Professional Documents
Culture Documents
Bar 2008 Labor Reviewer
Bar 2008 Labor Reviewer
Labor Standards
SECTION 1 – LABOR LAW IN GENERAL social, economic, and political inequalities, and
remove cultural inequities by equitably diffusing
wealth and political power for the common good.
1.01 LABOR LAW DEFINED To this end, the State shall regulate the
acquisition, ownership, use, and disposition of
The law governing the rights and duties of the property and its increments.
employer and employees
(1) with respect to the terms and conditions of 1.04 LAW AND WORKER
employment and
(2) with respect to labor disputes arising from Cebu Royal Plant v. Deputy Minister of Labor
collective bargaining respecting such terms (87)
and conditions The SC reaffirmed its concern for the lowly
worker who, often at the mercy of his employer
1.02 LAW CLASSIFICATION must look up to the law for his protection. Fittingly,
the law regards him with tenderness and even favor
1. Labor Standards and always with faith and hope in his capacity to
Provide minimum terms and conditions of help in shaping the nation’s future.
employment, below which it cannot be allowed
to fall. 1.05 CASE DECISION
Terms and conditions society deem necessary to
maintain health, safety, and decent living of Anino v. NLRC (98)
workers The Court finds occasion to remind courts and
Books 1, 2, 3, 5 & 6 quasi-judicial bodies that “[a] decision should
Must be observed in the entirety faithfully comply with Section 14, Article VIII of the
Constitution which provides that no decision shall be
Maternity Children’s Hospital v. Sec. of rendered by any court [or quasi-judicial body]
Labor (89) without expressing therein clearly and distinctly the
Labor standards are the minimum facts of the case and the law on which it is based.
requirements prescribed by existing laws, rules xxx It is a requirement of due process and fair play
and regulations relating to wages, hours of that the parties to a litigation be informed of how it
work, cost-of-living allowance, and other was decided, with an explanation of the factual and
monetary and welfare benefits, including legal reasons that led to the conclusions of the court
occupational safety, and health standards. [or quasi-judicial body]. A decision that does not
clearly and distinctly state the facts and the law on
2. Labor Relations which it is based leaves the parties in the dark as to
Regulates the institutional relationship between how it was reached and is especially prejudicial to
the workers organized into a union and the the losing party, who is unable to pinpoint the
employers possible errors of the court [or quasi-judicial body]
Book V – Right to Self – Organization and Right for review by a higher tribunal.”
to bargain collectively In the present case, the NLRC was definitely
wanting in the observance of the aforesaid
3. Welfare Laws constitutional requirement. Its assailed five-page
Designed to take care of the contingencies decision consisted of about three pages of quotation
which may affect the workers, e.g. where there from the labor arbiter’s decision, including the
is loss of income for reasons beyond control, dispositive portion, and barely a page (two short
i.e. sickness, death, accident, etc. paragraphs of two sentences each) of its own
Social Security Act of 1997, RA 8282 discussion of its reasons for reversing the arbiter’s
Government Service Insurance System of findings.
1997, RA 8291
Employment Compensation and State 1.06 MANAGEMENT FUNCTION
Insurance Fund
National Health Insurance Act of 1995, RA RECOGNITION
7875
Deles v. NLRC (2000)
1.03 BASIS OF ENACTMENT However, petitioner loses sight of the fact that
the right of an employer to regulate all aspects of
1987 Constitution employment is well settled. This right, aptly called
Art II Sec 5 management prerogative, gives employers the
The maintenance of peace and order, the protection freedom to regulate, according to their discretion
of life, liberty, and property, and the promotion of and best judgment, all aspects of employment,
the general welfare are essential for the enjoyment including work assignment, working methods,
by all the people of the blessings of democracy. processes to be followed, working regulations,
transfer of employees, work supervision, lay-off of
Art II Sec 18 workers and the discipline, dismissal and recall of
The State affirms labor as a primary social economic workers. In general, management has the
force. It shall protect the rights of workers and prerogative to discipline its employees and to impose
promote their welfare. appropriate penalties on erring workers, pursuant to
company rules and regulations.
Art XIII Sec 1
The Congress shall give highest priority to the LIMITATIONS
enactment of measures that protect and enhance
the right of all the people to human dignity, reduce
Leyte Land Transportation Co. v. Leyte Farmers MANAGEMENT AND THE CONSTITUTION
and Workers Union (48)
In answer to the contention of the petitioner National Sugar Refineries Corp. v. NLRC (93)
that the doctrine laid down in the appealed decision While the Constitution is committed to the policy
in effect "has deprived the company of its rights to of social justice and the protection of the working
enter into contract of employment as it and the class, it should not be supposed that every labor
employee may agree," it is sufficient to quote the dispute will be automatically decided in favor of
following pronouncements of the United States labor. Management also has its own rights which, as
Supreme Court: "The fact that both parties are of such, are entitled to respect and enforcement in the
full age and competent to contract does not interest of simple fair play. Out of its concern for
necessarily deprive the State of the power to those with less privileges in life, this Court has
interfere where the parties do not stand upon an inclined more often than not toward the worker and
equality, or where the public health demands that upheld his cause in his conflicts with the employer.
one party to the contract shall be protected against Such favoritism, however, has not blinded us to the
himself. The State still retains an interest in his rule that justice is in every case for the deserving, to
welfare, however reckless he may be. The whole is be dispensed in the light of the established facts and
no greater than the sum of all the parts, and where the applicable law and doctrine.
the individual health, safety and welfare are
sacrificed or neglected, the State must suffer." Manila Electric Company v. Quisumbing (99)
(West Coast Hotel Company vs. Parrish, quoting Additionally, we recognize that contracting out
Holden vs. Hardy. The former, by the way, expressly is not unlimited; rather, it is a prerogative that
overrules the case of Adkins vs. Children's Hospital) management enjoys subject to well-defined legal
limitations. As we have previously held, the
company can determine in its best business
judgment whether it should contract out
performance of some of its work for as long as
CASUAL EMPLOYMENT
When not regular, project, or seasonal
Requirement and Effect = Regular
Employees
1. One (1) year service whether
continuous or broken
2. With respect to activity employed
3. Employment shall continue while such
activity exists (Regular in a limited
sense)
** Project, Seasonal and Casual Employees –
may be doing a function that is by definition
regular but are not regular because they fall in
Art. 71 Art. 75
Deductibility of training costs - An additional Learnership agreement – Any employer desiring to
deduction from taxable income of one-half of the employer learners shall enter into a learnership
value of labor training expenses incurred for agreement with them, which agreement shall
developing the productivity and efficiency of include:
apprentices shall be granted to the person or
enterprise organizing an apprenticeship program a. The NAMES and addresses of the learners;
provided such program is duly recognized by the b. The DURATION of the learnership period, which
Department of Labor and Employment; provided shall not exceed three months;
further that such deduction shall not exceed 10 c. The WAGES or salary rates of the learners
percent of direct labor wage; and provided finally which shall begin at not less than 75 percent
that the person or enterprise who wish to avail of of the applicable minimum wage; and
this incentive should pay his apprentices the d. A COMMITMENT to employ the learners, if they
minimum wages. so desire, as regular employees upon
completion of the learnership. All learners who
have been allowed or suffered to work during
ENFORCEMENT the first two months shall be deemed regular
employees if training is terminated by the
Art. 65 employer before the end of the stipulated
Investigation of violation of apprenticeship period through no fault of the learner.
agreement The learnership agreement shall be subject to
Upon complaint of any interested person or upon its inspection by the Secretary or his duly authorized
own initiative, representatives.
the appropriate agency of the Department of Labor
and Employment or its authorized representative Art. 76
shall investigate any violation of any apprenticeship Learners in piecework – Learners employed in piece
agreement or incentive rate jobs during the training period shall
be paid in full for the work done.
Art. 66
Appeal to the Secretary of Labor and Employment
C. Handicapped Workers
The decision of the authorized agency of the
Department
by any aggrieved person 12.04 HANDICAPPED WORKER
to the Secretary of Labor and Employment
within five days from receipt of the decision. Law : RA 7277 “Magna Carta for Disabled
The decision of the Secretary shall be final and Persons”
executory.
POLICY
Art. 67
Art. 91 (b)
The employer shall determine and schedule the
SECTION 14 CONDITION OF EMPLOYMENT weekly rest day of his employees subject to
collective bargaining agreement and to such rules
– WEEKLY REST PERIOD
and regulations as the Secretary of Labor may
provide. However, the employer shall respect the
14.01 RATIONALE preference of employees as to their weekly rest day
when such preference is based on religious grounds.
a. scheduled rest Additional compensation of at
day least 10 percent of regular 14.04 COMPULSORY WORK AND
wage. An employee shall be COMPENSATION
entitled to such additional
compensation for work Art. 92
performed on Sunday only When employer may require work on a rest day –
when it is his established rest The employer may require his employees to work
day. on any day:
b. nature of the Additional compensation of at
B. Paternity Leave
Upon written permission of the majority of the Procedure: Claimants, if all of age, shall execute an
employees or workers concerned, all private affidavit attesting to their
establishments, companies, businesses and other relationship to the deceased and the fact
entities with 25 or more employees and located that they are his heirs, to the exclusion of all
within 1 kilometer radius to a commercial, other persons.
savings or rural bank shall pay the wages and If any of the heirs is a minor: the affidavit
other benefits of their employees through any of shall be executed on his
the said banks and within the period of payment behalf by his natural guardian or next of
of wages fixed by PD 422, as amended, kin.
otherwise known as the Labor Code of the The affidavit shall be presented to the
Philippines. employer who shall make payment through the
Secretary of Labor or his representative. The
representative of the Secretary of Labor shall act as
referee in dividing the amount paid among the heirs.
The payment of wages under this Article shall
Labor Advisory on Payment of Salaries thru absolve the employer of any further liability with
Automated Teller Machine (ATM) respect to the amount paid.
Basic salary = for the purpose of computing the MANNER OF WAGE PAYMENT
13th month pay shall include all remuneration’s or Jackson Building v. NLRC (95)
earning paid by this employer for services rendered Presidential Degree No. 851, as amended by
but does not include allowances and monetary Memorandum Order No. 28, provides that
benefits which are not considered or integrated as employees are entitled to the thirteenth-month pay
part of the regular or basic salary, such as the cash benefit regardless of their designation and
equivalent of unused vacation and sick leave credits, irrespective of the method by which their wages are
overtime, premium, night differential and holiday paid.
pay and cost-of-living allowances. However, these
salary-related benefits should be included as part of HOUSEHELPERS
the basic salary in the computation of the 13th
month pay if by individual or collective agreement, Ultra Villa Food House v. Geniston (99)
company practice or policy, the same are treated as Moreover, the specific provisions mandating
part of the basic salary of the employees. these benefits are found in Book III, Title I of the
Labor Code, and Article 82, which defines the scope
Time of payment of the application of these provisions, expressly
The required 13th Month Pay shall be paid not excludes domestic helpers from its coverage. The
later than December 24 of each year. An employer, limitations set out in the said article are echoed in
however, may give to his employees one-half (1/2) Book III of the Omnibus Rules Implementing the
Labor Code. Clearly then, petitioner is not obliged by
of the required 13th Month Pay before the opening
law to grant private respondent any of these
of the regular school year and the other half on or
benefits.
before the 24th of December every year. The Employing the same line of analysis, it would
frequency of payment of this monetary benefit may seem that private respondent is not entitled to 13th
be the subject of agreement between the employer month pay. The Revised Guidelines on the
and the recognized collective bargaining agent of the Implementation of the 13th Month Pay Law also
employees. excludes employers of household helpers from the
coverage of Presidential Decree No. 851.
13TH MONTH PAY FOR CERTAIN TYPE OF EMPLOYEES Nevertheless, we deem it just to award private
respondent 13th month pay in view of petitioner's
Paid by Results practice of according private respondent such
benefit. Indeed, petitioner admitted that she gave
Employees who are paid on piece work basis are private respondent 13th month pay every
December.
by law entitled to the 13th Month Pay
Employees who are paid a fixed or guaranteed
GOVERNMENT EMPLOYEES
wage plus commission are also entitled to the
mandated 13th month pay based on their total Alliance of Government Workers v. NLRC (95)
earnings during the calendar year, i.e. on both their An analysis of the "whereases" of PD No. 851
fixed or guaranteed wage and commission. shows that the President had in mind only workers in
private employment when he issued the decree.
Those with Multiple Employers There was no intention to cover persons working in
the government service.
Government employees working part time in a
private enterprise, including private educational TERMINATED EMPLOYEES
institutions, as well as employees working in two or
more private firms, whether on full or part time Archilles Manufacturing Corp. v. NLRC (95)
bases, are entitled to the required 13th Month Pay On the issue of the propriety of the award of a
from all their private employers regardless of their 13th month pay, paragraph 6 of the Revised
total earnings from each or all their employers. Guidelines on the Implementation of the 13th Month
Pay Law (P. D. 851) provides that "(a)n employee
Private School Teachers who has resigned or whose services were terminated
at any time before the payment of the 13th month
Private school teachers, including faculty pay is entitled to this monetary benefit in proportion
members of universities and colleges, are entitled to to the length of time he worked during the year,
the required 13th month pay, regardless of the reckoned from the time he started working during
number of months they teach or are paid within a the calendar year up to the time of his resignation or
year, if they have rendered service for at least one termination from the service . . .. The payment of
(1) month within a year. the 13th month pay may be demanded by the
Resigned or Separated Employee employee upon the cessation of employer-
employee relationship. This is consistent with the
Art. 123
Whenever the conditions so warrant, the
Regional Board shall investigate and study all
pertinent facts; and based on the standard and
criteria herein prescribed, shall proceed to
determine whether a Wage Order should be
issued.
Art. 143
21.01 COVERAGE Minimum Wage
Art. 141 Art. 144
all persons rendering services in households for Minimum Cash Wage – The minimum wage rates
compensation. prescribed under this Chapter shall be the basic cash
"Domestic or household services" shall mean service wages which shall be paid to the househelpers in
in the employer's home, which is usually necessary addition to lodging, food and medical attendance.
or desirable for the maintenance and enjoyment
thereof and includes ministering to the personal Art. 145.
comfort and convenience of the members of the Assignment to non-household work. - No
employer's household, including services of family househelper shall be assigned to work in a
drivers. commercial, industrial or agricultural enterprise
Art. 152.
Employment records. - The employer may keep such
records as he may deem necessary to reflect the
actual terms and conditions of employment of his 22. 02 EMPLOYER
househelper which the latter shall authenticate by
signature or thumbmark upon request of the Art. 155.
employer. Distribution of homework. - For purposes of this
Chapter, the "employer" of homeworkers includes
SEE ALSO ARTICLES 1689 – 1699 OF THE CIVIL any person, natural or artificial, who for his account
CODE or benefit or on behalf of any person residing outside
the country, directly or indirectly, or through any
Ultra Villa Food Haus v. Geniston (99) employee, agent, contractor, sub-contractor or any
Accordingly, the terms and conditions of private other person:
respondent's employment are governed by Chapter 1. Delivers, or causes to be delivered, any goods,
III, Title III, Book III of the Labor Code as well as by articles or materials to be processed or
the pertinent provisions of the Civil Code. Thus, fabricated in or about a home and thereafter
Article 141 of the Labor Code provides: to be returned or to be disposed of or
Art. 141. Coverage. — This Chapter shall apply to distributed in accordance with his directions;
all persons rendering services in households for or
compensation. 2. Sells any goods, articles or materials for the
Domestic or household service" shall mean purpose of having the same processed or
services in the employers home which is usually fabricated in or about a home and then rebuys
necessary or desirable for the maintenance and
them after such processing or fabrication,
enjoyment thereof and includes ministering to the
personal comfort and convenience of the members either himself or through some other
of the employers household, including services of person.
family drivers.
PRESCRIPTION
Art. 1141, NCC = injury rights plaintiff – 4yrs
from date of dismissal NLRC
B. GROSS AND HABITUAL NEGLECT OF DUTIES Tres Reyes v. Maxim’s Tea House (2003)
Under the Labor Code, gross negligence is a
Requisites valid ground for an employer to terminate an
employee. Gross negligence is negligence
National Sugar refineries Corp. v. NLRC (98) characterized by want of even slight care, acting or
Neglect of duty, to be a ground for dismissal, omitting to act in a situation where there is a duty to
must be both gross and habitual.[4] In the instant ac, not inadvertently but willfully and intentionally
case, Pabiona’s neglect of duty was gross. As her with a conscious indifference to consequences
position related to money matters, she was expected insofar as other persons may be affected. In this
and required to be extra vigilant in the case, however, there is no substantial basis to
performance of her job as it involved the support a finding that petitioner committed gross
financial interest of the company. She was also negligence.
habitually remiss in her duties. She issued a Refined
Sugar Delivery Order to Shantung Commercial National Bookstore, Inc. v. CA (2002)
without first examining the corresponding Raw Sugar Gross negligence has been defined as the want
Quedan and Delivery Order. Consequently, or absence of or failure to exercise slight care or
Shantung Commercial was able to withdraw a larger diligence, or the entire absence of care. It evinces a
quantity of refined sugar than what was allowable to thoughtless disregard of consequences without
it. In another instance, Pabiona again issued a exerting any effort to avoid them.[19] A perusal of
Refined Sugar Delivery Order to Shantung the records of the case does not in any way show
Commercial without the corresponding Raw Sugar that private respondents were even remotely
Quedan. Thus, NASUREFCO was not able to collect negligent of their duties so as to cause the loss of
raw sugar from Shantung Commercial equivalent to petitioner National Bookstore’s funds. Private
the refined sugar it had withdrawn. Thirdly, Pabiona respondents were able to illustrate with candor and
made it appear that in 1989 Dacongcogon Producers sincerity the procedure they took prior to the loss
endorsed more than 200,000 piculs of raw sugar to which was witnessed by an employee of petitioner
NASUREFCO thereby allowing it to qualify in the National Bookstore. They were in fact subjected to a
Volume Incentive Program under which NASUREFCO thorough body search by petitioner National
would pay P1.00 per picul of raw sugar to every Bookstore’s lady guard before leaving their place of
planter that endorsed 200,000 piculs or more of raw work on the date in issue, a claim not controverted
sugar to NASUREFCO. The fact that NASUREFCO by petitioners. Moreover, it was not even shown that
did not suffer losses from the anomalies committed they had access to the vault where the money
by Pabiona because of timely discovery does not was kept.
12. ABOLITION OF POSITION OSS Security and Allied Services, Inc. v. NLRC
(2000)
San Miguel Corp. v. NLRC (99) Thus, the transfer of an employee ordinarily lies
Abolition of departments or positions in the within the ambit of management prerogatives.
company is one of the recognized management However, a transfer amounts to constructive
prerogatives. Noteworthy is the fact that the private dismissal when the transfer is unreasonable,
respondent does not question the validity of the inconvenient, or prejudicial to the employee, and it
business move of petitioner. In the absence of proof involves a demotion in rank or diminution of salaries,
that the act of petitioner was ill-motivated, it is benefits and other privileges. In the case at bench,
presumed that petitioner San Miguel Corporation nowhere in the record does it show that that the
acted in good faith. transfer of private respondent was anything but
done in good faith, without grave abuse of
TRANSFERS – DISCHARGE AND SUSPENSION discretion, and in the best interest of the business
enterprise.
Westin Phil. Plaza Hotel v. NLRC (99)
On the issue of legality and reasonableness of 13. CONSTRUCTIVE DISCHARGE
the order of transfer, it must be emphasized that
this Court has recognized and upheld the prerogative DEFINED
of management to transfer an employee from one
office to another within the business establishment, Philippine –Japan Active Carbon Corp. v. NLRC
provided that there is no demotion in rank or a (89)
diminution of his salary, benefits and other A constructive discharge is defined as: "A
privileges. This is a privilege inherent in the quitting because continued employment is rendered
employer's right to control and manage its impossible, unreasonable or unlikely; as, an offer
enterprise effectively. Besides, it is the employer's involving a demotion in rank and a diminution in
prerogative, based on its assessment and perception pay." (Moreno's Philippine Law Dictionary, 2nd
WHEN REDUNDANCY
APPOINTMENT OF REPLACEMENTS – RE-HIRING EFFECT Caffco International Ltd. v. Office MOLE (92)
Under Article 283 of the Labor Code, three (3)
Atlantic Gulf and Pacific Co. of Manila v. NLRC requirements are necessary for a valid cessation of
(99) business operations, namely: (a) service of a written
“Petitioners contend that the ‘redundancy notice to the employees and to the MOLE at least
program’ was actually a union-busting scheme of one (1) month before the bona fide in character; and
management, aimed at removing union officers who (c) payment to the employees of termination pay
had declared a strike. This contention cannot stand amounting to at least one-half (1/2) month pay for
in the face of evidence of substantial losses suffered every year of service, or one (1) month pay,
by the company. Moreover, while it is true that the whichever is higher (Mobil Employees Association et
company rehired or re-employed some of the al vs. NLRC et al.)
dismissed workers, it has been shown that such
action was made only as company projects became EXTENT OF CLOSURE
available and that it was done in pursuance of the
company’s policy of giving preference to its former PARTIAL CLOSURE
workers in the rehiring of project employees. The
rehiring or re-employment does not negate the Catatista v. NLRC (95)
imminence of losses, which prompted private The termination of employment of the
respondents to retrench.” employees of Hacienda Binanlutan brought about by
the closure is to be considered as retrenchment as
D. CLOSING OF BUSINESS Hacienda Binanlutan is only one of the six haciendas
of private respondent. 6 Clearly, private
RIGHT respondent's purpose in converting said hacienda
into an ipil-ipil plantation and terminating the service
Catatista v. NLRC (95) of petitioners is to cut down on losses which it had
In any case, Article 283 of the Labor Code is adequately shown to have suffered through an
clear that an employer may close or cease his income statement for the fiscal year which ended
business operations or undertaking even if he is not August 31, 1984.
suffering from serious business losses or financial
reverses, as long as he pays his employees their
termination pay in the amount corresponding to
Pepsi-Cola Products Phils., Inc. v. NLRC (98) Gothong Lines Inc. v. NLRC (99)
At all events, a plea of denial of procedural due The constitutional guarantee of protection to
process, where the defect consists in the failure to labor and security of tenure requires that an
furnish an opponent with a copy of a party's position employer terminate the services of an employee only
paper, cannot be entertained when he who makes for valid and just causes which must be supported
the plea is effectively given the opportunity to be by substantial evidence. The burden of proving that
heard in a Memorandum of Appeal. Even if a party the termination of an employee is for a valid or
has not been heard at the stage of mediation and authorized cause rests on the employer. In any
fact-finding, he still can take that opportunity to event, the employer must comply with due process
present his side when the Memorandum of Appeal is requirements before any termination is done.
given due course, as it has so been given in this
instance, by the NLRC. Thus, the fundamental rule of Maranaw Hotel and Resort Corp. v. NLRC (99)
due process that mandates notice and an Albeit petitioner may have reasons to doubt the
opportunity to be heard has here been amply met. honesty and trustworthiness of Damalerio, as a
result of what happened, absent sufficient proof of
FAILURE OF DUE PROCESS guilt, he (Damalerio), who is a rank-and-file
employee, cannot be legally dismissed.
EFFECT OF FAILURE – SUBSTANTIVE – PROCEDURAL Unsubstantiated suspicions and baseless conclusions
by employers are not legal justification for
Alhambra Industries, Inc. v. NLRC (94) dismissing employees. The burden of proving the
A termination without just cause entitles a existence of a valid and authorized cause of
worker to reinstatement regardless of whether he termination is on the employer. Any doubt should be
was accorded due process. On the other hand, resolved in favor of the employee, in keeping with
termination of a worker for cause, even without the principle of social justice enshrined in the
procedural due process, does not warrant Constitution.
reinstatement, but the employer incurs liability for
damages. DEGREE
Producers Bank of the Phils. v. NLRC (98) GVM Security and Protective Agency v. NLRC
Retirement results from a voluntary agreement (93)
between the employer and the employee whereby The first paragraph of Article 287 deals with
the latter after reaching a certain age agrees to the retirement age of an employee, which is the
A. SOCIAL SECURITY ACT; GOVERNMENT diseases and work-related illnesses that may be
SERVICE INSURANCE ACT; EMPLOYEES considered compensable based on peculiar hazards
COMPENSATION AND STATE INSURANCE of employment.”
FUND 25.03 Coverage
COVERAGE
25.01 Policy Objectives
Philippine Blooming Mills Co., Inc. v. Social
LAW CONCEPT
Security System (68)
Membership in the SSS is not the result of a
Sulit v. Employees Compensation Commission
bilateral, consensual agreement where the rights
(81)
and obligations of the parties are defined by and
It now appears that after the government had
subject to their will. RA 1161 requires the
experimented for more than 20 years with such
compulsory coverage of employers and employees
employee-oriented application of the law, the
under the system. It is actually a legal imposition,
lawmaker found the result to be unsatisfactory
on said employers and employees designed to
because it destroyed the parity or balance between
provide Social Security to the workingmen.
the competing interests of the employer and
Membership in the SSS, is therefore, in compliance
employee with respect to workmen’s compensation.
with a lawful exercise of the police power of the
The balance was tilted unduly in favor of the
State, to which the principle of non-impairment of
workmen.
the obligation of contract is not a proper defense.
Hence, to restore a sensible equilibrium
between the employer’s obligation to pay workmen’s
Sta. Rita v. Court of Appeals (95)
compensation and the employee’s right to receive
Section 8 (j) (5) simply defines the term
reparation for work-connected death or disability,
“employment” and does not in any way relate to the
the old law was jettisoned and in its place we have
scope of coverage of the Social Security System.
the employee’s compensation and state insurance
That coverage is, upon the other hand, set out in
fund in the Labor Code, as amended.
Section 9 of RA No. 1161 as amended, which defines
the scope of SSS coverage.
Santos v. ECC (93)
Thus, the Standard Contract of Employment to
The reason behind the present doctrine is that
be entered into between foreign shipowners and
the New Labor Code has abolished the presumption
Filipino seafarers is the instrument by which the
of compensability for illness contracted by a worker
former express their assent to the inclusion of the
during employment. To be entitled to disability
latter in the coverage of the Social Security Act. In
benefits, the claimant has to present evidence to
other words, the extension of the coverage of the
prove that his ailment was the result of, or the risk
Social Security System to Filipino seafarers arises by
of contracting the same were aggravated by working
virtue of the assent given in the contract of
conditions or the nature of his work.
employment signed by the employer and seafarer;
However, while the presumption of
that the same contract binds petitioner, who is
compensability and theory of aggravation under the
solidarily liable with the foreign
Workmen’s Compensation Act may have been
shipowners/employers.
abandoned under the new Labor Code, the liberality
of the law in general in favor of the working man still
25.04 Effect of Separation from Employment
prevails. The Employee’s Compensation Act is
basically a social legislation designed to afford relief
to the working man and woman in our society. The
25. 05 Reporting Requirements
ECC, as the agency tasked with implementing the
social justice mandate guaranteed by the
Poblete Construction Co. v. Asian (67)
Constitution, should be mor eliberal in resolving
It was the duty of the employer to “report
compensation claims of employees especially where
immediately to the System” his name, age, civil
there is some basis in facts for inferring a work-
status, occupation, salary and dependents.
connection to the cause of death.
Compliance with this duty did not depend upon the
This interpretation gives meaning and substance
employee’s willingness to give his share of the
to the liberal and compassionate spirit of the law as
contribution. Section 24 is mandatory, to such an
embodied in Article 4 of the New Labor.
extent that if the employee should die or become
The policy is to extend the applicability of PD
sick or disabled without the report having been
626 to a greater number of employees who can avail
made by the employer, the latter is liable for an
of the benefits under the law, which is in consonance
amount equivalent to the benefits to which the
with the avowed policy of the state to give maximum
employee would have been entitled had such report
aid and protection to labor.
been made.
XXX The collection of the employee’s share is a
25.02 Definitions
duty imposed by law, and his unwillingness to have
it deducted from his salary does not excuse the
Latagan v. ECC (92)
employer’s failure to make the report aforesaid. It is
Article 167, par. (l), of the Labor Code, as
precisely in this situation that the employer is liable,
amended, defines a compensable sickness as “illness
and there is no question as to the amount of such
definitely accepted as an occupational disease listed
liability in this case.
by the Commission or any illness caused by
employment subject to proof that the risk of
25.06 Funding
contracting the same is increased by working
conditions. For this purpose, the Commission is
FUND OWNERSHIP
empowered to determine and approve occupational
Section 11, Article XIII of the 1987 Constitution The enrollment shall proceed in accordance with
declares that the State shall adopt an integrated and these specific policies:
comprehensive approach to health development
which shall endeavor to make essential goods, a. All persons currently eligible for
health and other social services available to all the benefits under Medicare Program I,
people at affordable cost. Priority for the needs of including SSS and GSIS members,
the underprivileged, sick, elderly, disabled, women retirees, pensioners and their dependents,
and children shall be recognized. Likewise, it shall shall immediately and automatically be
be the policy of the State to provide fee medical care made members of the National Health
to paupers. Insurance Program;
(b) Universality – The Program shall provide all b. All persons eligible for benefits through
citizens with the mechanism to gain financial access health insurance plans established by local
to health services, in combination with other governments as part of Program II of
government health programs. The National Health Medicare or in accordance with the
Insurance Program shall give the highest priority to provisions of this Act, including indigent
achieving coverage of the entire population with at members, shall also be enrolled in the
least a basic minimum package of health insurance Program
benefits.
c. All persons eligible for benefits as
Sec. 5 members of local health insurance
Establishment and Purpose plans established by t he Corporation
Sec. 41
Grievance and Appeal Procedures. - A member, his
dependent, or a health care provider may file a
complaint for grievance based on any of the above
grounds, in accordance with the following
procedures:
A complaint for grievance must be filed with
the Office which shall rule on the
complaint ninety (90) calendar days from
receipt thereof.
Appeals from Office decisions must be filed
with the Board within thirty (30) days
from receipt of notice of dismissal or
disallowance by the Office.
The Offices shall have no jurisdiction over any
issue involving the suspension or
revocation of accreditation, the
imposition of fines, or the imposition of
charges on members or their dependents
in case of revocation of their entitlement.
All decisions by the Board as to entitlement
to benefits of members or to payments
of health care providers shall be
considered final and executory.
Sec. 42.
Grievance and Appeal Review Committee. - The
Board shall create a Grievance and Appeal Review
Committee, composed of three (3) to five (5)
members, hereinafter referred to as the Committee,
which, subject to the procedures enumerated above,
shall receive and recommend appropriate action on
complaints from members and health care providers
relative to this Act and its implementing rules and
regulations.