LABOR FINALS REVIEWER months then such period shall be considered as the one year service for purposes

of determining entitlement of SIL.

Q: Are Part-time workers entitled to SIL to the same extent as full-time worker?
Art. 94. Right to Holiday Pay. (Regular Holiday – 12)
A: YES! They are entitled of the full five days SIL benefit and not on a pro-rata
-Paid his regular daily wage during regular holidays. Except: Retail &
basis. However, the availment and commutation of the same can be proportionate
Service establishments regularly employing less than 10 workers.
to the daily work rendered and the regular daily salary, respectively.
-Employer may require to work-paid twice his regular rate. (Premium)
*”On Contract Workers” – employees employed on a contract basis are not
*Holiday Pay – is a one-day pay given by law to an employee even if he does not
entitled to SIL.
work on a regular holiday.
*”Piece-rate Workers” – Not entitled to SIL.
*Purpose: to prevent diminution of the monthly income of the workers on account
OTHER BENEFITS!
of work interruptions declared by the state.
1. Sick Leave & Vacation Leave (Voluntary) – Their grant in a private enterprise
*Conditions: 1. Employee must not have been absent without pay on the working
results from the employer’s discretionary policy or from bargaining with the
day preceding the regular holiday. The assumption is that he would have been
employees or their representative. Intended to be replacements for regular
absent the next day if it were not a holiday.
income which otherwise would not be earned because an employee is not working
*HP for Part-timer. “If work is partial, pay should also be partial.”
during the period of said leaves. SL/VL if unused may be convertible to cash only if
-Regular wage per day/Basic wage on the working day preceding the RH/Average
such is the company practice/policy provided in a Board Resolution. (Kwok vs.
of his basic wages for the last 7 days (for employees paid by results)/basic wage on
Philippine Carpet Manufacturing Corp.)
the particular holiday, if worked. *Whichever yields the highest amount!
2. Paternity & Maternity Leave.
*12 National Legal Holidays. (CRABLING-HHMN)
a. RA 8187 – Paternity Leave for 7 days with pay for the first four deliveries of the
-Christmas Day(Dec. 25), Rizal Day(MN Dec. 30), Araw ng Kagitingan(MN April 9),
wife a married man is cohabiting with.
Bonifacio Day(MN Nov. 30), Labor Day(May 1), Independence Day(MN June 12),
*Conditions: (1)an employee at the time of the delivery of his child; (2)cohabiting
National Heroes Day(LM of Aug.), Good Friday(MD), Hari Raja Pausa, Hari Raja Haji,
with his spouse at the time she gives birth or suffers a miscarriage; (3)applied for
Maundy Thursday(MD), New Year’s Day(Jan. 1).
Paternity Leave in accordance with Sec. 4; (4)his wife has given birth or suffered a
*Special Non-working Holidays – No pay unless there is a favorable company
miscarriage.
policy.
b. Maternity Leave benefit is granted under the Social Security Law in relation to
*Special Working Holidays – Employee is entitled only to his basic rate for work
Art. 133 of the Labor Code.
performed. No Premium Pay.
3. Parental (SOLO PARENT) Leave – granted by Solo Parents Welfare Act of 2000
Q: Is ECOLA part of the Holiday Pay?
(RA 8972) – 7 days every year for employees who have rendered at least one year
A: It depends. If the minimum wage is defined in the wage order as consisting of
service.
basic rate + ECOLA, then every time the basic rate is paid the ECOLA must also be
*Conditions: (1)rendered at least one year service; (2)notified employer of
paid otherwise it will violate the minimum wage law. On the other hand, if the
availment within a reasonable time period; (3)presented a Solo Parent ID card.
applicable wage order specifies no ECOLA as part of the minimum wage, or the
4. Battered Woman Leave.
employee’s basic rate without ECOLA is higher than the minimum wage, then the
ECOLA which exceeds and is not part of the regular rate need not be paid.
Art. 96. Service Charges.
-85% for all covered employees & 15% for the management.
Art. 95. Right to Service Incentive Leave. (Mandatory)
-If abolished, shall be integrated in their wages.
a. At least 1 year service – 5 days.
-TIPS – distributed in the same manner as service charges. Pooled TIPS shall be
b. NA to (1)those already enjoying the benefit; (2)those enjoying VL with pay
accounted for and must be dropped in the tip box otherwise it will constitute the
of at least 5 days; (3)those employed in establishments regularly
offense of “TIP pocketing.”
employing less than 10 employees; (4)those establishments exempted by
the Secretary of Labor.
Art. 97. Definition.
*”One Year of Service” – service within 12 months whether continuous or broken,
“Wages” applies to the compensation for manual labor, skilled or unskilled, paid at
reckoned from the date the employee started working. If contract is less than 12
stated times, and measured by the day, week, month or season. Indicates an
inconsiderable pay for a lower and less responsible character of employment.
“Salary” denotes a higher degree of employment, or a superior grade of services, *Agricultural vs. Industrial
and implies a position or office. Suggestive of a larger of a more permanent or -Work on the soil and its harvests is generally, agricultural work while processing of
fixed compensation for more important services. such harvests to finished products or transformed to another product is industrial.

Q:What do wages include? Art. 98. This title does not apply to the following. (FDP)
A:1. Remuneration/Earnings. 1. Farm tenancy or leasehold.
2.Fair and reasonable value of board, lodging, or other facilities customarily 2. Domestic service.
furnished by the employer to the employee. –such is deductible to the wages but it 3. Persons working in their respective homes in needle work or in any cottage
may not be so high that the employee will complain underpayment of wages. industry.

*FACILITIES vs. SUPPLEMENTS Art. 99. Minimum Wage – Those prescribed by the Regional Tripartite Wages and
-Facilities shall include articles or services for the benefit of the employee or his Productivity Boards.
family but shall not include tools of the trade or articles or service primarily for the
benefit of the employer and the conduct of his business. *Statutory minimum wage – is the lowest wage rate fixed by law that an employer
-Facilities are wage deductible, supplements are not. can pay his workers. Compensation which is less than such shall constitute
-Supplements constitute extra remuneration or special privileges or benefits given underpayment of wages.
to or received by the laborers over and above their ordinary earning or wages. Note: The minimum must be fair and just and shall by no means imply only the
-Facilities are items of expense necessary for the laborer’s and his family’s actual minimum. Some margin or lee way must be provided for contingencies and
existence and subsistence that by express provision of law, they form part of the rising prices of commodities. This is provided for by RA 6727 (Wage Rationalization
wage when furnished and deductible therefrom. Act) where there were wage orders issued for each region primarily designed for
-the distinction between the two does not lie in the kind but the purpose. the benefit of the low income earners.
-the payment of minimum wage is not dependent on the financial condition of
*Requirements for deducting value of Facilities! (CPF) the company. It is a mandatory requirement and not compliance of such is a clear
1. Proof must be shown that such facilities are customarily furnished by the trade. violation of our labor laws. It is a mandatory statutory obligaton on the part of the
2. Provision of deductible facilities must be voluntarily accepted in writing by the employer.
employee.
3. Facilities must be charged at fair and reasonable value. *Employees are not estopped to claim or receive deficiency of wages even if he
was paid with the lower wage without objection. He is not precluded from suing
*Salary vs. Gratuity for the difference between the amount received and the amount he should have
-A gratuity is something given freely, or without recompense, a gift; something received pursuant to the minimum wage laws.
voluntary given in return for a favor or services and purely out of generosity while
Salary is a compensation or remuneration given in exchange for labor/work. *Exempted from the minimum wage law. (H3-CR)
-Gratuity is not mandatory, Salary is. 1. Household and Domestic helpers.
2. Homeworkers engaged in needle work.
”Fair Day’s Wage for Fair day’s labor” – It simply means that If there is no work 3. Homeworkers engaged in any duly registered Cottage industries.
performed by the employee, there can be no wage or pay unless he is able, willing 4. Workers in duly registered Cooperative.
and ready to work but was prevented by the management to do so. Thus, where 5. Retail/Service establishments regularly employing not more than (10) workers.
the failure of the workers to work is not the fault of the employer, the burden for (Must apply for exemptions in the Regional board)
economic loss must not be shifted to the employer. Each party must bear his own
loss. Art. 100. Nondiminution of Benefits. (Refers to supplements & benefits) – in no
case shall the minimum wage law remove supplements or benefits enjoyed by
”Equal pay for equal work” – employees performing similar functions and employees before and after such passing.
responsibilities under similar working conditions should be paid under this
principle.
*To apply, the ff. must be present: (FCND) *Allowed:
1. The grant of the benefit must be founded on a policy or has ripened into a 1. Money/ Legal tender
practice over a long period. 2. Money order/check – if such manner of payment is customary.
2. The practice is consistent and deliberate. *Not allowed: (PVC-TTCA)
3. The practice is not due to error in the construction or application of a doubtful 1. Promissory Notes
or difficult question of law. 2. Vouchers
4. The diminution or discontinuance is done unilaterally by the employer. 3. Coupons
4. Tokens
*Exceptions to the NONDIMINUTION rule! (CRWN-CBP) 5. Tickets
1. Correction or errors. 6. Chits
2. Reclassification of Position. 7. Any object other than legal tender even if expressly requested by the employee.
3. Wage order compliance.
4. Negotiated Benefits. *Where the employee alleges non-payment of wages, the employer has the
5. Contingent benefits or conditional bonus. burden to prove such payment.
6. Benefits on reimbursement basis.
7. Productivity incentives. Art. 103. Time of Payment – once every two weeks, twice a month at intervals not
exceeding 16 days.
*THIRTEENTH MONTH PAY. Art. 104. Place of Payment
-It is mandatory regardless of absence of written contract. (GR) At the place of work or near the place of undertaking.
-13th month pay is a form of monetary benefit equivalent to the monthly basic Except:
compensation received by an employee, computed pro-rata according to the 1. By reason of deterioration of peace and order conditions.
number of months within a year that the employee has rendered service to the 2. When the employer provides free transportation.
employer. 3. under any analogous circumstances.
-All rank-and-file employees regardless of the nature of their employment, and 4. Payment through banks – if there is a written permission to the majority of
irrespective of the methods by which they are paid, provided they worked for at employees and when such bank is feasibly accessibly within the vicinity.
least one month during a calendar year.
“Contracting” refers to the completion or performance of a job, work, or service
*Piece-rate/Output-rate workers. within a given period.
*They are entitled to the ff.: (ANS-HMOPO-13) “Labor-only contracting” is not really contracting because the arrangement is
1. Applicable Statutory minimum daily rate. merely to recruit or place people to be employed, supervised, and paid by another
2. If unsupervised, they are not entitled to Night differential/SIL. They are entitled (essential element), who, therefore is the employer. (Prohibited)
if supervised. (5 days SIL)
3. Holiday Pay – equivalent to his average daily earnings for the last 7 consecutive *Elements of L-O-C. (Confirming elements)
working days immediately preceding the regular holiday provided it is not less than 1. The contractor or subcontractor does not have substantial capital or investment
the statutory minimum wage. which relates to the job, work or service to be performed by the employees
4. Meal and Rest periods. recruited, supplied or placed.
5. Overtime pay (conditional) 2. The contractor does not exercise the right to control over the performance of
6. Premium pay (conditional) the work of the contractual employee.
7. 13th Month Pay (exception to the exemption of payment to those who are paid a
fixed amount for performing specific work.) Q: When is one considered as a legitimate contractor?
8. Other benefits granted by law. A: If he is a job contractor and not a labor-only contractor and he is properly
registered in accordance with D.O. No. 18-02.
Art. 102. Forms of Payment.
*Examples of Independent Contractor. 3. Amount of deduction is fair and reasonable and shall not exceed the actual loss
1. Dealership or damage.
2. Commission Agent 4. Deduction from employee’s wage does not exceed 20% of the employees wage
3. Messengerial/Janitorial Service. in a week.

*RIGHTS OF CONTRACTUAL EMPLOYEES! (SL-S3) *OTHER PROHIBITED DEDUCTIONS

1. Safe and healthful working conditions. 1. Those procured by force, stealth, intimidation or threat or by any other means
2. Labor Standards - SIL, Rest days, Overtime Pay, Holiday Pay, 13 th month pay and without the employee’s consent.
Separation Pay. 2. Deduction to ensure employment.
3. Social Security and Welfare Benefits. 3. Deduction as Retaliatory Measures.
4. Self-organizations, collective bargaining and peaceful concerted action.
5. Security of Tenure. Art. 120. NATIONAL WAGES AND PRODUCTIVITY COMMISSION (NWPC)
Art. 121. Powers and functions of the Commission: (AFP-RURECE)
Art. 110. In case of bankruptcy, his workers shall enjoy first preference as regards a. Act as the national consultative and advisory body to the President & Congress
their wages and other monetary claims as against the claims of the government on matters relating to wages, incomes & productivity;
and other creditors. (Includes regular wages, bonuses and other benefits + b. Formulate policies and guidelines on wages, incomes and productivity.
termination/separation pay) c. Prescribe rules and guidelines for the determination of appropriate minimum
wage and productivity measures.
Art. 112. Non-interference in Disposal of Wages. d. Review regional wage levels set by the Regional Tripartite Wages and
Productivity Board.
Art. 113. Wage Deductions. e. Undertake studies, researches and surveys.
Q: What are the deductions authorized by law? (VP-IAW-SS) f. Review plans and programs of the RTWPB.
A: 1. Value of meals and other facilities. g. Exercise technical and administrative supervision over the RTWPB.
2. Premiums on insurance. h. Call, from time to time a national tripartite conference.
3. Union Checkoff. i. Exercise such powers and functions necessary to implement this act.
4. Indebtedness.
5. Attachments. *Composition:
6. Withholding tax. -Sec. of Labor as the ex-officio chairman.
7. Salary deductions. -Director-General of NEDA as ex-officio vice chairman.
8. SSS, medicare and PAG-IBIG contributions. -2 members each from workers & employers sectors appointed by the PoP upon
recommendation of SOLE.
Q: May an employer deduct to the employees destruction or damage to the -Secretariat: An executive director and 2 Deputy directors appointed by PoP upon
company properties? recommendation of SOLE.
A: GR: No! Reimbursement of loss or of damage to tools, materials or equipment
supplied by the employer cannot be deducted to employee’s wages except where Art. 122. REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARDS (RTWPB)
such business recognizes by its nature such practice of deposits or making *Powers & Functions: (D-DUCRE)
deductions. Except further where before such deduction is allowed, the employee a. Develop plans, programs and projects relative to wages, income & productivity
must have been heard, and his responsibility clearly shown. improvement.
b. Determine & fix minimum wage rates applicable.
*Conditions for deductibility of lost and damaged equipment to the employee’s c. Undertake studies, researches and surveys.
salary. d. Coordinate with the Regional Boards.
1. The employee is clearly shown to be responsible for the loss or damage. e. Receive, process and act on applications for exemption from prescribed wage
2. The employee is given ample opportunity to show cause why deduction should rates.
not be made. f. Exercise such powers and functions necessary to implement this act.
Art. 123. WAGE ORDER. *TWO METHODS OF MINIMUM WAGE ADJUSTMENT
-Regional Board shall investigate and study all pertinent facts based on standards 1. FLOOR WAGE – a lower limit in which the wages are not allowed to fall.
and criterion herein prescribed to determine if a wage order shall be issued. 2. SALARY-CEILING METHOD – is a legal limit on how much income an individual
-It shall take effect 15 days after its complete publication in at least one (1) can earn.
newspaper of General circulation.
-Regional Board shall conduct public hearings/ consultations, giving notices to Q: When is there a Wage Distortion?
employees and employer’s groups. A: There is wage distortion when there is an increase in prescribed wage rates
-Any party aggrieved by the Wage order issued by the Regional Board may appeal which results in the elimination or severe contraction of intentional quantitative
such order to the Commission within 10 calendar days from the publication of such difference in wage or salary rates between and among employee group in an
order. establishment which also effectively removes the distinctions embodied in such
-The commission shall decide on such appeal within 60 calendar days from the wage structure based on skills, length of service, or other logical bases of
filing thereof. differentiation.
-The filing appeal does not stay the order unless the person appealing such order
shall file with the commission an undertaking with a surety or sureties satisfactory Note: Salary restructuring is not wage distortion since what is referred to in Art.
to the Commission. 124 is one which arises from compliance of a wage order. If the revision of the
salary scale is initiated by the employer, it is not considered as wage distortion
*WAGE FIXING PROCEDURE: since it is a matter of management judgment & discretion.
1. Conduct of investigation and hearing for the issuance of wage order.
2. Issuance of Wage Order within 30 days after conclusion of the last hearing. *Ways to Correct Distortion
3. Wage Order shall specify the region, province or industry to which minimum 1. Voluntary Negotiation & Arbitration (encouraged by the legislature)
wage shall apply and provide exemptions. Not:
4. A wage order issued by the Board may not be disturbed for a period of 12 2. Strikes/ Lockouts. (this will be declared as illegal)
months upon its effectivity. 3. Other concerted activities of the employees or management.
5. It shall take effect 15 days after its publication in at least one newspaper of
General Circulation. Art. 125. Freedom to Bargain - No Wage Order shall be construed to prevent
6. The Board shall prepare IRR for approval of the SOLE upon recommendation of workers from bargaining for higher wages.
the commission within 10 days from issuance of the Wage Order. Art. 126. No Preliminary or Permanent Injunction or TRO maybe issued by any
7. SOLE shall act on such IRR within 20 days from receipt of the IRR by the court against any proceedings before the Commission or Regional Boards.
commission. Art. 127. Non-diminution of Benefits in a Wage Order.
8. Once approved the Board shall cause the publication of the IRR I at least one
newspaper of General Circulation. Art. 130. Women, regardless of age, are not allowed to engage in night work.
9. The commission may review the Wage Order motu proprio or an appeal within Art. 131. Exceptions: (AUN-HNIO)
10 days upon publication. 1. Cases of actual or impending emergencies caused by serious accident and
disasters.
*GROUNDS FOR AN APPEAL: 2. In case of urgent work to be performed in machineries, equipment or
1. Non-conformity with prescribed guidelines and or procedure. installation to avoid serious loss the employer may suffer.
2. Questions of Law. 3. Work is necessary to prevent serious loss of perishable goods.
3. Grave abuse of Discretion. 4. Where the woman employee holds a responsible position of managerial or
technical nature.
Note: The NWPC prescribes rules and guidelines for determination of appropriate 5. Where the nature of work requires the manual skill and dexterity of women.
minimum wage but it is the RTWPB which actually approves the wage order 6. Where the women employees are immediate members of the family operating
subject only to the review of the NWPC. the establishment.
7. Other analogous circumstances.
*Additional exemption of call centers. 2. Discharge such woman on account of her pregnancy.
3. Discharge or refuse admission of woman from returning to work for fear that
Art. 132. FACILITIES FOR WOMEN. (PEDE) she may again be pregnant.
a. Provide seats proper for women.
b. Establish separate toilet rooms and lavatories. *SEXUAL HARASSMENT in a Work-related of Employment Environment:
c. Establish a nursery. 1. Sexual favor is made as a condition of employment, continued employment or in
d. Determine appropriate minimum age and other standards for retirement or granting favorable compensations and working conditions.
termination in special occupations. 2. The above acts would impair the employee’s rights and privileges.
3. The above acts would result in an intimidating, hostile or offensive environment
Art. 133. MATERNITY LEAVE BENEFITS. for the employee.
-Rendered an aggregate service of at least 6 months for the last 12 months.
-Maternity leave of at least 2 weeks prior to the expected date of delivery. (w/ pay) *SEXUAL HARASSMENT IN AN EDUCATION OR TRAINING ENVIRONMENT:
-Another 4 weeks after normal delivery or abortion. (w/ pay) 1. Against one who is under the care, custody or supervision of the offender;
-Maybe extended without pay on account of illness medically certified arising from 2. Against one whose education, training, apprenticeship or tutorship is entrusted
the pregnancy. to the offender;
-Available only on the first four deliveries. 3. When the sexual favor is made a condition to the giving of a passing grade,
-60 days if normal delivery. granting of honors & scholarships or the payment of stipend, allowance or other
-78 days if caesarian delivery. benefits, privileges or considerations;
4. When the sexual advances would result in an intimidating, hostile or offensive
*Qualifications for Entitlement to Maternity Benefit. (ESH) environment for the student, trainee or apprentice.
1. The female member shall be employed at the time of delivery, miscarriage or
abortion. Art. 139. Minimum Employment Age.
2. She must have given the required notification to the SSS thru her employer. 1. Below 15 years age except when he works directly under the supervision of his
3. Her employer must have paid at least three months of maternity contributions parents or guardian and his employment does not interfere with his schooling. –
within the 12-month period immediately before the semester of contingency. (Not more than 20 hrs. a week; 4 hrs. a day)
Note: Maternity benefits are not part of the 13th Month Pay. 2. Any person in between 15-18 years of age in such number of hours, periods,
days as determined by SOLE. (Not more than 8 hrs. a day; Not beyond 40 hrs. a
*Battered Woman Leave – under RA 9262; equivalent to 10 days which usage is week)
optional for the woman employee. Needs certification from Punong barangay or 3. Below 18 years of age which is hazardous In nature as determined by SOLE.
kagawad and maybe extendible when the necessity arises as specified in the
protection order. Note: The employer has the duty to submit to the DOLE a report of all the
children employed by him.
*Magnacarta of Women – leave of 2 months with pay following a surgery caused
by gynecological disorders. Art. 141. “Domestic of household service” shall mean services in the employer’s
home which is usually necessary or desirable for the maintenance and enjoyment
Art. 135. Discrimination of Women is prohibited. thereof and includes ministering to the personal comfort and convenience of the
*Acts of discrimination: members of the employer’s household.
1. Payment of lesser compensation. Art. 142. 2 year contract – RENEWABLE.
2. Favoring a male employee over a female employee with respect to promotion Art. 145. Assignment to Non-household work like commercial, agricultural or
and other opportunities. industrial enterprise is not allowed at a wage or salary rate lower than that
Art. 136. Non-discrimination to Married status. provided for agricultural and non-agricultural workers.
Art. 137. Prohibited Acts: Art. 146. Under the age of 18 years – opportunity of at least elementary
1. Deny any women of employee benefits or discharge her to prevent enjoyment education.
of such benefits.
Art. 147. Treatment of Household Helper must be just and humane without use 2. Re: an employee on an special errand, the special errand must have been official
of physical violence. and in connection with his work.
Art. 148. Board, Lodging and Medical Attendance shall befurnished free of charge “Extra-premises Rule” – “Shuttle bus” rule; where the company provides for
by employer. transportation in going to and coming from the place of work is liable for the injury
Art. 149. Indemnity for Unjust Termination of Services. sustained by employees while on board such transportation as such is an extension
of the company’s premises.
“Workmen’s compensation” those laws providing for compensation for loss Note: Employer is not responsible for accidents arising from force majeure or an
resulting from the injury, disablement, death or workmen through industrial Act of God. This general rule recognizes the “Positional and Local risks” doctrine
accident, casualty or disease. so that if an employee by reason of his duties, is exposed to a special or peculiar
“Compensation” means the money relief afforded according to the scale danger from the elements.
established under the Workmen’s Compensation act.
Q: Is an assault considered as an accident and is thus compensable?
*GENERAL purposes of WCA: (IO-TIP) A: Yes! Although resulting from a deliberate act of the slayer, it considered as an
1. Improve economic status of the workers. accident within the meaning of WCA since accident is intended to indicate that the
2. Obviate the uncertainties, delay, expense, and hardship upon the enforcement act causing the injury be causal or unforeseen, an act which the injured party is not
of court remedies. legally responsible.
3. Transfer from the worker to the industry a greater proportion of the economic
loss. *INCREASED RISK JOBS:
4. Improve relations between employers and employees by reducing or avoiding 1. Jobs having to do with keeping peace or guarding property.
litigation. 2. Jobs having to do with keeping and carrying money which subjects the employee
5. Provide an expeditious and independent remedy. to the risk of assault because of the increased temptation of robbery.
3. Jobs which expose the employee to direct contact with lawless and irresponsible
*Compensable Work-related Injury! members of the community
*Grounds for compensability of injury or disease. 4. Work as a bus driver, taxi driver, or street car cinductor.
1. The employee must have been injured at the place where his work requires him *Presumptive Compensability Rule – this provides that by the nature of the work,
to be. there is a general presumption that injuries, accidents or diseases wherever
2. The employee must have been performing his official functions. contracted is compensable.
3. If injury is sustained elsewhere, employee must have been executing an order Note: For the State Insurance Fund to be liable, the employer must not have
for the employer. been guilty of notorious negligence.
“Arising out of” test – refer to the origin or cause of the accident and are *State Insurance Fund (SIF) – that which covers the expenses for injuries obtained
descriptive in character. by the employee in the course of his employment where the Government acts as
“In the course of” test – refer to the time, place, and circumstances under which the insurer and the employee as the beneficiary provided the employer is not
the accident takes place. guilty of notorious negligence.
“Proximate Cause” – is that acting first and producing the injury either
immediately or by setting other events in motion. Art. 191. Temporary Total Disability. - is an injury that does not result in death or
“24 hour duty doctrine” – in determining compensability, the nature of their work permanent disability, but makes the injured person unable to perform regular
must be round-the-clock but it does not dispense with the work-connection duties or activities. Such an employee is entitled to benefits until his/her return to
requisite. work.
“Going to or Coming from work Rule” - the injury or accident will still be Art. 192. Permanent Total Disability. - An individual is considered 'totally and
compensable provided: permanently disabled', if the life assured has become completely disabled due to
1. The act of going to or coming from the workplace must have been a continuing accidental bodily injury, adverse sickness or fatal disease.
act, that is, he had not been diverted therefrom by any other activity, and he has When an individual becomes physically incapable of being employed in any sort of
not departed from his usual route, or from, his workplace; and work and has consecutively been in such a condition for a certain number of
months, then he is deemed to be called totally and permanently disabled. The beneficiaries a monthly pension of the remaining balance of the five (5) year
same needs to be approved by a medical practitioner appointed by the insurer. guaranteed period, but which will not include the benefit of a dependents'
Art. 193. Permanent Partial Disability. - is a disability in which a wage earner is pension. Finally, the minimum death benefit of the employee shall not be lesser
prevented permanently from working at full physical capability because of injury or than the amount of fifteen thousand pesos (P15,000).
illness. A benefit is paid to an employee due to the complete or partial loss of the
body, or partial loss of use of the body as a whole. Loss of use generally means that As amended by Section 8 of the Presidential Decree No. 1368, upon the approval
an employee is unable to use the specific body part like s/he used it before the of this decree, the monthly income death benefit provided under Chapter VII, Title
injury. Death Benefits, shall be the new amount of the monthly income death benefit for
the surviving beneficiaries.
Art. 194. DEATH BENEFITS.
Under Article 194, with the subheading Death, upon the covered employee's death A funeral benefit worth three thousand pesos (P3,000) will be made available upon
his/her primary beneficiary (or beneficiaries) shall receive from the System an the death of a covered employee or permanently totally disabled pensioner, as
amount equivalent to the deceased member's monthly income benefit, plus a ten amended by Section 3 of the Executive Order No. 179.
percent (10%) fraction of the death benefit thereof for every listed dependent
child, with the list not exceeding five, beginning with the youngest to the oldest.
The list may not be substituted nor appended.

The term dependent denotes the legitimate, legitimated, acknowledged or legally

adopted natural child who is not over twenty-one (21) years, unmarried, and not
gainfully employed. A dependent would also include a child who may be over
twenty-one (21) years of age provided he/she is incapable of self-support due to a
physical or mental defect which is congenital or his/her defect was acquired during
minority. The term dependent would also indicate a legal spouse living with the
covered employee, and/or the parent(s) of the said employee who are wholly
reliant upon him for daily support.

As amended by Section 4, Presidential Decree No. 1921, this employee death

benefit monthly income shall be provided for five (5) years by the System. If the
covered employee has no listed primary beneficiary, or that his/her list of primary
dependents are no longer valid under the regulations of the term "dependent", the
System shall forward employee death benefit to his secondary beneficiaries a
monthly income benefit which will be provided for sixty months - provided that the
minimum employee death benefit shall not be less than fifteen thousand pesos
(P15,000).

As amended by Section 4, Presidential Decree No. 1921, upon the death of a

covered employee who was also under the permanent total disability program, or
covered by the Article 192, the System shall pay to the primary beneficiaries of the
deceased employee eighty percent (80%) of his/her monthly income benefit.
Additionally, his/her dependents are entitled to the dependents' pension -
provided that the covered employee's marriage has been validated to exist at the
time of the employee's disability. If the covered employee has no listed primary
beneficiary, or that his/her list of primary dependents are no longer valid under
the regulations of the term "dependent", the System shall pay to his secondary