Further Amending Certain Articles of Presidential Decree No. 442 Entitled ''Labor Code of the Philippines''

Case Overview and Summary

Summary of Presidential Decree No. 626

Policy and Definitions (Art. 164-165):
- Promotes a tax-exempt employees' compensation program for work-related disability or death.
- Defines key terms like "employee", "employer", "disability", "compensation", "wages", etc.

Coverage and Liability (Art. 166-173):
- Compulsory coverage for employers and employees not over 60 years old. (Art. 166)
- Covers Filipino employees employed abroad. (Art. 167)
- Effective date of coverage is the first day of operation for employers and date of employment for employees. (Art. 168)
- Employers and employees must register with the System. (Art. 169)
- Limits liability of the State Insurance Fund, excluding cases like intoxication, willful injury, etc. (Art. 170)
- Liability is exclusive and bars recovery of benefits from other laws during the payment period. (Art. 171)
- Allows subrogation of rights against third parties liable for disability or death. (Art. 172)
- Prohibits contracts depriving employees of benefits. Existing medical services must be maintained. (Art. 173)

Administration (Art. 174-180):
- Creates the Employees' Compensation Commission to initiate and coordinate policies. (Art. 174)
- Powers and duties of the Commission include assessing contribution rates, approving rules, initiating safety programs, etc. (Art. 175)
- Funds to be deposited, invested, and disbursed like other SSS/GSIS funds. Up to 12% can be used for operational expenses. (Art. 176-177)
- The System has jurisdiction over disputes, subject to appeal to the Commission. (Art. 178)
- Decisions of the Commission can be reviewed by the Supreme Court on questions of law. (Art. 179)
- Decisions of the Commission become final and executory if no appeal is made within 10 days. (Art. 180)

Contributions (Art. 181-182):
- Employers must contribute 1% of the employee's monthly salary credit. (Art. 181)
- Contribution rates may be revised based on risk, cost, and losses.
- Contributions must be paid entirely by the employer. (Art. 181)
- The Republic of the Philippines guarantees the benefits and solvency of the State Insurance Fund. (Art. 182)

Medical Benefits (Art. 183-188):
- The System shall provide medical services, appliances, and rehabilitation during the employee's disability period. (Art. 183)
- The System can choose or change the physician, hospital, or rehabilitation facility. (Art. 184)
- Attending physicians must comply with regulations and submit reports. (Art. 185)
- The System can stop payment if the employee unreasonably refuses examination or treatment. (Art. 186)
- Fees and charges shall not be higher than prevailing rates, subject to regulations. (Art. 187)
- The System shall establish a rehabilitation program for injured and handicapped employees. (Art. 188)

Disability Benefits (Art. 189-191):
- Temporary total disability: 90% of average daily salary credit, max. 120 days, min. PHP 2.50, max. PHP 16 per day. (Art. 189)
- Permanent total disability: 45-63% of average monthly salary credit, min. PHP 45 per month, max. PHP 12,000 total. (Art. 190)
- Permanent partial disability: same as permanent total disability, paid for a specified period based on the type of disability. (Art. 191)

Death Benefits (Art. 192):
- Primary beneficiaries receive a monthly income benefit equivalent to permanent total disability benefit plus 10% for each dependent child, up to 5 children. (Art. 192)
- If no primary beneficiary, a lump sum of 30x monthly income benefit or PHP 6,000, whichever is less, is paid to beneficiaries or legal heirs. (Art. 192)

Provisions Common to Income Benefits (Art. 193-202):
- Relationship and dependency determined at the time of death. (Art. 193)
- Delinquent employers liable for benefits paid and subject to a lien on property. (Art. 194)
- Provisions for second injuries, assignment of benefits, earned benefits, and safety device penalties. (Art. 195-198)
- Prescriptive period of 1 year from notice to employer. (Art. 199)
- Provisions for erroneous payments and prohibition of fees for claim preparation. (Art. 200-201)
- The State Insurance Fund and assets are exempt from taxes, fees, and duties. (Art. 202)

Records, Reports, and Penal Provisions (Art. 203-206):
- Employers must keep a logbook of employee sickness, injury, or death and report work-related contingencies to the System. (Art. 203)
- Notice of contingency must be given to the employer within 5 days. (Art. 204)
- Penal provisions for fraud, falsification, misrepresentation, and other anomalies related to benefits. (Art. 205)
- The law applies to injury, sickness, disability, or death occurring on or after January 1, 1975. (Art. 206)

Amendments to Other Articles:
- Amends Article 331 on the prescription period for money claims. (Section 3)
- Amends Article 336 on the Bureau of Workmen's Compensation and Workmen's Compensation Commission. (Section 4)
- Amends Article 339 on the disposition of pending cases. (Section 5)
- Renumbers the Articles of the Labor Code consecutively. (Section 6)