Employer Liability and Additional Compensation
- Employers failing to comply with laws, rules, or regulations relating to workmen's compensation or safety measures are liable for additional compensation.
- Additional compensation is fifty percent of the compensation fixed by the Act in cases of death, injury, or sickness resulting from non-compliance.
Bureau and Commission Structure and Jurisdiction
- The Bureau of Workmen's Compensation and the Workmen's Compensation Commission continue to exercise powers under this Act.
- The Chairman and associate commissioners must qualify as judges of the Court of First Instance.
- The Commission holds appellate jurisdiction over regional referees' decisions and may promulgate internal rules.
- Regional referees have original jurisdiction over all compensation cases in their offices.
Death Benefits
- Death caused by employment-related injury or sickness within two years triggers benefits.
- Burial expenses of 200 pesos are payable.
- Compensation to dependents is prioritized as follows with specified percentage shares of the deceased’s average weekly wages:
- Widow/widower without children: 45%
- Widow/widower with 1-2 children: 50%, with 3 or more children: 60%
- Dependent children only: 40%, plus 10% for each child beyond two, up to 50%
- Dependent parents or grandparents: 40% if totally dependent, 25% if partial
- Dependent grandchildren, brothers, or sisters: 25%, plus 5% per additional dependent, up to 40%
- If no dependents exist, 1,000 pesos is paid to the Workmen’s Compensation Fund for rehabilitation.
- The Commission arbitrates disputes on shares among dependents.
Limits on Death Benefits
- Average weekly wages for computation capped at 50 pesos and not less than 14 pesos.
- Total compensation capped at 6,000 pesos.
- Payment to lower-priority dependents protects employer unless higher-priority claims arise.
- Deduction of disability periods when death occurs after disability.
- Compensation payable to guardians for demented persons.
Provision of Medical Services and Supplies
- Employer or insurer must furnish services, appliances, and supplies necessary for recovery after injury or sickness.
- Services include medical, surgical, dental, hospital, nursing, and rehabilitation training.
- Appliances include crutches, artificial limbs, and their maintenance or repair.
- Supplies cover medicines and medical/surgical/dental supplies.
- Failure to provide promptly allows employee to acquire at employer’s expense.
- Refusal or obstruction by employee without justifiable cause waives rights to services.
- Reports on treatment must be furnished within specified periods.
- Liability unaffected by fault or negligence of third parties.
Compensation for Total Disability
- Temporary total disability entitles employee to 60% weekly compensation, not less than 14 pesos.
- No compensation for first three calendar days unless disability extends beyond; then compensation from the first day.
- Aggregate compensation capped at 6,000 pesos.
- Employees earning less than 14 pesos receive full wages during temporary total disability; permanent disability compensation fixed at 14 pesos.
- Awards of permanent disability take effect two weeks after injury.
Compensation for Partial Disability
- Compensation is 50% of difference between pre-accident wages and probable post-accident earnings.
- Duration up to 208 weeks.
- Weekly payments capped at 18 pesos.
- Total compensation including other disability awards cannot exceed 6,000 pesos.
- No award before two weeks from injury.
Amputation and Non-Scheduled Disabilities
- Specific equivalencies regarding amputation levels and corresponding loss of limb status.
- Compensation provided excludes other benefits except those in sections 13, 14, and 15.
- Commission may award up to 6,000 pesos for serious disfigurement.
- For other disabilities not listed, compensation is 50% of wage difference.
- Payment duration capped at 208 weeks.
- Commission can extend period but total compensation capped at 6,000 pesos.
Medical and Rehabilitative Examinations
- Injured employees must submit to examinations by employer’s designated medical professionals at reasonable times.
- Employee may also have own medical representatives.
- Refusal or obstruction without justifiable cause suspends right to claim compensation.
Securing Payment of Compensation
- Employers must secure payment by insurance with authorized companies or demonstrate financial ability (self-insurance).
- Prohibition of deducting insurance premiums from employee wages.
- Employers must post notices confirming compliance with insurance rules.
- Insurance contracts subject to Act provisions; cancellation requires Bureau approval and notice.
- Insurance carriers bound by notices received by employers and remain liable despite employer insolvency.
- Employers failing to secure insurance liable to fines and/or imprisonment; corporate officers jointly responsible.
- Bureau empowered to revoke insurance licenses for failure to meet obligations.
- Procedures for self-insurance require Bureau authorization and indemnity bonds.
Legal Fees and Claims
- Legal fees for claim representatives limited to 5% of total compensation; 10% if services occur on appeal.
- Penalty of fine not exceeding 200 pesos for excessive charges.
Definitions Relevant to Coverage
- "Employment" includes all trades/occupations except domestic service.
- "Public employment" includes government service but excludes officials elected by popular vote.
Claims for Small Private Employers
- Employers with capital less than 10,000 pesos or fewer than six employees in non-hazardous businesses governed by separate civil or statutory provisions.
- Specific hazardous enterprises enumerated include transportation, factories using machinery or chemicals, manufacture of explosives, certain sports, fishing, lumbering, and mining.
Referees and Adjudication
- Appointment of referees with legal experience to adjudicate cases in regional offices.
- Referees have original jurisdiction and decisions are appealable to the Commission.
- Workmen's compensation units established in regional offices under Commission supervision.
Enforcement and Fund Administration
- Final decisions and awards executable through writs of execution by sheriffs.
- Creation of the Workmen's Compensation Fund under Department of Labor for administration expenses.
- Funding contributions come from fines and fees collected from uninsured employers and insurers.
- Procedures for assessment and collection of deficiencies in administration funds.
- Committee established to advise Bureau, involving representatives of insurers and uninsured employers.
Effectivity
- The Act took effect immediately upon approval.