Text of the provision

Art. 174. Liability of third party/ies. When the disability or death is caused by circumstances creating a legal liability against a third party, the disabled employee or the dependents, in case of his death, shall be paid by the System under this Title. In case benefit is paid under this Title, the System shall be subrogated to the rights of the disabled employee or the dependents, in case of his death, in accordance with the general law. Where the System recovers from such third party damages in excess of those paid or allowed under this Title, such excess shall be delivered to the disabled employee or other persons entitled thereto, after deducting the cost of proceedings and expenses of the System.

Labor Code of the Philippines, Presidential Decree No. 442, as amended. Reproduced in full from the official enactment and verified against the LawPhil and ChanRobles renderings.

What this article means

If someone outside the employment relationship is legally responsible for the injury or death, the worker or his dependents are still paid by the System. Once it pays, the System is subrogated to their rights against that third party, and any excess it recovers — beyond what was paid under this Title, less the cost of the proceedings and the System’s expenses — goes to the disabled employee or others entitled to it.

Questions about this provision

Related provisions

A note on article numbers. The articles of the Labor Code have been administratively renumbered, so the same provision is often cited under a different number. Supreme Court decisions write both, in the form “Article 297 [282]” — the new number first, the original in brackets. The text on this page is published under its original number, which is the numbering both source texts use. When citing, check which numbering your source follows.

Cases interpreting this article

Note. The text of the provision above is reproduced in full from the official enactment (Presidential Decree No. 442), verified against the LawPhil and ChanRobles renderings. The Labor Code has been amended many times; this page reproduces the text as those sources carry it. The annotation and commentary around it are the work of Vivas & Nobles Law Office and are general legal information, not legal advice. How a provision applies to a particular situation depends on facts that only a lawyer reviewing your case can assess.