PD-851-and-PD-626 (1)

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Montefolca, Zyra

Noble, Maria Jessa

Olaivar, Rhea Mae

March 4, 2015

LLB 2-Manresa

ocial Le!islation " 5#00-$#00

%tty& 'ilari(a Racho-Bal)ovino

Presidential Decree No. 851

I. Description

'resi)ential *ecree No& +51, hich too effect on *ece.ber 1$, 1/$, is a la reirin!

all e.3loyers to 3ay their e.3loyees a thirteenth-.onth 3ay&

he la as )rafte) an) 3asse) to safe!ar) the real a!es level fro. the effects of

!lobal inflation& Moreover, the la also reco!ni(es the hrist.as season as a sitable ti.e for

the society to sho its concern for the 3li!ht of the orin! .asses& 6ence the la inten)s to ai)

the orers in celebratin! hrist.as an) Ne 7ear thro!h thirteenth-.onth 3ay&1

II. Coverage

8nitially n)er 'resi)ential *ecree No& +51, only e.3loyees ith a basic salary of not

.ore than '1, 000 are entitle) to thirteenth-.onth 3ay& ection 1 3rovi)es that 9:a;ll e.3loyers

are hereby reire) to 3ay all their e.3loyees receivin! a basic salary of not .ore than '1,000 a

.onth, re!ar)less of the natre of their e.3loy.ent, a thirteenth-.onth 3ay not later than*ece.ber 24 of every year&< 2

1 'resi)ential *ecree No& +51&

2 Ibid & ec& 1

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6oever, this as a.en)e) by Me.oran). Or)er No& 2+ isse) by 'resi)ent ora(on

%ino on %!st 1=, 1/+$& he sai) .e.oran). re.ove) the salary ceilin! of '1, 000&

Me.oran). No& 2+ states that 'resi)ential *ecree No& +51 is a.en)e) by frther reirin! the

e.3loyers to 3ay all their ran-an)-file e.3loyees a thirteenth-.onth 3ay& he benefit, hoever,

)oes not e>ten) to .ana!erial e.3loyees& =

?or 3r3oses of )eter.inin! ho ran-an)-file e.3loyees are, the Labor o)e

)istin!ishes the. fro. .ana!erial e.3loyees#

@:%; .ana!erial e.3loyee is one ho is veste) ith 3oers of 3rero!atives to lay

)on an) e>ecte .ana!e.ent 3olicies an)Aor to hire, transfer, ss3en), lay-off, recall

)ischar!e, assi!n or )isci3line e.3loyees, or to effectively reco..en) sch .ana!erial

actions& %ll e.3loyees not fallin! ithin this )efinition are consi)ere) ran-an)-file

e.3loyees&&&4

8f sch e.3loyee is not covere) by the above.entione) )efinition, then he is consi)ere)

a ran-an)-file e.3loyee ho is entitle) to thirteenth-.onth 3ay&

%ltho!h the la e>3licitly states that !rantin! of thirteenth-.onth 3ay is .an)atory on

the 3art of the e.3loyers, ection = of the rles an) re!lation i.3le.entin! 'resi)ential *ecree

No& +51 nevertheless 3rovi)es that the folloin! e.3loyers are e>e.3t fro. !ivin! thirteenth-

.onth 3ay#

&&&aC *istresse) e.3loyers, sch as 1C those hich are crrently incrrin! sbstantial

losses or 2C in the case of non-3rofit instittions an) or!ani(ations, here their inco.e,

hether fro. )onations, contribtions, !rants an) other earnin!s fro. any sorce, has

consistently )ecline) by .ore than forty 40DC 3ercent of their nor.al inco.e for the last

to 2C years, sbEect to the 3rovision of ection of this issanceF

bC he Govern.ent an) any of its 3olitical sb)ivisions, incl)in! !overn.ent-one)

an) controlle) cor3orations, e>ce3t those cor3orations o3eratin! essentially as 3rivate

sbsi)iaries of the Govern.entF

cC H.3loyers alrea)y 3ayin! their e.3loyees 1=-.onth 3ay or .ore in a calen)ar year of

its eivalent at the ti.e of this issanceF

3 Me.oran). Or)er No& 2+&

4 Labor o)e of the 'hili33ines& B& I& %rt& 212-1=&

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)C H.3loyers of hosehol) hel3ers an) 3ersons in the 3ersonal service of another in

relation to sch orersF an)

eC H.3loyers of those ho are 3ai) on 3rely co..ission, bon)ary, or tas basis, an)

those ho are 3ai) a fi>e) a.ont for 3erfor.in! a s3ecific or, irres3ective of the ti.e

cons.e) in the 3erfor.ance thereof, e>ce3t here the orers are 3ai) on 3iece-rate basis in hich case the e.3loyer shall be covere) by this issance insofar as sch orers

are concerne)&

%s se) herein, orers 3ai) on 3iece-rate basis shall refer to those ho are 3ai) a

stan)ar) a.ont for every 3iece or nit of or 3ro)ce) that is .ore or less re!larly

re3licate), ithot re!ar) to the ti.e s3ent in 3ro)cin! the sa.e&

he ter. its eivalent as se) in 3ara!ra3h cC hereof shall incl)e hrist.as bons,

.i)-year bons, 3rofit-sharin! 3ay.ents an) other cash bonses a.ontin! to not less

than 1A12th of the basic salary bt shall not incl)e cash an) stoc )ivi)en)s, cost of

livin! alloances an) all other alloances re!larly enEoye) by the e.3loyee, as ell as

non-.onetary benefits& "here an e.3loyer 3ays less than 1A12th of the e.3loyees basic

salary, the e.3loyer shall 3ay the )ifference&5

'ara!ra3h aC of the above.entione) 3rovision as no lon!er carrie) over& $ his .eans

that )istresse) e.3loyers ho incrre) sbstantial losses or e.3loyers ho are non-3rofit

instittions an) or!ani(ations hose inco.e has )ecrease) are no lon!er e>e.3t fro. 3ayin!

their e.3loyees thirteenth-.onth 3ay& herefore, re!ar)less of the financial state of the bsiness

of the e.3loyers, they are still reire) to 3ay their e.3loyees thirteenth-.onth 3ay&

he la also e>e.3ts !overn.ent one) an) controlle) cor3orations bt )oes not

incl)e cor3orations hich are 3rivate sbsi)iaries of the !overn.ent&

8n case of e.3loyers ho alrea)y 3ay their e.3loyees thirteenth-.onth 3ay or .ore at

the ti.e of the issance of the la, they are also not reire) to 3ay another thirteenth-.onth

3ay&

5 Rles an) Re!lations 8.3le.entin! 'resi)ential *ecree No +51 ec& =&

6 *OLH 2014C "orersK tattory Benefits 6an)boo 2014 H)ition& 'a!e =&

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%si)e fro. these, e.3loyers of hosehol) hel3ers, 3ersons in the 3ersonal service of

another, 3ersons ho are 3ai) 3rely on co..ission, bon)ary or tas basis an) those ho are

3ai) in fi>e) a.ont for 3erfor.in! a s3ecific or are e>e.3t fro. 3ayin! thirteenth-.onth

3ay&

8n the case of R&E Transport Inc. vs. Avelina Latag , representing her deceased husband

Pedro Latag, 'e)ro Lata! as e.3loye) as a ta>i )river of RH rans3ort& 6e file) a case for

3ay.ent of his retire.ent 3ay before the National Labor Relations o..ission& 6e

sbseently )ie) an) as sbstitte) by his ife& he 3re.e ort hel) that e.3loyees 3ai)

accor)in! to the bon)ary syste. are not entitle) to thirteenth-.onth 3ay for 3r3oses of

co.3tin! his retire.ent 3ay&

III. Computation

ection 2aC of the Rles an) Re!lations 8.3le.entin! 'resi)ential *ecree No& +51

3rovi)es that thirteenth-.onth 3ay shall not be less than one-telfth 1A12C of the basic salary of

an e.3loyee ithin a calen)ar year& +

?or the 3r3ose of co.3tin! thirteenth-.onth 3ay, the basic salary of an e.3loyee

n)er ection 2bC shall incl)e all re.nerations or earnin!s 3ai) by an e.3loyer to an

e.3loyee for services ren)ere) bt )oes not incl)e alloances an) .onetary benefits hich are

not inte!rate) as 3art of the re!lar salary sch as cash eivalent of nse) vacation an) sic

leave, leave cre)its, overti.e, 3re.i., ni!ht shift )ifferential an) holi)ay 3ay an) cost-of-

livin! alloances& /

7 GR No&155214& RH rans3ort 8nc& vs& %velina Lata!, re3resentin! her )ecease) hsban) 'e)ro Lata!,

'e)ro Lata!& ?ebrary 1=, 2004&

8 Rles an) Re!lations 8.3le.entin! 'resi)ential *ecree No& +51 ec& 2-%

9 Ibid. ec& 2-B

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6oever, hen there is an in)ivi)al or collective a!ree.ent, co.3any 3ractice or 3olicy hich

treats these benefits as 3art of the basic salary of the e.3loyees, then these shol) be inte!rate)

as 3art of the basic salary in the co.3tation of thirteenth-.onth 3ay& 10

IV. Thirteenth-month pay or certain types o employees

he "orerKs tattory Benefits 6an)boo 3rovi)es for thirteenth-.onth 3ay to certain

ty3es of e.3loyees& hese incl)e e.3loyees ho are 3ai) on a 3ieceor basis an) those ho

are 3ai) a fi>e) a!e 3ls co..ission base) on their earnin!s )rin! the calen)ar year& 11 8n the

case of Philippine Fuji Xero !orporation vs. Taranjo the 3re.e ort hel) that

co..issions are not 3art of basic salary an) therefore shol) not be incl)e) in the

co.3tation of thirteenth-.onth 3ay& 12

H.3loyees ith .lti3le e.3loyers are also entitle) to thirteenth-.onth 3ay&

Govern.ent e.3loyees ho are orin! 3art-ti.e in a 3rivate enter3rise an) e.3loyees

orin! for to or .ore 3rivate fir.s hether on fll-ti.e or 3art-ti.e basis are entitle) to

thirteenth-.onth 3ay fro. all of their 3rivate e.3loyers& 1=

V. Thirteenth-month pay o resigned or separated employee

8f an e.3loyee has resi!ne) or is ter.inate) before the ti.e of 3ay.ent of the thirteenth-

.onth 3ay, sch e.3loyee is entitle) to thirteenth-.onth 3ay in 3ro3ortion to the len!th of ti.e

he or she has ore) )rin! the year& his shall be recone) fro. the ti.e he or she starte)

orin! )rin! the calen)ar year 3 to the ti.e of his or her resi!nation or ter.ination fro.

service&

10 *OLH 2014C "orersK tattory Benefits 6an)boo 2014 H)ition& 'a!e =&

11 Ibid. 'a!e =+&

12 G&R& No& /214& 'hili33ine ?Ei ero> or3oration vs& aranEo *ece.ber 10 1//=&

13 *OLH 2014C "orersK tattory Benefits 6an)boo 2014 H)ition& 'a!e =+&

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herefore, if an e.3loyee ore) only fro. Janary to e3te.ber, his or her

3ro3ortionate thirteenth-.onth 3ay shol) be eal to one-telfth 1A12C of his or her total

salary earne) )rin! that 3erio)& 14

VI. Time o payment o thirteenth month pay

ection 5 of the Rles an) Re!lations 8.3le.entin! 'resi)ential *ecree No& +51

3rovi)es that an e.3loyer has the o3tion to 3ay one-half of the thirteenth-.onth 3ay 3rior to the

o3enin! of the re!lar school year an) the other half on or before the 24th of *ece.ber&

8n cases of establish.ent ith nions ho are reco!ni(e) as the collective bar!ainin!

a!ent of the e.3loyees, the ti.e of 3ay.ent of the thirteenth-.onth 3ay .ay be a!ree) 3on by

the 3arties&15

VII. Prohi!ition against reduction or elimination o !eneits and remedy in case o non-

payment

he Rles an) Re!lations 8.3le.entin! 'resi)ential *ecree No& +51 3rohibit an

e.3loyer fro. re.ovin! or re)cin! the benefits enEoye) by the e.3loyees&

ection 10 3rovi)es that < :n;othin! herein shall be constre) to athori(e any e.3loyer

to eli.inate, or )i.inish in any ay, s33le.ents, or other e.3loyee benefits or favorable

3ractice bein! enEoye) by the e.3loyee at the ti.e of 3ro.l!ation of this issance&

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lon!er be ith)ran if it has alrea)y ri3ene) into a co.3any 3ractice havin! been e>ercise) for

to to three years& 1

8n case of non-3ay.ent of thirteenth-.onth 3ay, an e.3loyee still has recorse& he

corres3on)in! n3ai) thirteenth-.onth 3ay shall be consi)ere) as .oney clai.s n)er ection

/ of the Rles an) Re!lations 8.3le.entin! 'resi)ential *ecree No& +51& he sa.e shall be in

accor) ith the rles i.3le.entin! the Labor o)e of the 'hili33ines as ell as the rles of the

National Labor Relations o..ission& 1+

17 GR No& 15245$& evilla ra)in! co.3any Is& %&I&% o.as H& e.ana, evilla ra)in! "orers

nion& %3ril 2+, 2004&

18 Rles an) Re!lations 8.3le.entin! 'resi)ential *ecree No& +51& ec& /

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Presidential Decree "#"

$vervie%

"or.enKs co.3ensation is a !eneral an) co.3rehensive ter. a33lie) to those las

3rovi)in! for co.3ensation for loss resltin! fro. the inEry )isable.ent, or )eath of or.en

thro!h in)strial acci)ent, casalty or )isease& 8n a))ition, co.3ensation, in relation to or-

connecte) inEry or )isease, essentially .eans financial assistance an) .e)ical benefits that the

Govern.ent 3rovi)es to the orer )e3en)in! on the in) or )e!ree of )isability he sffers&

he 3ri.ary 3r3ose of a or.enKs co.3ensation act is to 3rovi)e co.3ensation for )isability

or )eath resltin! fro. occ3ational inEries or )iseases, or acci)ental inEry to, or )eath of,

e.3loyees&

he co.3ensation is in the for. of .e)ical s33lies an) services an)Aor cash inco.e if

the e.3loyee is nable to earn becase of the inEry or )isease& *eath benefits an) fneral

benefits are also !iven& 1/

I. Description

'resi)ential *ecree $2$ as isse) on *ece.ber 2, 1/4& 8t a.en)e) e>tensively the Labor

o)e 3rovisions on H.3loyeeKs o.3ensation an) tate 8nsrance ?n)& his la a33lies

3ros3ectively& herefore, it a33lies to illnesses contracte) on or after Janary 1, 1/5 hich is its

effectivity )ate&

II. Coverage

he e.3loyeesK co.3ensation la a33lies to all e.3loyers, 3blic or 3rivate, an) to all

e.3loyees, 3blic or 3rivate, incl)in! casal, e.er!ency, te.3orary or sbstitte e.3loyees&

Moreover, n)er 1= !C of the Labor o)e as a.en)e) an) ection 4 bC 1C of Rle 1 of the

a.en)e) i.3le.entin!C rles on e.3loyeesK co.3ensation, the ter. e.3loyee incl)es a

.e.ber of the %r.e) ?orces of the 'hili33ines& ?rther.ore, ?ili3inos orin! abroa) for

e.3loyers )oin! bsiness in the 'hili33ines are also covere) by the la&20

19 %(cena Jr&, & 201=C he Labor o)e ith o..ents an) ases&

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he e.3loyer is covere) co.3lsorily fro. the first )ay of o3eration an) the first )ay of

e.3loyee fro. the first )ay of e.3loy.ent&21

III. &pplication

nlie the 3revios "or.enKs o.3ensation La, 'resi)ential *ecree 442, as a.en)e), in

or)er for the e.3loyee to be entitle) to sicness or )eath benefits, the sicness or )eath resltin!

therefro. .st be, or .st have reslte) fro. either aC any illness )efinitely acce3te) as an

occ3ational )isease liste) by the o..ission, or bC any illness case) by e.3loy.ent sbEect

to 3roof that the ris of contractin! the sa.e is increase) by orin! con)itions&22 6ence, the

inEry, )isease or )eath is co.3ensable if is one of those liste) in the occ3ational )iseases& 8f the

case is not incl)e) in the list of occ3ational )iseases, the br)en of 3roof lies 3on the 3erson

ho ass for co.3ensation that sch as or-relate)&

6oever, the H.3loyeeKs o.3ensation o..ission isse) Resoltion =/0$ a)o3te) on Jly 5,

1/++ hich a33lies to 3olice.en an) .e.bers of the %r.e) ?orces of the 'hili33ines statin!

that#

9his boar) resolves, as it hereby resolves, to a33rove the a)o3tion of a 3olicy that the .o.ent

an %?' .e.ber sffers a contin!ency, the 3res.3tion is that it is becase of the natre of his orF

3rovi)e) that the evi)entiary )etails of his inEry, or )eath, are clearly establishe) thro!h )ly isse)

.e)ical certifications on his inEry or inEries, or )eath, by the atten)in! or )ly athori(e)

re3resentatives of the hos3ital here he is bro!ht for .e)ical treat.ent&<

hs, hen 3olice.en an) .e.bers of the %r.e) ?orces of the 'hili33ines sffer inEry

or sicness or )ies, it is 3res.e) that it is or-relate) by natre of their or&

IV. Compensation

&. In'ury

20 %rticle 15 of 'resi)ential *ecree $2$, as a.en)e)&

21 %rticle 1$& 8bi)&


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8nEry, )isease or )eath .ay !ive rise to co.3ensation n)er 'resi)ential *ecree $2$&

6oever, not all cases of inEry, )isease or )eath are co.3ensable& %lso, it is not the inEry or

)isease sffere) that is co.3ensate) bt the loss or i.3air.ent of earnin! ca3acity&

%rticle 1= C of the 'resi)ential *ecree $2$, as a.en)e), )efines 9inEry< as any

har.fl chan!e in the h.an or!anis. fro. any acci)ent arisin! ot of an) in the corse of

e.3loy.ent& %s elaborate) in Rle 888 of the 8.3le.entin! Rles an) Re!lations, for the inEry

an) resltin! )isability or )eath to be co.3ensable, the inEry .st be the reslt of an

e.3loy.ent acci)ent satisfyin! all of the folloin! !ron)s#

1& he e.3loyee .st have been inEre) at the 3lace here his or reires hi. to beF

2& he e.3loyee .st have been 3erfor.in! his official fnctionsF an)=& 8f the inEry is sstaine) elsehere, the e.3loyee .st have been e>ectin! an or)er for

the e.3loyer&

8t is !enerally hel) that it is not necessary, in or)er for an inEry to be re!ar)e) as havin!

arisen ot or in the corse of e.3loy.ent, or that it shol) have occrre) )rin! the hors of

active labor, or on 3re.ises ithin the control of the e.3loyer& he e.3loy.ent incl)es not

only the actal )oin! of the or, bt also a reasonable .ar!in of ti.e an) s3ace necessary to be

se) in 3assin! to an) fro. the 3lace here the or is to be )one, here the latter is e>3ressly

or i.3lie)ly incl)e) in the ter.s of e.3loy.ent&2= 6ence, an e.3loyee .ay be co.3ensate) if

he is !oin! to or co.in! fro. or, tain! a coffee brea or lnch brea an) even if otsi)e the

or 3re.ises 3rovi)e) that he as tase) to 3erfor. a Eob by the co.3anyKs )irection&

he H.3loyeeKs o.3ensation o..ission 3asse) Resoltion No& =/14-% on Jly 5, 1/++,

e>ten)in! the co.3ensable covera!e of off-3re.ises inEry or )eath 3 to the resi)ence of the

e.3loyee& he resoltion 3rovi)es that an inEry or )eath of a covere) .e.ber in an acci)ent

hile he is !oin! to, or co.in! fro., the or3lace, shall henceforth be )ly consi)ere)

co.3ensable 3rovi)e) the folloin! con)itions are establishe) )efinitely#

1& he act of the e.3loyee of !oin! to, or co.in! fro., the or3lace, .st have been

a continin! act, that is, he ha) not been )iverte) therefro. by any other activity, an)

he ha) not )e3arte) fro. his sal rote to, or fro., his or3laceF an)

23 82 Am. Jur. 2d, Sec. 242.

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2& 8n case hen an e.3loyee on an s3ecial erran), the s3ecial erran) .st have been

official an) in connection ith his or&24

%lso, in the case of Iloilo )oc' and Engineering !o. vs. !!, et al.*+ , the 3re.e ort

rle) that the 3lace here the e.3loyee as inEre) bein! i..e)iately 3ro>i.ate to his 3lace of

or, as it as 20 .eters aay fro. the co.3anyKs !ate, the acci)ent in estion .st be

)ee.e) to have occrre) ithin the (one of his e.3loy.ent an) therefore arose ot of an) in the

corse thereof&

8nci)ents of e.3loy.ent, sch as, 1C acts of 3ersonal .inistration for the co.fort or

convenience of the e.3loyeeF 2C acts for the benefit of the e.3loyerF =C acts )one to frther the

!oo)ill of the bsinessF 4C sli!ht )eviations fro. or, fro. criosity or otheriseF an) 5C

acts in e.er!encies are co.3ensable&2$

%nother instance is the s3ecial erran) rle hich 3rovi)es that an inEry sstaine) by an

e.3loyee otsi)e the co.3any 3re.ises is co.3ensable if his bein! ot is covere) by an office

or)er or a locator sli3 or a 3ass for official bsiness&

8n a sitation here the e.3loyee is livin!, boar)in! or lo)!in! on 3re.ises of the

e.3loyer, or at the orin! 3lace, the .ere fact that an e.3loyee as livin! on the e.3loyerKs

3re.ises )oes not or)inarily, of itself, ren)er the inEry co.3ensable as arisin! ot of or in the

corse of e.3loy.ent here sch resi)ence on the e.3loyerKs 3re.ises is .erely 3er.issive

an) not reire), or here the inEry reslts fro. ris or )an!er hich is not reasonably

inci)ental to the e.3loy.ent&2

"hile an e.3loyee is travellin!, an nathori(e) )eviation .ay 3recl)e recovery of

co.3ensation for an inEry case) by a))e) 3eril to hich the e.3loyee is thereby e>3ose)


25 G&R& No& L-2$=41& 8loilo *oc an) Hn!ineerin! o& vs "or.enKs o.3ensation o..ission, et al&

Nove.ber 2, 1/+&

26 6orovit(, = N%% L&J& 2+-=0

27 +2 %.& Jr& 2), ec& 24+

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)rin! the 3erio) of the )eviation, bt the co.3ensability of an inEry occrrin! after the

)eviation has en)e) an) the e.3loyee is a!ain in the corse of his e.3loy.ent is not or)inarily

affecte) thereby&2+

Moreover, an e.3loyeeKs stats of actin! in the corse of his e.3loy.ent is not

)estroye) by the fact that he .ay be 3rsin! a )al 3r3ose& he )al 3r3ose )octrine

consi)ers as co.3ensable an inEry that an e.3loyee sstains hile on a tri3 n)ertaen for the

benefit of the e.3loyer even if in the corse thereof the e.3loyee 3rses also a 3ersonal

3r3ose& his )octrine has been a)o3te) by the H in its Resoltion No& //-0+-04$/ )ate)

%!st =1, 1///& his )octrine is a33licable in a case that if the or of the e.3loyee ten)s to

create necessity for travel, he or she is )ee.e) in the corse of e.3loy.ent, albeit the e.3loyee

serves at the sa.e ti.e so.e 3ersonal 3r3ose& 6oever, the a33lication is sbEect to the

folloin! !i)elines#

1& % contin!ency or inEry an e.3loyee sffers )rin! a tri3 that serves both bsiness an)

3ersonal 3r3ose is )ee.e) ithin the corse of e.3loy.ent, that is, if the tri3 involves

the 3erfor.ance of a service for the e.3loyer, hich ol) have case) the tri3 to be

)one by so.eone else, even if sch tri3 ha) not coinci)e) ith a 3ersonal 3r3ose&

his !i)eline a33lies to ot-of-ton tri3s, fiel) tri3s, tri3s to an) fro. or, an) to .iscellaneos

erran)s .otivate) to an e>tent by an intention of the e.3loyee to transact official bsiness )rin! sch

tri3s&

2& "hen an e.3loyeeKs tri3 ten)s to serve both bsiness an) 3ersonal 3r3oses, it is consi)ere) a

3ersonal tri3, if the e.3loyee ol) have .a)e sch a tri3, in s3ite of the failre or absence of

the bsiness or official 3r3oseF an) if the e.3loyee ol) not have .a)e the tri3 becase of

the failre of the 3rivate 3r3ose thereof, an) the nonflfill.ent of the bsiness 3r3ose&

On the other han), the tri3 is hel) a bsiness tri3, if the e.3loyee ol) have .a)e the tri3

nonetheless, )es3ite the failre or absence of the 3rivate 3r3ose thereof& he reason is that the

service the e.3loyee inten)s to )o for the e.3loyer ol) have case) the tri3 to be )one by

so.eone else& his is even if it ol) not have coinci)e) ith the contin!ency of the e.3loyeeF

an)

28 +2 %.& Jr& 2), ec& 252

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=& "hether a tri3 to be taen by an e.3loyee in the interest if both the e.3loyer an) his or her

e.3loyee is to be re!ar)e) as the latterKs, so as to arrant alloance or co.3ensation for

inEries the e.3loyee .ay sffer in the corse thereofF or the e.3loyeeKs interest, is in a sense

a estion of fact&

8t is essential to tae note of these !i)elines so that it .ay be )eter.ine) hether the

travel of the e.3loyee is or-relate) an) as sch be co.3ensable&

o s. it all 3, the !eneral rle is the 9)irect 3re.ises rle< hich states that acci)ent

shol) have occrre) at the 3lace of or an) the e>ce3tions are the co.in!-an)-!oin! rle, the

3ro>i.ity rle, inci)ents of e.3loy.ent, s3ecial erran) rle an) the )ifferent instances hile

travellin!&

(. )ic*ness

%rticle 12 1C of the Labor o)e )efines co.3ensable sicness as any illness )efinitely

acce3te) as an occ3ational )isease liste) by the H, or any illness case) by e.3loy.ent

sbEect to 3roof by the e.3loyee that the ris of contractin! the sa.e is increase) by orin!

con)itions& ?or this 3r3ose, the o..ission is e.3oere) to )eter.ine an) a33rove

occ3ational )iseases an) or-relate) illnesses that .ay be co.3ensable base) on 3ecliar

ha(ar)s of e.3loy.ent&

ection 1 bC, Rle 888 of the %.en)e) Rles on H.3loyeeKs o.3ensation frther

a.3lifies sicness& hs, for the sicness an) resltin! )isability or )eath to be co.3ensable, the

sicness .st be reslt of an occ3ational )isease liste) n)er %nne> 9%< of the H Rles ith

the con)itions set therein satisfie)F otherise, 3roof .st be shon that the ris of contractin!

the )isease is increase) by the orin! con)itions& %s 3rovi)e) by %nne> 9%3osre to the

)escribe) rissF

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=& he )isease as contracte) ithin a 3erio) of e>3osre an) n)er sch other

factors necessary to contract itF an)4& here as no notorios ne!li!ence on the 3art of the e.3loyee&

8f the illnesses are not occ3ational )iseases, the clai.ant .st 3resent 3roof that he

contracte) the. in the corse of his e.3loy.ent& 6e ho alle!es a fact has the br)en of

3rovin! it an) .ere alle!ation s not evi)ence&2/ his is the theory of increase) ris& 'roof of

)irect casal relation is not, hoever, in)is3ensably reire)& 8t is eno!h that the clai.ant

a))ces 3roof of reasonable or connection, hereby the )evelo3.ent of the )isease as

bro!ht abot lar!ely by the con)itions 3resent in the natre of the Eob& herefore, the )e!ree of

3roof reire) is .erely sbstantial evi)ence, hich has been hel) to be sch relevant evi)ence

as a reasonable .in) .i!ht acce3t as sfficient to s33ort a conclsion&

IV. +imitation o +ia!ility

6oever, if the inEry reslts fro. into>ication, illfl intention to ill hi.self or another, an)

notorios ne!li!ence, it is not co.3ensable as 3rovi)e) for %rticle 1+ of 'resi)ential *ecree

$2$ as a.en)e)& he into>ication hich ill 3recl)e co.3ensation for inEry resltin!

therefro. consists in bein! n)er the inflence of into>icatin! lior to the e>tent that one is not

entirely hi.self or so that his E)!.ent is i.3aire) an) his act, or)s, or con)ct is visibly

i.3aire)& elf-inflicte) inEry conte.3lates a )eliberate intent on the 3art of the e.3loyee, not afailre on his 3art to reali(e the 3robable conseences to hi.self of his foolish act& Lastly, the

notorios ne!li!ence hich e>e.3ts the tate 8nsrance ?n) fro. co.3ensation is that

so.ethin! .ore than si.3le or contribtory ne!li!ence hich si!nifies )eliberate act of the

e.3loyee to )isre!ar) his on 3ersonal safety&

V. ,tent o +ia!ility

&. Compensation +a% and Civil Code


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%s rle) by the 3re.e ort in s#ael -ariti#e !orporation vs. Avelino/, the

clai.ants cannot be alloe) to .aintain an action to recover a))itional )a.a!es n)er the ivil

o)e& hey ha) 3reviosly file) an) ha) receive) the co.3ensation 3ayable to the. n)er the

"or.enKs o.3ensation %ct& he ort concl)e) that one is 3recl)e) fro. 3rsin! the

alternate corse, that is the civil action for )a.a!es at least ntil the 3rior clai. is reEecte) by

the o.3ensation o..ission&

(. Compensation +a% and the )ocial )ecurity +a%

i.ltaneos recovery of benefits n)er the e.3loyeesK co.3ensation 3ro!ra. of the Labor

o)e an) n)er the ocial ecrity la is alloe)& =1 his is the a)visory !iven by the ecretary

of Jstice to the in O3inion )ate) May 2=, 1/+/ an) Janary 12, 1//0&

VI. (eneits

&. edical (eneits

'rovision of .e)ical services, a33liances an) s33lies to the e.3loyee shall be!in on the

first )ay of inEry or sicness an) it shall contine )rin! the sbseent 3erio) of the

e.3loyeeKs )isability, an) as the 3ro!ress of his recovery .ay reire& Me)ical atten)ance is

oin! as lon! as the e.3loyee is sic of a co.3ensable illness, an) this )ty is not en)e) hen

e.3loy.ent ter.inates& nlie any other benefits, the la )oes not 3rovi)e a .a>i.. either in

the a.ont to be 3ai) or the ti.e 3erio) ithin hich the .e)ical atten)ance .ay be availe) of

by the e.3loyee&=2

he e.3loyee is entitle) only for the ar) services of an accre)ite) hos3ital an) 3hysician&

Moreover, the accre)ite) hos3ital an) 3hysician are not alloe) to as any )e3osit fro. H

3atients as reisite for a).ission, nor are they alloe) to collect any a.ont as char!es or

30 G&R& No& 4=$4& 7s.ael Mariti.e or3oration vs& %velino& Jne =0, 1/+

31%(cena Jr&, & 201=C he Labor o)e ith o..ents an) ases&

32 8bi)&

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treat.ent& 6oever, they are 3rivile!e) to clai. rei.brse.ent ith the H thro!h the

yste. for e>3enses incrre) in the treat.ent of the H 3atients&==

Me)icines 3rchase) by H 3atients are rei.brse) 100D an) e>3enses incrre) at the

intensive care nit 8C are also 3ai) in fll& 8f, hoever, the e.3loyer or the yste. fails to

frnish the benefit 93ro.3tlytin!ishe) 3on his )eath& Moreover, the rei.brsable .e)ical e>3enses

are not only those incrre) for the 3ri.ary illness bt even those for its co.3lication even if the

co.3lications )evelo3e) after the e.3loyeeKs retire.ent& 8n the case of Alvero, "r. vs. 0"I" , the

ort rle) that the co.3lications that arose fro. a33ellants 3ri.ary illnesses, H.3hyse.a an)

'l.onary *isease, ere bro!ht abot by the intae of several .e)ications, hich reslte) to

the co.3lications of *iabetes an) Gastritis&=5

8n a))ition, the yste. shall also, as soon as 3racticable, establish a continin! 3ro!ra.

for the rehabilitation of inEre) an) han)ica33e) e.3loyees& his incl)es a balance) 3ro!ra. of

re.e)ial treat.ent, vocational assess.ent an) 3re3arations )esi!ne) to .eet the in)ivi)al

nee)s of each han)ica33e) e.3loyee to restore hi. to sitable e.3loy.ent&=$

(. Disa!ility (eneits

here is )isability hen there is a loss or )i.intion of earnin! 3oer becase of actal

absence fro. or )e to the inEry or illness arisin! ot of an) in the corse of e.3loy.ent&

he basis of co.3ensation is re)ction of earnin! 3oer& hs, even if an e.3loyee sffers a

service-connecte) inEry or illness as lon! as he !oes on orin! ithot any re)ction

33 8bi)&

34 8bi)&

35 Go)ofre)o %lvero, r& vs& G8, H ase No& 5115, *ece.ber 4, 1//1&

36 %(cena 201=C& he Labor o)e ith o..ents an) ases&

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hatsoever in his earnin! ca3acity, there is no )isability an), therefore, he is not entitle) to any

inco.e benefit&=

here are three in)s of )isability benefits n)er '&*& $2$&

1& e.3orary otal *isability %rticle 1/1C

here is e.3orary otal *isability hen the e.3loyee is nable to 3erfor. any

!ainfl occ3ation for a continos 3erio) not e>cee)in! 120 )ays, e>ce3t as otherise

3rovi)e) in Rle of the Rles&=+ %ny e.3loyee sfferin! sch )isability shall be 3ai)

an inco.e benefit eivalent to /0 3ercent of his avera!e )aily salary cre)it, sbEect to

the folloin! con)itions# 1C he )aily inco.e benefit shall not be less than '10&00 nor

.ore than '/0&00, nor 3ai) for a continos 3erio) lon!er than 120 )ays, e>ce3t as

otherise 3rovi)e) for in the Rles, an) 2C the yste. shall be notifie) of the inEry or sicness&=/

he inco.e benefit shall be 3ai) be!innin! of the first )ay of sch )isability ntil

the 120th )ay, e>ce3t here the inEry or sicness still reires .e)ical atten)ance beyon)

120 )ays bt not to e>cee) 240 )ays fro. onset of )isability, in hich case benefit for

te.3orary total )isability shall be 3ai)& ?rther, the yste. .ay )eclare the total an)

3er.anent stats at any ti.e after 120 )ays&40

8f after the fll recovery, the 3erio) covere) by any rela3se the e.3loyee sffers,

hich reslts in )isability, shall be consi)ere) in)e3en)ent an) se3arate fro. the 3erio)

covere) by the ori!inal )isability&41

2& 'er.anent otal *isability %rticle 1/2C

37 8bi)&

38 8bi)&

39 6an)boo on H.3loyeesK o.3ensation an) tate 8nsrance ?n) 201=C&

40 8bi)&

41 8 Resoltion No& 102/, %!st 10, 1/+&

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here is 'er.anent otal *isability hen the e.3loyee is nable to 3erfor. any !ainfl

occ3ation hich is e>3ecte) to be 3er.anent for a continos 3erio) e>cee)in! 120 )ays

e>ce3t as otherise 3rovi)e) for in Rle of the Rles&42

%rticle 1/2 en.erates si> instances that are consi)ere) total an) 3er.anent )isability#

1C e.3orary )isability lastin! continosly for .ore than 120 )ays, e>ce3t as

3rovi)e) for in the RlesF

2C o.3lete loss of si!ht of both eyesF

=C Loss of to li.bs at or above the anle or ristF4C 'er.anent co.3lete 3aralysis of to li.bsF

5C Brain inEry resltin! in incrable i.becility or insanityF an)

$C ch cases as )eter.ine) by the Me)ical *irector of the yste. an) a33rove)

by the o..ission&

8n the case of 1rlino vs. E#plo$ees2 !o#pensation !o##ission, herein the e.3loyee

as sfferin! fro. .ental la3ses hich .a)e hi. nfit for or an) as force) to see early

retire.ent at the a!e of 55 years& he ort rle) that the e.3loyee is consi)ere) 3er.anently

an) totally )isable) to or hen he as inca3acitate) to 3erfor. any sbstantial a.ont of

labor in the line of or here he as for.erly en!a!e), or any other in) of or to hich he

col) be assi!ne)& otal )isability )oes not .ean a state of absolte hel3lessness, bt

)isable.ent of an e.3loyee to earn a!es in the sa.e in) of or he as traine) to 3erfor.&

?rther the ort also note) that, the a33roval of the clai.antKs a33lication for o3tional

retire.ent, altho!h he has not yet reache) the a!e of co.3lsory retire.ent a!e, is an

in)ication of his 3hysical inca3acity to ren)er efficient service&4=

%ny e.3loyee sfferin! fro. sch )isability shall be 3ai) a .onthly inco.e benefit as follos#

aC 8n the case of the , it is the a.ont eivalent to 115 3ercent of the s. of# he

avera!e .onthly salary cre)it .lti3lie) by the re3lace.ent ratio an) one an) a half

3ercent of the avera!e .onthly salary cre)it for each cre)ite) year of service in e>cess of

ten years# 'rovi)e), hat the .onthly inco.e benefit shall in no case be less than '250&


43 Orlino vs& H.3loyeesK o.3ensation o..ission,et&al&, G&R& No& +5015, March 2/, 1//0&

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'rovi)e), 6oever, hat the .onthly 3ension of srvivin! 3ensioners shall be increase)

ato.atically an) si.ltaneosly to the e>tent that 15D )ifference in .onthly inco.e

benefit beteen H an) G8, be .aintaine)& LO8 12+$C H Resoltion No& 2//,

Jly 25, 1/+4C& 44

bC 8n the case of the G8, the .onthly inco.e benefit shall be the basic .onthly

3ension as )efine) in '* 114$ 3ls 20 3ercent thereof, bt shall not be less than '250,

nor .ore than the actal salary at the ti.e of contin!ency& H Resoltion No& 2//,

Jly 25, 1/+4C& 45

he .onthly inco.e benefit shall be !arantee) for five years, an) shall be ss3en)e) if

the e.3loyee is !ainflly e.3loye), or recovers fro. his 3er.anent total )isability, or fails to

3resent hi.self for e>a.ination at least once a year 3on notice by the yste., e>ce3t as

otherise 3rovi)e) by other las, )ecrees, or)ers or letters of instrction&4$

=& 'er.anent 'artial *isability %rticle 1/=Chere is 'er.anent 'artial *isability hen the e.3loyee sffers a 3er.anent 3artial loss

of the se of any 3art of his bo)y& %ny e.3loyee entitle) to the benefit shall be 3ai) a .onthly

inco.e benefit for the n.ber of .onths in)icate) in %rticle 1/=&

o.3lete an) 3er.anent loss of the se of# No& of .onths

One th.b 10

One in)e> fin!er +

One .i))le fin!er $

One rin! fin!er 5

One little fin!er =

44 ection / aC, Rle I8 of the H Rles& 6an)boo on H.3loyeesK o.3ensation an) tate

8nsrance ?n) 201=C&

45 8bi)&


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One bi! toe $

%ny toe =

One ar. 50

One han) =/

One foot =1

One le! 4$

One ear 10

Both ears 20

6earin! of one ear 10

6earin! of both ears 50

i!ht of one eye 25

8n a))ition there are other consi)erations 3rovi)e) n)er the %rticle 1/= cC, sch as# a

loss of a rist shall be consi)ere) as a loss of the han), an) a loss of an elbo consi)ere) as a

loss of the ar.& % loss of an anle shall be consi)ere) as loss of the foot, an) a loss of a nee

consi)ere) as a loss of the le!& % loss of .ore than one Eoint shall be consi)ere) as a loss of the

hole fin!er or toe, an) a loss of only the first Eoint consi)ere) as a loss of one-half the hole

fin!er or toe# 'rovi)e), hat sch loss shall be either the fnctional loss of the se or 3hysical

loss of the .e.ber&4

8n cases of 3er.anent 3artial )isability less than the total loss of the .e.ber s3ecifie) in

the 3rece)in! 3ara!ra3h, the sa.e .onthly inco.e benefit shall be 3ai) for a 3ortion of the

3erio) establishe) for the total loss of the .e.ber in accor)ance ith the 3ro3ortion that the

3artial loss bears to the total loss& 8f the reslt is a )eci.al fraction, the sa.e shall be ron)e) off

to the ne>t hi!her inte!er&

4+

47 8bi)&

48 8bi)&

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8n cases of si.ltaneos loss of .ore than one .e.ber or a 3art thereof as s3ecifie) in

this %rticle, the sa.e .onthly inco.e benefit shall be 3ai) for a 3erio) eivalent to the s. of

the 3erio)s establishe) for the loss of the .e.ber or a 3art thereof& 8f the reslt is a )eci.al

fraction, the sa.e shall be ron)e) off to the ne>t hi!her inte!er&4/

8n cases of inEries or illnesses resltin! in a 3er.anent 3artial )isability not liste) in the

3rece)in! sche)le, the benefit shall be an inco.e benefit eivalent to the 3ercenta!e of the

3er.anent loss of the ca3acity for or &50

C. Death (eneits

'ai) in the for. of cash .onthly 3ension#51

• ?or life to the 3ri.ary beneficiaries, !arantee) for 5 yearsF

• ?or not .ore than $0 .onths to the secon)ary beneficiaries, in case there are no 3ri.ary

beneficiariesF

• 8n no case shall the total benefit be less than '15,000

he folloin! are consi)ere) to be the beneficiaries#52

• 'ri.ary beneficiaries#

a& *e3en)ent s3ose ntil heAshe re.arries

b& *e3en)ent chil)ren le!iti.ate, le!iti.ate), natral-born, or le!ally a)o3te)C

49 8bi)&

50 8bi)&


52 8bi)&

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• econ) beneficiaries#

a& 8lle!iti.ate chil)ren an) le!iti.ate )escen)ants

b& 'arents, !ran)3arents, !ran)chil)ren

n)er H Rles, if there are no beneficiaries at the ti.e of the e.3loyeeKs )eath, the

benefit shall accre to the H.3loyeesK o.3ensation ?n)& 5=

he a.ont of inco.e benefits shall be eivalent to the .onthly inco.e benefits n)er

'er.anent otal *isability an) 'er.anent 'artial *isability benefits& 8t is 9an a.ont eivalent

to his .onthly inco.e benefit, 3ls 10 3ercent thereof for each )e3en)ent chil), bt not .ore

than 5@<54

8n a))ition, a fneral benefit of 'h3=,000 shall be 3ai) 3on the )eath of the covere)

e.3loyee or 3er.anently totally )isable) 3ensioner &55

D. Common Provisions to Income (eneits

n)er %rticle 1/ of the la, if any e.3loyee n)er 3er.anent 3artial )isability sffers

another inEry hich reslts in a co.3ensable )isability !reater than the 3revios inEry, the

tate 8nsrance ?n) shall be liable for the inco.e benefit of the ne )isability, 3rovi)e) that if

the ne )isability is relate) to the 3revios )isability, the yste. shall be liable only for the

)ifference in inco.e benefits&

n)er %rticle 204 of the la, no clai. for co.3ensation n)er this itle is transferrable,

or liable to ta>, attach.ent, !arnish.ent, levy or sei(re by or n)er any le!al 3rocess

hatsoever, either before or after recei3t by the 3erson or 3ersons entitle) thereto, e>ce3t to 3ay

any )ebt of the e.3loyee to the yste.&

53 8bi)&


55 8bi)&

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VII. Prescriptive period

his )ecree 3rovi)es that no clai. for co.3ensation shall be !iven )e corse nless sai) clai.

is file) ith the yste. ithin three years fro. the ti.e the case of action accre)&

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/eerences

%(cena Jr&, & 201=& he Labor o)e ith o..ents an) ases&

*e3art.ent of Labot an) H.3loy.ent& 200/C& Labor o)e of the 'hili33ines&

htt3#AA&)ole&!ov&3hAlaborPco)esAvieA$Q 1= Nove.ber 2014&

*e3art.ent of Labor an) H.3loy.ent& 2014C& "orersK tattory Benefits 6an)boo&

H.3loyeesK o.3ensation o..ission& 201=C 6an)boo on H.3loyeesK o.3ensation

an) tate 8nsrance ?n)&

Me.oran). Or)er No& 2+& 1/+$C& Mo)ifyin! 'resi)ential *ecree No& +51 Reirin!

%ll H.3loyers o 'ay heir H.3loyees % 1=th-Month 'ay&

htt3#AA&!ov&3hA1/+$A0+A1=A.e.oran).-or)er-no-2+-s-1/+$AQ 1 Nove.ber 2014&

'resi)ential *ecree No& +51& Reirin! %ll H.3loyers o 'ay heir H.3loyees % 1= th-

Month 'ay&

he La3hil 'roEect& Rles an) Re!lations 8.3le.entin! 'resi)ential *ecree No

htt3#AA&la3hil&netAstattesA3res)ecsA3)1/5A3)P+51P1/5&ht.lQ 1$ Nove.ber 2014&

24

Documents

PD-851-and-PD-626 (1)