Title
Amendment to Workmen's Compensation Act
Law
Republic Act No. 4119 / 61 Og No. 13, 1818 (march 29, 1965)
Decision Date
Jun 20, 1964
Republic Act No. 4119 amends the Workmen's Compensation Act to expand coverage to all employees, establish the Bureau of Workmen's Compensation and the Workmen's Compensation Commission, outline death and disability benefits, and regulate insurance policies and fees, among other provisions.
A

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.

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