Presidential Decree No. 626 (PD 626) — FURTHER AMENDING CERTAIN ARTICLES OF PRESIDENTIAL DECREE No. 442 ENTITLED "LABOR CODE OF THE PHILIPPINES".
WHEREAS, Presidential Decree No. 570-A amends certain
provisions of Presidential Decree No. 442, otherwise known as the Labor
Code of the Philippines, and Presidential Decree No. 608 extends the
effectivity of Title II of Book IV on Employees' Compensation and State
Insurance Fund and Title III of Book IV on Medicare of the same Code to
January 1, 1975;
WHEREAS, pending the effectivity of said Titles, the Social
Security System, Government Service Insurance System, Philippine
Medical Care Commission, and the Department of Labor have utilized the
transition period for intensive study and consultations with labor
organizations, employers' organizations, and civic, professional, and
technical associations, representing the various sectors of the economy;
WHEREAS, as a result of such discussions and consultations,
it has been found necessary to make adjustments in the text of the Labor
Code to initiate, rationalize and coordinate the grant of benefits with
the broad objectives of the Code consistent with the overriding
priority of development;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines, and
pursuant to Proclamation No. 1081 dated September 22, 1972, as amended,
do hereby order and decree:
SECTION 1. Title II of Book IV on Employees' Compensation
and State Insurance Fund of the Labor Code of the Philippines is hereby
amended to read as follows:
"TITLE II
EMPLOYEES'
COMPENSATION AND STATE INSURANCE FUND
POLICY AND DEFINITIONS
COVERAGE AND
LIABILITY
ADMINISTRATION
CONTRIBUTIONS
MEDICAL BENEFITS
DISABILITY BENEFITS
DEATH BENEFITS
PROVISIONS COMMON
TO INCOME BENEFITS
RECORDS, REPORTS AND PENAL PROVISIONS
Policy.
ART. 164. Policy. — The State shall promote and
develop a tax-exempt employees' compensation program whereby employees
and their dependents, in the event of work-connected disability or
death, may promptly secure adequate income benefit, and medical or
related benefits.
Definition of terms.
ART. 165. Definition of terms. — As used in this
Title, unless the context indicates otherwise:
"Code" means the Labor Code of the Philippines instituted under
Presidential Decree numbered four hundred forty-two, as amended.
"Commission" means the Employees' Compensation Commission created
under this Title.
"SSS" means the Social Security System created under Republic Act
numbered eleven hundred sixty-one, as amended.
"GSIS" means the Government Service Insurance System created under
Commonwealth Act numbered one hundred eighty-six, as amended.
"System" means the SSS or GSIS, as the case may be.
"Employer" means any person, natural or juridical, employing the
services of the employee.
"Employee" means any person compulsorily covered by the GSIS under
Commonwealth Act numbered one hundred eighty-six, as amended, including
members of the Armed Forces of the Philippines, and any person employed
as casual, emergency, temporary, substitute or contractual; or any
person compulsorily covered by the SSS under Republic Act numbered
eleven hundred sixty-one, as amended.
"Persons" means any individual, partnership, firm, association,
trust, corporation or legal representative thereof.
"Dependents" means the legitimate, legitimated or legally adopted
child who is unmarried, not gainfully employed, and not over eighteen
years of age, or over eighteen but not over twenty-one years of age
provided that he is enrolled in school, or over twenty-one years of age
provided that he is congenitally incapacitated and incapable of
self-support physically or mentally; the legitimate spouse living with
the employee; and the legitimate parents of said employee wholly
dependent upon him for regular support.
"Beneficiaries" means the dependent spouse until he remarries and
dependent children, who are the primary beneficiaries. In their absence,
the dependent parents and, subject to the restrictions imposed on
dependent children, the illegitimate children and legitimate
descendants, who are the secondary beneficiaries.
"Injury" means any harmful change in the human organism sustained
at work carried out during working hours at the workplace or elsewhere
while executing an order for the employer.
"Sickness' means any illness definitely accepted as an
occupational disease listed by the Commission, or any illness caused by
employment subject to proof by the employee that the risk of contracting
the same is increased by working conditions.
"Death" means loss of life resulting from injury or sickness.
"Disability" means all payments made under this Title for income
benefit, and medical or related benefits.
"Compensation" means all payments made under this Title for income
benefit, and medical or related benefits.
"Income benefit" means all payments made under this Title to the
employee or his dependents.
"Medical benefit" means all payments made under this Title to the
providers of medical care, rehabilitation services and hospital care.
"Related benefit" means all payments made under this Title for
appliance and supplies.
"Appliances" means crutches, artificial aids and other similar
devices.
"Supplies" means medicine and other medical, dental or surgical
items.
"Hospital" means any medical facility, government or private,
authorized by law, an active member of good standing of the Philippine
Hospital Association and accredited by the Commission.
"Physician" means any doctor of medicine duly licensed to practice
in the Philippines, an active member of good standing of the Philippine
Medical Association and accredited by the Commission.
"Wages" or "salary" means all actual remuneration for employment
received during the month, except that part in excess of one thousand
pesos.
"Monthly salary credit" means the wage or salary base for
contributions as provided in Republic Act numbered eleven hundred
sixty-one, as amended, or the wages or salary.
"Average monthly salary credit" means the result obtained by
dividing the sum of the monthly salary credits in the sixty-month period
ending on the last day of the second quarter preceding the quarter of
death or permanent disability by sixty, except where the month of death
or permanent disability falls within eighteen calendar months from the
month of coverage, in which case, the average monthly salary credit is
the result obtained by dividing the sum of all monthly salary credits by
the number of calendar months of coverage.
"Average daily salary credit" means the result obtained by
dividing the sum of the monthly salary credits in the twelve-month
period ending on the last day of the second quarter preceding the
quarter of sickness or injury by thirty times the number of calendar
months of coverage, except where the month of sickness or injury falls
within nine calendar months from the month of coverage, in which case,
the average daily salary credit is the result obtained by dividing the
sum of all monthly salary credits by thirty times the number of calendar
months of coverage.
"Quarter" means a period of three consecutive months ending on the
last day of March, June, September and December.
Compulsory coverage.
ART. 166. Compulsory coverage. — Coverage in the
State Insurance Fund shall be compulsory upon all employers and their
employees not over sixty years of age: Provided, That an employee
who is over sixty years of age and paying contributions to qualify for
the retirement or life insurance benefit administered by the System
shall be subject to compulsory coverage: Provided, further, That
in case of an employee who is both covered by the SSS and GSIS, only his
employment with the latter shall be considered for purposes of his
coverage.
Foreign employment.
ART. 167. Foreign employment. — The Commission
shall ensure adequate coverage of Filipino employees employed abroad,
subject to regulations as it may prescribe.
Effective date of coverage.
ART. 168. Effective date of coverage. — Compulsory
coverage of the employer during the effectivity of this Title shall
take effect on the first day of his operation, and that of the employee
on the date of his employment.
Registration.
ART. 169. Registration. — Each employer and his
employees shall register with the System in accordance with its
regulations.
Limitation of liability.
ART. 170. Limitation of liability. — The State
Insurance Fund shall be liable for compensation to the employee or his
dependents, except when the disability or death was occasioned by the
employee's intoxication, willful intention to injure or kill himself or
another, notorious negligence, or otherwise provided under this Title.
Exclusiveness of liability.
ART. 171. Exclusiveness of liability. — Unless
otherwise provided, the liability of the State Insurance Fund under this
Title shall be exclusive and in place of all other liabilities of the
employer to the employee, his dependents or anyone otherwise entitled to
receive damages on behalf of the employee or his dependents. The
payment of compensation under this Title shall bar the recovery of
benefits as provided for in Section 699 of the Revised Administrative
Code, Republic Act numbered eleven hundred sixty-one, as amended,
Commonwealth Act numbered one hundred eighty-six, as amended, Republic
Act numbered sixty-one hundred eleven, as amended, Republic Act numbered
six hundred ten, as amended, Republic Act numbered forty-eight hundred
sixty-four, as amended and other laws whose benefits are administered by
the System, during the period of such payment for the same disability
or death.
Employees' Compensation Commission.
ART. 174. Employees' Compensation Commission. —
(a) To initiate, rationalize and coordinate the policies of the
employees' compensation program, the Employees' Compensation Commission
is hereby created to be composed of four ex-officio members: the
Secretary of Labor as Chairman, the GSIS Manager, the SSS Administrator,
the Chairman of the Philippine Medical Care Commission; and two
appointive members, one of whom shall represent the employees and the
other, the employers, to be appointed by the President of the
Philippines for a term of six years. The appointive member shall have at
least five years experience in workmen's compensation or social
security programs. All vacancies shall be filled for the unexpired term
only.
The Vice-Chairman of the Commission shall be alternated each year
between the GSIS General Manager and the SSS Administrator. The
presence of four members shall constitute a quorum. Meetings shall be
held as often as necessary. Each member shall receive a per diem of one
hundred pesos for every meeting actually attended by him exclusive of
actual, ordinary and necessary travel and representation expenses. In
his absence, any member may designate an official of the institution he
serves on full-time basis as his representative to act on his behalf.
The general conduct of the operations and management functions of
the GSIS or SSS under this Title shall be vested in its respective
chief executive officer, who shall be immediately responsible for
carrying out the policies of the Commission.
Powers and duties.
ART. 175. Powers and duties. — The Commission shall
have the following powers and duties:
To assess and fix a rate of contribution from all employers.
To determine the rate of contribution payable by an employer
whose records show a high frequency of work accidents or occupational
diseases due to failure by the said employer to observe adequate safety
measures.
To approve rules and regulations governing the processing of
claims and the settlement of disputes arising therefrom as prescribed by
the System.
To initiate policies and programs towards adequate occupational
health and safety and accident prevention in the working environment.
To make the necessary actuarial studies and calculations
concerning the grant of constant help and income benefits for permanent
disability or death, and the rationalization of the benefits for
permanent disability and death under this Title with benefits payable by
the System for similar contingencies.
To appoint the personnel of its staff, subject to civil service
law and rules.
To adopt annually a budget of expenditures of the Commission and
its staff chargeable against the State Insurance Fund.
To have the power to administer oath and affirmation, and to
issue subpoena and subpoena duces tecum in connection with any question
or issue arising from appealed cases under this Title.
To sue and be sued in court.
To perform such other acts as it may deem appropriate for the
attainment of the purposes of the Commission and proper enforcement of
the provisions of this Title.
Management of funds.
ART. 176. Management of funds. — All revenues
collected by the System under this Title shall be deposited, invested,
administered and disburse in the same manner and under the same
conditions, requirements and safeguards as provided by Republic Act
numbered one hundred sixty-one, as amended, and Commonwealth Act
numbered one hundred eighty-six, as amended, with regard to such other
funds as are thereunder being paid to or collected by the SSS and GSIS,
respectively: Provided, That the Commission, SSS and GSIS may
disburse each year not more than twelve per cent of the contributions
and investment earnings collected for operational expenses, including
occupational health and safety programs, incidental to the carry out of
this Title.
Investment of funds.
ART. 177. Investment of funds. — All revenues as
are not needed to meet current operational expenses under this Title
shall be accumulated in a fund to be known as the State Insurance Fund,
which shall be used exclusively for the payment of the benefits under
this Title, and no amount thereof shall be used for any other purpose.
AK amounts accruing to the State Insurance Fund, which is hereby
established in the SSS and GSIS, respectively, shall be deposited with
any authorized depository banks approved by the Commission, or invested
with due and prudent regard for the liquidity needs of the System.
Settlement of claims.
ART. 178. 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 the evidence.
Review.
ART. 179. Review. — Decisions, orders or
resolutions of the Commission may be reviewed on certiorari by the
Supreme Court only on questions of law upon petition of an aggrieved
party within ten days from notice thereof.
Enforcement of decisions.
ART 180. Enforcement of decisions. — (a) Any
decision, order or resolution of the Commission shall become final and
executory if no appeal is taken therefrom within ten days from notice
thereof. All awards granted by the Commission in cases appealed from
decisions of the System shall be effected within fifteen days from
receipt of notice.
In all other cases, decisions, orders and resolutions of the
Commission which have become final and executory shall be enforced and
executed in the same manner as decisions of the Court of First Instance,
and the Commission shall have the power to issue to the city or
provincial sheriff or to the sheriff whom it may appoint such writs of
execution as may be necessary for the enforcement of such decisions,
orders or resolutions, and any person who shall fail or refuse to comply
therewith shall, upon application by the Commission, be punished by the
proper court for contempt.
Employer's contributions.
ART. 181. Employer's contributions. — (a) Under
such regulations as the System may prescribe, beginning as of the last
day of the month when an employee's compulsory coverage takes effect and
every month thereafter during his employment, his employer shall
prepare to remit to the System a contribution equivalent to one percent
of his monthly salary credit.
The rate of contribution shall be reviewed periodically and,
subject to the limitations herein provided, may be revised as the
experience in risk, cost of administration, and actual or anticipated as
well as unexpected losses, may require
Contributions under this Title shall be paid in their entirety by
the employer and any contract or device for the deduction of any
portion thereof from the wages or salaries of the employees shall be
null and void.
When a covered employee dies, becomes disabled or is separated
from employment, his obligation to pay the monthly contribution arising
from that employment shall cease at the end of the month of contingency
and during such months that he is not receiving wages or salary.
Government guarantee.
ART. 182. Government guarantee. — The Republic of the
Philippines guarantees the benefits prescribed under this Title, and
accepts general responsibility for the solvency of the State Insurance
Fund. In case of any deficiency, the same shall be covered by
supplemental appropriations from the national government.
Medical services.
ART. 183. Medical services. — Immediately after an
employee contracts sickness or sustains an injury, he shall be provided
by the System during the subsequent period of his disability with such
medical services and appliances as the nature of his sickness or injury
and progress of his recovery may require, subject to the expense
limitation prescribed by the Commission.
Liability.
ART. 184. Liability. — The System shall have the
authority to choose or order a change of physician, hospital or
rehabilitation facility for the employee, and shall not be liable for
compensation for any aggravation of the employee's injury or sickness
resulting from unauthorized changes by the employee of medical services,
appliances, supplies, hospitals, rehabilitation facilities or
physician.
Attending physician.
ART. 185. Attending physician. — Any physician
attending an injured or sick employee shall comply with all the
regulations of the System and submit reports in prescribed forms at such
time as may be required concerning his condition or treatment. All
medical information relevant to the particular injury or sickness shall
on demand be made available to the employee or the System. No
information developed in connection with treatment or examination for
which compensation is sought shall be considered as privileged
communication.
Refusal of examination or treatment.
ART. 186. Refusal of examination or treatment. —
If the employee unreasonably refuses to submit to medical examination or
treatment the System shall stop the payment of further compensation
during such time as such refusal continues. What constitutes an
unreasonable refusal shall be determined by the System, which may on its
own initiative determine the necessity character, and sufficiency of
any medical services furnished or to be furnished.
Fees and other charges.
ART. 187. Fees and other charges. — All fees and
other charges for hospital services, medical care and appliances,
excluding professional fees, shall not be higher than those prevailing
in wards of hospitals for similar services to injured or sick persons in
general and shall be subject to the regulations of the Commission.
Professional fees shall only be appreciably higher than those prescribed
under Republic Act numbered sixty-one hundred eleven, as amended,
otherwise known as the Philippines Medical Care Act of 1969.
Rehabilitation services.
ART. 188. Rehabilitation services. — (a) The System
shall, as soon as practicable, establish a continuing program for the
rehabilitation of injured and handicapped employees, who shall be
entitled to rehabilitation services, which shall consist of medical,
surgical or hospital treatment, including appliances if he has been
handicapped by the injury, to help him become physically independent.
As soon as practicable, the System shall establish centers
equipped and staffed to provide a balanced program remedial treatment,
vocational assessment and preparation designed to meet the individual
needs of each handicapped employee 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 potential.
Temporary total disability.
ART. 189. Temporary total disability. — (a) Under
such regulations as the Commission may approve, any employee under this
Title who sustains an injury or contracts sickness resulting in
temporary total disability shall for each day of injury or fraction
thereof, or for each day or fraction thereof after the third day of
sickness, be paid by the System an income benefit equivalent to ninety
per cent of his average daily salary credit, subject to the following
conditions: (1) The daily income benefit shall not be less than two
pesos and fifty centavos nor more than sixteen pesos nor paid for a
continuous period longer than one hundred twenty days and (2) The System
shall be notified of the injury or sickness.
The payment of such income benefit shall be in accordance with
the regulations of the Commission: Provided, That the employee
shall not be entitled to avail himself of the income benefit under this
Title and his sick leave credits at the same time: Provided, further,
That all sick leaves earned by him shall be preserved to his credit if
he has not been paid his salary during such leave or absence.
Permanent Total disability.
ART. 190. Permanent Total disability. — (a) Under such
regulations as the Commission may approve, any employee under this
Title who contracts sickness or sustains an injury resulting in
permanent total disability shall for each month until his death but not
exceeding five years be paid by the System during such disability an
income benefit to be computed as follows:
Forty-five per cent of the first three hundred pesos of average
monthly salary credit or fraction thereof; plus Twenty-five per cent of
the next three hundred pesos of average monthly salary credit or
fraction thereof; plus One tenth of one per cent of the average monthly
salary credit for each month of paid coverage in the System in excess of
one hundred twenty months of paid coverage as of the last day of the
second quarter preceding the quarter of disability: Provided,
That the monthly income benefit shall not be less than forty-five pesos:
Provided, further, That in no case shall the total income
benefit exceed twelve thousand pesos.
The monthly income benefit shall be suspended if the employee is
gainfully employed or recovers from his permanent total disability or
fails to present himself for examination at least once a year upon
notice by the System
The following disabilities shall be deemed total and permanent:
Temporary total disability lasting continuously for more than
one hundred twenty days
Complete loss of sight of both eyes;
Loss of two limbs at or above the ankle or wrist;
Permanent complete paralysis of two limbs;
Brain injury resulting in an incurable imbecility or insanity;
and (6) Such cases as determined by the Medical Director of the System
and approved by the Commission.
The number of months of paid coverage shall be denned and
approximated by a formula to be approved by the Commission.
Permanent partial disability.
ART. 191. Permanent partial disability. — (a) Under
such regulations as the Commission may approve, any employee under this
Title who contracts sickness or sustains an injury resulting in
permanent partial disability shall for each month not exceeding the
period designated herein be paid by the System during such disability an
income benefit equivalent to the income benefit for permanent total
disability.
The benefit shall be paid for not more than the period designated
in the following schedule:
Complete and permanent
loss
of the use of
Number of
months
One thumb
8
One index finger
6
One middle finger
5
One ring finger
4
One little finger
2
One big toe
5
Any toe
2
One hand
31
One arm
40
One foot
25
One leg
37
One ear
8
Both ears
16
Hearing of one ear
8
Hearing of both ears
40
Sight of one eye
20
A loss of a wrist shall be considered as a loss of the hand, and a
loss of an elbow considered as a loss of the arm. A loss of an ankle
shall be considered as loss of the foot, and a loss of a knee considered
as a loss of the leg. A loss of more than one joint shall be considered
as a loss of the whole finger or toe, and a loss of only the first
joint considered as a loss of one-half the whole finger or toe: Provided,
That such loss shall be either the functional loss of the use or
physical loss of the member.
In cases of permanent partial disability less than the total loss
of the member specified in the preceding paragraph, the same monthly
income benefit shall be paid for a portion of the period established for
the total loss of the member in accordance with the proportion that the
partial loss bears to the total loss. If the result is a decimal
fraction, the same shall be rounded off to the next higher integer.
In cases of simultaneous loss of more than one member or a part
thereof as specified in this Article, the same monthly income benefit
shall be paid for a period equivalent to the sum of the periods
established for the loss of the member or a part thereof. If the result
is a decimal fraction, the same shall be rounded off to the next higher
integer.
Death.
ART. 192. Death. — (a) Under such regulations as
the Commission may approve, the System shall pay to the primary
beneficiaries upon the death of the covered employee under this Title a
monthly income benefit equivalent to the monthly income benefit for
permanent total disability increased by ten percent for each dependent
child not exceeding five, beginning with the youngest and without
substitution: Provided, That the portion equivalent to the
monthly income benefit for permanent total disability shall be
guaranteed for five years; Provided, further, That if he has no
primary beneficiary the System shall pay to his beneficiaries or legal
heirs a lump sum benefit equivalent to the lesser of thirty times the
monthly income benefit for permanent total disability and six thousand
pesos.
Under such regulations as the Commission may approve, the System
shall pay to the primary beneficiaries upon the death of a covered
employee who is under permanent total disability under this Title the
balance of his income benefit plus ten percent of the monthly income
benefit for each dependent child but not exceeding five, beginning with
the youngest and without substitution: Provided, That if he has
no primary beneficiary the System shall pay to his beneficiaries or
legal heirs a lump sum benefit equivalent to the lesser of the balance
of his income benefit or thirty times his monthly income benefit and six
thousand pesos.
Relationship and dependency.
ART. 193. Relationship and dependency. — All
questions of relationship and dependency shall be determined as of the
time of death.
Delinquent contributions.
ART. 194. Delinquent contributions. — (a) An
employer who is delinquent in his contributions shall be liable to the
System for the benefits which may have been paid by the System to his
employees or their dependents, and any benefit and expenses to which
such employer is liable shall constitute a lien on all his property,
real or personal, which is hereby declared to be preferred to any credit
except taxes. The payment of the employer of the lump sum equivalent of
such liability shall absolve him from the payment of the delinquent
contributions and penalty thereon with respect to the employee
concerned.
Failure or refusal of the employer to pay or remit the
contributions herein prescribed shall not prejudice the right of the
employee or his dependents to the benefits under this Title. If the
sickness, injury, disability or death occurs before the System receives
any report of the name of his employee, the employer shall be liable to
the System for the lump sum equivalent of the benefits to which such
employee or his dependents may be entitled.
Second injuries.
ART. 195. Second injuries. — If any employee under
permanent partial disability suffers another injury which results in a
compensable disability greater than the previous injury, the State
Insurance Fund shall be liable for the income benefit of the new
disability Provided, That if the new disability is related to the
previous disability, the System shall be liable only for the difference
in income benefits.
Assignment of benefits.
ART. 196. Assignment of benefits. — No claim for
compensation under this Title is transferable, or liable to tax,
attachment, garnishment, levy or seizure by or under any legal process
whatsoever, either before or after receipt by the person or persons
entitled thereto, except to pay any debt of the employee to the System.
Earned benefits.
ART. 197. Earned benefits. — Income benefits
shall, with respect to any period of disability, be payable in
accordance with this Title to an employee who is entitled to receive
wages, salaries or allowance for holidays, vacation or sick leaves, and
any award or benefit under a collective bargaining or other agreement.
Safety devices.
ART. 198. Safety devices. — In case the employee's
injury or death was due to the failure of the employer to comply with
any law, or to install and maintain safety devices, or take other
precautions for the prevention of injury, said employer shall pay to the
State Insurance Fund a penalty of twenty five percent of the lump sum
equivalent of the income benefit payable by the System to the employee.
All employees, especially those who should have been paying a rate of
contribution higher than that required of them under this Title, are
enjoined to undertake and strengthen measures for the occupational
health and safety of their employees.
Prescriptive period.
ART. 199. Prescriptive period. — No claim for
compensation shall be given due course unless notice thereof has been
given to the employer in accordance with the provisions herein, except
when said notice is not required. The right to compensation shall be
barred unless said claim is filed with the System within one year from
notice to the employer.
Erroneous payment.
ART. 200. Erroneous payment. — (a) If the System in good
faith pay income benefit to a dependent who is inferior in right to
another dependent or with whom another dependent is entitled to share,
such payments shall discharge the System from liability, unless and
until such other dependent notifies the System of his claim prior to the
payments.
In case of doubts as to the respective rights of rival claimants,
the System is hereby empowered to determine as to whom payment should
be made in accordance with such regulations as the Commission may
approve. If the money is payable to a minor or incompetent, payment
shall be made by the System to such person or persons as it may consider
to be best qualified to take care and dispose of the minor's or
incompetent's property for his benefit.
Prohibition.
ART. 201. Prohibition. — No agent, attorney or other
person pursuing or in charge of the preparation or filing of any claim
for benefit under this Title shall demand or charge for his services any
fee, and any stipulation to the contrary shall be null and void. The
retention or deduction of any amount from any benefit granted under this
Title for the payment of fees such services is prohibited. Violation of
any provision of this Article shall be punished by a fine of not less
than five hundred pesos nor more than five thousand pesos, or
imprisonment for not less than sixty months nor more than one year, or
both, at the discretion of the court.
Exemption from levy, tax, etc.
ART. 202. Exemption from levy, tax, etc. — All laws
to the contrary notwithstanding, the State Insurance Fund and all its
assets shall be exempt from any tax, fee, charge, levy, or customs, or
import duty, and no law hereafter enacted shall apply to the State
Insurance Fund unless it is provided therein that the same is applicable
by expressly stating its name.
Record of death or disability.
ART. 203. Record of death or disability. — (a) All
employers shall keep a logbook to record chronologically the sickness,
injury or death of their employees, setting forth therein his name, date
and place of the contingency, nature of the contingency and absences.
Entries in the logbook shall be made within five days from notice or
knowledge of the occurrence of the contingency. Within five days after
entry in the logbook, the employer shall report to the System only those
contingencies it deems to be work-connected.
All entries in the employer's logbook shall be made by the
employer or any of his authorized official after verification of the
contingencies or the employee's absences for a period of a day or more.
Upon request by the System, the employer shall furnish the necessary
certificate regarding information about any contingency appearing in the
logbook, citing the entry number, page number and date. Such logbook
shall be made available for inspection to the duly authorized
representative of the System.
Should any employer fail to record in the logbook an actual
sickness, injury or death of any of his employees within the period
prescribed herein, give false information or withhold material
information already in his possession, he shall be held liable for fifty
percent of the lump sum equivalent of the income benefit to which the
employee may be found to be entitled, the payment of which shall accrue
to the State Insurance Fund.
In case of payment of benefits for any claim which is later
determined to be fraudulent and the employer is found to be a party to
the fraud, such employer shall reimburse the System the full amount of
the compensation paid.
ART. 204, Notice of sickness, injury or death. —
Notice of sickness, injury or death shall be given to the employer by
the employee or by his dependents or anybody on Ms behalf within five
days from the occurence of the contingency. So notice to the employer
stall be required if the contingency is known to the employer or his
agents or representatives.
Penal Provisions.
ART. 205. Penal Provisions. — (a) The penal
provisions of Republic Act numbered eleven hundred sixty-one, as
amended, and Commonwealth Act numbered one hundred eighty-six, as
amended, with regard to the funds as are thereunder being paid to,
collected or disbursed by the System, shall be applicable to the
collection, administration and disbursement of the funds under this
Title.
Any person, who for the purpose of securing entitlement to any
benefit or payment under this Title or the issuance of any certificate
or document for any purpose connected with this Title, whether for him
or for some other person, commits fraud, collision, falsification,
misrepresentation of facts or any other kind of anomally shall be
punished with a fine of not less than five hundred pesos nor more than
five thousand pesos and an imprisonment for not less, than six months
nor more than one year, at the discretion of the court.
If the act penalized by this Article is committed by any person
who has been or is employed by the Commission or System, or a
recidivist, the imprisonment shall not be less than one year: if
committed by a lawyer, physician or other professional he shall in
addition to the penalty prescribed herein be disqualified from the
practice of his profession; and if committed by an official, employee or
personnel of the Commission, System or any government agency, he shall
In addition to the penalty prescribed herein The dismissed with
prejudice to reemployment in the government service.
Applicability.
ART. 206. Applicability. — This Title shall apply only
to injury, sickness, disability or death occuring on or after January
1, 1975.
SEC. 2. Title III of Book IV on Medicare of the same Code is
hereby amended to read as follows:
"ART. 207. Medical care. — The Philippine Medical
Care Plan shall be implemented as provided under Republic Act Numbered
sixty-one hundred eleven, as amended".
SEC. 3. Article 331 of Chapter II of Book VII on Prescription
of Offense and Claims of the same Code is hereby amended to read as
follows:
"ART. 331. Money claims. — All money claims arising
from employer-employee relations accruing during the effectivity of this
Code shall be filed within three (3) years from the time the cause of
action accrued; otherwise they shall be forever barred.
"All money claims accruing prior to the effectivity of this Code
shall be filed with the appropriate entities established under this Code
within one year from the date of such effectivity, and shall be
processed or determined in accordance with the implementing rules and
regulations of the Code; otherwise they shall be forever barred.
"Workmen's compensation claims accruing prior to the effectivity
of this Code and during the period from November 1, 1974 up to December
31, 1974, shall be filed with the appropriate regional offices of the
Department of Labor not later than March 31, 1975; otherwise they shall
be forever barred. These claims shall be processed and adjudicated in
accordance with the law and rules at the time their causes of action
accrued.
SEC. 4. Article 335 of Chapter III of Book VII on Transitory
and Final Provisions of the same Code is hereby amended to read as
follows:
"ART. 336. Bureau of Workmen's Compensation and
Workmen's Compensation Commission. — The present Bureau of Workmen's
Compensation, Workmen's Compensation Commission, and Workmen's
Compensation Units in the Department of Labor shall continue to exist up
to December 31 1975. Thereafter, said Offices shall be considered
abolished and all officials and personnel thereof shall be transferred
to and mandatorily absorbed by the Department of Labor, subject to
Presidential Decree No. 6, Letters of Instructions No. 14 and 14-A and
the Civil Service law and rules.
"The salaries of the present officials and personnel of the Bureau
of Workmen's Compensation, Workmen's Compensation Commission, and
Workmen's Compensation Units in the regional offices of the Department
of Labor shall be paid for the appropriations under Presidential Decree
No 503 for the fiscal year ending June 30, 1975. Beginning- July 1,
1975, their salaries shall be paid from general appropriations."
SEC. 5. Article 339 of Chapter III of Book VII on Transitory
and Final Provisions of the same Code is hereby amended to read as
follows:
"ART. 339. Disposition of pending cases. — All cases
pending before the Court of Industrial Relations and the National Labor
Relations Commission established under Presidential Decree No. 21 on
the date of effectivity of this Code shall be transferred to and
processed by the corresponding labor relations division or the National
Labor Commission created under this Code having cognizance of the same
in accordance with the procedure laid down herein and its implementing
rules and regulations. Cases on labor relations on appeal with the
Secretary of Labor or the Office of the President of the Philippines as
of the date of effectivity of this Code shall remain under their
respective jurisdiction and shall be decided in accordance with the law,
rules and regulation i n force at the time of appeal.
"All workmen's compensation cases pending before the Workmen's
Compensation Units in the regional offices of the Department of Labor
and those pending before the Workmen's Compensation Commission as of
March 31, 1975, shall be processed and adjudicated in accordance with
the law, rules and procedure existing prior to the effectivity of the
Employees' Compensation and State Insurance Fund."
SEC. 6. The numbers of the Articles of the same Code shall be
amended by renumbering them consecutively beginning with Art. 1.
SEC. 7. This Decree shall take effect on January 1, 1975.
Done in the City of Manila, this 27th day of December, in the
year of Our Lord, nineteen hundred and seventy-four.
(Sgd.)
FERDINAND E. MARCOS
President of the Philippines
By the President:
(Sgd.)
ALEJANDRO MELCHOR
Executive Secretary
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
