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compensation under the CBA, arguing that the CBA does not contain a permanent
unfitness clause, but merely mandates that the disability shall be based solely on the
disability grading provided under Section 32 of the POEA-SEC, echoing Section 20(A)
(6).
The Court's Ruling
The Court resolves to grant the petition.
Permanent disability is defined as the inability of a worker to perform his job for more
than 120 days (or 240 days, as the case may be), regardless of whether or not he loses
the use of any part of his body. Total disability, meanwhile, means the disablement of
an employee to earn wages in the same kind of work of similar nature that he was
trained for, or accustomed to perform, or any kind of work which a person of his
mentality and attainments could do.[11]
Under Article 192(c)(1) of the Labor Code, disability that is both permanent and
total disability is defined as "temporary total disability lasting continuously for more
than one hundred twenty days, except as otherwise provided in the Rules."[12]
Similarly, Rule VII, Section 2(b) of the Amended Rules on Employees' Compensation
(AREC) provides:
(b) A disability is total and permanent if as a result of the injury or
sickness the employee is unable to perform any gainful occupation for a
continuous period exceeding 120 days, except as otherwise provided for in
Rule X of these Rules. (emphasis supplied)
The adverted Rule X of the AREC, which implements Book IV of the Labor Code, states
in part:
Sec. 2. Period of entitlement. - (a) The income benefit shall be paid
beginning on the first day of such disability. If caused by an injury or
sickness it shall not be paid longer than 120 consecutive days except
where such injury or sickness still requires medical attendance
beyond 120 days but not to exceed 240 days from onset of disability in
which case benefit for temporary total disability shall be paid. However, the
System may declare the total and permanent status at anytime after 120
days of continuous temporary total disability as may be warranted by the
degree of actual loss or impairment of physical or mental functions as
determined by the System. (emphasis supplied)
Section 20 (A)(3) of the POEA-SEC, meanwhile, provides that:
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