FRANKLIN BAKER COMPANY OF THE PHILIPPINES, petitioner, vs. MAURICIO ALILLANA and WORKMEN'S COMPENSATION COMMISSION, respondents. ; G.R. No. L-25245 December 11, 1967

TOPIC: Art. 6.

RIGHTS MAY BE WAIVED, UNLESS THE WAIVER IS CONTRARY TO LAW, PUBLIC POLICY, MORALS OR GOOD CUSTOMS, OR PREJUDICIAL TO A THIRD PERSON WITH THE RIGHT RECOGNIZED BY LAW.

RATIONALE:

GIST:

FACTS:

1. Timeline:

19 July 1947: Franklin Baker Co, employed Mauricio Alillana as truck loader.

1956: as washer, then shell collector

21 April 1958: Alillana suffered from pains at the ribs he was found with bronchitis and went on leave. 

09 May 1958: he was allowed by the company to resume his work

31 May 1958: he from time to time complained of cough, with chest and back pains, for which he was treated

06 July1958: he was diagnosed with "Far advanced pulmonary tuberculosis at the left lung, associated with bronchitis."

07 July 1958: he retired from the company.

2. Franklin Baker Co. paid him P188.16 under its non-occupational sickness and disability benefit plan for the period from July 7, 1958 to October 29, 1958; and P669.12 as retirements benefits. 

3. He filed for disability benefits under the Workmen's Compensation Act and it was awarded to him. Franklin Baker Co. elevated the case to the Workmen's Compensation Commission but it was affirmed slightly reducing the award to P3,015.06. Sec. 14 was applied (award = 60% of ave. weekly wages)  

4. July 25, 1964: Franklin Co. paid the disability compensation (P3,015.06) with the execution of a Satisfaction Receipt.

5. August 10, 1964: Alillana filed from additional disability compensation due to continuing ailment.

6. A physical examination was ordered and when he was found to still have a temporary total disability due to his ailment, the  Workmen's Compensation Commission ordered additional compensation of P984.94, thus raising the total award to the then statutory maximum of P4,000.  (Sec. 14, Workmen's Compensation Act)

ISSUE:

1. Does the Workmen’s Compensation Commission have the power under sec.18 to extend the period of disability under sec.14?

2. W/N signing of satisfaction receipt results in a waiver.

RULING:

1. Yes, the Commission did not incur any error in extending to cover beyond 208 weeks the period of Alillana’s disability compensation. The commission from time to time cause examination of the condition of the disabled laborer with a view to extending, if necessary the period of compensation which shall not exceed the said amount of P 4000. Sec.18 (amount), is for all the benefit of the employee. 

2. Alillana's having signed a satisfaction receipt can not result in waiver; the law does not consider as valid any agreement to receive less compensation than what the worker is entitled to recover under the Act (Sec. 29). Waivers must be clear and express; it cannot be just assumed.

WHEREFORE, the appealed order of the Workmen's Compensation Commission are hereby affirmed. No costs. So ordered. 

REFERENCES:

Workmen's Compensation Act

Sec. 14. Total disability. — In case the injury or sickness causes total disability for labor, the employer, during such disability but exclusive of the first three days shall pay to the injured employee a weekly compensation equivalent to sixty per centum of his average weekly wages; but not more than thirty-five pesos nor less than ten pesos per week, except in the case provided for in the next following paragraph. Such weekly payments shall in no case continue after disability has ceased, nor shall they extend over more than two hundred and eight weeks, nor shall the aggregate sum paid as compensation exceed in any case four thousand pesos. But no award of permanent disability shall take effect until after two weeks have elapsed from the date of injury. 

Amended Section 18.

"The total compensation prescribed in this and the next preceding section and the total compensation prescribed in sections fourteen and fifteen of this Act, shall, together, not exceed the sum of four thousand pesos: Provided, however, that after the payment has been made for the period specified by the Act in each case, the Workmen's Compensation Commissioner may from time to time cause the examination of the condition of the disabled laborer, with a view to extending, if necessary, the period of compensation which shall not, however, exceed the said amount of four thousand pesos."