE MANNER OF ENJOYMENT OF THE BENEFIT?

A. Enjoyment of ML cannot be deferred but should be availed either before or after the actual period of delivery in a continuous and interrupted manner.

Note: ML benefits can be credited as combinations of prenatal and postnatal leave as long as it does not exceed 105 or 60 days, as the case may be.

In no case shall postnatal care be less than 60 days.

Q. WHO CAN AND HOW TO AVAIL THE EXTENDED MATERNITY LEAVE?

A.  In case of live child birth, an additional ML of 30 days, without pay, can be availed of, at the option of female worker provided that the employer shall be given due notice.

Due notice to the employer must:

1.      be in writing; and

2.      be given at least 45 days before the end of the female worker’s ML.

Q. WHEN THE NOTICE BE DISPENSED WITH?

A. No prior notice shall be necessary in the event of medical emergency.

But a subsequent notice shall be given to the employer.

Q. IS THE AVAILMENT OF THE EML CONSIDER AS A GAP IN THE SERVICE?

A. No. The EML of 30-day period without pay shall not be considered as gap in the service.

Q. IS FREQUENCY OF PREGNANCY CONSIDER IN THE GRANT OF ML?

A. NO. ML shall be granted to a qualified female worker in every instance of pregnancy, miscarriage, or emergency termination of pregnancy regardless of frequency.

Q. CAN THE ML BENEFITS BE GRANTED AFTER THE TERMINATION OF EMPLOYMENT?

A. GR. YES. ML with full pay shall be granted even if the childbirth, miscarriage, or emergency termination of pregnancy occurs NOT more than 15 calendar days after the termination of an employee’s service, as her right thereto has already accrued.

ETR. Such period is not applicable when the employment of the pregnant woman worker has been terminated without just cause.

In such case she will receive the full amount equivalent to her salary for 105 days (childbirth) and 60 days (miscarriage) in /addition to the other applicable daily cash maternity benefits that she should have received had her employment not have been illegally terminated.

Q. CAN AFEMALE WORKER WITH PENDING ADMINISTRATIVE CASE BE GRANTED OF ML?

A. YES. The maternity benefits granted under R.A 11220 and its IRR shall be enjoyed by a female worker in the public and private sector even if she has a pending administrative case.

Q. CAN THE EXISTING ML CURRENTLT ENJOYED BE DIMINISHED BY R.A 11210 AND ITS IRR?

A. No. Nothing in the IRR shall be construed as to diminish existing maternity benefits if the same are more beneficial to the female worker.

Note: Any working arrangement which the female worker shall agree to during the additional maternity period (30 days) shall be allowed PROVIDED:

1.      that this shall be consented to in writing by the female worker; and

2.      shall be primarily uphold her maternal functions and the requirements of postnatal care.

Q. SECURITY OF TENURE

Q. WHAT IS THE ELIGIBILTY REQUIREMENT FOR FEMALE WORKER IN PUBLIC SECTOR?

BOOK IV TITLE II

Q. WHAT ARE COMPENSABLE INJURIES?

A. The following are compensable injuries:

1. Peculiar Risks

2. Street Perils – those exposed to the perils of the street, any injury arising therefrom is compensable.

3. Acts of Ministration (Personal comfort) – the injury of the Ee who heeded the “call of nature” and sustained injuries in the performance of such act, is deemed compensable.

- Acts necessary to the health and personal comfort of an employee while at work are incidental to employment and injuries sustained therefrom are held to be compensable.

Reason: they arose out of or in the course of employment.

4. Acts of God

5. Assaults

GR. Injury or death caused by an assault which results from a heated argument ensued between two workers over work assignment has been held to be compensable.

ETR. Assault occasional not attributable to employment was held to be not compensable.

6. Recreational Activities – the injury of an employee who was injured during company-sponsored recreational activity is deemed compensable.

TEST – whether such activity is for the benefit or interest of the employer – Compensable.

Otherwise not compensable.

7. Acts for the benefit of the employer.

e.g. In an attempt to protect the properties of the company, an Ee was killed by the bulgars.

- The resulting death is compensable.

8. Acts during emergency – Whenever injuries are sustained in the course of a rescue work during an emergency arising out of the employment are compensable.

 

Q. Is injury sustained by an Ee anytime and anywhere compensable?

A. Yes. An injury is compensable when it is sustained by an Ee anytime and anywhere while executing an order for the Er.

- Coming and going Rule.

The following are compensable off-premise injuries:

1.      Ee is on the way to or from work in a vehicle owned or supplied by the Er.

2.      Ee is subject to call at all hours or at the moment of the injury.

3.      Ee is traveling for the Er.

4.      Ee is on his way to do further work at time, even though on a fixed salary.

5.      Ee is required to bring his car to Er’s business place for use there.

6.      Ee is accidentally injured at a point reasonably proximate to the place of work, while he is going to or from his work, such injury is deemed to have arisen out of and in the course of his employment.

Note:

GR. In the absence of special circumstances, an Ee injured in going to, or coming from his place of work is excluded from the benefits of WCA.

·        Thus an injury or accident sustained by an employee while using the public streets and highways in going to or returning from the place of employment is not compensable.

Reasons:

1.      Such injury is suffered as a consequence of risk and hazards to which all members of the traveling public are subject rather than the risk and hazards having to do with and originating in the work or business of the Er.

2.      Er is not an insurer against all accidental injuries which might happen to an employee while in the course of employment.

ETR.

1.      Where the Ee is preceeding to or from his work on the premises of his Er;

2.      Where the Ee is about to enter or to leave the premises of his Er by using the customary means of ingress and egress;

3.      Where the Ee is charged, while on his way to or from his place of employment or at his home, or during his employment; and

4.      Where the employer, as an incident, provides the means of transportation to and from the place of employment (Shuttle Bus Doctrine)

Q. What is Proximity Rule?

A. An exception to CAGR, which provides that an injury or accident sustained off the Er’s premise.

Q. What are those injuries excluded from the payment of compensation (SIF) or (Principle of Exclusion)?

A. The Ee or his Dependents are not entitled to compensation for injury, sickness, disability or death occasioned by the following:

1. Intoxication

Note: It is incumbent upon the person invoking drunkenness as a defense to show that said person was extremely drunk, as a person may take as much as several bottles of beer or several glasses of hard liquor and still sober and unaffected by the alcoholic drink.

-        It must be shown that the intoxication was the proximate cause of death or injury and the burden lies on him who raises drunkenness as a defense.

(Marlow Navigation Phils. et.al v. Heirs of Ricardo)

-        Drinking of intoxicating liquor does not bar compensability unless it results to extreme drunkenness, incapacitating the worker from following his occupation.

-        The proximate cause of and not merely a contributory cause to his death or injury.

Q. How to prevent payment of compensation?

A. The following conditions must concur:

a. there must be proof of actual intoxication;

b. the intoxication must be extreme so that the employee is incapacitated from substantially engaging in employment and performing his task;

c. the intoxication must be the proximate cause of the injury or death; and

d. the intoxication must not only be the proximate cause but the employment thereof must not be a contributory cause.

2. Self-inflicted Injuries

Note: Compensation shall not be allowed if the injuries are intentionally self-inflicted or when an employee has committed suicide.

-        A willful intent to injure or kill one’s self or another will preclude payment of compensation.

ETR. Where the deceased suffered from mental disorder at the time at the time of his repatriation means that he must have been deprived of the full use of his reason, and that, thereby, his will must have been impaired, at the very least. Thus, man employee causes his own death due to his insane acts, he did not do it willfully.

GR. Seafarer’s death is compensable regardless the death is not work-related so long as death occurs during the term of the contract.

ETR. Notorious Negligence / Deliberate/Willful act is the cause of death.

Q. What are the instances where suicide does not bar payment of compensation?

A.

1. When it results from insanity resulting from compensable injury or disease.

2. When it occurs during a delirium resulting from compensable injury or disease; and

3. when it flows from uncontrollable impulse arising from compensable injury or disease.

3.      Notorious Negligence.

Note: It indicates something which is more than simple or contributory negligence.

Presumption: The laborer by his instinct of self-preservation takes precaution to avoid such danger.

ETR. Unless a willful intention is attributed to him to end his life.

Article 179. Extent of Liability.  

Exclusiveness of liability of the State Insurance Fund.

The employee who qualifies for the benefits shall have the option to choose the law under which the benefits will be paid to him. If the law chosen provides for the benefits lesser than those provided by the Labor Code, he shall be entitled only to difference.

The employee cannot avail himself at the same time of similar benefits provided by different laws, except the difference thereof.

ETR. The Er may continue to grant benefits already earned by the Ee under any collective bargaining agreement or any other arrangement.

Q. May an injured worker or his heirs avail of compensation benefits under the Labor Code or sue for higher damages under the Civil Code?

A. The SC ruled that the action is selective and the injured worker or his heirs have a choice of:

1. availing themselves of the benefits under WCA (now LC); or

2. suing in the regular court under the Civil Code for higher damages the Er by reason of negligence.

Note: Once the selection has been effected, the injured worker or his heirs are no longer free to opt for the other remedy, that is, they cannot pursue both actions simultaneously.

ETR. When the employer has been remiss in its contractual obligations with the deceased miners only after receiving compensation under the act. Thus, when the choice of the first remedy was based on the ignorance or mistake of fact it nullifies the choice as it was not an intelligent choice.

-        Where the claimant who had already paid under WCA may still sue for damages under the CC on the basis of supervening facts or developments occurring after he opted for the first remedy.

Article 180. Liability of Third Parties.

In case the injury or death is caused by circumstances creating a legal liability against a third party other than the Er, the injured Ee or his dependent may either:

1.      Claim compensation from the System under the LC; or

2.      Sue for damages in accordance with the Law (CC).

Note: In case the benefit is paid by the System, the latter is subrogated to the rights of the injured Ee or his dependents in accordance with the general law.

Notes:

1.      Where the system recovers from such third party damages in excess of those paid or allowed under Title II Book IV of LC, such excess shall be delivered to the injured Ee or another person entitled thereto, after deduction of the expenses of the System and the cost of the proceedings.

2.      Injuries or death caused by the third party are compensable provided the requisites of compensability are present.

3.      The injured Ee cannot claim payment for the same injuries, that is from the third party and from the SSS/GSIS.

Article 181. Deprivation of Benefits.

The benefits under the law shall continue to be enjoyed by the Ee or his dependents.

Any contract, regulation or device that operated to deprive the enjoyment of such benefits is null and void.

These benefits consist the following:

1.      Medical Services, appliances and supplies;

2.      Rehabilitation services;

3.      Temporary Total Disability;

4.      Permanently Partial Disability; and

5.      Death

Q. What is the Status of ECC?

A.  The ECC is a government corporation. It is attached to the DOLE for the purposes of policy coordination and guidance.

Article 186. Settlement of Claims.

The system shall have original and exclusive jurisdiction to settle any dispute arising from this Title with respect to coverage, entitlement to benefits, collection and payment of contributions and penalties thereon, or any other matter related thereto, subject to appeal to the Commission, which shall decide appealed cases within twenty working days from the submission of evidence.

Filing of Claims.

Claims for medical benefits shall be filed by the accredited physician or accredited hospital directly with the SSS or GSIS, as the case may be, using the prescribed form.

Claims for income benefit may be filed by the employee, his dependents or his employer on his behalf, directly with SSS or GSIS, as the case may be, using the prescribed form.

The claim should be filed within three (3) years from the last time that the cause of action accrued, otherwise it will forever be barred.

Appeal: If the claim is denied, the claimant can appeal to the ECC within ten (10) days from receipt of the decision. The appeal should be filed with the SSS and GSIS, as the case may be.

Article. 187. Reviews. Decisions, orders, or resolutions of the Commissions may be reviewed on certiorari by the SC on questions of law upon petition of an aggrieved party within 10 days from notice thereof.

Q. What are the grounds of Appeal?

A.

1. Question of Fact;

2. Questions of Law; or

3. Questions of law and facts.

Q. Is motion for reconsideration required?

A. Not. MR is not required.

In case of a final order or judgment, a MR, prior taking an appeal, is not always required as it disposed of the action for compensation benefits and there was nothing more to be done in the proceedings as to the merits of the case.

The rule of immutability of final judgment is adhered to by necessity notwithstanding occasional errors that may result thereby since litigation must somehow come to an end for, otherwise, it would “even more intolerable tyyhan the wrong and injustice it is designed to”

Article 188. Enforcement of Decisions.

Finality and enforcement of decision; appeal taken to Court of Appeals within fifteen (15) days.

The decision, order or resolution of the Commission (ECC) becomes final and executory if no appeal is taken within ten (10) days from notice thereof.

Under RAC 1-95 issued by the SC, an appeal may be taken to the CA within fifteen (15) days from notice of the award, judgement, final order or resolution of the ECC.

The Commission has the power to issue writ of execution necessary for the enforcement of such decision, order or resolution. Any person who fails or refuses to comply with the writ of execution, shall upon application by the Commission, be punished for contempt by the proper court.

Article 189. Employer’s Contributions.

For a covered employee in the public sector, his employer shall to the GSIS a monthly contribution equivalent to one percent (1%) of the actual wages or salary received by him as of the last day of the month.

For a covered employee in the private sector, his employer shall remit to the SSS a monthly salary credit as of the last day of the month in accordance with the schedule.

Q. What is the effect of death or separation?

A. When a covered Ee dies during employment, or is separated from employment, his Er’s obligation to pay the monthly contribution shall cease on the last day of the month of contingency.

Q. What is the effect of disability?

A. when a covered Ee becomes disabled during the employment, his Er’s obligation to pay the monthly contribution arising from that employment shall be suspended during the months that he is not receiving salary or wages.

Q. Is refund of contributions allowed?

A. The refund of required contributions is not allowed.

Article 191. Medical Services.

Q. What is the scope of medical services?

A. Medical services cover the following:

1. Ward services during confinement in an accredited hospital;

2. Subsequent domiciliary care by an accredited physician;

3. Medicines;

4. Ambulatory services in an accredited hospital, in case of injury.

Q. What are the conditions for entitlement?

A. Any employee shall be entitled to such medical services, appliances and supplies as the nature of his disability and the progress of his recovery may require, subject to the expense limitation as contained in Annex “C” hereof, if all the ff conditions are satisfied:

1. He has been duly reported to the System;

2. He sustains an injury or contracts sickness; and

3. The system has been duly notified of the injury or sickness.

Q. What is the period of entitlement?

A. The Medical services, appliances and supplies shall be provided to the afflicted Ee beginning with the first day of injury or sickness, during the subsequent period of his disability, and as the progress of his recovery may require, subject to the periodic submission of a medical report on his disability certified by the physicians.

Q. Meaning of Ward?

A. Ward refers to a hospital room that can accommodate six (6) or more patients.

Q. What is the extent of services?

A. The employee is entitled only to ward services of an accredited hospital and accredited physician.

If an employee chooses an accommodation better than ward services, the excess of the total amount of expenses incurred shall be borne by the Ee.

When medically necessary, accommodation ina private or semi-private room may be granted if the Ee suffers from a contagious disease which requires him to be isolated.

The hospital shall provide all the medicines, drugs, or supplies necessary for the treatment of the employee at a cost not exceeding the retail prices prevailing in local drug stores.

Q. What are excluded in the coverage?

A.
1. Extra charge for more comfortable accommodations such as private and semi-private rooms;

2. Personal comfort or convenience such as charges for the use of a telephone, radio, or television;

3. Private duty nurses.

Article 192. Liability.

-        The system is not liable for compensation for unauthorized changes in medical services, appliances, supplies, hospitals, rehabilitation services, or physicians.

-        Should there be any reason for such changes, the Ee or his dependents shall notify the System and secure its prior consent before the change may be effected.

Article 196. Rehabilitation Services.

Q. What is Rehabilitation?

A. Is the process by which there is provided a balanced program of remedial treatment, vocational assessment and preparation designed to meet the individual needs of each handicapped Ee to restore him to suitable employment, including assistance as may be within its resources to help each rehabilitee to develop his mental vocational or social potentials.

Q. What is the nature of coverage?

A. Coverage of handicapped employees in the rehabilitation services program is voluntary in nature.

Q. What are the conditions for entitlement?

A. An Ee shall be entitled to rehabilitation services, if all of the following conditions are satisfied:

1. He Has been reported to the System;

2. He sustains a permanent disability as a result of a compensable injury or sickness;

3. He has not been placed in suitable employment.

 

Q. What is the period of entitlement?

A. Rehabilitation services shall be provided during the period of disability unless suspended or terminated under any of the following grounds:

1. upon suitable employment;

2. By self-termination;

3. upon suspension or termination of such services by the rehabilitation

Q. What are the extent of the services?

A. Rehabilitation services shall consist of:

1. medical-surgical management;

2. hospitalization;

3. necessary appliances and supplies;

4. vocational training; and

5. assistance for placement.

- Transportation allowance between place of residence and the rehabilitation facility, lunch, and dormitory allowance in appropriate cases may be included in the extent of service.

Q. What is the limits of System’s Liability?

A. The system shall not be legally responsible when the injury, sickness, disability or death during the rehabilitation is occasioned by any of the following:

1. Intoxication;

2. Willful intention to injure or kill himself or another;

3. Notorious negligence

 

CHAPTER VI: DISABILITY BENEFITS

Article 197. Temporary Total Disability.

Q. Meaning of Disability?

A. Disability means loss or impairment of a physical or mental functions resulting from injury or sickness.

Q. What is Temporary Total Disability?

 A. A total disability is temporary if as a result of the injury or sickness, the employee is unable to perform any gainful occupation for a continuous period not exceeding 120 days, or where the injury or sickness still requires medical attendance beyond 120 days but not exceed 240 days from the onset of disability.

Q. What are the conditions for entitlement?

A. An employee is entitled to an income benefit for temporary total disability if all the following conditions are satisfied:

1. The employee has been duly reported to the System;

 2. The employee sustains the temporary total disability as a result of the injury or sickness;

3. the System has been duly notified of the injury sickness which caused his disability.

- If the illness or injury occurs before the employee is duly for coverage, the Er shall be liable for the benefit.

Q. What is the period entitlement?

A. The income benefit shall be paid beginning on the first day of the disability.

GR. If caused by an injury or sickness, it shall not be paid longer than 120 consecutive days.

ETR. Where such injury or sickness still required medical attendance beyond 120 days but not exceed 240 days from onset of disability.

Note: However, the system may declare the total and permanent status at any time after 120 days of continuous temporary total disability as may be warranted by the degree of actual loss or impairment of physical or mental functions as determined by the system.

Q. What is the amount of benefit?

A. Any employee entitled to benefit for temporary total disability shall be paid an income benefit equivalent to 905 of his average daily salary credit, provided that the daily income benefit shall not be less than P10.00 nor more than P90.00 nor paid any longer than 120 days for the same disability.

ETR. The injury or sickness requires more extensive treatment that lasts beyond 120 days as may be determined by the Commission.

Q. When the monthly income benefit be suspended?

A. The monthly income benefit shall be suspended if the Ee fails to submit a monthly medical report certified by his attending physician.

Article 198. Permanent Total Disability.

Q. What is Permanent Total Disability?

A. GR. A disability is a total and permanent as a result of the injury or sickness, the Ee is unable to perform any gainful occupation for a continuous period exceeding 120 days.

ETR. When the disability not exceeding 240 days is declared as temporary disability.

Q. What is Litmus Test to determine permanent total or permanent partial disability?

A. The litmus test of WON an employee suffers from PTD is a showing of the capacity of the Ee to continue performing his work notwithstanding the disability he incurred.

Thus, if by reason of the injury or sickness he sustained, the Ee is unable to perform his customary job for more than 120 days and he does not come within the coverage of Rule X of the Amended Rules on EC, then the said Ee undoubtedly suffers from PTD regardless of whether or not he losses the use of any part of his body.

Notes:

1.      Total disability means disablement of an Ee to earn wages in the same kind of work, or work of similar nature that he was trained for or accustomed to perform, or any kind of work which a person of his mentality and attainment could do.

2.      It does not mean state of absolute helplessness.

3.      In disability compensation, it is the incapacity to work resulting in the impairment of one’s earning capacity and not the injury which is compensated.

4.      What is necessary is that the injury must be such that the Ee cannot pursue her usual work and earn therefrom.

Q. What are the conditions for entitlement?

A. An Ee shall be entitled to an income benefit for permanent total disability if all the ff conditions are satisfied:

1. The Ee has been duly reported to the System;

2. He sustains PTD as a result of the injury or sickness; and

3. The System has been duly notified of the injury or sickness which caused his disability.

Note: The Er shalal be liable for the benefit if such injury or sickness occurred before the Ee is duly reported for the coverage to the System.

Q. What is the period of entitlement?

A. The full monthly income benefit shall be paid for all compensable months of disability. The income benefit is guaranteed for five (5) years.

Q. When the monthly income benefits can be suspended?

A. The MIB can be suspended under any of the ff conditions:

1. Failure of the Ee to present himself for examination at least once a year upon notice by the System;

2. Failure to submit a quarterly medical report certified by the attending physician;

3. Complete or full recovery from his permanent disability; or

4. upon being gainfully employed.

Q. What is the amount of benefit for dependent children?