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LABOR LAW

AND SOCIAL
LEGISLATION
Social Legislation
and has not reached twenty-one (21)
years of age, or if over twenty-one (21)
SOCIAL LEGISLATION years of age, he is congenitally or while
still a minor has been permanently
A. SOCIAL SECURITY SYSTEM LAW (R.A. No. incapacitated and incapable of self-
8282) support, physically or mentally; and
3. PARENT who is receiving regular
1. Coverage and Exclusions support from the member.
1. ALL EMPLOYEES including
Kasambahays or domestic workers not
BENEFICIARIES
over 60 years old and THEIR
1. DEPENDENT SPOUSE until he or
EMPLOYERS;
she remarries;
2. SPOUSES who devote full-time to 2. DEPENDENT LEGITIMATE,
managing the household and its affairs LEGITIMATED OR LEGALLY
unless engaged in other vocation or ADOPTED, AND ILLEGITIMATE
employment CHILDREN, who shall be the
3. SELF-EMPLOYED individuals as may be primary beneficiaries of the
determined by the SSC, including: member:
⚫ The dependent illegitimate children
a. Self-employed professionals; shall be entitled to fifty percent
b. Partners and single proprietors of (50%) of the share of the legitimate,
businesses; legitimated or legally adopted
children:
c. Actors and actresses, directors,
⚫ In the absence of the dependent
scriptwriters and news
legitimate, legitimated or legally
correspondents who do not fall
adopted children of the member,
within the definition of the term
his/her dependent illegitimate
"employee";
children shall be entitled to one
d. Professional athletes, coaches, hundred percent (100%) of the
trainers and jockeys; and benefits.
e. Individual farmers and fishermen. 3. In their absence, the DEPENDENT
PARENTS who shall be the secondary
4. OFWs (sea-based and land-based) beneficiaries of the member. In the
The manning agencies, as agents of their absence of all the foregoing, any other
principals, are considered employers of person designated by the member as
sea-based OFWs; they shall also be his/her secondary beneficiary.
jointly and severally liable with their
principals with respect to civil liabilities. 3. Benefits

a. Retirement benefits
2. Dependents and beneficiaries
Member has paid at least one hundred
DEPENDENTS twenty (120) monthly contributions
1. LEGAL SPOUSE entitled by law to prior to the semester of retirement and
receive support from the member; who:
2. LEGITIMATE, LEGITIMATED OR 1. has reached the age of sixty (60)
LEGALLY ADOPTED, AND years and is already separated
ILLEGITIMATE CHILD who is from employment or has ceased
unmarried, not gainfully employed, to be self-employed; or

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2. has reached the age of sixty-five (60) shall be the higher of either: (1)
(65) years, shall be entitled for as the monthly pension computed at
long as he lives to the monthly the earliest time he could have
pension: retired had he been separated from
employment or ceased to be self-
He shall have the option to employed plus all adjustments
receive his first eighteen (18) thereto; or (2) the monthly pension
monthly pensions in lump sum computed at the time when he
discounted at a preferential rate actually retires.
of interest to be determined by
the SSS.
b. Death benefits
• A covered member who is sixty (60) Upon the death of a member who has
years old at retirement and who does paid at least thirty-six (36) monthly
not qualify for pension benefits as contributions prior to the semester of
above, shall be entitled to a lump death, his primary beneficiaries shall be
sum benefit equal to the total entitled to the monthly
contributions paid by him and on his pension: Provided, That if he has no
behalf, provided, That he is separated primary beneficiaries, his secondary
from employment and is not beneficiaries shall be entitled to a lump
continuing payment of contributions sum benefit equivalent to thirty-six (36)
to the SSS on his own. times the monthly pension. If he has not
The monthly pension shall be paid the required thirty-six (36) monthly
suspended upon the reemployment contributions, his primary or secondary
or resumption of self-employment of beneficiaries shall be entitled to a lump
a retired member who is less than sum benefit equivalent to the monthly
sixty-five (65) years old. He shall pension times the number of monthly
again be subject to Section 18 and his contributions paid to the SSS or twelve
employer to Section 19 of Social (12) times the monthly pension,
Security Act. whichever is higher.
• Upon the death of the retired
member, his primary beneficiaries as c. Permanent disability benefits
of the date of his retirement shall be Upon the permanent total disability of a
entitled to receive the monthly member who has paid at least thirty-six
pension: Provided, That if he has no (36) monthly contributions prior to the
primary beneficiaries and he dies semester of disability.
within sixty (60) months from the The monthly pension and dependents'
start of his monthly pension, his pension shall be suspended upon the
secondary beneficiaries shall be reemployment or resumption of self-
entitled to a lump sum benefit employment or the recovery of the
equivalent to the total monthly disabled member from his permanent
pensions corresponding to the total disability or his failure to present
balance of the five-year guaranteed himself for examination at least once a
period, excluding the dependents' year upon notice by the SSS.
pension. Upon the death of the permanent total
• The monthly pension of a member disability pensioner, his primary
who retires after reaching age sixty beneficiaries as of the date of disability

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shall be entitled to receive the monthly claim unemployment benefits once every
pension. three (3) years: Provided, further, That in
case of concurrence of two or more
d. Funeral benefit compensable contingencies, only the
Equivalent to Twelve thousand pesos highest benefit shall be paid, subject to
(P12,000.00) shall be paid, in cash or in the rules and regulations that the
kind, to help defray the cost of funeral Commission may prescribe.
expenses upon the death of a member,
including permanently totally disabled B. GOVERNMENT SERVICE INSURANCE
member or retiree. SYSTEM LAW (R.A. No. 8291)

1. Coverage and exclusions


e. Sickness benefit
A member who has paid at least three (3) Membership in the GSIS shall be compulsory
monthly contributions in the twelve- for all employees receiving compensation
month period immediately preceding the who have not reached the compulsory
semester of sickness or injury and is retirement age, irrespective of employment
status
confined therefor for more than three (3)
days in a hospital or elsewhere with the
Exclusions
approval of the SSS, shall, for each day of
1. Members of the Judiciary and Constitutional
compensable confinement or a fraction
Commissions;
thereof, be paid by his employer, or the 2. Contractual employees who have no
SSS, if such person is unemployed or employee-employer relationship with their
self-employed, a daily sickness benefit agencies;
equivalent to ninety percent (90%) of his 3. Uniformed members of the Armed forces of
average daily salary credit the Philippines and the Philippine National
Police, including the Bureau of Jail
f. Maternity Leave Benefit Management and Penology and the Bureau
of Fire Protection
(See Handout No. 3 (Labor Standards) on
4. Barangay and Sanggunian Officials who are
Special Workers)
not receiving fixed monthly compensation

g. Unemployment Insurance / Involuntary 2. Dependents and beneficiaries


Separation Benefit
A member who is not over sixty (60) Primary Beneficiaries
1. The dependent spouse until he or she
years of age who has paid at least thirty-
remarries.
six (36) months contributions twelve (12)
2. Dependent Children
months of which should be in the
eighteen-month period immediately Unlike to SSS Law, GSIS did not distinguish the
preceding the involuntary share of legitimate and illegitimate children.
unemployment or separation shall be
paid benefits in the form of monthly cash
payments equivalent to fifty percent Secondary Beneficiaries
(50%) of the average monthly salary 1. Dependent Parents, in the absence of primary
credit for a maximum of two (2) beneficiaries;
months: Provided, That an employee who 2. Legitimate descendants
is involuntarily unemployed can only

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3. Benefits service. In effect, he shall be considered a new
entrant.
a. Retirement Benefits
b. Separation pay
b. Separation benefits
c. Unemployment Benefit
The separation benefits shall consist of:
d. Disability Benefits
a. A cash payment equivalent to one
e. Survivorship Benefits
hundred percent (100%) of his average
f. Funeral Benefits
monthly compensation for each year of
service he paid contributions, but not
a. Retirement benefits
less than Twelve thousand pesos
It shall consists of a monthly pension which
(P12,000) payable upon reaching sixty
is computed based on years of creditable
(60) years of age upon separation,
service and average monthly compensation
whichever comes later: Provided, that
for the last 3 years.
the member resigns or separates from
the service after he has rendered at
Eligibility Requirements:
least three (3) years of service but less
1. Rendered at least 15 years of service;
than fifteen (15) years; or
2. At least 60 years of age;
3. Not receiving a monthly pension benefit
b. A cash payment equivalent to eighteen
from permanent total disability
(18) times his basic monthly pension at
the time of resignation or separation,
Retirement benefit option
plus an old-age pension benefit equal
A retiring member has the following options:
to the basic monthly pension payable
monthly for life upon reaching the age
a. 5 year lump sum equivalent to 60 months of
of sixty (60): Provided, that the
the basic monthly pension (BMP), subject to
member resigns or separates from the
qualification requirements, less all
service after he has rendered at least
outstanding of the member in accordance
fifteen (15) years of service and is
with the claims and loan interdependence
below sixty (60) years of age at the time
policy, plus an old age pension benefit equal
of resignation or separation (Sec. 11,
to BMP payable for life, starting on the first
R.A. 8291).
day of the month following the expiration of
the 5-year guaranteed period; or
c. Unemployment or involuntary separation
benefits
b. cash payment equivalent to eighteen (18)
months of his basic monthly pension plus
Eligibility requirement:
monthly pension for life payable
1. He was a PERMANENT employee at the
immediately with no five-year (5) guarantee.
time of separation;
2. His separation was involuntary due to
NOTE: Change of retirement benefit option
the abolition of his office or position
from 18 months cash payment plus immediate
resulting from reorganization;
pension to 5 year lump sum, or vice versa, shall
3. He has been paying the required
NOT be allowed.
premium contributions for at least 1 year
but less than 15 years prior to separation.
Re-employment
When a retired/separated member is re-employed
Amount of benefit
or reinstated in the service, his previous services
50% of the average monthly compensation
credited at the time of his retirement/separation
and shall be paid in accordance with the
for which a corresponding benefit had been
schedule provided in the IRR of the GSIS law.
awarded, shall be excluded in the computation of

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Unemployment benefits shall be paid in Deemed total and permanent disabilities:
accordance with the following schedules:
a. complete loss of sight of both eyes;
Benefit b. loss of two (2) limbs at or above the ankle
Contributions Made
Duration or wrist;
1 year but less than 3 years 2 months c. permanent complete paralysis of two (2)
3 or more years but less than limbs;
3 months
6 years d. brain injury resulting in incurable
6 or more years but less than imbecility or insanity; and
4 months e. such other cases as may be determined
9 years
9 or more years but less than by the GSIS (Sec. 16[d], RA 8291)
5 months
11 years
11 or more years but less Eligibility Requirements
6 months 1. He is in the service at the time of
than 15 years
disability; or
d. Disability benefits 2. If separated from the service, he has paid
Disability refers to any loss or impairment of at least thirty-six (36) monthly
the normal functions of the physical and/or contributions within the five (5) year
mental faculties of a member, which period immediately preceding disability,
permanently or temporarily prevents him to or has paid a total of at least one hundred
continue with his work or engage in any other eighty (180) monthly contributions, prior
gainful occupation resulting in the loss of to his disability;
income.
Provided, however, that the following
There must be a proof that the employee’s conditions shall be met
working condition increased the risk of • He is gainfully employed prior to the
contracting the disease, or that there is a commencement of disability resulting in
connection between his work and the cause of loss of income as evidenced by any
the disease. moreover, direct and clear evidence incontrovertible proof thereof;
is not necessary to prove a claim. Strict rules of • He is not a registered of any social
evidence do not apply, PD 626 only requires insurance institution; and
substantial evidence. (GSIS vs. Besitan [2011]) • He is not receiving any other pension
either from GSIS or another local or
The right to compensation extends to disability foreign institution or organization.
due to disease supervening upon and
proximately and naturally resulting from a b. Permanent Partial Disability (PPD)
compensable injury. (GSIS vs. Calumpiano The period of entitlement to PPD benefit shall
[2014]) be determined after due medical evaluation;
but such period of entitlement to the benefit
Kinds of Disability shall not exceed 12 months for the same
a. Permanent Total Disability (PTD) contingency. Only the leave of absence/s
It is due to injury or disease causing complete, without pay incurred during the period of
irreversible and permanent incapacity that entitlement, duly certified by the authorized
will permanently disable a member to work or officer of the agency where he is employed,
to engage in any gainful occupation resulting shall be compensable. The amount of PPD
to loss of income. benefit shall be computed by dividing the
basic monthly pay by 30 days and multiplying
the quotient by the number of compensable
calendar days of leave of absence without pay.

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Deemed partial and permanent disability: Eligibility Requirement
a. complete and permanent loss of the use of: 1. He is in the service at the time of disability;
any finger; any toe; one arm; one hand; 2. If separated from the service, he has paid at
one foot; one leg; one or both ears; hearing least 36 months contributions within the 5
of one or both ears; sight of both eyes; or year period immediately preceding his
disability; or has paid a total of at least 180
b. such other cases as may be determined by months contributions prior to his disability;
the GSIS (Sec. 17[b], R.A. 8291) provided, however, that the following
conditions shall be met:
Eligibility Requirement: i. He is gainfully employed prior to the
1. He is in service at the time of disability; commencement of disability
or resulting in loss of income as
2. If separated from the service, he has paid evidenced by any incontrovertible
at least 36 months contributions within proof thereof;
the 5 year period immediately preceding ii. He is not a registered of any social
his disability; or has paid a total of at insurance institution; and
least 180 months contributions prior to iii. He is not receiving any other
his disability; provided, however, that pension either from GSIS or another
the following conditions shall be met: local or foreign institution or
i. He is gainfully employed organization.
prior to the commencement of
disability resulting in loss of All injuries, disabilities and all other infirmities
income as evidenced by any compensable under PD 626 shall NOT be
incontrovertible proof thereof; compensable under this Act (RA 8291).
ii. He is not a registered of any
social insurance institution; and Any disability or injury as a result of, or due to
iii. He is not receiving any other grave misconduct, participation in riots, gross and
pension either from GSIS or inexcusable negligence, under the influence of
another local or foreign drugs or alcohol or willful intention to injure or
institution or organization. kill himself or another, shall NOT be
compensable.
c. Temporary Total Disability (TTD)
The period of entitlement to TTD benefit If the member has 2 or more different
shall be determined after due medical contingencies during the same period of benefit
evaluation and proof of actual loss of work entitlement, he shall be compensated only once
resulting in loss of income by way of the for the overlapping periods.
incurred actual number of days of leave of
absence/s without pay duly certified by the Suspension of Benefit
authorized officer of the agency where he Any applicable disability benefit shall be
is employed; but such period of suspended when he is (1) Re-employed; (2)
entitlement to the benefit shall not exceed Recovers, as determined by GSIS, whose decision
120 days in one calendar year. However, if shall be final and binding; (3) Fails to present for
the disability requires more extensive medical examination when required by GSIS; (4)
treatment that lasts beyond 120 days, the Receiving other pension from GSIS or another
payment of the TTD may be extended by local or foreign institution or organization.
the GSIS but not to exceed 240 days.

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Forfeiture of benefits pension for every dependent child not
Automatic forfeiture of the right to continue exceeding five (5), counted from the
pension when the disable member refuses or youngest and without substitution;
deliberately fails to: c. when the survivors are the dependent
1. Have himself medically treated by a spouse and the dependent children, the
physician when required by GSIS; dependent spouse shall receive the basic
2. Take prescribed medications; survivorship pension for life or until
3. Have himself confined without justifiable he/she remarries, and the dependent
reason, when required; children shall receive the dependent
4. Avail of the rehabilitation facilities children’s pension mentioned in the
recommended by GSIS and made available immediately preceding paragraph (2)
for him; hereof (Sec. 21[b], R.A. 8291).
5. Observe precautionary and/ or preventive
measures as prescribed by a physician to Eligibility Requirements:
prevent the aggravation or continuance of his The primary and secondary beneficiaries,
disability. except dependent children, shall be entitled to
applicable survivorship benefits, provided:
e. Survivorship benefits
When a member or pensioner dies, the 1. Not engaged in any gainful occupation;
beneficiaries shall be entitled to survivorship
benefits which shall consist of: Gainful occupation refers to any product
activity that provided the member with
1. Survivorship Pension consisting of: income at less equal to the minimum
compensation of government employees.
a. the basic survivorship pension which (Sec 2p, RA 8291)
is fifty percent (50%) of the basic
monthly pension; and 2. Surviving spouse and the deceased
b. the dependent children’s pension not member were living together as husband
exceeding fifty percent (50%) of the and wife;
basic monthly pension (Sec. 20, R.A.
8291). 3. Not gainfully engaged in business or
economic activity;
2. Cash payment equivalent to 18 months
basic monthly pay; 4. Employed or engaged in a business or
economic activity but receiving income less
3. Cash payment equivalent to 100% of the than the minimum compensation of
average monthly compensation government employees;

The survivorship pension shall be paid as follows: 5. Not receiving any other pension from GSIS
a. when the dependent spouse is the only or other local or foreign institution or
survivor, he/she shall receive the basic organization;
survivorship pension for life or until
he/she remarries; 6. In case of dependent spouse, payment of
b. when only dependent children are the the pension shall discontinue when he
survivors, they shall be entitled to the remarries, cohabits, or engage in common-
basic survivorship pension for as long as law relationship.
they are qualified, plus the dependent
children’s pension equivalent to ten
percent (10%) of the basic monthly

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f. Funeral benefits ‘System’ shall refer to either the SSS as created
It is intended to help defray the expenses under Republic Act No. 1161, as amended or the
incident to the burial and funeral of the GSIS as created under Presidential Decree No.
deceased member, pensioner or retiree under 1146, as amended (Sec. 2[d], R.A. 7699).; and
RA 660, RA 1616, PD 1146, RA 8291.
To whom payable: ‘Totalization’ shall refer to the process of adding
a. Legitimate spouse; or up the periods of creditable services or
contributions under each of the Systems, for
b. Legitimate child who spent for funeral
purposes of eligibility and computation of
services; or benefits
c. Any other person who can show
Coverage
incontrovertible proof that he shouldered
All-worker members of GSIS and/or SSS who
the funeral services of the deceased.
transfer from public sector to private sector or
vice-versa, or who wishes to retain their
Conditions for Entitlement: membership in both systems.
1. An active member; or
Creditability and Totalization of Contributions
2. Separated from service with 15 years of
and Benefits in SSS and GSIS
creditable service, but entitled to future Provisions of any general or special law or rules
separation or retirement benefits; or and regulations to the contrary notwithstanding,
3. Old age or disability pensioner; or a covered worker who transfers employment
from one sector to another or is employed in both
4. Retiree is at least 60 years old and at least 20 sectors shall have his credible services or
years of service but opts to retire under RA contributions in both Systems credited to his
1616 on or after June 24, 1997; or service or contribution record in each of the
A member who retired under RA 1616 prior to Systems and shall be totalized for purposes of
June 24, 1997 with at least 20 years of service, old-age, disability, survivorship and other
regardless of age. benefits in case the covered member does not
qualify for such benefits in either or both Systems
without totalization: Provided, however, That
C. LIMITED PORTABILITY LAW (R.A. No. overlapping periods of membership shall be
7699) credited only once for purposes of totalization.

It is hereby declared the policy of the State to


promote the welfare of our workers by D. DISABILITY AND DEATH BENEFITS
recognizing their efforts in productive endeavors
1. Labor Code
and to further improve their conditions by
providing benefits for their long years of Under the Labor Code, employees’ compensation
contribution to the national economy. Towards (EC) benefits are granted to employees or their
this end, the State shall institute a scheme for dependents for work-connected disability or
totalization and portability of social security death, particularly those resulting from accident
benefits with the view of establishing within a arising out of and in the course of the
reasonable period a unitary social security system employment.

‘Portability’ shall refer to the transfer of funds for


A. Types of Disability
the account and benefit of a worker who transfers
from one system to the other a. Temporary Total Disability

9
As a result of the injury or sickness, the employee her usual work and earn therefrom. On the other
is unable to perform any gainful occupation for a hand, a total disability is considered permanent if
continuous period not exceeding 120 days, except it lasts continuously for more than 120 days.
as otherwise provided under the rules. (Remigio v. NLRC, G.R. No. 159887 [2006])

The Labor Code enumerates six instances


Amount of Benefits considered to be a total and permanent disability:
Any employee who is suffering from temporary 1. Temporary total disability lasting
total disability shall be paid by the System an continuously for more than 120 days,
income benefit equivalent to ninety (90) percent of
except as otherwise provided for in the
his average daily salary credit, subject to the
Rules;
following conditions:
2. Complete loss of sight of both eyes;
• The daily income benefit is not less than
3. Loss of two limbs at or above the ankle
Ten (10) pesos nor more than Ninety (90)
pesos, nor paid for a continuous period or wrist;
longer than 120 days. 4. Permanent complete paralysis of two
o Unless the injury or sickness limbs;
requires more extensive treatment 5. Brain injury resulting in incurable
that lasts beyond 120 days not imbecility or insanity; and
exceeding 240 days from the onset 6. Such cases as determined by the Medical
of disability. Director of the System and approved by
• The monthly income benefit shall be the Commission.
suspended if the employee fails to submit
a monthly medical report certified by its
attending physician. Amount of Benefits
Any employee who is suffering from permanent
total disability shall be paid an amount equivalent
b. Permanent Total Disability to the monthly income benefit, plus 10% thereof
for each dependent child but not exceeding five,
As a result of the injury or sickness, the employee beginning with the youngest and without
is unable to perform any gainful occupation for a substitution: Provided, That the monthly income
continuous period exceeding 120 days, except as benefit shall be the new amount of the monthly
otherwise provide under the rules. benefit for all covered pensioners. (Art. 198)

But Sec. 2, Rule X of the Amended Rules on


Employees Compensation provides that where The monthly income benefit shall be guaranteed
such injury or sickness still requires medical for five (5) years, and shall be suspended if the
attendance beyond 120 days but not exceed 240 employee is gainfully employed, or recovers from
days from onset of disability. his permanent total disability, or fails to present
himself for examination at least once a year upon
The test of whether or not an employee suffers notice by the System. (Id.)
from ‘permanent total disability’ is a showing of
the capacity of the employee to continue c. Permanent Partial Disability
performing his work notwithstanding the
disability he incurred. As a result of the injury or sickness, the employee
suffers a permanent partial loss of the use of any
A total disability does not require that the part of his body.
employee be absolutely disabled, or totally
paralyzed. What is necessary is that the injury The injury or sickness is compensable by medical
must be such that the employee cannot pursue services, appliances, and rehabilitation services.

10
Amount of Benefits COMPENSABILITY
Any employee who is suffering from permanent Grounds
total disability shall, for each month not a) Injury and the resulting disability or
exceeding the period designated herein, be paid death - the injury must be a result of
by the System depending on the degree of the accident arising out of and in the
disability, as well as the portion of the body part course of the employment. (ECC
that was lost. Resolution No. 2799, July 25, 1984)
b) Sickness and resulting disability or
death - sickness must be the result of
B. Death Benefits an occupational disease listed in
Annex A of the Rules with the
Monthly Income Benefit conditions set therein satisfied,
• Upon the death of the covered employee otherwise show proof that the risk of
covered under this Title, the System shall contracting the disease is increased by
pay to the primary beneficiaries an the working conditions.
amount equivalent to his monthly income
benefit, plus ten percent thereof for each What the law requires for a claim of
dependent child, but not exceeding five, sickness benefits before the ECC is not a
beginning with the youngest and without direct causal relation between the sickness
substitution, except as provided for in and the work, but a reasonable work-
paragraph (j) of Art. 167 hereof: Provided, connection. (Villamor vs. Employee’s
That Compensation Commission [2016])
• The monthly income benefit shall be
guaranteed for five years; No compensation is allowed to the
• If he has no primary beneficiary, the employee or his dependents when the
System shall pay to his secondary injury, sickness, disability, or death was
beneficiaries the monthly income occasioned by the ff:
benefit but not to exceed sixty months; 1. His intoxication;
and 2. His willful intention to injure or kill
• The minimum death benefit shall not himself or another; or
be less than fifteen thousand pesos. 3. His notorious negligence.

• Upon the death of a covered employee 24-hour duty doctrine


who is under permanent total disability A soldier on active duty status is really on
under this Title, 80% of the monthly 24 hours a day official duty status and is
income benefit and his dependents to the subject to military discipline and military
dependents’ pension: Provided, That law 24 hours a day. He is subject to call and
• The marriage must have been validly to the orders of his superior officers at all
subsisting at the time of disability; times, 7 days a week, except, of course,
• If he has no primary beneficiary, the when he is on vacation leave status (which
System shall pay to his secondary Sgt. Hinoguin was not). Thus, we think
beneficiaries the monthly pension that the work-connected character of
excluding the dependents’ pension, of Sgt. Hinoguin's injury and death was not
the remaining balance of the five-year effectively precluded by the simple
guaranteed period; and circumstance that he was on an overnight
• The minimum death benefit shall not pass to go to the home of Dft. Alibuyog, a
be less than fifteen thousand pesos. soldier under his own command.
Sgt. Hinoguin did not effectively cease
performing "official functions" because he

11
was granted a pass. While going to a fellow Coming and Going Rule
soldier's home for a few hours for a meal Employment includes not only the actual
and some drinks was not a doing of the work, but a reasonable margin
specific military duty, he was nonetheless of time and space necessary to be used in
in the course of performance of official passing to and from the place where the
functions. Indeed, it appears to us that a work is to be done. If the employee be
soldier should be presumed to be on injured while passing, with the express or
official duty unless he is shown to have implied consent of the employer, to or
clearly and unequivocally put aside that from his work by a way over the
status or condition temporarily by, e.g., employer's premises, or over those of
going on an approved vacation leave. Even another in such proximity and relation as
vacation leave may, it should be to be in practical effect a part of the
remembered, be preterminated by superior employer's premises, the injury is one
orders. (Hinoguin v. Employees' arising out of and in the course of the
Compensation Commission [1989]) employment as much as though it had
happened while the employee was
Members of the national police are by the engaged in his work at the place of its
nature of their functions technically on performance. (Lazo v. Employees'
duty 24 hours a day" because policemen Compensation Commission, [1990])
are subject to call at any time and may be
asked by their superiors or by any Increased risk doctrine
distressed citizen to assist in maintaining The principles of "presumption of
the peace and security of the community. compensability" and "aggravation" found
BUT the 24-hour doctrine should not be in the old Workmen's Compensation Act is
sweepingly applied to all acts and expressly discarded under the present
circumstances causing the death of a police compensation scheme. The new principle
officer but only to those which, although being applied is a system based on social
not on official line of duty, are nonetheless security principle; thus, the introduction of
basically police service in character. Thus, a "proof of increased risk." HOWEVER, there
police officer who was shot while ferrying must be proof of the increased risk on the
passengers for a fee, an intrinsically private part of the employee. Without proof, the
and unofficial act, cannot benefit from the claim for death benefits by the heirs of the
doctrine. (GSIS v. CA and Alegre [1999]) deceased employee on account of leukemia
shall be denied. (Lorenzo v. GSIS [2013])

The 24-hour-duty doctrine cannot be


applied when the employee was neither at Under the increased risk theory, there must
his assigned work place nor in pursuit of be a reasonable proof that the employee's
the orders of his superiors when he met an working condition increased his risk of
accident. But the more important contracting the disease, or that there is a
justification for the Court's stance is that he connection between his work and the cause
was not doing an act within his duty and of the disease. Only a reasonable proof of
authority as a firetruck driver (he came work-connection, not direct causal relation,
from a dinner), or any other act of such however, is required to establish
nature, at the time he sustained his compensability of a non-occupational
injuries. (Valeriano v. Employees' disease. Probability, and not certainty, is
Compensation Commission [2000]) the yardstick in compensation proceedings;
thus, any doubt should be interpreted in
favor of the employees for whom social

12
legislations, like PD No. 626, were Employment Contract (POEA-SEC) is
enacted. (GSIS v. Besitan [2011]) deemed incorporated in the seafarer’s
employment contract and must be read in
light of the relevant provisions on
THUS, the employee’s frequent travels to
disability of the Labor Code and its
remote areas in the country could have
implementing rules. (Orient Hope Agencies,
exposed him to certain bacterial, viral, and
Inc. vs. Jara [2018])
parasitic infection, which in turn could
have caused end stage renal disease.
Delaying his urination during his long A. COVERAGE
trips to the provinces could have also
The POEA-SEC covers all Filipino
increased his risk of contracting his
Seafarers on board ocean- going vessels.
disease. (id.)
Note: The employment contract
between the employer and a seafarer
When the illness is a listed occupational shall commence upon actual departure
disease, the "increased risk theory" does of the seafarer from the Philippine
not apply; no proof of causation is airport or seaport in the point of hire
required. Given employee’s age at the time, and with a POEA approved contract. It
and taking into account the nature, shall be effective until the seafarer’s
working conditions, and pressures of her date of arrival at the point of hire upon
work as court stenographer — which termination of his employment. The
requires her to faithfully record each and period of employment shall be for a
every day virtually all of the court's period agreed upon by both parties but
proceedings; transcribe these notes not to exceed 12 months. Any extension
immediately in order to make them shall be subject to mutual consent of
available to the court or the parties who both parties. (Sec 2 POEA -SEC [2010])
require them; take down dictations by the
judge, and transcribe them; and type in
final form the judge's decisions, which B. DISABILITY BENEFITS
activities extend beyond office hours and For disability to be compensable under
without additional compensation or Sec. 20(A) of the 2010 Philippine Overseas
overtime pay— all these contributed to the Administration Standard Employment
development of her hypertension. Contract (POEA-SEC), two elements must
Consequently, her age, work, and concur:
hypertension caused the impairment of
(1) The injury or illness must be work-
vision in both eyes due to "advanced to late
related; and
stage glaucoma", which rendered her
(2) The work-related injury or illness must
"legally blind." (GSIS v. Calumpiano [2014])
have existed during the term of the
Note: the prescriptive period to file a seafarer’s employment contract.
claim for compensation is 3 YEARS from
the time the cause of action accrued. (ECC
Resolution No. 2799, July 25, 1984) If the seafarer suffers from an illness or
injury during the term of the contract, the
2. POEA – STANDARD EMPLOYMENT process in Section 20(A) applies. The
CONTRACT FOR SEAFARERS employer is obliged to continue to pay the
seafarer’s wages, and to cover the cost of
In claims for a seafarer’s disability benefits, treatment and medical repatriation, if
Philippine Overseas Employment needed. After medical repatriation, the
Administration-Standard seafarer has the duty to report to the

13
company-designated physician within (1) Temporary total disability lasting
three days upon his return. The employer continuously for more than one hundred
shall then pay sickness allowance while twenty days, except as otherwise provided
the seafarer is being treated. And in the Rules;
thereafter, the dispute resolution [x x x x]
mechanism with regard to the medical
The rule referred to — Rule X, Section 2 of
assessments of the company-designated,
the Rules and Regulations implementing
seafarer-appointed, and independent and
Book IV of the Labor Code — states:
third doctor shall apply.
Period of entitlement. — (a) The income
benefit shall be paid beginning on the first
Nonetheless, even if Salenga’s illnesses day of such disability. If caused by an
manifested or were discovered after the injury or sickness it shall not be paid
term of the contract, and even if Section longer than 120 consecutive days except
20(A) finds no application to him, he may where such injury or sickness still requires
still claim disability benefits. medical attendance beyond 120 days but
not to exceed 240 days from onset of
In instances where the illness manifests disability in which case benefit for
itself or is discovered after the term of the temporary total disability shall be paid.
seafarer’s contract, the illness may either However, the System may declare the total
be (1) an occupational illness listed under and permanent status at anytime after 120
Section 32-A of the POEA-SEC, in which days of continuous temporary total
case, it is categorized as a work-related disability as may be warranted by the
illness if it complies with the conditions degree of actual loss or impairment of
stated in Section 32-A, or (2) an illness not physical or mental functions as
listed as an occupational illness under determined by the System.
Section 32-A but is reasonably linked to
the work of the seafarer. (Ventis Maritime These provisions are to be read hand in
Corporation v. Salenga [2020], J. CAGUIOA) hand with the POEA Standard
Employment Contract whose Section 20
The seafarer's entitlement to disability (3) states:
benefits for work-related illness or injury
is governed by the Labor Code, its Upon sign-off from the vessel for medical
implementing rules and regulation (IRR), treatment, the seafarer is entitled to
the POEA-SEC, and prevailing sickness allowance equivalent to his basic
jurisprudence. wage until he is declared fit to work or the
degree of permanent disability has been
In Vergara v. Hammonia Maritime assessed by the company-designated
Services, Inc. and Atlantic Marine Ltd., the physician but in no case shall this period
Court explained how the pertinent exceed one hundred twenty (120) days.
provisions in the Labor Code, its IRR, and (Pastrana v. Bahia Shipping Services [2020], J.
the POEA-SEC operate, viz.: CAGUIOA)

In this respect and in the context of the


present case, Article 192 (c)(1) of the Labor The person claiming disability benefits has
Code provides that: to prove that the illness he suffered was
x x x The following disabilities shall be work-related and that it must have existed
deemed total and permanent: during the term of the contract.

14
To be compensable, reasonable proof of post-employment examination by a
work-connection, not direct causal relation, company-designated physician;
is sufficient. “Thus, probability, not the
(4) his illness is one of the enumerated
ultimate degree of certainty, is the test of
occupational diseases or that his
proof in compensation proceedings.”
illness or injury is otherwise work-
(Magsaysay Mol Marine, Inc. vs. Atraje,
related; and
[2018])
Work relatedness means the seafarer’s (5) he complied with the four conditions
illness has a possible connection to enumerated under Section 32-A for an
one’s work, and thus, allows the occupational disease or a disputably-
seafarer to claim disability benefits presumed work-related disease to be
albeit not listed as an occupational compensable. (Malicdem v. Asia Bulk
disease. As records show, the Transport Phils., Inc. [2019], J. CAGUIOA)
company designated-physician found
out that the illness was caused by an In order for a seafarer's claim for total and
abnormal growth of tissue in the permanent disability benefits to prosper,
brain’s blood vessels and therefore not any of the following conditions should be
work-related and not compensable. present:
(Romana v. Magsaysay Maritime Corp
[2017]) 1. The company-designated physician
failed to issue a declaration as to his
fitness to engage in sea duty or
The following disabilities shall be deemed
disability even after the lapse of the
permanent:
120-day period and there is no
• Total complete loss of sight of both indication that further medical
eyes; treatment would address his
• Loss of two limbs at or above the temporary total disability, hence,
ankles or wrists; justify an extension of the period to
• Permanent complete paralysis of 240 days;
two limbs; and 2. 240 days had lapsed without any
• Brain injury resulting to incurable certification issued by the company
imbecility or insanity. (Insurance designated physician;
Guidelines on Rule XVI of the 3. The company-designated physician
Omnibus Rules and Regulations declared that he is fit for sea duty
Implementing RA 8041, as amended by within the 120-day or 240-day period,
RA 10022 Relative to the Compulsory as the case may be, but his physician of
Insurance Coverage for Agency-Hired choice and the doctor chosen under
OFWs) Section 20-8(3) of the POEA-SEC are of
a contrary opinion;
Disability Benefits; Requisites 4. The company-designated physician
acknowledged that he is partially
(1) He suffered an illness;
permanently disabled but other
(2) he suffered this illness during the doctors who he consulted, on his own
term of his employment contract; and jointly with his employer, believed
that his disability is not only
(3) he notifies the employer of his illness permanent but total as well;
within three (3) days from arrival in 5. The company-designated physician
the country and submit himself to recognized that he is totally and

15
permanently disabled but there is a subject to the right of the of the employer to
dispute on the disability grading; declare within this period that a permanent
6. The company-designated physician partial or total disability already exists. The
determined that his medical condition seaman may of course be declaration fit to
is not compensable or work-related work at anytime such declaration is justified
under the POEA-SEC but his doctor- by his medical condition.
of-choice and the third doctor selected
under Section 20-B(3) of the POEA-
A temporary total disability only becomes
SEC found otherwise and declared
permanent when so declared by the company
him unfit to work;
physician within the period he is allowed to
7. The company-designated physician
do so, or upon expiration of the maximum
declared him totally and permanently
240-day medical treatment period without a
disabled but the employer refuses to
declaration either of fitness to work of the
pay him the corresponding benefits;
existence of a permanent disability. (Jebsens
and
Maritime v. Rapiz [2017])
8. The company-designated physician
declared him partially and
permanently disabled within the 120- The filing of claim for disability
day or 240-day period but he remains benefits before the company-designated physician
incapacitated to perform his usual sea could determine the nature and extent of his
duties after the lapse of said periods. disability, or before even the lapse of the initial
120-day period is premature. With the seafarer
Company-designated physician; Primary still undergoing further tests, the company-
responsibility designated physician had no occasion to
It is the primary responsibility of the determine the nature and extent of his
company-designated doctor to determine the disability upon which to base his "fit to work"
disability grading or fitness to work of certification or disability grading. (Status
seafarers. To be conclusive, however, the Maritime Corp v. Doctolero [2017])
medical assessment or report of the
company-designated physician must be Failure of the company-designated physician
complete and definite to give the seafarer to render a final and definitive assessment of
proper disability benefit. (Magsaysay Mol a seafarer’s condition within the 240-day
Marine, Inc. vs. Atraj [2018]) extended period transforms the seafarer’s
temporary and total disability to permanent
The employer is liable only after the degree and total disability.
of disability has been established by a
company - designated physician. (Magsaysay The third-doctor rule does not apply when
Maritime Corp v. Panoglinog [2015]) there is no valid final and definitive
assessment from a company-designated
The determination of the 120-day period physician. (Orient Hope Agencies, Inc. vs. Jara,
starts from disability grading and not from 864 SCRA 428, G.R. No. 204307 June 6, 2018,
treatment. Third Division)

If the 120 days initial period is exceeded and Third Doctor Rule
no declaration was made because the seafarer Under Section 20(A)(3) of the 2010 POEA-
requires further medical attention, then the SEC, “if a doctor appointed by the seafarer
temporary total disability period may be disagrees with the assessment, a third doctor
extended up to a maximum of 240 days,

16
may be agreed jointly between the Employer The liabilities of the employer when the
and the seafarer. The third doctor's decision seafarer suffers work-related injury or illness
shall be final and binding on both during the term of his contract are as follows:
parties." The provision refers to the 1. The employer shall continue to pay his
declaration of fitness to work or the degree of wages during the time he is on board
disability. It presupposes that the company- the ship.
designated physician came up with a valid,
final and definite assessment as to the 2. Payment of full cost of required
seafarer's fitness or unfitness to work before medical, serious dental, surgical and
the expiration of the one hundred twenty hospital treatment in a foreign port as
(120) day or two hundred forty (240)-day well as board and lodging until the
period. (Chan v. Magsaysay Corporation [2020]) seafarer is declared fit to work or to be
repatriated.
This rule covers only conflicting medical
findings on the fitness to work or degree of If medical attention arising from
disability. It does not cover the determination the said illness or injury is still
of whether the disability is work-related or required after repatriation, the
not. (Magsaysay Mol Marine, Inc. vs. Atraje, seafarer shall be so provided at
[2018]) cost to the employer until he is fit
or the degree of disability has
been established by the company
With regard to the procedure for referral to a
physician.
third doctor, jurisprudence has set that it is
3. Payment sickness allowance in amount
the duty of the seafarer to signify his intent to
equivalent to the basic wage computed
refer the conflict between the findings of the
from the time he signed off until he is
company-designated physician and that of
declared fit to work or the degree of
his own doctor to a third doctor. After notice
his disability has been assessed by the
from the seafarer, the company must then
company-designated physician
commence the process of choosing the third
doctor. (Julleza v. Orient Line Philippines, Inc. Note: the period of entitlement
[2019], J. CAGUIOA) for sickness allowance shall not
exceed 12 months and shall be
paid on a regular basis but not
Employer’s Refusal to have the seafarer
less than once a month.
examined; effect
4. Bear full cost of repatriation in case the
The conduct of post-employment medical
seafarer embarked for medical reasons
examination is not a unilateral burden on the
and the seafarer was declared either fit
part of the seafarer. Rather, it is a reciprocal
for repatriation or fit to work but the
obligation where the seafarer is obliged to
employer cannot find employment for
submit to an examination within three (3)
the seafarer on board.
working days from his or her arrival, and the
employer is correspondingly obliged “to 5. For permanent total or partial
conduct a meaningful and timely disability of the seafarer caused by
examination of the seafarer.” In cases where either injury or illness, compensation
the employer refuses to have the seafarer shall be in accordance with the
examined, the seafarer’s claim for disability schedule of benefits enumerated in Sec
benefits is not hindered by his or her reliance 32 of POEA-SEC.
on a physician of his or her own choosing.
Note: Computation of benefits
(Ebuenga vs. Southfield Agencies, Inc., [2018])
shall be governed by the rates
and rules of compensation

17
applicable at the time the illness have been contracted during the term of
or disease was contracted. the contract. (Inter-Orient Maritime v.
6. These benefits are distinct and Candaya [2013])
different from, and shall be in addition
to benefits arising from other laws like It is not required that the employment be
SSS, OWWA ECC and PAG -IBIG the sole factor in the growth, development
Fund. (Sec 20A, POEA -SEC [2010]) or acceleration of the illness to entitle the
claimant to the benefits provided therefor.
120/240 days rule It is enough that the employment had
If there is a claim for total and permanent contributed, even in a small degree, to the
disability benefits by a seafarer, the following development of the disease and in bringing
rules shall govern: about his death. (CF Sharp Crew
(1) The company-designated physician must Management v. Heirs of Repiso [2016])
issue a final medical assessment on the
seafarer's disability grading within a Limit: No compensation and benefits shall
period of 120 days from the time the be payable in respect of any injury,
seafarer reported to him; incapacity, disability or death of the
seafarer resulting from his willful or
(2) If the company-designated physician fails criminal act or intentional breach of duties.
to give his assessment within the period In this case, the employer has the burden of
of 120 days, without any justifiable proving that such injury, incapacity,
reason, then the seafarer's disability disability or death is attributable to the
becomes permanent and total; seafarer.

(3) If the company-designated physician fails


to give his assessment within the period Thus, the employer, having established by
of 120 days with a sufficient justification substantial evidence that the thermal burns
(e.g., seafarer required further medical suffered by the seafarer was self- inflicted
treatment or seafarer was uncooperative), and hence not compensable, is not liable
then the period of diagnosis and for the disability benefits claimed by the
treatment shall be extended to 240 days. seafarer. (Inc Ship Mgt Inc v. Moradas
The employer has the burden to prove [2014])
that the company-designated physician
has sufficient justification to extend the A seafarer who knowingly conceals a pre-
period; and existing illness or condition during the Pre-
Employment Medical Examination (PEME)
(4) If the company-designated physician still shall be liable for misrepresentation and
fails to give his assessment within the shall be disqualified from any
extended period of 240 days, then the compensation benefits.
seafarer's disability becomes permanent
and total, regardless of any justification. Note: This is also a just cause for
(Magsaysay Mitsui Osk Marine, Inc v. termination of employment and
Buenaventura [2018]) imposition of appropriate administrative
functions.
C. DEATH BENEFITS
Compassionate Visit: a seafarer is entitled
The death of a seafarer need not be shown
to a compassionate visit from 1 family
to be work-related in order to be
member or a requested individual when he
compensable but must be proven to be to

18
is hospitalized and has been confined for at seafarer's work-related injury or illness
least 7 days (that eventually causes his medical
repatriation and, thereafter, his death, as in
The payment for injury, illness, incapacity, this case) occurs during the term of his
disability or death and other benefits of the employment, then the employer becomes
seafarer under the Contract and under RA liable for death compensation benefits
8042 and RA 10022 shall cover all claims in under Section 20 (A) of the 2000 POEA-
relation with or in the course of the SEC. The provision cannot be construed
seafarer’s employment, including but not otherwise for to do so would not only
limited to damages arising from contracts, transgress prevailing constitutional policy
tort, fault or negligence under the laws of and deride the bearings of relevant case
the Philippines or any other country. law but also result in a travesty of fairness
and an indifference to social justice.
The “limited liability rule” under the Code (Magsaysay Maritime Corporation v. Heirs of
of Commerce does not apply to the death Buenaflor [2020])
insurance benefit under the POEA-SEC. It
is inapplicable in a liability created by
statute to compensate employees and D. OCCUPATIONAL DISEASES
laborers or their heirs and dependents in
case of injury received or inflicted upon Section 32-A of 2010 POEA-SEC provides
them while engaged in the performance of that the following diseases are considered
their work or employment. Akin to death as occupational when contracted under
benefits under the Labor Code, these death working conditions:
and burial benefits under the POEA-SEC 1. Cancer of the epithelial of the
are given when the employee dies due to a bladder (Papilloma of the bladder)
work-related cause during the term of his 2. Cancer, epithellomatous or
contract. (Phil - Nippon Kyoie Corp v. ulceration of the skin or the corneal
Gudelosao [2017]) surface of the eye due to tar, pitch,
bitumen, mineral oil or paraffin, or
While the general rule is that the seafarer's compound product or residue of
death should occur during the term of his these substances
employment, the seafarer's death occurring 3. Deafness – severe profound hearing
after the termination of his employment loss in an occupation where
due to his medical repatriation on account employee is exposed to prolonged,
of a work-related injury or illness significant noise and vibration in his
constitutes an exception thereto. This is line of work
based on a liberal construction of the 2000 4. Decompression sickness
POEA-SEC as impelled by the plight of the 5. Dermatitis due to irritants and
bereaved heirs who stand to be deprived of sensitizers
a just and reasonable compensation for the 6. Infections (such as pneumonia,
seafarer's death, notwithstanding its bronchitis, sinusitis, pulmonary TB,
evident work-connection. anthrax, cellulitis, conjunctivitis,
norwalk virus, salmonella,
xxxx leptospirosis, malaria, otitis media,
tetanus, viral encephalitis, and other
Thus, considering the constitutional infections resulting in complications
mandate on labor as well as relative necessitating repatriation
jurisprudential context, the rule, restated 7. Ionizing radiation disease,
for a final time, should be as follows: if the inflammation, ulceration or

19
malignant disease of the skin or To be compensable, the following
subcutaneous tissues of the bones or conditions must be satisfied:
leukemia, or anemia of the aplastic
type due to x-rays, ionizing particle, 1. The seafarer’s work must involved the
radium or other radioactive risks described in the POES-SEC;
substances 2. The disease was contracted as a result
8. Poisoning and its sequelae of the seafarer’s exposure to the
9. Vascular disturbance in the upper described risks;
extremities due to continuous 3. The disease was contracted within a
vibration from pneumatic tools or period of exposure and under such
power drills, riveting machines or other factors necessary to contract it;
hammers; and
10. Vascular disturbance in the lower 4. There was no notorious negligence on
extremities the part of the seafarer. (Ebuenga vs.
11. Cardio-vascular events Southfield Agencies, Inc., [2018])
12. Cerebro-vascular events
13. End organ damage resulting from It is not required that the employment of
uncontrolled hypertension petitioner as Chief Cook should be the sole
14. Cataract and pterygium factor in the development of his
15. Poisoning by cadmium hypertensive cardiovascular disease so as
16. Acute myeloid leukemia to entitle him to claim the benefits
17. Chronic lymphocytic leukemia provided therefor. It suffices that his
18. Vitreal hemorrhage and retinal employment as such had contributed,
detachment even in a small degree, to the
19. Hernea development of the disease. Thus, it is safe
20. Bronchial Asthma to presume that, at the very least, the
21. Osteoarthritis nature of petitioner's employment had
22. Peptic Ulcer contributed to the aggravation of his
23. Viral hepatitis illness, considering that as Chief Cook, he
24. Asbestosis was exposed to constant temperature
changes, stress, and physical strain.
(Bautista v. Elburg Shipmanagement Phils.,
The list of occupational diseases, however,
Inc [2015])
is not exclusive. Meaning, even those
diseases or injuries not enumerated in
However, in one case decided by the
Section 32-A may still be compensable. In
Court, it ruled that the petitioner was not
fact, the POEA-SEC provides for a
entitled to total and permanent disability
disputable presumption of work-
benefit because the petitioner failed to
relatedness for non-POEA-SEC-listed
prove that the same was contracted due to,
occupational disease and the resulting
or aggravated by, the conditions of his
illness or injury which a seafarer may have
work on board the vessel. As found by the
suffered during the term of his
LA, NLRC and CA, the bare allegations of
employment contract The disputable
Malicdem that the sodium-rich food,
presumption, however, "does not signify
physical and psychological stress and
an automatic grant of compensation and/or
other emergencies on board the ship
benefits claim; the seafarer must still prove
caused the exacerbation of his
his entitlement to disability benefits by
hypertension, is insufficient. The Court
substantial evidence of his illness' work-
likewise notes that the opinion of Dr.
relatedness." (OSG Shipmanagement Manila,
Casison, Malicdem's private doctor, did
Inc. v. De Jesus [2018])

20
not even explain the cause of Malicdem's
hypertension or attempt to connect the
same to his work conditions. Moreover,
there is no showing that he suffered
hypertension while on board the vessel.
These are factual findings of the labor
tribunals and the CA which appear to be
supported by substantial evidence; hence
must be accorded not only respect but
finality. (Malicdem v. Asia Bulk Transport
Phils., Inc., [2019], J. CAGUIOA)

Note: Death or disability which is directly


caused by sexually transmitted disease or
arose from complications thereof shall not
be compensable nor shall be entitled to
the benefits provided under the Contract.

-oOo-

21

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