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PRELIMINARY TITLE
ARTICLE 1. Name of Decree. — This Decree shall be known as the "Labor Code of the Philippines."
ART. 2. Date of Effectivity. - This Code shall take effect six months after its promulgation.
ART. 3. Declaration of Basic Policy. — The State shall afford protection to labor, promote full employment, ensure equal work opportunities regardless of sex, race or creed, and regulate the relations between workers and employers. The State shall assure the rights of workers to self-organization, collective bargaining, security of tenure and just and humane conditions of work.
ART. 4. Construction in Favor of Labor. — All doubts in the implementation and interpretation of the provisions of this Code, including its implementing rules and regulations, shall be resolved in favor of labor.
ART. 5. Rules and Regulations. — The Department of Labor and other government agencies charged with the administration and enforcement of this Code or any of its parts shall promulgate the necessary implementing rules and regulations. Such rules and regulations shall become effective fifteen (15) days after announcement of their adoption in newspapers of general circulation.
ART. 6. Applicability to Agricultural Workers. — In addition to the rights conferred upon them by Republic Act Numbered Thirty-eight Hundred and Forty-four, as amended, otherwise known as the Code of Agrarian Reforms of the Philippines, agricultural workers shall enjoy the rights and benefits granted by this Code to nonagricultural workers.
Emancipation of Tenants
ART. 7. Statement of Objectives. — Inasmuch as the old concept of land ownership by a few has spawned valid and legitimate grievances that gave rise to violent conflict and social tension and the redress of such legitimate grievances being one of the fundamental objectives of the New Society, it has become imperative to start reformation with the emancipation of the tiller of the soil from his bondage.
ART. 8. Transfer of Lands to Tenant Workers. - Being a vital part of the labor force, tenant-farmers on private agricultural lands primarily devoted to rice and corn under a system of share crop or lease tenancy whether classified as landed estate or not shall be deemed owner of a portion constituting a family-size farm of five (5) hectares if not irrigated and three (3) hectares if irrigated.
In all cases, the landowner may retain an area of not more than seven (7) hectares if such landowner is cultivating such area or will now cultivate it.
ART. 9. Determination of Land Value. For the purpose of determining the cost of the land to be transferred to the tenant-farmer, the value of the land shall be equivalent to two and a half (2 1/2) times the average harvest of three (3) normal crop years.
The total cost of the land, including interest at the rate of six (6) per centum per annum, shall be paid by the tenant in fifteen (15) equal amortizations.
In case of default, the amortizations due shall be paid by the farmers' cooperative having a right of recourse against him.
The Government shall guaranty such amortizations with shares of stock in government-owned and government-controlled corporations.
ART. 10. Conditions of Ownership. - No title to the land owned by the tenant-farmers shall be actually issued to a tenant-farmer unless and until the tenant has become a full-fledged member of a duly recognized farmers' cooperative.
Title to the land acquired pursuant to Presidential Decree No. 27 or the land Reform Program of the Government shall not be transferable except by hereditary-succession or to the Government in accordance with the provisions of this Code, the Code of Agrarian Reforms and other existing laws and regulations.
ART. 11. Implementing Agency. — The Department of Agrarian Reform shall promulgate the necessary rules and regulations to implement the provisions of this Chapter.
BOOK I
ART. 12. Statement of Objectives. It is the policy of the State —
RECRUITMENT AND PLACEMENT OF WORKERS
ART. 13. Definition of Terms. — (a) "Private fee-charging employment agency" means any individual or entity engaged in the business of recruitment and placement of workers for a fee, whether the fee is charged from the workers or from the employers or both.
ART. 14. Employment Promotion. — The Secretary of Labor shall have the power and authority to:
ART. 15. Power to Phase Out. — The Department of Labor shall phase out within four (4) years from the effectivity of this Code the operation of all private fee-charging employment agencies, including those engaged in the overseas recruitment and placement of individuals for personal services or for the crew of a vessel.
Upon the completion of such phaseout, no person or entity shall directly or indirectly engage, for profit or any pecuniary or material advantage, in any recruitment or placement activity. Non-fee-charging employment agencies or placement services undertaken by schools or by civic or charitable organizations or by employers for their own use may continue under such rules and regulations as may be promulgated by the Secretary of Labor.
ART. 16, Over-seas Employment Development Board, Creation of. — An Overseas Employment Development Board is hereby created to undertake a systematic program for overseas employment of Filipino workers, other than seamen, in excess of domestic needs and to protect their rights to fair and equitable employment practices.
It shall seek to:
The Board shall be attached to the Department of Labor for policy and program coordination and for the efficient conduct of its duties.
ART. 17. Composition of Overseas Employment Development Board. — The Board shall be composed of:
The Secretary of Labor as Chairman and a representative each of the Department of National Defense, the Department of Foreign Affairs, the Central Bank and the Department of Justice, as members.
The Board shall be assisted by a Secretariat headed by an Executive Director. The Executive Director shall be appointed by the President of the Philippines upon recommendation of the Secretary of Labor who shall appoint the members of the Secretariat. The Executive Director and members of the Secretariat shall be exempt from the provisions of laws, rules and regulations of the Wage and Position Classification Office except clerical and janitorial services.
The Executive Director shall be a Filipino citizen with sufficient experience in manpower administration, including overseas employment activities.
The Executive Director shall receive an annual salary of P40,000 and a commutable representation and transportation allowance of P500 a month.
The Auditor General shall appoint his representative to the Board to audit its accounts in accordance with auditing laws and pertinent rules and regulations.
The Chairman and all members of the Board shall each receive a per diem of P100 for their attendance of every meeting of the Board: Provided, That where the representative of an ex officio member attends a meeting in behalf of the latter, such representative shall be entitled to receive the per diem.
ART. 18. Board Authorized to Collect Fees. —The Board shall have the power to impose and collect fees from workers and employers concerned or both, the proceeds of which shall accrue to a special fund to be used exclusively for the promotion of the objectives of the Board.
ART. 19. Board to Issue Rules and Regulations. —The Board shall issue appropriate rules and regulations to carry out its functions.
ART. 20. National Seamen Board, Creation of. — There is hereby created a body to be known as a National Seamen Board.
ART. 21. Composition of National Seamen Board. — The Board shall be attached to the Department of Labor for policy and program coordination and shall be composed of: the Secretary of Labor as Chairman, the Commandant of the Philippine Coast Guard, and a representative of each of the Department of Foreign Affairs, a national seafarers organization and a national shipping association, as members.
The Chairman and all members of the Board shall each receive a per diem of F100 for their attendance of every meeting of the Board: Provided, That where the representative of the ex officio member attends a meeting in behalf of the latter, such representative shall be entitled to receive the per diem.
The Board shall be assisted by a Secretariat headed by an Executive Director. The Executive Director and members of the Secretariat shall be exempt from the provisions of laws, rules and regulations of the Wage and Position Classification Office except clerical and janitorial services.
The Executive Director shall be a Filipino citizen with sufficient experience in manpower administration, including overseas employment activities.
The Executive Director shall receive an annual salary of P24,000 and a commutable representation and transportation allowance of P500 a month.
The Auditor General shall appoint his representative to the Board to audit its accounts in accordance with auditing laws and pertinent rules and regulations.
ART. 22. Board Authorized to Collect Fees. — The Board shall have the power to impose and collect fees from workers and employers concerned or both, the proceeds of which shall accrue to a special fund to be used exclusively for the promotion of the objectives of the Board.
ART. 23. Board to Issue Rules and Regulations. — The Board shall issue appropriate rules and regulations to carry out its functions.
Regulation of Recruitment and Placement Activities
ART. 24. Authority or License to Recruit. — No .individual or entity may engage in the business of a private fee-charging employment agency without first obtaining a license from the Department of Labor.
No individual or entity may operate a private non-fee-charging employment agency without first obtaining an authority from the Department of Labor.
ART. 25. Travel Agencies Prohibited to Recruit. — Travel agencies are prohibited from engaging in the business of recruitment and placement of workers for overseas employment whether for profit or not.
The Secretary of Labor shall issue rules and regulations establishing the requirements and the procedures for the issuance of a license or authority.
Every existing authority or license to hire or recruit workers on the date of effectivity of this Code shall remain valid for the duration indicated therein unless sooner cancelled, revoked, or suspended for cause by the Secretary of Labor. However, said authority or license to hire or recruit may be renewed: Provided, That the holders thereof shall comply with all applicable provisions of this Code and its implementing rules and regulations.
ART. 26. Citizenship Requirement. — No license or authority to recruit or hire workers shall be issued or renewed except in favor of Filipino citizens or corporations, partnerships or entities at least 60 percent of the authorized capital stock of which is owned and/or controlled by Filipino citizens.
ART. 27. Capitalization. — All applicants for license to recruit and currently licensed recruiters for overseas employment are required to have a minimum capitalization or assets in the amount of P150,000 in the case of private individuals and a paid-up capital of P150,000 in the case of corporations, partnerships or other entities.
ART. 28. Nontransferability of License or Authority. — No license or authority shall be issued directly or indirectly by any person other than the one in whose favor it was issued at any place other than that stated in the license or authority, nor may such license or authority be transferred, conveyed or assigned to any other person or entity. Any transfer of business address, appointment or designation of any agent or representative including the establishment of additional offices anywhere shall be subject to the prior approval of the Department of Labor.
ART. 29. License Fee. — Any private fee-charging employment agency applying for license or renewal thereof under this Code shall file a written application with the Secretary of Labor and shall pay to the account of the Department of Labor an annual license fee of P2,000 in the case of recruitment for local employment and P6,000 in the case of recruitment for overseas employment.
ART. 30. Bond. - Any private fee-charging employment agency shall post a cash bond in the amount of P10,000 and a surety bond in the amount of P50,000 if engaged in recruitment for overseas employment; a cash bond in the amount of P5,000 and a surety bond in the amount of P25,000 if engaged in the recruitment for local employment, to guarantee compliance with prescribed recruitment procedures, rules and regulations and terms and conditions of employment as appropriate.
The Secretary of Labor shall have the exclusive power to determine, decide, order, or direct payment from or application of the cash and surety bond for any claim or injury covered and guaranteed by the bond.
ART. 31. Allowable Fee. — Any person applying with a private fee-charging employment agency for employment assistance shall not be charged any fee until he has obtained employment through its efforts or has actually commenced employment. Such fee shall be always covered with approved receipt clearly showing the amount paid. The Secretary of Labor shall promulgate a schedule of allowable fees.
ART. 32. Mandatory Remittance of Foreign Exchange Earnings. — It shall be mandatory for all contract workers abroad to remit a portion of their foreign exchange earnings to their families, dependents, and/or beneficiaries in the country in accordance with rules and regulations prescribed by the Secretary of Labor in consultation with the committee on mandatory remittance of foreign exchange earnings established by the President under Letter of Instruction No. 90, dated June 16, 1973.
ART. 33. Prohibited Practices. — It shall be unlawful for any individual, entity, licensee or holder of authority:
ART. 35. Foreign Service Role/Participation. — To provide ample protection to Filipino workers abroad, Philippine labor attaches or labor reporting officers duly designated by the Secretary of Labor through the Department of Foreign Affairs or any Philippine diplomatic or consular officials concerned shall, even without prior instruction or advice from the home office:
ART. 36. Regulatory Powers. — (a) The Secretary of Labor shall have the power to restrict and regulate the recruitment activities of all agencies within the coverage of this Title and is hereby authorized to issue orders and promulgate rules and regulations to carry out the objectives and implement the provisions hereof.
ART. 37. Jurisdiction.— (a) Any violation of the provisions of this Title or its implementing rules and regulations as promulgated by the Secretary of Labor shall fall within the concurrent jurisdiction of the Military Tribunals and the regular courts. The court that first assumes jurisdiction shall exclude the other.
ART. 38. Penalty. — Persons who arc licensees or holders of authority under the provisions of this Title found violating or causing another to violate any provisions of this Title or of the rules and regulations issued thereunder shall, upon conviction thereof, suffer the penalty of imprisonment of not less than two (2) years nor more than five (5) years or a fine of not less than P2,000 nor more than P30,000 or both imprisonment and fine at the discretion of the court; while persons who are not licensees or holders of authority under this Title found violating any provision of this Title shall upon conviction therefor suffer the penalty of imprisonment of not less than Four (4) years but not more than eight (8) years or a fine of not less than P5,000 nor more than P35,000 or both imprisonment and fine at the discretion of the court.
In addition thereto such conviction shall cause the automatic forfeiture of the bond — cash as well as surety — in favor of the special fund for the promotion of the objectives of the Overseas Employment Development Board or the National Seamen Board, as the case may be, and also the automatic revocation of the license or authority and all permits and privileges granted to such person or entity under this Title: Provided, however, That if the offender is a corporation, partnership, association, or entity, the penalty shall be imposed upon the guilty officer or officers, as the case may be, of the corporation, partnership, association or entity; and if such guilty officer is an alien, in addition to the penalties herein prescribed, he shall be deported without further proceedings.
EMPLOYMENT OF NONRESIDENT ALIENS
ART. 39. Employment Permit for Nonresident Aliens. — Any alien seeking admission to the Philippines for employment purposes and any domestic or foreign employer who desires to engage an alien for employment in the Philippines shall obtain an employment permit from the Department of Labor.
The employment permit may be issued to a nonresident alien or to the applicant employer after a determination of the non-availability of a person in the Philippines who is competent, able and willing at the time of application to perform the services for which the alien is desired.
For an enterprise registered in preferred areas of investments, said employment permit may be issued upon recommendation of the government agency charged with the supervision of said registered enterprise.
ART. 40. Prohibition Against Transfer of Employment. — After the issuance of an employment permit, the alien shall not transfer to another job or change his employer without prior approval of the Secretary of Labor.
ART. 41. Submission of List. — Any employer employing nonresident foreign nationals on the effective date of this Code shall submit a list of such nationals to the Secretary of Labor within thirty (30) days after such date indicating their names, citizenship, foreign and local addresses, nature of employment and status of stay in the country. The Secretary of Labor shall then determine if they are entitled to an employment permit.
BOOK II
HUMAN RESOURCES DEVELOPMENT
NATIONAL MANPOWER DEVELOPMENT PROGRAM
National Policies and Administrative Machinery
for Their Implementation
ART. 42. Statement of Objective. - It is the objective of this Title to develop human resources, establish training institutions, and formulate such plans and programs as will ensure efficient allocation, development and utilization of the nation's manpower and thereby promote employment and accelerate economic and social growth.
ART. 43. Definition. — As used in this Title (a) "Manpower" shall mean that portion of the nation's population which has actual or potential capability to contribute directly to the production of goods and services; and
ART. 44. National Manpower and Youth Council, Composition. - To carry out the objectives of this Title, the National Manpower and Youth Council, which is attached to the Department of Labor for policy and program coordination and hereinafter referred to as the Council, shall be composed of the Secretary of Labor as ex officio chairman, the Secretary of Education and Culture as ex officio vice-chairman, and us ex officio members: the Director-General of the National Economic and Development Authority; the Secretary of Agriculture and Natural Resources; the Secretary of Social Welfare; the Secretary of Local Government and Community Development; the Chairman of the National Science Development Board; the Secretary of Industry and the Executive Director of the Council. The Executive Director of the Council shall have no vote.
In addition, the President shall appoint the following members from the private sector: two representatives of national organizations of employers; two representatives of national workers organizations; and two from national family and youth organizations, each for a term of three years.
All Council members shall be entitled to per diems of one hundred pesos (P100) for each meeting and for not more than thirty <30) meetings within one (1) year and payment of the travelling expenses incurred in connection with their duties therein.
ART. 45. National Manpower Plan. - The Council shall formulate a long-term national manpower plan for the optimum allocation, development and utilization of manpower for employment, entrepreneurship and economic and social growth. This manpower plan shall, after adoption by the Council, be updated annually and submitted to the President for his approval. Thereafter, it shall be the controlling plan £or the development of manpower resources for the entire country in accordance with the national development plan. The Council shall call upon any agency of the Government or the private sector to assist in this effort.
ART. 46. National Manpower Skills Center. — The Council shall establish a National Manpower Skills Center and regional and local training centers for the purpose of promoting the development of skills. The centers shall be administered and operated under such rules and regulations as may be established by the Council.
ART. 47. Establishment and Formulation of Skills Standards. — There shall be national skills standards for industry trades to be established by the Council in consultation with employers and workers organizations and appropriate government authorities. The Council shall thereafter administer the national skills standards.
ART. 48. Administration of Training Programs. — The Council shall provide through the Secretariat instructor training, entrepreneurship development, training in vocations, trades and other fields of employment, and assist any employer or organization in training schemes designed to attain its objectives under rules and regulations which the Council shall establish for this purpose.
The Council shall exercise, through the Secretariat, authority and jurisdiction over, and administer, ongoing technical assistance programs and/or grants-in-aid for manpower and youth development including those which may be entered into between the Government of the Philippines and international and foreign organizations and nations, as well as persons and organizations in the Philippines.
In order to integrate the national manpower development effort, all manpower training schemes as provided for in this Code shall be coordinated with the Council particularly those having to do with the setting of skills standards. For this purpose, existing manpower training programs in the Government and in the private sector shall be reported to the Council which may regulate such programs to make them conform with national development programs.
This Article shall not include apprentices, learners and handicapped workers as governed by appropriate provisions of this Code.
ART. 49. Industry Boards. — The Council shall establish industry boards to assist in the establishment of manpower development schemes, trades and skills standards and such other functions as will provide direct participation of employers and workers in the fulfillment of the Council's objectives, in accordance with guidelines to be established by the Council and in consultation with the National Economic and Development Authority.
ART. 50. Employment Service Training Functions. — The Council shall utilize the employment service of the Department of Labor for the placement of its graduates. The Bureau of Employment Services shall render assistance to the Council in the measurement of unemployment and underemployment, conduct of local manpower resource surveys and occupational studies including an inventory of the labor force, establishment and maintenance without charge of a national register of technicians who have successfully completed a training program under this Act, and skilled manpower including its periodic publication, maintenance of an adequate and up-to-date system of employment information.
ART. 51. Incentive Scheme. — An additional deduction from taxable income of one-half (Vi) of the value of labor training expenses incurred for developing or upgrading the productivity and efficiency of unskilled labor or for management development programs shall be granted to the person or enterprise concerned provided such training program is approved by the Council and provided that such deduction shall not exceed 10% of direct labor wage.
ART. 52. Council Secretariat. — To carry out the objectives of this Title, the Council shall have a Secretariat headed by an Executive Director appointed by the President on recommendation of the Council. The Executive Director shall be assisted by one Deputy Executive Director who shall be a career administrator likewise to be appointed by the President on recommendation of the Council. The Secretariat shall have an Office of Manpower Planning and Development, a National Manpower Skills Center, regional manpower development centers, and such other offices as may be deemed necessary.
The Executive Director shall have the rank and emoluments of an undersecretary and shall serve for a term of ten (10) years. The directors of the Office of Manpower Planning and Development and the Skills Center shall have the rank and emoluments of a bureau director and shall be subject to Civil Service Law, rules and regulations. The Executive Director, Deputy Executive Director, and Directors shall be natural-born citizens, from 30 to 50 years of aye at the time of appointment, have a master's degree or its equivalent, and experience in national planning and development of human resources. The Director of the Skills Center shall, in addition to the foregoing qualifications, have undergone training in center management. Directors shall be appointed by the President on recommendation of the Council.
The Executive Director shall appoint such personnel necessary to carry out the objectives, policies and functions of the Council subject to Civil Service rules.
The Secretariat shall have the following functions and responsibilities:
ART. 53. Regional Manpower Development Centers. — The Council shall create regional manpower development centers which shall determine the manpower needs of industry, agriculture and other sectors of the economy within their respective jurisdictions; provide the Council central planners with the data for updating the National Manpower plan; recommend programs for the regional level agencies engaged in manpower and youth development within the policies formulated by the Council; perform such other duties as may be assigned by the Council; administer and supervise Secretariat training programs within the region; and perform such other functions as may be authorized by the Council.
ART. 54. Consultants and Technical Assistance, Publication and Research. — In pursuing its objectives, the Council is authorized to set aside a portion of its appropriation for the hiring of the services of qualified consultants, and/or private organizations for research work publication. It shall avail itself of the services of other agencies of the Government as may be required.
ART. 55. Rules and Regulations. — The Council shall define its broad functions and issue appropriate rules and regulations necessary to implement the provisions of this Code.
TRAINING AND EMPLOYMENT OF SPECIAL WORKERS
ART. 56. Statement of Objectives. — This Title aims:
ART. 57. Definition of Terms. — As used in this Title:
ART. 58. Qualifications of Apprentice. — To qualify as an apprentice, a person shall:
ART. 59. Who May Employ Apprentices. — Employers may enter into apprenticeship agreements or otherwise employ apprentices only in apprenticeable trades and occupations approved by the Secretary of Labor.
ART. 60. Contents of Apprenticeship Agreements. — Apprenticeship agreements including wage rates of apprentices shall conform with applicable rules and regulations issued by the Secretary of Labor.
Apprenticeship agreements providing for wage rates below the legal minimum wage may be entered into only in accordance with apprenticeship programs duly approved by the Department of Labor. The Department shall develop standard model programs of apprenticeship.
ART. 61. Signing of Apprenticeship Agreement. —Every apprenticeship agreement shall be signed by the employer or his agent, or by an authorized representative of any of the recognized organizations, associations or groups, and by the apprentice.
An apprenticeship agreement with a minor shall be signed in his behalf by his parent or guardian and the same shall be binding up to the stipulated termination of the contract.
Every apprenticeship agreement entered into under this Title shall be ratified by the appropriate apprenticeship committees, if any, and a copy thereof shall be furnished both the employer and the apprentice.
ART. 62. Venue of Apprenticeship Programs. — Any firm, employer group or association, industry organization or civic group wishing to organize an apprenticeship program may choose from any of the following apprenticeship schemes as the training venue for apprentices:
ART. 63. Sponsoring of Apprenticeship Program. — Any of the apprenticeship schemes recognized herein may be undertaken or sponsored by a single employer or firm or by a group or association thereof, or by a civic organization. Actual training of apprentices may be undertaken:
ART. 64. Investigation of Violation of Apprenticeship Agreement. — Upon complaint of any interested person or upon its own initiative, the appropriate agency of the Department of Labor or its authorized representative shall investigate any violation of an apprenticeship agreement pursuant to such rules and regulations as may be prescribed by the Secretary of Labor.
ART. 65. Appeal to the Secretary of Labor. — The decision of the authorized agency of the Department of Labor may be appealed by any aggrieved person to the Secretary of Labor within five (5) days from receipt of the decision. The decision of the Secretary of Labor shall be final and executory.
ART. 66. Exhaustion of Administrative Remedies. — No person shall institute any action for the enforcement of any apprenticeship agreement, or damages for breach of any-such agreement, unless he has exhausted all available administrative remedies.
ART. 67. Aptitude Testing of Applicants. — Consonant with the minimum qualifications of apprentice-applicants required under this Chapter, employers or entities with duly approved apprenticeship programs shall have primary responsibility for providing appropriate aptitude tests in the selection of apprentices. If they do not have adequate facilities for the purpose, the Department of Labor shall perform the services free of charge.
ART. 68. Responsibility for Theoretical Instruction. — Supplementary theoretical instruction to apprentices in cases where the program is undertaken in the plant may be done by the employer. If the latter is not prepared to assume the responsibility, the same may be delegated to an appropriate government agency.
ART. 69. Voluntary Organization of Apprenticeship Programs; Exceptions. — The organization of apprenticeship programs shall be primarily a voluntary undertaking of employers. When national security or particular requirements of economic development so demand, the President of the Philippines may require compulsory training of apprentices in certain trades, occupations, jobs or employment levels where shortage of trained manpower is deemed critical as determined by the Secretary of Labor. Appropriate rules in this connection shall be promulgated by the Secretary of Labor as the need arises.
The number of apprentices to be compulsorily employed, in the case of factories and other industrial enterprises, shall depend upon the exigencies of the situation.
ART. 70. Deductibility of Training Costs. — An additional deduction from taxable income of one-half (1/2) of the value of labor training expenses incurred for developing the productivity and efficiency of apprentices shall be granted to the person or enterprise organizing an apprenticeship program provided such program is duly recognized by the Department of Labor: Provided, further, That such deduction shall not exceed 10% of direct labor wage: And provided, finally, That the person or enterprise who wishes to avail of this incentive should pay his apprentices the minimum wage.
ART. 71. Apprentices Without Compensation. — The Secretary of Labor may authorize the hiring of apprentices without compensation whose training on the job is required by the school or training program curriculum or as a requisite for graduation or board examination.
ART. 72. Learners Defined. — Learners are persons hired as trainees in semiskilled and other industrial occupations which are non-apprenticeable and which may be learned through practical training on the job in a relatively short period of time which shall not exceed three (3) months.
ART. 73. When Learners May Be Hired. — Learners may be employed when no experienced workers are available, the employment of learners is necessary to prevent curtailment of employment opportunities, and the employment does not create unfair competition in terms of labor costs or impair or lower working standards.
ART. 74. Learnership Agreement. — Any employer desiring to employ learners shall enter into a learnership agreement with them, which agreement shall include:
The learnership agreement shall be subject to inspection by the Secretary of Labor or his duly authorized representative.
ART. 75. Learners in Piecework. — Learners employed in piece or incentive rate jobs during the training period shall be paid in full for the work done.
ART. 76. Penalty Clause. — Any violation of this Chapter or its implementing rules and regulations shall be subject to the general penalty clause provided for in this Code.
ART. 77. Definition. — Handicapped workers are those whose earning capacity is impaired by age or physical or mental deficiency or injury.
ART. 78. When Employable. — Handicapped workers may be employed when their employment is necessary to prevent curtailment of employment opportunities and when it does not create unfair competition in labor costs or impair or lower working standards.
ART. 79. Employment Agreement. — Any employer who employs handicapped workers shall enter into an employment agreement with them, which agreement shall include:
The employment agreement shall be subject to inspection by the Secretary of Labor or his duly authorized representatives.
ART. 80. Eligibility for Apprenticeship. — Subject to the appropriate provisions of this Code, handicapped workers may be hired as apprentices or learners if their handicap is not such as to effectively impede the performance of job operations in the particular occupations for which they are hired.
ART. 81. Penalty Clause. — Violation of any provision of this Chapter or its implementing rules and regulations shall be subject to the general penalty clause provided for in this Code.
BOOK III
CONDITIONS OF EMPLOYMENT
WORKING CONDITIONS AND REST PERIODS
ART. 82. Coverage. The provisions of this Chapter shall apply to employees in all establishments and undertakings, whether for profit or not, but not to government employees, managerial employees, field personnel, domestic servants, persons in the personal service of another, workers who are paid by results when their output rates have been fixed by the Secretary of Labor as provided for in this Book, and members of the family of the employer who are dependent on him for support.
As used herein, "managerial employee" refers (a) to those whose primary duty consists of the management of the establishment in which they are employed or of a department or subdivision thereof or (b) to other officers or members of the managerial staff.
"Field personnel" shall refer to n on agricultural employees who regularly perform their duties away from the principal or branch office or place of business of the employer and whose actual hours of work in the field cannot be determined with reasonable certainty.
ART. 83. Normal Hours of Work. — The normal hours of work of any employee shall not exceed eight (8> in a day.
Health personnel shall hold regular office hours for eight (8) hours a day, for five (5) days a week, or a total of forty (40) hours a week, exclusive of time for lunch, if their services are rendered in cities and municipalities with a population of one (1) million or more or in hospitals and clinics with a bed capacity of at least one hundred (100). For purposes of this Article, "health personnel" shall include government and private resident physicians, nurses, nutritionists, dieticians, pharmacists, social workers, laboratory technicians, paramedical technicians, psychologists, midwives, attendants and all other hospital or clinic personnel.
ART. 84. Hours Worked. — Hours worked shall include:
Rest periods of short duration during working hours shall be counted as hours worked.
ART. 85. Meal Periods. — Subject to such regulations as the Secretary of Labor may prescribe, it shall be the duty of every employer to give his employees not less than sixty (60) minutes time-off for their regular meals.
ART. 86. Overtime Work.— Work may be performed beyond eight (8) hours a day provided that the employee is paid for the overtime work an additional compensation equivalent to his regular wage plus at least twenty-five percent (25%) thereof.
ART. 87. Premium and Overtime Pay for Holiday and Rest Day Work. — Any employee performing work on holidays or on his scheduled rest days, not exceeding eight (8) hours, shall be paid an additional compensation of not less than thirty percent (30%) of his regular wage. For work performed in excess of eight (8) hours on such days, he shall be paid an additional compensation equivalent to his rate for the first eight (8) hours on a holiday or rest day plus at least thirty percent (30%) thereof.
ART. 88. Undertime Not Offset by Overtime. — Undertime work on any particular day shall not be offset by overtime work on any other day. Permission given to the employee to go on leave on some other day of the week shall not exempt the employer from paying the additional compensation required in this Chapter.
ART. 89. Emergency Overtime Work. — Any employee may be required by the employer to perform overtime work in any of the following cases:
Any employee required to render overtime work under this Article shall be paid the additional compensation required in this Chapter.
ART. 90. Computation of Additional Compensation. — For purposes of computing overtime and other additional remuneration as required by this Chapter, the "regular wage" of an employee shall include the cash wage only, without deduction on account of facilities provided by the employer.
Weekly Rest Periods
ART. 91. Right to Weekly Rest Day. — It shall be the duty of any employer, whether operating for profit or not, to provide each of his employees a rest period of not less than twenty-four (24) consecutive hours for every seven (7) consecutive days.
ART. 92. Determination of Rest Day. — The employer shall determine and schedule the weekly rest day of his employees, subject to collective bargaining agreement and to such rules and regulations as the Secretary of Labor may prescribe. The preference of the employees as to their weekly rest days shall be respected by the employer if the same is based on religious grounds.
ART. 93. When Employer May Require Work on a Rest Day. — The employer may require his employees to work on any day:
ART. 94. Compensation for Rest Day/Sunday/Holiday Work. —
ART. 96. Application of Title. — This Title shall not apply to farm tenancy or leasehold, domestic service and persons working in their respective homes in needlework or in any cottage industry duly registered in accordance with law.
Minimum Wage Rates
ART. 97. Statutory Minimum Wages. — The minimum wage rates for agricultural and nonagricultural employees shall be those prescribed by law in force on the date this Code takes effect.
ART. 98. Prohibition Against Reduction or Elimination of Wages or Benefits. — Nothing in this Title shall be construed to authorize any employer to eliminate, or diminish in any way, supplements, or other employee benefits being enjoyed at the time of promulgation of this Code.
ART. 99. Payment by Results. — The Secretary of Labor shall regulate the payment of wages by results, including pakyao, piecework and other non-time work, in order to ensure the payment of fair and reasonable wage rates, preferably through time and motion studies or in consultation with representatives of workers' and employers' organizations.
Payment of Wages
ART. 100. Forms of Payment. — No employer shall pay the wages of an employee by means of promissory notes, vouchers, coupons, tokens, tickets, chits or any object other than legal tender, even when expressly requested by the employee.
Payment of wages by check or money order shall be allowed when such manner of payment is customary on the date of effectivity of this Code, or is necessary because of special circumstances as specified in appropriate regulations to be issued by the Secretary of Labor or is stipulated in a collective bargaining agreement.
ART. 101. Time of Payment - Wages shall be paid at least once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days. If on account of force majeure or circumstances beyond the employer's control, payment of wages on or within the time herein provided cannot be made, the employer shall pay the wages immediately after such force majeure or circumstances have ceased.
The payment of wages of employees engaged to perform a task which cannot be completed in two (2) weeks shall be subject to the following conditions in the absence of a collective bargaining agreement or arbitration award:
No employer shall make payment with less frequency than once a month.
ART. 102. Place of Payment. — Payment of wages shall be made at or near the place of undertaking, except as otherwise provided by such regulations as the Secretary of Labor may prescribe under conditions to ensure greater protection of wages.
ART. 103. Direct Payment of Wages. — Wages shall be paid directly to the workers to whom they arc due, except:
ART. 104. Contractor or Subcontractor. — Whenever an employer enters into a contract with another person for the performance of the former's work, the employees of the contractor and of the latter's subcontractor, if any, shall be paid in accordance with the provisions of this Code.
In the event that the contractor or subcontractor fails to pay the wages of his employees in accordance with this Code, the employer shall be jointly and severally liable with his contractor or subcontractor to such employees to the extent of the work performed under the contract, in the same manner and extent that he is liable to employees directly employed by him.
The Secretary of Labor may, by appropriate regulations, restrict or prohibit the contracting out of labor to protect the rights of workers established under this Code. In so prohibiting or restricting, he may make appropriate distinctions between labor-only contracting, and job contracting, as well as differentiations within these types of contracting, and determine who among the parties involved shall be considered the employer for purposes of this Code, to prevent any violation or circumvention of any provision of this Code.
Labor-only contracting shall he deemed unlawful where the person supplying workers to an employer dues not have substantial capital or investment in the form of tools, equipment, machineries, work premises, among others, and the workers recruited and placed by such person are performing activities which are directly related to the principal business of such employer. In such cases, the person or intermediary shall be considered merely as an agent of the employer who shall be responsible to the workers in the same manner and extent as if the latter were directly employed by him.
ART. 105. Indirect Employer. — The provisions of the immediately preceding Article shall likewise apply to any person, partnership, association or corporation which, not being an employer, contracts with an independent contractor for the performance of any work, task, job or project.
ART. 106. Posting of Bond. — An employer or indirect employer may require the contractor or subcontractor lo furnish a bond equal to the cost of labor under contract, on condition that, the bond will answer for the wages due the employees should the contractor or subcontractor, as the case may be, fail to pay the same.
ART. 107. Solidary Liability. — The provisions of existing laws to the contrary notwithstanding, every employer or indirect employer shall be held responsible with his contractor or subcontractor for any violation of any provision of this Code. For purposes of determining the extent of their civil liability under this Chapter, they shall be considered as direct employers.
ART. 108. Worker Preference in Case of Bankruptcy. — In the event of bankruptcy or liquidation of an employer's business, his workers shall enjoy first preference as regards Wages due them for services rendered during the period prior to the bankruptcy or liquidation, any provision of law to the contrary notwithstanding. Unpaid wages shall be paid in full before other creditors may establish any claim to a share in the assets of the employer.
ART. 109. Attorney's Fees. — Attorney's fees in any judicial or administrative proceedings for the recovery of wages shall not exceed ten percent (10%) of the amount awarded.
Prohibitions Regarding Wages
ART. 110. Noninterference in Disposal of Wages. — No employer shall limit or otherwise interfere with the freedom of any employee lo dispose of his wages. He shall not in any manner force, compel, or oblige his employees to purchase merchandise, commodities, or other property from the employer or from any other person or otherwise make use of any store or services of such employer or any other person.
ART. 111. Wage Deduction. No employer, in his own behalf or in behalf of any person, shall make any deduction from the wages of his employees except:
ART. 112. Deposits for Loss or Damage. — No employer shall require his worker to make deposits from which deductions shall be made for the reimbursement of loss of or damage to tools, materials, or equipment supplied by the employer, except when the employer is engaged in such trades, occupations or businesses where the practice of making deductions or requiring deposits is a recognized one, or is necessary or desirable as determined by the Secretary of Labor m appropriate rules and regulations.
ART. 113. Limitations. — No deduction from the deposits of an employee for the actual amount of the loss or damage shall be made unless the employee has been heard thereon, and his responsibility has been clearly shown.
ART. 114. Withholding of Wages and Kickbacks Prohibited. — It shall be unlawful for any person, directly or indirectly, to withhold any amount from the wages of a worker or induce him to give up any part of his wages by force, stealth, intimidation, threat or dismissal or by any other means whatsoever without the worker's consent.
ART. 115. Deduction to Ensure Employment. — It shall be unlawful to make any deduction from the wages of any employee for the benefit of the employer or his representative or intermediary as consideration of a promise of employment or retention in employment.
ART. 116. Retaliatory Measures. — It shall be unlawful for an employer to refuse to pay, reduce the wages, discharge or in any manner discriminate against any employee who has filed any complaint or instituted any proceeding under this Title.
ART. 117. False Reporting. — It shall be unlawful for any person to make any statement, report, or record filed or kept pursuant to the provisions of this Code knowing such statement, report or record to be false in any material respect.
Wage Studies, Wage Agreements and Wage Determination
ART. 118. Wage Studies — (a) The Wage Commission in the Department of Labor shall conduct a continuing study of wage rates in the various agricultural and non-agricultural industries all over the country for the purpose of ascertaining whether a substantial number of employees in a given industry arc receiving wages which, although complying with the minimum provided for in this Title, are less than sufficient to maintain them in health, efficiency and general well-being, taking into account the peculiar circumstances of the industry and its geographical location, among others. If after such study or studies the Commission is of the opinion that such number of employees arc receiving such wages, it shall, subject to the approval of the Secretary of Labor, proceed to determine the same after notice and hearing.
ART. 119. Wage Recommendations. —The Commission shall have 60 days within which to conduct hearings and recommend to the Secretary of Labor the issuance of a wage order establishing the minimum wage or wages to be paid by employers in the industry or the various branches thereof.
ART. 120. Wage Order. — Upon submission of the Commission recommendation, the Secretary of Labor shall give notice to interested parties and conduct a public hearing thereon within 15 days. On the basis of the Commission recommendation and of the results of the public hearing, the Secretary of Labor shall, within 15 days after the termination of the hearing, approve or reject but shall not modify the minimum wages recommended by the Commission. If he rejects the recommendation, he shall issue a statement of his reasons therefor and shall direct the Commission to consider the same immediately. If he approves the recommendation of the Commission, original or modified, he shall immediately issue a wage order, subject to the approval of the President of the Philippines, prescribing the minimum wage to be paid to the employees in the industry.
ART. 121. Criteria for Minimum Wage Fixing. — A minimum wage to be established by the Commission shall be as nearly adequate as is economically feasible to maintain the minimum standards of living necessary for the health, efficiency and general well-being of the employees within the framework of the national economic and social development program. In the determination of a minimum wage, the Commission shall, among other relevant factors, consider the following:
The wages established in accordance with the provisions of this Title shall not be the standard prevailing minimum wages in the industry on the effective date of this Code and in no case less than the minimum wage rates set forth in Chapter II of this Title. These wages may include wages varying with localities if in the judgment of the Commission and the Secretary of Labor conditions make such local differentiation proper and necessary to effectuate the purposes of this Title.
ART. 122. Effectivity of the Wage Order. — A Wage Order shall take effect 15 days after publication in at least one (1) newspaper of general circulation and by such other means as the Secretary of Labor deems reasonably calculated lo give the interested parties general notice of such issuance. From the date of the effectivity of a Wage Order, no employee who is within the scope of such order shall be paid wages below the rate fixed therein.
Only the Wage Order itself shall be published.
ART. 123. Freedom to Bargain. — No Wage Order shall be construed to prevent workers in particular firms or enterprises of industries from bargaining for higher wages with their respective employers.
ART. 124. Prohibition Against Injunction. — No injunction may be issued by any court to restrain any proceeding of or before the Wage Commission or the Secretary of Labor except on the basis of question of law by the Supreme Court on certiorari.
ART. 125. Power of the Commission. — In conducting a continuing study of wage rates and other economic conditions in any industry or branches thereof, the Commission may call upon the assistance and cooperation of any regional, provincial and local government agency and may call interested parties to furnish information in aid of its deliberations.
Administration and Enforcement
ART. 126. Visitorial Powers. — The Secretary of Labor or his duly authorized representatives, including, but not restricted to, the labor inspectorate, shall have access to employers' records and premises at any time of the day or night whenever work is being undertaken therein, and the right Lo copy therefrom, to question any employee and investigate any fact, condition or matter which may be necessary to determine violations or in aid in the enforcement of this Title and of any wage order or regulation issued pursuant to this Code.
ART. 127. Recovery of Wages. — Upon application of any interested party, the Bureau of Labor Relations or any regional office of the Department of Labor may certify to the National Labor Relations Commission established under this Code any matter involving the recovery of wages and other benefits owing to an employee under this Code, with legal interest. Any sum thus recovered on behalf of an employee pursuant to this Article shall be held in a special deposit account by and shall be paid, on order of the Secretary of Labor, directly to the employee concerned. Any such sum not paid to the employee because he cannot be located within a period of two (2) years shall be held as a special fund of the Department of Labor to be used exclusively in the administration and enforcement of labor laws.
The Secretary of Labor or his duly authorized representative may supervise the payment of unpaid wages and other benefits found owing to any employee under this Code.
WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES
Employment of Women
ART. 129. Exceptions. — The prohibitions prescribed by the preceding Article shall not apply in any of the following cases:
ART. 130. Facilities for Women. — The Secretary of Labor shall establish standards that will insure the safety and health of women employees. In appropriate cases, he shall by regulations require any employer to:
ART. 131. Maternity Leave Benefits. —
ART. 132. Family Planning Services; Incentives for Family Planning. —
ART. 133. Discrimination Prohibited. — No employer shall discriminate against any woman with respect to terms and conditions of employment on account of her sex. Equal remuneration shall be paid to both men and women for work of equal value.
ART. 134. Stipulation Against Marriage. — It shall be unlawful for an employer to require as a condition of employment or continuation of employment that a woman employee shall not get married, or to stipulate expressly or tacitly that upon getting married a woman employee shall be deemed resigned or separated, or to actually dismiss, discharge, discriminate or otherwise prejudice a woman employee merely by reason of her marriage.
ART. 135. Prohibited Acts. — (a) It shall he unlawful for any employer:
ART. 136. Classification of Certain Women Workers. — Any woman who is permitted or suffered to work, for a substantial period of time under the effective control or supervision of the employer, with or without compensation, in any night club, cocktail lounge, bar, massage clinic, or any similar place, shall be considered as an employee of such establishment for purposes of existing labor and social legislations.
Employment of Minors
ART. 137. Minimum Employable Age. — No child below fourteen (14) years of age shall be employed by an employer, except where the child works directly under the sole responsibility of his parent or guardian, involving activities which arc not hazardous in nature and which do not in any way interfere with his schooling.
ART. 138. Age Eligibility for Employment. — Any person between fourteen (14) and eighteen (18) years of age may be employed in any non-hazardous undertaking for such number of hours and during certain periods of the day as determined by the Secretary of Labor in appropriate regulations. The employer shall not discriminate against any such person in respect to terms and conditions of employment on account of his age.
Employment of Househelpers
ART. 139. Coverage. - This Chapter shall apply to all persons rendering services in the households for a compensation, except those who do not live therein but return to their own houses after their work.
"Domestic or household service" shall mean such service in the employer's home which is usually necessary or desirable for the maintenance and enjoyment thereof and include ministering to the personal comfort and convenience of the members of the employer's household, including services of family drivers.
ART. 140. Contract of Domestic Service. — The original contract of domestic service shall not last for more than two (2) years but it may be renewed for such periods as may be agreed upon by the parties.
ART. 141. Minimum Wage. — (a) Househelpers shall be paid the following minimum wage rates:
ART. 142. Minimum Cash Wage. —The minimum wage rates prescribed under this Chapter shall be the basic cash wages which shall be paid to the househelpcr in addition to lodging, food and medical attendance.
ART. 143, Assignment to Non-Household Work. — No househelper shall be assigned to work in a commercial, industrial or agricultural enterprise at a wage or salary rate lower than that provided for agricultural or nonagricultural worker as prescribed herein.
ART. 144. Opportunity for Education. — If the househelper is under the age of eighteen (18) years, the employer shall give him or her an opportunity for at least elementary education. The cost of such education shall be part of the househelper compensation, unless there is a stipulation to the contrary.
ART. 145. Treatment of Househelpers. — The employer shall treat the househelper in a just and humane manner. In no case shall physical violence be used upon the househelper.
ART. 146. Board, Lodging and Medical Attendance. — The employer shall furnish the househelper free of charge suitable and sanitary living quarters as well as adequate food and medical attendance.
ART. 147. Indemnity for Unjust Termination of Services. — If the period of household service is fixed, neither the employer nor the househelper may terminate the contract before the expiration of the term, except for a just cause. If the househelper is unjustly dismissed, he or she shall be paid the compensation already earned plus that for fifteen (15) days by way of indemnity.
If the househelper leaves without justifiable reason, he or she shall forfeit any unpaid salary due him or her not exceeding fifteen (15) days.
ART. 148. Rules on Services of Termination Notice. — If the duration of the household service is not determined either by stipulation or by the nature of the service, the employer or the househelper may give notice to put an end to the relationship five (5) days before the intended termination of the service.
ART. 149. Employment Certification. —Upon the severance of the household service relation, the employer shall give the househelper a written statement of the nature and duration of the service and his or her efficiency and conduct as househelper.
ART. 150. Employment Records. — The employer may keep such records as he may deem necessary to reflect the actual terms and conditions of employment of his househelper which the latter shall authenticate by signature or thumbmark upon request of the employer.
Employment of Homeworkers
ART. 151. Regulation of Industrial Homework. — The employment of industrial homeworkers and field personnel shall be regulated by the Government through appropriate regulations issued by the Secretary of Labor to ensure the general welfare and protection of homeworkers and field personnel and the industries employing them.
ART. 152. Regulations of Secretary of Labor. — The regulations or orders to be issued pursuant to this Chapter shall be designed to assure the average employee of an undertaking the minimum terms and conditions of employment applicable to the industrial homeworkers or field personnel involved.
ART. 153. Distribution of Homework. — For the purposes of this Chapter, the "employer" of homeworkers includes any person, natural or artificial, who for his account or benefit, or on behalf of any person residing outside the country, directly or indirectly, or through any employee, agent, contractor, subcontractor or any other person:
BOOK IV
HEALTH, SAFETY AND SOCIAL WELFARE BENEFITS
MEDICAL, DENTAL AND OCCUPATIONAL SAFETY
Medical and Dental Services
ART. 154. First-Aid Treatment. — Every employer shall keep in his establishment such first-aid medicines and equipment as the nature and conditions of work may require, in accordance with such regulations as the Department of Labor shall prescribe.
The employer shall take steps for the training of a sufficient number of employees in first-aid treatment.
ART. 155. Emergency Medical and Dental Services. — It shall be the duty of any employer to furnish his employees in any locality with free medical and dental attendance and facilities consisting of:
In cases of hazardous workplaces, no employer shall engage the services of a physician or dentist who cannot stay in the premises of the establishment for at least two (2) hours, in the case of those engaged on part-time basis, and not less than eight (8) hours in the case of those employed on full-time basis. Where the undertaking is non-hazardous in nature, the physician and dentist may be engaged on retained basis, subject to such regulations as the Secretary of Labor may prescribe to insure immediate availability of medical and dental treatment and attendance in cases of emergency.
ART. 156. When Emergency hospital Not Required. — The requirement for an emergency hospital or dental clinic shall not be applicable in case there is a hospital or dental clinic which is accessible from the employer's establishment and he makes arrangements for the reservation therein of the necessary beds and dental facilities for the use of his employees.
ART. 157. Health Program. — The physician engaged by an employer shall, in addition to his duties under this Chapter, develop and implement a comprehensive occupational health program for the benefit of the employees of his employer.
ART. 158. Qualifications of Health Personnel. — The physicians, dentists, and nurses employed by employers pursuant to this Chapter shall have the necessary training in industrial medicine and occupational safety and health. The Secretary of Labor, in consultation with industrial, medical, and occupational safety and health associations, shall establish the qualifications, criteria and conditions of employment of such health personnel.
ART. 159. Assistance of Employer. — It shall be the duty of any employer to provide all the necessary assistance to ensure the adequate and immediate medical and dental attendance and treatment to an injured or sick employee in case of emergency.
Occupational Health and Safety
ART. 160. Safety and Health Standards. — The Secretary of Labor shall by appropriate orders set and enforce mandatory occupational safety and health standards to eliminate or reduce occupational safety and health hazards in all workplaces and institute new and update existing programs to ensure safe and healthful working conditions in all places of employment.
ART. 161. Research. — It shall be the responsibility of the Department of Labor to conduct continuing studies and research to develop innovative methods, techniques and approaches for dealing with occupational safely and health problems; to discover latent diseases by establishing causal connections between diseases and work in environmental conditions; and to develop medical criteria which will assure insofar as practicable that no employee will suffer impairment or diminution in health, functional capacity, or life expectancy as a result of his work and working conditions.
ART. 162. Training Programs. — The Department of Labor shall develop and implement training programs to increase the number and competence of personnel in the field of occupational safety and industrial health.
ART. 163. Administration of Safely and Health Laws. — The Department of Labor shall be solely responsible for the administration and enforcement of occupational safety and health laws in all establishments and workplaces wherever they may be located; however, chartered cities may be allowed to conduct industrial safety inspections of establishments within their respective jurisdictions where they have adequate facilities and competent personnel for the purpose as determined by the Department of Labor and subject to national standards established by the latter.
EMPLOYEES COMPENSATION AND STATE INSURANCE FUND
Policy, Definitions, and Coverage
ART. 164. Policy. - The State shall provide an employees compensation program whereby workers or their dependents, in the event of work-connected injuries or death, may promptly secure adequate financial, medical and related benefits.
ART. 165. Definitions of Terms. — As used in this Title, unless the context otherwise requires:
ART. 166. Definitions Relating to Family Relationships. — As used in this Title:
ART. 167. Limitation of Liability for Compensation. —The State Insurance Fund shall be liable for compensation for injury or death to the employee except where the same was occasioned solely by the employee's intoxication, by his willful intention to injure or kill himself or another, or by his notorious negligence:
ART. 168. Compulsory Coverage of Employers. — "Employer" under this Title shall include:
ART. 169. Coverage of Employees. — "Employee" under this Title shall include:
ART. 170. Exemptions. — The following employees are exempt from the coverage of this Title:
ART. 171. Foreign Employment. —The Commission shall ensure adequate coverage and protection of Filipino workers employed abroad, subject to such rules and regulations as it may promulgate.
ART. 172. Registration. —Every employer covered under Article 168 of this Title shall register with the SSS or the GSIS, as the case may be, in accordance with such procedures as the SSS or the GSIS may prescribe.
ART. 173. Exclusiveness of Liability. — Unless otherwise provided by law, the liability of the System under this Title shall be exclusive and in place of all other liabilities of the employer to the employee, his legal representative, dependents or nearest of kin or anyone otherwise entitled to receive damages under the Civil Code on account of such injury or death.
In the case of government employees, the right to compensation under this Title shall be a bar to the recovery of benefits for the same injuries or death provided for in Section 699 of the Revised Administrative Code, as amended, and other existing laws, except those granted by the Government Service Insurance System.
ART. 174. Liability of Third Parties. — (a) In case the injury or death for which compensation is due under this Title is caused by circumstances creating a legal liability in some person other than the employer, it shall be optional for the injured employee or his dependent either to claim compensation from the System under this Title or to sue such other person for damages in accordance with law.
ART. 175. Deprivation of Benefits. — No contract, rule, regulation or device whatsoever shall operate to diminish or deprive the employee or his dependents of benefits granted under this Title.
Administration of the Fund
ART. 176. State Insurance Fund. — The compensation and other related benefits and services herein provided shall be paid from a State Insurance Fund which is hereby established in the SSS and the GSIS.
ART. 177. Employees Compensation Commission. —The Employees Compensation Commission shall be composed of the Secretary of Labor as ex officio Chairman with the following as members: The Administrator of the SSS, the Genera) Manager of the GSIS, 2 members representing the employees and 2 members representing the employers. The last four (4) members of the Commission shall be appointed by the President of the Philippines for a term of six (6) years. The first two (2) appointive members shall be appointed for three (3) years, and the other two for six (6) years, respectively. All vacancies, except through the expiration of the terms, shall be filled for the unexpired term only. The members of the Commission shall receive a per diem of one hundred pesos (P100) for each meeting actually attended exclusive of actual, ordinary and necessary travel expenses chargeable to the State Insurance Fund. Members of the Commission who are government officials shall serve without additional compensation but may be allowed actual, ordinary and necessary travel expenses.
In the absence of the Secretary of Labor, the Undersecretary or any member of the Commission designated by him shall act as Chairman. In his absence, the Administrator of the SSS or the General Manager of the GSIS may designate his representative to act in his behalf.
ART. 178. Powers and Duties. — The Commission shall:
ART. 179. Review. — Actions of the Commission under paragraphs (a), (b) and (c) of the preceding Article may be reviewed on certiorari upon petition of an aggrieved party by (he Supreme Court only on questions of law within ten (10) days from notice thereof.
ART. 180. Enforcement of Decisions. — Any decision, order, or resolution of the Employees Compensation Commission shall become final and executory within ten (10) days from notice thereof if no appeal is taken therefrom, and all monetary awards involved in cases appealed from decisions of the System shall be paid by the System within fifteen (15) days from receipt of notice.
In all other cases, decisions, orders, and resolutions of the Employees Compensation Commission which have become final and executory shall be enforced and executed in the same manner as decisions of the Court of First Instance, and the Commission shall have the power to issue to the City or Provincial Sheriff or to the Sheriff whom it may appoint such writs of execution as may be necessary for the enforcement of such decisions, orders or resolutions and any person who shall fail or refuse to comply therewith shall, upon application by the Commission, be punished by the proper court for contempt.
ART. 181. Secretariat. — There shall be created a Secretariat in the Commission to be headed by a chief executive officer who shall be appointed by the President of the Philippines, subject to Civil Service Law and rules. He shall have previous experience in technical and administrative fields related to the purposes of this Title. His salary shall be fixed by the Commission payable from the State Insurance Fund.
ART. 182. Assessment of Premium Rates of Employers. — The Employees Compensation Commission shall assess and fix a rate of premium from all employers covered under Article 168 of this Title. The rate of premiums shall be reviewed periodically and may be revised as the underwriting experience, hazard risk, loss experience, legitimate claims, cost of administration, including anticipated as well as unexpected losses, may require.
ART. 183. Premiums from Private Employers. — The SSS shall collect from every employer under Article 168(a) of this Title premiums in accordance with rates prescribed in the next preceding Article.
ART. 184. Premiums from Public Agencies. — In the case of the National Government and its political subdivisions and instrumentalities, as well as government-owned and/or controlled corporations, the premiums shall be determined by the Commission, taking into account actuarial studies, to be collected by the GSIS. Any deficiency shall be met with supplemental appropriations.
ART. 185. Payments. — The initial payment of premiums shall be made within thirty (30) days from the effectivity of this Code. Thereafter, remittance of premiums shall be made within such time and in such manner as may be prescribed by the GSIS or SSS.
Premiums under this Title shall be paid in their entirety by the employer and any contract or device for the deduction of any portion thereof from the wages of the employees or laborers shall be null and void.
ART. 186. Effect of Nonpayment. — Any employer who defaults in the payment of such premium after they become due and payable shall, in addition thereto, be liable to a surcharge of three percent (3%) thereon for every month of default, both of which may be collected pursuant to distraint issued by the Commission, the SSS or the GSIS. The defaulting employee shall be solely liable to the System during the entire period of default for payment of compensation and related benefits which may have been paid by the System to his employees or their dependents, and any and all premiums, compensation and related benefits and other expenses to which such employer is liable shall constitute a lien on all his property, real and personal, which is hereby declared to be preferred to any credit except taxes. Failure or refusal of the employer to pay or remit the premiums herein prescribed shall not prejudice the right of the employee or his dependents to the benefits under this Title.
ART. 187. Administration and Disbursement of Funds. — All revenues of the State Insurance Fund shall be kept separate and distinct from all other funds, and shall be administered and disbursed in the same manner and under the same conditions, requirements and safeguards as provided by Republic Act Numbered One Thousand One Hundred Sixty-one, as amended, and Commonwealth Act Numbered One Hundred Eighty-six, as amended, with regard to such other funds as are thereunder being paid to and/or collected by the SSS and the GSIS, respectively: Provided, That they conform with the policies, rules and regulations, decisions, orders and resolutions of the Employees Compensation Commission.
All revenues of the State Insurance Fund and of the SSS and the GSIS, as the case may be, as are not needed to meet the current administrative and operational expenses under this Title shall he accumulated in a fund to be known as "Reserve Fund" which shall be used exclusively for the payment of all benefits, medical, rehabilitation and burial services under this Title, and no amount thereof shall be withdrawn or used for any other purpose. All amounts accruing to the Reserve Fund shall be deposited with any authorized depository hanks approved by the Commission, or invested in high interest securities that will mature within one (1) year.
Medical, Rehabilitation and Burial Services
ART. 188. Medical Services, Appliances and Supplies. — Immediately after an employee has suffered an injury and during the subsequent period of disability the System shall provide the employee with such medical services, appliances and supplies as the nature of his disability and the process of his recovery may require.
ART. 189. System Not Liable for Improper Selection by Employee. — The System shall not be responsible for the changes made by the employee without the approval of the System in medical services, appliances and supplies or any physician furnished or selected by the System nor for compensation for any aggravation of the employee's injury attributable to such unauthorized changes.
ART. 190. Attending Physicians Subject to Rules and Regulations. — All physicians attending injured employees shall comply with all the rules and regulations adopted by the System and shall make reports in forms prescribed by the System at such time as may be required concerning the condition or treatment of any injured employee. All medical information relevant to the particular injury shall, on demand, be made available to the employee and the System. No information developed in connection with treatment or examination for which compensation is sought shall be considered as privileged communication.
ART. 191. Refusal to Submit to Examination or Treatment. — If the employee unreasonably refuses to submit to medical examination or treatment, the System shall suspend the payment of further compensation and his right to further proceedings during such time as such refusal continues. What constitutes an unreasonable refusal shall be determined by the System, which may, on its own initiative, determine the necessity, character, and sufficiency of any medical service furnished or to be furnished and shall have the authority to order a change of physician, hospital or rehabilitation facility when in its judgment such a change is desirable or necessary.
ART. 192. Fees for Medical Services. — All fees and other charges for such medical services shall not be higher than those prevailing in the community for similar services to injured persons in general and shall be subject to regulation by the System.
ART. 193. Rehabilitation Program. — The System shall establish a continuing program for the rehabilitation of injured employees.
ART. 194. Rehabilitation Services. — An employee who has suffered an injury covered by this Title shall be entitled to prompt medical rehabilitation services. When, as a result of the injury, he is unable to perform work for which he has had previous training or experience, he shall be entitled to such vocational rehabilitation services, including retraining, as may be reasonably necessary to restore him to suitable employment.
ART. 195. Reasonable Cost of Board, Lodging or Travel to be Paid by the System. — Where rehabilitation requires residence at or near the facility or institution away from the employee's customary residence, reasonable cost of his board, lodging or travel shall be paid by the System.
ART. 196. Refusal to Accept Rehabilitation Pursuant to Order. — Refusal to accept rehabilitation pursuant to an order of the System or Commission shall result in loss of the right to such service.
ART. 197. Occupational Diseases and Periodic Medical Examinations. — The Commission may by regulation provide for a schedule of occupational diseases which are peculiar to or characteristic of particular processes, trades, or occupations.
For this purpose, it may require pre-employment examination and periodic .medical examination during employment for the early detection of occupational hazards and diseases, and to take such other measures as may be necessary.
ART. 198. Burial Expenses, - If death results from an injury covered by this Title, the System shall pay an amount of five hundred pesos (P500) as burial expenses to any person who incurred such expenses or has liability therefor. However, the GSIS or SSS shall deduct this amount from the funeral expense benefit it grants to its members.
ART. 199. Temporary Total Disability. — In case the injury causes temporary total disability for labor, the System shall, during such disability( pay the injured employee a weekly income benefit equivalent to sixty percent (60%) of his average weekly wage for a period not beyond two hundred eight (208) weeks but the total compensation shall not exceed twelve thousand pesos (P12,000).
His income benefit shall not be less than twenty-six pesos (726) per week, except where his average weekly wage is less than this amount, in which case the weekly compensation shall be the entire amount of such average weekly wage. No income benefit shall be allowed for the first three (3) calendar days of disability; but if the disability extends beyond that period, compensation shall be allowed from the date of disability. The day on which the injury occurred shall be included in computing this waiting period unless the employee has been paid full wages for that day.
ART. 200. Total and Permanent Disability. — In case the injury causes permanent total disability, the System shall pay the injured employee a weekly income benefit equal to sixty percent (60%) of his average weekly wage, but which shall not be less than twenty-six pesos (P26) in any case and shall not extend beyond two hundred sixty (260) weeks, but the total compensation shall not exceed twelve thousand pesos (PI2,000). No award of total and permanent disability compensation shall take effect until after two (2) weeks have elapsed from the date of the injury.
In the case of the following injuries, the disability caused thereby shall be deemed total and permanent:
ART. 201. Permanent Partial Disability. — In case the injury causes permanent partial disability, the System shall pay the injured employee a weekly income benefit equal to fifty percent (50%) of his average weekly wage for the period designated in the following schedules:
For the loss of the first finger, commonly called the index finger, thirty (30) weeks;
For the loss of the second finger, twenty-five (25) weeks;
For the loss of the third finger, commonly called the little finger, ten (10) weeks;
For the loss of the first joint of the thumb or any other finger, one-half of the income benefit above specified for the loss of the thumb or finger.
The loss of more than one joint of the thumb or a finger shall be considered as loss of the entire thumb or finger. However, the sum paid for the loss of more than one finger shall in no case exceed the sum provided for in this list for the loss of a hand.
For the loss of a big toe, twenty-five (25) weeks;
For the loss of a toe other than the big toe, ten (10) weeks.
The loss of the first joint of any toe shall be considered equal to the loss of half of the toe and the income benefit shall be one-half of the sum specified for the loss of the toe. The loss of more than one joint of any toe shall be considered equal to the loss of the entire toe.
For the complete and permanent loss of the sense of hearing in both ears, two hundred and eight (208) weeks;
For the complete and permanent loss of the sense of hearing in one ear, forty (40) weeks;
For the loss of both ears, eighty-four (84) weeks;
For the loss of one ear, forty (40) weeks;
The permanent loss of the use of a hand, an arm, a foot, a leg, an eye, a thumb, a finger, a toe, or a joint shall be considered equivalent to and be compensated at the same rate as the loss of a hand, arm, foot, leg, eye, thumb, finger, toe or joint.
ART. 202. Partial Loss of Use of Member Named in Schedule. — In cases of a permanent partial disability due to the injury of any of the members specified in the next preceding Article, less than the total loss of the member or less than the total loss of its use, and in case the disability is not otherwise compensated in the next preceding Article, the income benefits shall be paid in the proportion prescribed in the next preceding Article for the total loss of the member or for total loss of use thereof, and for the period of time hereinafter specified.
The proportion which the permanent partial disability bears to the total disability of the same member, as specified in the schedule, shall be determined and the income benefit above prescribed shall be paid for a portion of the period above established for the total loss of the member or for the total loss of the use thereof, in accordance with the proportion which the disability bears to the total disability of the members.
ART. 203. Amputation. — Amputation between elbow and wrist shall be considered equivalent to the loss of a hand. Amputation between knee and ankle shall be considered loss of a foot. Amputation at or above the elbow shall be considered equivalent to the loss of an arm. Amputation at or above the knees shall be considered equivalent to the loss of a leg.
ART. 204. Disfigurement. — In case of an injury producing serious disfigurement of the face or hand, the System may, at the request of the interested party, determine and award such income benefits not exceeding twelve thousand pesos (P12,000), as may be fair and proper in view of the nature of the disfigurement. Disfigurement is separate from other permanent partial disability and includes scarring and other disfigurement consequences caused by medical, surgical and hospital treatment of the employee.
ART. 205. Other Cases. — In all cases of permanent partial disability, weekly income benefits shall be paid at the rate and subject to the limitations specified in this Chapter for a period which bears the same relation to a period named in Article 201 as the disability sustained bears to a comparable disability named in the said Article.
ART. 206. Unconditional Nature and Time of Commencement of Payment. — Income benefits for permanent partial disability shall be paid regardless of the earnings of the disabled employee subsequent to the injury. Payments shall not commence until after termination of any temporary total disability that may be caused by the injury.
ART. 207. Provisions Common to Temporary and Permanent Partial Disability; Maximum Benefits. — No awards for partial disability shall be made until after two (2) weeks from the date of the injury. Income benefits used under this Chapter shall not include the benefits provided for in the preceding Chapter: Provided, That the aggregate liability of the System for all types of disability benefits shall not exceed in any case the amount of twelve thousand pesos (P12,000).
ART. 208. Payment After Death. — If an employee entitled to weekly income benefits for disability dies from any cause, payment of any unpaid balance of such benefits to the extent that the System is liable therefor shall be made to his dependents, as follows:
ART. 209. Income Benefits for Death. — If the injury causes death, the System shall pay a weekly income benefit, but not to exceed two hundred sixty (260) weeks nor the total sum of twelve thousand pesos (P12,000) equivalent to the following percentages of the employee's average weekly wage as determined under Article 214 which shall be reckoned with at not more than P80 and the weekly income benefit shall not be less than twenty-six pesos (P26), to or for the corresponding persons in the order of priority and during the period specified below:
The compensation to the widow or widower shall be for the use or benefit of the widow or widower and for the children, and the Commission may, by regulation, adjust the compensation between them in the most equitable manner possible.
ART. 210. Time of Determination of Relationship and Dependency. — All questions of relationship and dependency shall initially be determined as of the time of death for purposes of income benefits for death.
ART. 211. Status of Alien as Dependent. — An alien shall not be considered a dependent if he is not at the time of the employee's death a resident of the Philippines, and any dependent alien leaving the Philippines shall automatically forfeit his right to compensation under this Title.
ART. 212. Change in Dependents. — Upon the cessation of income benefits under the preceding Article to any person, the income benefits of the remaining persons entitled to the same for the unexpired part of the period during which their income benefits are payable shall be that which such persons would have received if they alone had been entitled to income benefits at the time of the dependent's death.
ART. 213. Effect of Erroneous Payment. — If the System in good faith pays income benefits to a dependent who is inferior in right to another dependent or with whom another dependent is entitled to share, such payment shall discharge the System unless and until such other dependent notifies the System of his claim. In case the System is in doubt as to the respective rights of rival claimants, it shall institute the appropriate proceedings for determination of the proper beneficiary.
Provisions Common to Income Benefits
ART. 214. Determination of Average Weekly Wage. — Except as otherwise provided in this Title, the average weekly wage of die injured employee at the time of the injury shall be taken as the basis upon which to compute income benefits and shall be determined as follows:
ART. 215. Income Benefits Payable Despite Other Benefits. — Income benefits shall, with respect to any period of disability, be payable in accordance with this Title to an employee although he has received or is entitled to receive for such period any payment or allowance for holidays, vacation or sick leave, award or any benefit under a collective bargaining or other agreement.
ART. 216. Payment for Second Injuries. — (a) If an employee who has a permanent partial physical impairment suffers an injury which results in a permanent partial or permanent total disability materially and substantially greater than that which would have resulted from the subsequent injury alone, the System shall be liable fully under Chapter 5 of this Title, and shall pay to the injured employee income benefits equivalent to the actual disability sustained in the second injury.
ART. 217. Right to Additional Income Benefits. — In case the employee's injury or death was due to the failure of the employer to comply with any law, or fail to install and maintain safety appliances, or take other precautions for the prevention of injury, said employer shall pay to the employee or his dependents additional income benefits equal to twenty-five percent (25%) of those fixed by this Title.
Records, Reports, and Notices
ART. 218. Report of Death or Injury. — (a) Within five (5) days after the employer has notice or knowledge of the occurrence of a death or an injury in the employment resulting in absence of his employee from work for a day or more, the employer shall give written notice thereof under oath and on a form prescribed by the System to the nearest regional office of the SSS or the GSIS, as the case may be, or to the Commission setting forth (1) the name, address, and business of the employer; (2) the name, address, sex, age, occupation and wage of the employee; (3) the full circumstances as to the nature and cause of the injury or death; (4) the year, month, day and hour when, and the particular place where the injury occurred; and (5) such other information as the System may prescribe by regulation.
ART. 219. Notice of Injury or Death. — Notice of injury or death shall be given to the employer and the System as soon as the employee or his dependents are informed of the nature of the injury and its relationship to the employment. No notice shall be required if injury or death is known to the employer or to his agents or representatives.
ART. 220. Form of Notice. — The notice of injury or death shall be sufficient if the same contains the name and address of the employee and of his employer and a statement of the time, place, nature and cause of the injury or death.
ART. 221. Delivery of Notice. — The notice of injury or death shall be by personal service or by registered mail. It shall be made by the employee or, in case of death, by any person claiming to be entitled to compensation for such death or by another person on his behalf.
ART. 222. Notice as Claim; Prescriptive Period. — The notice referred to in the three Articles immediately preceding shall operate as a claim for benefits under this Title. Except in cases where the notice is not required as stated in Article 219 the right to compensation and related benefits for injury or death shall be barred unless notice is given within two (2) years from occurrence of such injury or death.
ART. 223. Assignment of Rights. — No claim for compensation under this Title is transferable, and all compensation or rights to compensation shall be exempt from any creditor's claim.
ART. 224. Application for Modification. — The System, upon its own initiative or upon application of any party in interest, may review for purposes of modification any previous award, finding or action within two (2) years after the date of the last payment or the furnishing of compensation, upon the following grounds:
ART. 225. Statement of Objectives. — The State shall gradually provide total medical service for the people by adopting and implementing a comprehensive and coordinated medical care program based on accepted concepts of health, namely:
ART. 226. Terms Defined. — For the purposes of the Title, the following terms shall, unless the context indicates otherwise, have the following meaning:
ART. 227. Purposes and Objectives. — The main purposes and objectives of this Title are:
ART. 228. Functions, Powers, and Duties of the Medical Care Commission.— To carry out the above purposes and objectives, the Philippine Medical Care Commission as now constituted, and referred to in this Title as the Commission, shall exercise the following functions and powers:
ART. 229. Board Meetings. — Regular meetings of the Commission shall be held once a week. Special meetings not to exceed four (4) sessions a month may be held at the discretion of the Chairman or at the written request of the majority of the members of the Commission. The presence of five (5) members of the Commission shall constitute a quorum. Members of the Commission who are government officials shall serve without additional compensation, but may be allowed traveling and other necessary expenses. Members who are not government officials shall receive a per diem of one hundred pesos (P100) for each session actually attended by them. The Commission shall fix the compensation of, and appoint its secretary
ART. 230. The Chairman of the Commission. — The Chairman shall be a reputable member of the medical profession with at least twelve (12) years of experience in medical practice and with proven executive ability in business or medical undertakings. He shall hold office on a full-time basis and shall receive a compensation of at least thirty thousand pesos (P30,000) per annum. He shall be entitled to commutable traveling and representation expenses not to exceed six thousand pesos (P6,000) per annum. He shall preside at all meetings of the Commission and shall exercise such other duties as will achieve the purposes and objectives of this Title.
ART. 231. Administrator of the Commission. — The Commission shall have under its general supervision an Administrator, who shall serve as its Chief Executive Officer. He shall hold office on a full-time basis for a term of six (6) years and may not be removed except for cause. The Administrator shall be a duly registered physician with at least ten (10) years experience in practice, who has proven executive ability and experience in business or medical undertakings. He shall be appointed by the President of the Philippines and shall receive a minimum compensation of P24,000 per annum and such other privileges as may be fixed by the Commission. All travel and other representation expenses shall not be more than six thousand pesos (P6,000) per annum. No other allowances and/or representation expenses under any denomination shall be allowed.
ART. 232. The Philippine Medical Care Plan. — The Philippine Medical Care Plan shall consist of two (2) basic programs, namely:
Beneficiaries under Program I shall be entitled in subsequent sections of this Title.
The Commission shall, within one year after the effectivity of this Code, formulate an integrated program for the proper implementation of Program II as envisioned in this Title. Likewise, it shall, within the same period, recommend to the Legislature who shall be entitled to Medical Care benefits under Program II and the amount of contributions they shall make.
ART. 233. Medical Care for SSS and GSIS Members. — The SSS and the GSIS shall set up their respective medical care funds and shall administer the same in accordance with the following provisions of this Title and the policies and implementing rules and regulations promulgated by the Commission.
Within two (2) years from the approval of this Code, the SSS and the GSIS shall with the approval of the Commission, respectively, adopt a supplementary plan designated to take over the medical care needs of the legal dependents of their members from Program I for which the SSS and the GSIS may require additional premiums.
ART. 234. Compulsory Coverage. — Coverage under this Title shall be compulsory and automatic upon all employees defined under this Title. In the case of an employee who is both covered by the SSS and GSIS, only his employment with the latter shall be considered for purposes of his coverage.
ART. 235. Effect of Separation from Employment. — Subject to such rules, regulations and/or conditions as the SSS or GSIS may prescribe, an employee who is no longer obliged to contribute under Article 245 by separation from employment, may elect to continue paying contributions representing the contribution of the employer as well as that of the employee only within sixty (60) days following the date of such separation. An employee shall be entitled to the benefits under this Title if he has satisfied the contribution requirement specified in Article 244.
ART. 236. Hospitalization Expense Benefit. — Under such rules, regulations and/or conditions as the SSS and GSIS may prescribe, subject to the approval of the Commission, an employee who is confined in a hospital on account of sickness or bodily injury requiring hospitalization, shall be entitled to confinement not exceeding forty-five (45) days annually to:
For drugs and medicines that may be essential under paragraph (b), the employee shall have the option to secure the same from either the hospital pharmacy wherein he is confined or from any retail drugstore of his own choice, subject only to the rules and regulations promulgated by the Commission.
ART. 237. Surgical Expense Benefit. — Under such rules, regulations and/or conditions as the SSS or GSIS may prescribe, subject to the approval of the Commission, an employee who shall have undergone surgical procedure in a hospital, shall be entitled to a surgical expense benefit as may be determined by the SSS or GSIS, as the case may be, taking into account the nature and complexity of the procedure. The amount of benefit shall not exceed fifty pesos (P50) for a minor operation, two hundred pesos (P200) for a medium operation and five hundred pesos (P500) for a major operation.
ART. 238. Medical Expense Benefit. — Under such rules, regulations and/or conditions as the SSS or the GSIS may prescribe, subject to the approval of the Commission, an employee who shall have received necessary professional medical treatment by a medical practitioner while confined shall be entitled to a medical expense benefit of P5.00 for each daily visit, but the maximum benefit shall not exceed one hundred pesos (P100) for a single period of confinement or for any one sickness or injury. In determining the compensable daily visit occasioned by any one sickness or injury not more than one visit for any one day shall be counted. Specialists who are properly certified by the Philippine Medical Association shall be entitled to collect ten pesos (P10.00) for each daily visit,
ART. 239. Free Choice of Hospital or Medical Practitioner. —Any employee who becomes sick or is injured shall be free to choose the hospital in which he will be confined and the medical practitioner by whom he will be treated.
ART. 240. Notification of Illness Confinement and Confinement Supervision. — When an employee becomes sick or is injured and confined in a hospital, his confinement as well as the nature of his sickness or injury shall be communicated by said hospital to the SSS or GSIS, as the case may be. The SSS or the GSIS may exercise supervision over the confined employee and, at its expense, require him to be examined by a medical practitioner of his choice.
ART. 241. Payment of Claims. - Benefits provided under this Title shall be payable directly to the hospital, the medical practitioner and the retail drugstore, if any, under such rules, regulations and/or conditions the SSS or GSIS may prescribe, subject to the approval of the Commission. When the charges and fees agreed upon between the employee and the hospital and/or medical practitioner are in excess of the amount of the benefits provided for under this Title such employee shall be liable only for the payment of that portion of such fees and charges as are in excess of the benefits payable under this Title.
ART. 242. Limitation on the Right to Benefits. - (a) No employee shall be entitled to the benefits herein granted unless he shall have paid at least three (3) monthly contributions during the last twelve (12) months prior to the first day of the single period of confinement. In case of sickness on which surgery may be deferred at the election of the employee in such cases as herniotomy, hemorrhoidectomy, tonsillectomy, adenotomy and the like, the required monthly contributions paid immediately prior to the operation shall be at least for twelve (12) consecutive monthly installments. Until such time that such an employee is entitled to the benefits under Program I, he shall be covered by Program II.
ART. 243. Exclusions. — The benefits granted under this Title shall not cover any expense for:
ART. 244. Rates of Contributions. — For employees covered by the GSIS and the SSS, the initial monthly contributions shall be in accordance with the following schedule:
