Law Summary
Application to Government Employees
- The Act applies to National Government employees including mounted messengers, public works laborers, and industrial employees.
- Those insured under the Government Service Insurance System are entitled to this Act's benefits in addition to their insurance benefits.
Injuries Excluded from Compensation
- Compensation is denied for injuries caused voluntarily by the employee to himself or another.
- No compensation where injury caused by employee's drunkenness.
- No compensation for injuries caused by the employee's notorious negligence.
Additional Compensation Liability of Employers
- Employers failing to comply with laws or safety orders, or neglecting to install safety appliances, must pay an additional 50% compensation over the fixed amount.
Exclusive Nature of Compensation Rights
- Compensation rights under this Act exclude other civil remedies against the employer for injury.
- Laborers working outside the Philippines must agree that this Act applies to injuries abroad, without prejudice to more favorable foreign laws.
Workmen's Compensation Commissioner
- Creation of the Office of the Workmen's Compensation Commissioner within the Department of Labor.
- Appointment by the President with the Commission on Appointments' consent; salary fixed by law.
- Assumes control over prior Compensation Division functions and resources.
Death Benefits
- Compensation paid if death from employment-related injury or disease occurs within 2 years.
- Burial expenses capped at 200 pesos if no dependents.
- Priority for dependents: widow/widower, children, parents, grandparents, then siblings or grandchildren.
- Percentage rates for weekly compensation depend on number and category of dependents.
- Disputes on shares are resolved by the Commissioner.
Definitions of Dependents
- Broad definition includes adopted, illegitimate, and step relationships where dependency exists.
- Married dependents excluded unless legally dependent.
Limitations on Death Benefits
- Average weekly wages capped between 10 and 50 pesos.
- Total compensation capped at 4000 pesos.
- Bona fide payment to second priority dependents protects employers unless others claim priority.
- Disability periods are deducted from total compensation periods.
- Payment to guardian required for incompetent persons.
Medical Attendance Obligations
- Employer must provide immediate and necessary medical, surgical, and hospital care during disability.
- Employer's liability limited to community-standard costs.
- Injured employee's refusal to accept employer-provided care may limit entitlement.
Total Disability Compensation
- Weekly compensation at 60% of average wages excluding first 3 days.
- Weekly payments capped at 35 pesos, minimum 10 pesos.
- Payments limited to max 208 weeks and aggregate of 4000 pesos.
- Special provisions for employees earning less than 10 pesos weekly.
Partial Disability Compensation
- Compensation at 50% of wage difference for max 208 weeks.
- Weekly payments capped at 18 pesos.
- Period of total disability deducted if followed by partial disability.
Compensation for Amputations and Disfigurement
- Specific provisions recognizing amputation levels equivalent to loss of limbs.
- Compensation for facial or head disfigurement up to 4000 pesos.
- Other disabilities compensated at 50% wage difference, subject to adjustments.
- Total compensation across disability categories capped at 4000 pesos.
Voluntary Payments and Periodical Compensation
- Voluntary payments by employer to employee/dependents can be deducted from compensation.
- Compensation may be paid weekly, monthly, or semi-monthly upon agreement and Commissioner approval.
Lump Sum Payment of Compensation
- Lump sum payments allowed if advantageous, with max 8% reduction from fixed amounts.
- Agreements must be public documents, acknowledged by justice of the peace and approved by Commissioner.
- Obligations and rights fully explained to injured parties prior to acknowledgment.
Agreements on Compensation
- Compensation agreements must at least match statutory amounts and be Commissioner approved.
- Payment extinguishes employer liability except as otherwise provided.
Legal Fees and Sanctions
- Legal fees for representation capped at 5% of compensation, 10% on appeal cases.
- Excessive fees fined up to 200 pesos.
Duties of the Workmen's Compensation Commissioner
- Administer Act, hear and decide claims, order medical examination and services, fix attorney fees.
- Make and enforce rules and appoint necessary staff.
- Collect administrative fees from employers not charged to employees.
Hearing Procedures
- Hearings may be conducted by Commissioner or referees.
- Parties entitled to representation, evidence, cross-examination, and notices.
- Commissioner empowered to subpoena witnesses, inspect premises, and receive ex parte evidence reduced to writing.
- Decisions become final after 15 days unless appealed.
Enforcement of Awards
- Awards may be filed in court and entered as judgments without possibility of appeal.
Employer's Record and Reporting Obligations
- Employers must keep records of all injuries and notify the Commissioner in writing promptly.
- Failure to report imposes fines up to 250 pesos.
- Firm officers or management held criminally liable for violations.
Definitions of Key Terms
- Includes comprehensive definitions of employer, laborer, injury, industrial/public employment, wages, disability, and gender/number inclusions.
Application to Small Industries
- Small enterprises with capital under 10,000 pesos governed by a different law unless industry is hazardous.
- Hazardous industries explicitly listed (transport, factories, chemical exposure, manufacturing explosives, sports, fishing, mining).
Presumptions in Compensation Claims
- Presumes claims are valid, notices given, injury not self-inflicted or solely intoxication related.
- Medical reports presumed accurate unless evidence to the contrary.
Timely Payment and Notification Requirements
- Compensation paid promptly as wages accrue, unless contested by employer within prescribed deadlines.
- Employer required to notify Commissioner when payments start or stop.
- Non-compliance may result in fines.
Jurisdiction of the Commissioner
- Exclusive authority over compensation claims subject to Supreme Court appeals.
Financial Provisions and Administration Fund
- Creation of Workmen's Compensation Fund for administrative expenses.
- Contributions from insurance carriers and fines deposited into the fund.
- Government entities must deposit guarantees for compensation payment.
- Fund managed by the Commissioner with advisory committee.
Effective Date
- Act takes effect upon approval on June 20, 1952.