Pointers in Agrarian Reform and other social

legislation:
I. SS ACT OF 1997
1. JURISDICTION; DACION EN PAGO
IMPLEMENTATION (SSS V
ATLANTIC GULF)
SSS VS ATLANTIC GOLF
-atlantic fled a complaint for specifc
performance and damages against SSS before
RTC of atangas Cit!
-from t"e a#erment in t"e complaint$ pri#ate
respondents are see%ing to implement t"e
deed of assignment &"ic" t"e! "ad drafted
and s'bmitted to SSS sometime in ('l! )**+$
p'rs'ant to SSS,s letter addressed to AG-.
dated )/ April )**+ appro#ing AG-. and
S01IRARA,s delin2'encies t"ro'g" dacion en
pago$ &"ic" as of /+ 1arc" )**+$ amo'nt to
.)3$)4+$3*)5675
8"en t"e deed of assignment &as s'bmitted
sss did not sign it beca'se t"ere &as a con9ict
as to t"e amo'nt of delin2'encies5 1ao na adto
sila sa co'rt to compel sss to sign t"e dacion
en pago5 Sss fled a motion to dismiss on t"e
gro'nd lac% of :'risdiction5 Citing section 7$ RTC
dismissed5
-ca re#ersed RTC decision and "eld t"at t"e
s'b:ect of complaint;%'&ang and slide<
ISS=0> &"ic" bod! "as t"e :'risdiction to
entertain t"e contro#ers! arising from t"e non-
implementation of a dacion en pago agreed
'pon b! t"e parties as a means of settlement
of pri#ate respondents, liabilities?
SC@ from t"e allegations of respondent,s
complaint$ it readil! appears t"at t"ere is no
longer disp'te &it" respect to respondent,s
acco'ntabilit! to SSS5 Respondent$ "ad in fact
admitted t"eir delin2'enc! and oAered to
settle t"em b! &a! of dacion en pago
s'bse2'entl! appro#ed b! t"e SSS in
Resol'tion no5 )B*s-)**+5
- T"e contro#ers! lies in t"e non-
implementation of t"e appro#ed and agreed
dacion en pago on t"e part of t"e SSS5 As s'c"$
respondents fled a s'it to obtain its
enforcement &"ic" is$ do'btless$ a s'it for
specifc performance and one incapable of
pec'niar! estimation be!ond t"e competence
of t"e Commission5
Co'rt Re#ie&5 C T"e decision of t"e Commission
'pon an! disp'ted matter ma! be re#ie&ed
bot" 'pon t"e la& and t"e facts b! t"e Co'rt of
Appeals5 For t"e p'rpose of s'c" re#ie&$ t"e
proced're concerning appeals from t"e
Regional Trial Co'rt s"all be follo&ed as far as
practicable and consistent &it" t"e p'rposes of
t"is Act5 Appeal from a decision of t"e
Commission m'st be ta%en &it"in ffteen ;+7<
da!s from notifcation of s'c" decision5 If t"e
decision of t"e Commission in#ol#es onl!
2'estions of la&$ t"e same s"all be re#ie&ed
b! t"e S'preme Co'rt5 No appeal bond s"all be
re2'ired5 T"e case s"all be "eard in a s'mmar!
manner$ and s"all ta%e precedence o#er all
cases$ eDcept t"at in t"e S'preme Co'rt$
criminal cases &"erein life imprisonment or
deat" "as been imposed b! t"e trial co'rt s"all
ta%e precedence5 No appeal s"all act as a
s'persedeas or a sta! of t"e order of t"e
Commission 'nless t"e Commission itself$ or
t"e Co'rt of Appeals or t"e S'preme Co'rt$
s"all so order5
Notice "ere t"at t"e la& 'ses t"e &ord
EappealF5 Appeal from t"e decision of t"e
commission5 So &"et"er it is b! petition for
re#ie&$ #erifed petition for re#ie& or a notice
of appeal5
T"e Old R'le sa!s it is b! mere notice of appeal
b't in t"e recent R'le$ it is b! #erifed petition
for re#ie&5
Notice of appeal> ;+< !o' onl! "a#e one piece
of paper ;)< 1aterial date &"en !o' recei#e t"e
cop! of t"e decision and ;/< !o' f'rnis" t"e
opposing co'ncil correctl!$ t"en notice of
appeal is complied5 T"e problem of t"e notice
of appeal is once t"e notice of appeal is
perfected t"e entire records &ill all be ele#ated
to t"e "ig"er co'rt$ in t"is case t"e co'rt of
appeals5 't t"ere &ill be a problem t"ere5
&"!? eca'se t"e SSC is a 2'asi-:'dicial bod!$
it,s not t"e same &it" reg'lar co'rts5
't if it is #erifed petition of re#ie&$ t"e entire
records &ill remain at t"e SSC5 8"at &e &ill fle
at t"e CA is t"e petition for re#ie& &"ic" &ill
contain t"e facts of t"e case$ t"e material
dates$ t"e iss'es$ t"e arg'ments b't !o' need
to attac" tr'e copies of t"e rele#ant doc'ments
t"at !o' cite or !o' &ill cite in !o'r petition for
re#ie&5
Criminal ofenses for violations of the law
are within the jurisdiction of the regular
courts.
2. REP V ASIAPRO - WEEKLY
STIPENDS OR ECESS IN
SERVICE SURPLUS; E-E
R0.=LIC VS ASIA.RO CCO.0RATION
-respondent Asiapro$ as cooperati#e is
composed of o&ners-members5 Its primar!
ob:ecti#e is to pro#ide sa#ings and credit
facilities and to de#elop ot"er li#eli"ood
ser#ices for its o&ners-members5
Are members of t"e cooperati#e co#ered
comp'lsoril! 'nder SSS?
-In t"e disc"arge of t"e primar! ob:ecti#e$
respondent entered into se#eral ser#ice
contracts &it" Stanflco- a di#ision of GOL0 ."il
Inc5 and a compan! based in '%idnon5 T"e
o&ners-members do not recei#e compensation
or &ages from t"e respondent cooperati#e$
Instead$ t"e! recei#e a s"are in t"e ser#ice
s'rpl's &"ic" t"e cooperati#e earns from
diAerent areas of trade it engages in s'c" as
t"e income deri#ed from t"e said ser#ice
contracts &it" stanflco5 T"e o&ners-members
get t"eir income from t"e ser#ice generated b!
t"e 2'alit! and amo'nt of ser#ice t"e!
rendered &"ic" is determined b! t"e board of
directors of t"e cooperati#e5
-in order to en:o! t"e benefts 'nder t"e SS
La& of +33B t"e o&ners-members of t"e
cooperati#e &"o &ere assigned to stanflco
re2'ested t"e ser#ice of t"e latter to register
t"em &it" petitioner SSS as self-emplo!ed and
to remit t"eir contrib'tions as s'c"5
-SSS sent a letter to stanflco t"at based on t"e
ser#ice contract it eDec'ted &it" stanflco$ t"e
cooperati#e is a manpo&er contractor
s'ppl!ing emplo!ees for stanflco and for t"at
reason$ it is an emplo!er of its o&ners-
members &or%ing &it" stanflco5 T"'s$
respondent cooperati#e s"o'ld register itself
&it" SSS as an emplo!er and ma%e t"e
corresponding report and remittance of
prenim'm contrib'tions in accordance &it"
SSL5
8HO SHO=LG G0T0R1IN0 0-0?
-since t"e eDistence of 00 rel5 bet&een t"e
respondent coop and its o&ners-members &as
p't in iss'e and considering t"at t"e
comp'lsor! co#erage of t"e SSS la& is
predicated on t"e eDistence of s'c"
relations"ip$ it be"oo#es t"e petitioner SSC to
determine if t"ere is reall! an 00 rel eDisting
bet&een respondent coop and its o&ners-
members5
T"e same fo'r-fold test$ t"e same elements5
Independent contracting and labor onl!
emplo!ees I not co#ered b! SS la&5
-t"e 2'estion on t"e eDistence of 00 rel5 is not
&it"in t"e eDcl'si#e :'risdiction of NLRC5 ART
)+B of LC en'merating t"e :'risdiction of t"e
Labor Arbiters and t"e NLRC pro#ides t"at>
ART5 )+B- ('risdiction of Labor Arbiters and t"e
Commission>
JDD DDDD DDD
45 eDcept claims for emplo!ees compensation$
SS$ medicare and maternit! benefts$ all ot"er
claims arising from 00 relations incl'ding t"ose
of persons in domestic or "o'se"old ser#ice
incl'ding an amo'nt eDceeding .7***
regardless of &"et"er accompanied &it" a
claim for reinstatement5
-alt"o'g" t"e pro#ision spea%s merel! of claims
for SS$ it &o'ld necessaril! incl'de iss'es on
t"e co#erage t"ereof$ beca'se claims are
'ndeniabl! rooted in t"e co#erage b! t"e
s!stem5 Hence$ t"e 2'estion on t"e eDistence
of 00 relations"ip for t"e p'rpose of
determining t"e co#erage of SSS is eDplicitl!
eDcl'ded from t"e :'risdiction of t"e NLRC and
falls &it" t"e :'risdiction of SSC &"ic" is
primaril! c"arged &it" t"e d't! of settling
disp'tes arising 'nder SSL of +33B5
-in determining t"e eDistence of an 00
relations"ip$ t"e A elements are considered>
;6-fold test ni$ %am' nlng s'ppl! remember
labor %a! %ap'! t!pe55 "e"e"55< T"e most
important5 0lement is t"e emplo!er,s control of
t"e emplo!ees cond'ct$ not onl! as to t"e
res'lt of t"e &or% to be done b't also as to t"e
means and met"ods to accomplis"5
Connect t"is to t"e case of Co #s .eople
SSC cannot determine t"e relations"ip in all
instances5
Facts> T"ere &as alread! a r'ling from t"e labor
case fled from t"e s'pposed emplo!ee against
t"e s'pposed emplo!er5 T"at t"ere &as no 00
relations"ip5 T"e r'ling &as fnal and eDec'tor!5
Gespite t"at$ gi%i"a gi"apon ang %adtong
s'pposed emplo!er in t"e fscal,s oKce for
#iolation of t"e SS la&5 Na%al'sot ang %i"a$
naabot sa RTC5 Ni5fle 'g motion to 2'as" on
t"e gro'nd of lac% of :'risdiction5 And t"e co'rt
s'stained$ sa!ing t"at t"ere is no more need to
determine t"e 00 relations"ip beca'se t"at "as
alread! been determined b! t"e Labor Co'rts
t"at t"ere &as absence of 00 relations"ip5 And
since SS la& co#erage is predicated on t"e
eDistence t"en t"ere s"o'ld be no more
criminal case to be fled against t"e s'pposed
emplo!er5
SC> t"e mandator! co#erage
Sir> In m! opinion$ if t"ere is alread! a fnal and
eDec'tor! r'ling of t"e labor code$ SSC does
not "a#e to ma%e t"e r'ling on t"e 00
relations"ip5 8"!? eca'se t"at &ill not end
t"e iss'e and !o' ma! "a#e a r'ling of t"e SSC
&"ic" ma! be diAerent to t"at of t"e Labor
Co'rts5
SC> ALL 0L010NTS AR0 .R0S0NT IN THIS CAS0
;Asiapro<
+5 eDpressl! pro#ided in t"e ser#ice
contract t"at respondent coop "as t"e
eDcl'si#e :'risdiction in t"e selection and
engagement of t"e o&ners-members as &ell as
team leaders &"o &ill be assigned at stanflco5
)5 T"e &ee%l! stipends or t"e so called
s"are in t"e ser#ice s'rpl's gi#en b! t"e
respondent cooperati#e to its o&ners-members
80R0 IN R0ALITL 8AG0S$ as t"e same &ere
e2'i#alent to an amo'nt not lo&er t"an t"at
prescribed b! t"e labor la&s$ r'les and
reg'lations incl'ding t"e &age order applicable
to t"e area and ind'str! or t"e same s"all not
be lo&er t"an t"e pre#ailing rates of &ages5 It
cannot be do'bted t"en t"at t"ose stipends or
s"are in t"e ser#ice s'rpl's are indeed &ages
beca'se t"ese are gi#en to t"e o&ners-
members as compensation in R0NG0RING
S0RVIC0S to respondent cooperati#e,s client$
stanflco5
If s"are :'d$ if naa! ma%'"a naa$ if &ala$ &ala5
1'ra bag di#idends sa corporation5
/5 .o&er to in#estigate cooperati#e
65 Control of cooperati#e
!. "PROJECT EMPLOYEES# (C$UA V
CA)
Co#erage of 0mplo!ees
a5 A pri#ate emplo!ee &"o is not o#er 4* !ears
old
b5 A "o'se"old-"elper earning at least .+$*** a
mont" is co#ered starting Sept5 +$ +33/5
A "o'se"old-"elper is an! person &"o
renders domestic or "o'se"old ser#ices
eDcl'si#el! to a "o'se"old emplo!er s'c"
dri#er$ gardener$ coo%$ go#erness$ and ot"er
similar occ'pations5
c5 A Filipino seafarer 'pon t"e signing of t"e
standard contract or emplo!ment bet&een t"e
seafarer and t"e manning agenc! &"ic"$
toget"er &it" t"e foreign s"ip o&ner$ act as
emplo!ers5
d5 An emplo!ee of a foreign go#ernment$
international organiMation or t"eir &"oll!-
o&ned instr'mentalit! based in t"e ."ilippines$
&"ic" entered into an administrati#e
agreement &it" t"e SSS for t"e co#erage of its
Filipino &or%ers5
Are laborers contin'o'sl! assigned to
constr'ction pro:ects as carpenters$ &ielders$
are comp'lsor! co#ered?
Case of CH=A #s CA> t"ere &as still an 00-0R
relations"ip$ so co#ered5 mao na$ probationar!
emplo!ees$ t"e! are co#ered 'nder SSS5 &"!?
Regardless of t"e nat're of t"e emplo!ment5
0FF0CTIVITL> frst da! of emplo!ment5
So ad#ice %aron sa mga clients5 Naa! mo s'd$
as% if !o' "a#e an SS na5 In t"e same manner
in t"e criminal case for eDample$ if !o'r client
is s'ed for t"e #iolation of t"e SS la& in t"e
fscals oKce$ once mo ba!ad %a sa SS$ mo eDist
na ang SSS b't t"e 2'estion t"ere$ &"at is t"e
eAect of !o'r pa!ment %'ng d'na! labor case
gifle later on? eca'se for me$ t"at ma! be
considered as an admission t"at t"ere eDisted
an 00-0R relations"ip5 T"at is practical &"!?
!o' tr! to a#oid criminal case5
T"e emplo!er is gi#en /* da!s from da! to
emplo!ment to t"e report t"e emplo!er
co#erage to t"e SSS5
%. TAI DRIVER ENGAGED ON
&OUNDARY &ASIS
T"e! ;taDi dri#ers< are 00 :'st li%e :eepne!
dri#ers are 00 to t"eir operators5 0#en if t"e!
recei#e Nbo'ndar! basisN compensation t"ere is
still an 0R-00 relations"ip5 T"e met"od of fDing
compensation is not determinati#e of an 00-0R
relations"ip5 As long as t"e 0R eDercises t"e
rig"t to control ;not necessaril! act'al control<$
t"ere is 00-0R relations"ip5
ased on an article I fo'nd5 Allo& me$ "o&e#er
to present t"e follo&ing comments and
obser#ations relati#e to !o'r proposal>
+5 Legal basis for SSS co#erage of dri#ers of
p'blic transport
T"e legal basis for t"e comp'lsor! SSS
co#erage of dri#ers of p'blic transport ma! be
deri#ed from SSS Circ'lar No5 B3-T p'blis"ed on
*/ April +3B* ;AnneD A<5 Said circ'lar pro#ides
t"e bases of co#erage$ premi'm contrib'tion$
and allo&able dail! ded'ction or earnings of
:eepne! dri#ers of :eepne! operators$ salient
feat'res of &"ic" are as follo&s>
a5 asis of Co#erage - (eepne! dri#ers are
emplo!ees of :eepne! operators and$ as s'c"
are re2'ired 'nder t"e Social Sec'rit! La& to
be reported for co#erage b! t"eir emplo!ee
;.lease refer to t"e S'preme Co'rt r'ling in t"e
case of t"e NATIONAL LAOR =NION #s5
GINGLASAN$ L-B367$ )/ 1arc" +374<5
b5 asis of .remi'm Contrib'tion - If t"e
earnings of :eepne! dri#er cannot be
determined b! records$ t"en t"e basis of t"e
premi'm contrib'tion to t"e SSS is t"e
minim'm &age as a't"oriMed b! La& ;.lease
refer to S'preme Co'rt r'ling in t"e case of
1ALAT0 TAJICA B GARAG0$ INC5 #s5 TH0 CIR
ANG NI= ;G5R5 NO5 +-OB+O$ .RO15 1a! ++$
+374$ 7) O5G$ No5 4$p5 /*/6<
ASIS OF COV0RAG0 -
T"e S'preme Co'rt "eld t"at :eepne! dri#ers
are emplo!ees of :eepne! operators in t"e case
of t"e NATIONAL LAOR =NION #s5 GINGLASAN$
L-B367$ )/ 1arc" +3745 T"e Co'rt R=L0G>
N555T"e dri#ers did not in#est a single centa#o in
t"e b'siness and t"e respondent is t"e
eDcl'si#e o&ner of t"e :eeps5 T"e management
of t"e b'siness is in t"e respondentPs "ands5
For e#en if t"e dri#ers of t"e :eeps ta%e
material possession of t"e :eeps$ still t"e
respondent as o&ner t"ereof and "older of a
certifcate of p'blic con#enience is entitled to
eDercise$ as "e does and 'nder t"e la& "e
m'st$ s'per#ision o#er t"e dri#ers b! seeing to
it t"at t"e! follo& t"e ro'te prescribed b! t"e
.'blic Ser#ice Commission and r'les and
reg'lations prom'lgates b! its as regards t"eir
operation5 J J J T"e onl! feat'res t"at &o'ld
ma%e t"e relations"ip of lessor and lessee
bet&een t"e respondent and t"e dri#ers$ D D D
D are t"e fact t"at "e does not pa! t"em fDed
&age b't t"eir compensation is t"e eDcess of
t"e total amo'nt of fares earned or collected
b! t"em o#er and abo#e t"e amo'nt D D D
&"ic" t"e! agreed to pa! to t"e respondent$
t"e o&ner of t"e :eeps$ and t"e fact t"at t"e
gasoline b'rned b! t"e :eeps is for t"e acco'nt
of t"e dri#ers5 T"ese t&o feat'res are not$
"o&e#er$ s'Kcient to &it"dra& t"e relations"ip
bet&een t"em from t"e emplo!er-emplo!ee$ D
D D5 Not "a#ing an! interest in t"e b'siness
beca'se t"e! did not in#est an!t"ing in t"e
ac2'isition of t"e :eeps and did not participate
in t"e management t"ereof$ t"eir ser#ice as
dri#ers of t"e :eeps being t"eir onl!
contrib'tion o t"e b'siness t"e relations"ip of
lessor and lessee cannot be s'stained5 In t"e
lease of c"attels t"e lessor loses control o#er
t"e c"attel leased alt"o'g" t"e lessee cannot
ma%e s're t"ereof$ for "e &o'ld be responsible
for damages to t"e lessor s"o'ld "e do so5 In
t"is case$ t"ere is a s'per#ision and sort of
control t"at o&ner of t"e :eeps eDercise o#er
t"e dri#ers55 It is an attempt b! ingenio's
sc"eme to &it"dra& t"e t"e relations"ip
bet&een t"e o&ner of t"e la&s enacted to
promote ind'strial peace5N
As s'c" emplo!ees$ :eepne! dri#ers are
t"erefore co#ered 'nder Sec5 +* of t"e Social
Sec'rit! La&5
'. LA&OR-ONLY CONTRACTING
Ans> Lo' can a#ail t"e benefts and be a
member 'nder SSS la& if t"ere eDist an
emplo!er- emplo!ee relations"ip5 In labor onl!
contractor$ t"ere co'ld eDist an emplo!er-
emplo!ee relations"ip bet&een t"e contractor-
emplo!ee and t"e principal5 T"e principal is
bo'nd to register t"e contractor emplo!ee
'nder t"e SSS la&$ and pa! its contrib'tion5
T"e principal "as po&er of control to t"e
contractor emplo!ees and not t"e labor onl!
contractor beca'se t"e latter is onl! an agent
of t"e principal5
Independent contractors and principal do not
"a#e emplo!er- emplo!ee relations"ip beca'se
t"e principal "as no po&er to control t"e
means and tools in ma%ing t"e :ob done5 T"e
principal is onl! concerned on t"e res'lt5
Ho&e#er$ t"e! can be a member of SSS 'nder
t"e categor! of self- emplo!ed depending on
t"eir &age earned5
ot" do not "a#e s'bstantial capitaliMation5
=nder t"e Labor Code$ t&o ;)< elements m'st
eDist for a fnding of labor-onl! contracting>
;a< t"e person s'ppl!ing &or%ers to an
emplo!er does not "a#e s'bstantial capital or
in#estment in t"e form of tools$ e2'ipment$
mac"ineries$ &or% premises$ among ot"ers$
and
;b< t"e &or%ers recr'ited and placed b! s'c"
persons are performing acti#ities directl!
related to t"e principal b'siness of s'c"
emplo!er5
TN: naa sa lain notes. Independent contracting
and labor only employees are not covered by
the SS Law.
(. EMPLOYMENT SERVICES NOT
COVERED) PURELY CASUAL
(MANSAL V GO-C$ECO)
Ver! Important> 00 Relations"ip beca'se in
SS la& t"ere are emplo!ees t"at are eDcl'ded
from co#erage$ so e#en if t"e! perform
ser#ices and t"e recei#e compensation$ t"e!
are eDcl'ded beca'se of t"e AS0NC0 of
emplo!er-emplo!ee relations"ip5
;:< 0mplo!ment - An! ser#ice performed b! an
emplo!ee for "is emplo!er eDcept>
;+< 0mplo!ment p'rel! cas'al and not for t"e
p'rpose of occ'pation or b'siness of t"e
emplo!er@
;)< Ser#ice performed on or in connection &it"
an alien #essel b! an emplo!ee if "e is
emplo!ed &"en s'c" #essel is o'tside t"e
."ilippines@
;/< Ser#ice performed in t"e emplo! of t"e
."ilippine Go#ernment or instr'mentalit! or
agenc! t"ereof@
;6< Ser#ice performed in t"e emplo! of a
foreign go#ernment or international
organiMation$ or t"eir &"oll!-o&ned
instr'mentalit!> .ro#ided$ "o&e#er$ T"at t"is
eDemption not&it"standing$ an! foreign
go#ernment$ international organiMation or t"eir
&"oll!-o&ned instr'mentalit! emplo!ing
&or%ers in t"e ."ilippines or emplo!ing
Filipinos o'tside of t"e ."ilippines$ ma! enter
into an agreement &it" t"e ."ilippine
Go#ernment for t"e incl'sion of s'c"
emplo!ees in t"e SSS eDcept t"ose alread!
co#ered b! t"eir respecti#e ci#il ser#ice
retirement s!stems> .ro#ided$ f'rt"er$ T"at t"e
terms of s'c" agreement s"all conform &it"
t"e pro#isions of t"is Act on co#erage and
amo'nt of pa!ment of contrib'tions and
benefts> .ro#ided$ fnall!$ T"at t"e pro#isions
of t"is Act s"all be s'pplementar! to an! s'c"
agreement@ and
;7< S'c" ot"er ser#ices performed b!
temporar! and ot"er emplo!ees &"ic" ma! be
eDcl'ded b! reg'lation of t"e Commission5
0mplo!ees of bona fde independent
contractors s"all not be deemed emplo!ees of
t"e emplo!er engaging t"e ser#ice of said
contractors5
0mplo!ment ser#ices eDcl'ded5 Lo' can fnd
t"is also on SS boo%5
- FOC=S on n'mber + and n'mber 75
- 0mplo!ees of bonafde independent
contractor s"all not be deemed emplo!ees of
t"e emplo!eer engaging t"e ser#ice of t"e said
contractors5 ;For p'rposes of t"e bar$ t"is &ill
be important5<
- +5 Np'rel! cas'al emplo!mentN and not
for t"e p'rpose of occ'pation for b'siness of
t"e emplo!ee 5
o T"e person t"at is engaged t"ere is
act'all! an emplo!ee$ b't is p'rel! cas'al and
not for t"e p'rpose of occ'pation or b'siness
of t"e emplo!ee5
case of 1ANSAL VS5 G=CH0CO 1eaning of
n'mber ;+<5 T"e &or% of t"e mec"anic is p'rel!
cas'al beca'se it is not part of t"e b'siness in
t"e operation of t"e l'mber b'siness5
AR> I t"in% it &as a &are"o'se or b'ilding
selling merc"andise5 nag'ba ang atop beca'se
of t"e storm and t"e carpenter is "ired to fD
t"e roof5
Q> &"et"er t"e carpenter s"o'ld be
comp'lsoril! co#ered?
Ans&er is R +5 It &as p'rel! cas'al
emplo!ment and t"e ser#ices performed b! t"e
carpenter are not for t"e p'rpose of occ'pation
for b'siness of t"e emplo!er5
- 't t"ere can be a lot of arg'ments
"ere5 8"at is p'rel! cas'al$ t"at is not also
defned 'nder SS la&5
Agric'lt'ral laborer- t"e fnding is also based
on t"e presence of t"e elements of emplo!er
emplo!ee relations"ip5
7. DEFINITION OF "EMPLOYER#
Co#erage of 0mplo!ers
a5 An emplo!er$ or an! person &"o 'ses
t"e ser#ices of anot"er person in b'siness$
trade$ ind'str! or an! 'nderta%ing5
b5 A social$ ci#il$ professional$ c"aritable
and ot"er non-proft organiMation &"ic" "ire
t"e ser#ices of emplo!ees are considered
Eemplo!ersF5
c5 A foreign go#ernment$ international
organiMation or its &"oll!-o&ned
instr'mentalit! s'c" as embass! in t"e
."ilippines$ ma! enter into an administrati#e
agreement &it" t"e SSS for t"e co#erage of its
Filipino emplo!ees
*. SICKNESS &ENEFIT + NUM&ER OF
DAYS T$AT CAN &E PAID
Sic%ness eneft
S A dail! cas" allo&ance paid for t"e
n'mber of da!s a member is 'nable to &or%
d'e to sic%ness or in:'r!5 T"e amo'nt is
e2'i#alent to 3*T of t"e member,s a#erage
dail! salar! credit5
S Re2'irements>
+5 He is 'nable to &or% d'e to sic%ness or
in:'r! and confned eit"er in a "ospital or at
"ome for at least 6 da!s@
)5 He "as paid at least / mont"s of
contrib'tions &it"in t"e +)-mont" period
immediatel! before t"e semester of
sic%nessUin:'r!
In comp'ting$ eDcl'de t"e semester of
sic%ness5 A semester refers to t&o consec'ti#e
2'arters ending in t"e 2'arter of sic%ness5 A
2'arter refers to t"ree consec'ti#e mont"s
ending 1arc"$ ('ne$ September or Gecember5
/5 He "as 'sed 'p all compan! sic% lea#es &it"
pa!@ and
8"!? eca'se if t"ere is a compan! pa!ing$ so
&"! &ill t"e s!stem pa! !o'? S'pposedl!$ it is
t"e fact t"at !o' &ill not recei#e an!t"ing from
t"e compan! d'e to !o'r inabilit! to &or%
&"ere t"e s!stem &ill compensate5
65 He "as notifed t"e emplo!er or SSS$ if
separated$ #ol'ntar! or self-emplo!ed5
Notif! emplo!er &it"in 7 calendar da!s
after start of sic%nessUin:'r! and emplo!er
m'st notif! SSS &it"in 7 da!s after receipt of
notifcation5 Notice is not re2'ired if member,s
confnement is in "ospital ;&"!? eca'se it can
easil! be c"ec%ed< or member got sic% &"ile
&or%ing or &it"in compan! premises5 ;&it"in
t"e compan! premises I t"e emplo!er is
s'pposed to %no& t"at !o' got sic%<
Note> Re2'irement ) is #er! common to all
benefts
For eDample ;from t"e g'ideboo% of SSS<> SSS
member gets sic% in October )**4 for )* da!s5
a5 T"e semester of sic%ness &o'ld be
from ('l! )**4 to Gecember )**45 C t&o
2'arters incl'ding t"e October )**4
b5 T"e +)-mont" period &o'ld be from
('l! )**7 to ('ne )**4 ;&"ere t"e siD "ig"est
mont"l! salar! credits &ill be c"osen<5
It is d'ring t"e +)-mont" period &"ere SSS
&o'ld "a#e to %no& &"et"er t"ere &as
pa!ment of at least t"ree mont"s contrib'tion5
1SC I 1ont"l! Salar! Credits
If magla"i)D 'g s&eldo %a! bal"in)D 'g amo$ it
is t"e 4t" "ig"est 1SC t"at &ill be c"osen5
In no case s"all t"e dail! sic%ness beneft be
paid longer t"an one "'ndred t&ent! ;+)*<
da!s in one ;+< calendar !ear$ nor s"all an!
'n'sed portion of t"e one "'ndred t&ent!
;+)*< da!s of sic%ness beneft granted 'nder
t"is section be carried for&ard and added to
t"e total n'mber of compensable da!s
allo&able in t"e s'bse2'ent !ear5
Limit as to n'mber of da!s ;abo#e< beca'se in
sic%ness$ t"e salar! credit &ill "a#e to be
m'ltiplied &it" t"e n'mber of da!s t"at t"e
member gets sic% "ence t"e maDim'm ;stated
abo#e<5
9. MATERNITY LEAVE &ENEFIT
1aternit! eneft
S It is a dail! cas" allo&ance granted to
female member &"o &as 'nable to &or% d'e to
c"ildbirt" or miscarriage5No marriage
re2'irement5
S It is e2'i#alent to +**T of member,s
a#erage dail! salar! credit ;&ala pa ni!
ded'ction "a?< m'ltiplied b! 4* da!s for
normal deli#er! or miscarriage$ BO da!s for
caesarian section deli#er!5
Q'alifcations for entitlement> ;same &it"
sic%ness<
+5 S"e "as paid at least t"ree mont"l!
contrib'tions &it"in t"e +)-mont" period
immediatel! preceding t"e semester of "er
c"ildbirt" or miscarriage
)5 S"e "as gi#en t"e re2'ired notifcation
of "er pregnanc! t"ro'g" "er emplo!er if
emplo!ed$ or to SSS if separated$ #ol'ntar! or
self-emplo!ed5
For eDample> SSS member gi#es birt" in
Gecember )**45
a5 T"e semester of contingenc! &o'ld be
from ('l! )**4 to Gecember )**45
b5 T"e +)-mont" period before t"e
semester of contingenc! &o'ld be from ('l!
)**7 to ('ne )**45
Geli#eries co#ered> ;Important aspect<
Onl! for t"e frst fo'r deli#eries or
miscarriages s"all be paid starting 1a! )6$
+33B ;eAecti#it! of RA O)O)<
1iscarriages incl'de abortion5 SSS &ebsite onl!
mentioned abortion$ no 2'alifcation &"et"er it
is intentional or 'nintentional b't according to
SSS abortion s"o'ld onl! co#er 'nintentional5
8"!? According to t"em$ t"ere is a criminal
responsibilit! on intentional abortion5
't is it not t"at regardless or criminal liabilit!
for as long as t"e facts compl! &it" t"e
re2'irements$ in ;sir,s< opinion$ it s"o'ld co#er
intentional abortion b't I "a#e no basis for
t"at5 eca'se for me$ t"e p'rpose of SS la& is
to beneft t"e emplo!ee5 8"at is t"e p'rpose
of SS la& &it" respect t"e emplo!er? To oblige
t"e emplo!er beca'se remember t"e emplo!er
does not get an!t"ing from t"e SS la&5
0mplo!er "as a lot of obligations and
responsibilities 'nder t"e SS la&5
Note> Geli#er! of t&insUtripletsU2'adraUetc5 I
one deli#er! onl!
Notice re2'ired>
As soon as pregnanc! is confrmed$
member m'st notif! immediatel! emplo!er or
SSS$ if 'nemplo!ed$ etc5 and probable date of
c"ildbirt" at least 4* da!s from date of
conception5 0mplo!er m'st in t'rn notif! SSS
after receipt of notifcation5 Fail're to obser#e
t"e r'le ma! res'lt in denial5
Can a member appl! for sic%ness beneft if s"e
"as been paid maternit! beneft?
No$ beca'se as a r'le$ no member can be
entitled to t&o benefts for t"e same period5
1,. W$O DETERMINES E-E-
11. EFFECT OF FINAL JUDGMENT
AT NLRC ON E-E
8HO SHO=LG G0T0R1IN0 0-0?
-since t"e eDistence of 00 rel5 bet&een t"e
respondent coop and its o&ners-members &as
p't in iss'e and considering t"at t"e
comp'lsor! co#erage of t"e SSS la& is
predicated on t"e eDistence of s'c"
relations"ip$ it be"oo#es t"e petitioner SSC to
determine if t"ere is reall! an 00 rel eDisting
bet&een respondent coop and its o&ners-
members5
T"e same fo'r-fold test$ t"e same elements5
Independent contracting and labor onl!
emplo!ees I not co#ered b! SS la&5
-t"e 2'estion on t"e eDistence of 00 rel5 is not
&it"in t"e eDcl'si#e :'risdiction of NLRC5 ART
)+B of LC en'merating t"e :'risdiction of t"e
Labor Arbiters and t"e NLRC pro#ides t"at>
ART5 )+B- ('risdiction of Labor Arbiters and t"e
Commission>
JDD DDDD DDD
45 eDcept claims for emplo!ees compensation$
SS$ medicare and maternit! benefts$ all ot"er
claims arising from 00 relations incl'ding t"ose
of persons in domestic or "o'se"old ser#ice
incl'ding an amo'nt eDceeding .7***
regardless of &"et"er accompanied &it" a
claim for reinstatement5
-alt"o'g" t"e pro#ision spea%s merel! of claims
for SS$ it &o'ld necessaril! incl'de iss'es on
t"e co#erage t"ereof$ beca'se claims are
'ndeniabl! rooted in t"e co#erage b! t"e
s!stem5 Hence$ t"e 2'estion on t"e eDistence
of 00 relations"ip for t"e p'rpose of
determining t"e co#erage of SSS is eDplicitl!
eDcl'ded from t"e :'risdiction of t"e NLRC and
falls &it" t"e :'risdiction of SSC &"ic" is
primaril! c"arged &it" t"e d't! of settling
disp'tes arising 'nder SSL of +33B5
-in determining t"e eDistence of an 00
relations"ip$ t"e A elements are considered>
;6-fold test ni$ %am' nlng s'ppl! remember
labor %a! %ap'! t!pe55 "e"e"55< T"e most
important5 0lement is t"e emplo!er,s control of
t"e emplo!ees cond'ct$ not onl! as to t"e
res'lt of t"e &or% to be done b't also as to t"e
means and met"ods to accomplis"5
Connect t"is to t"e case of Co #s .eople
SSC cannot determine t"e relations"ip in all
instances5
Facts> T"ere &as alread! a r'ling from t"e labor
case fled from t"e s'pposed emplo!ee against
t"e s'pposed emplo!er5 T"at t"ere &as no 00
relations"ip5 T"e r'ling &as fnal and eDec'tor!5
Gespite t"at$ gi%i"a gi"apon ang %adtong
s'pposed emplo!er in t"e fscal,s oKce for
#iolation of t"e SS la&5 Na%al'sot ang %i"a$
naabot sa RTC5 Ni5fle 'g motion to 2'as" on
t"e gro'nd of lac% of :'risdiction5 And t"e co'rt
s'stained$ sa!ing t"at t"ere is no more need to
determine t"e 00 relations"ip beca'se t"at "as
alread! been determined b! t"e Labor Co'rts
t"at t"ere &as absence of 00 relations"ip5 And
since SS la& co#erage is predicated on t"e
eDistence t"en t"ere s"o'ld be no more
criminal case to be fled against t"e s'pposed
emplo!er5
SC> t"e mandator! co#erage
Sir> In m! opinion$ if t"ere is alread! a fnal and
eDec'tor! r'ling of t"e labor code$ SSC does
not "a#e to ma%e t"e r'ling on t"e 00
relations"ip5 8"!? eca'se t"at &ill not end
t"e iss'e and !o' ma! "a#e a r'ling of t"e SSC
&"ic" ma! be diAerent to t"at of t"e Labor
Co'rts5
SC> ALL 0L010NTS AR0 .R0S0NT IN THIS CAS0
;Asiapro<
+5 eDpressl! pro#ided in t"e ser#ice
contract t"at respondent coop "as t"e
eDcl'si#e :'risdiction in t"e selection and
engagement of t"e o&ners-members as &ell as
team leaders &"o &ill be assigned at stanflco5
)5 T"e &ee%l! stipends or t"e so called
s"are in t"e ser#ice s'rpl's gi#en b! t"e
respondent cooperati#e to its o&ners-members
80R0 IN R0ALITL 8AG0S$ as t"e same &ere
e2'i#alent to an amo'nt not lo&er t"an t"at
prescribed b! t"e labor la&s$ r'les and
reg'lations incl'ding t"e &age order applicable
to t"e area and ind'str! or t"e same s"all not
be lo&er t"an t"e pre#ailing rates of &ages5 It
cannot be do'bted t"en t"at t"ose stipends or
s"are in t"e ser#ice s'rpl's are indeed &ages
beca'se t"ese are gi#en to t"e o&ners-
members as compensation in R0NG0RING
S0RVIC0S to respondent cooperati#e,s client$
stanflco5
If s"are :'d$ if naa! ma%'"a naa$ if &ala$ &ala5
1'ra bag di#idends sa corporation5
/5 .o&er to in#estigate cooperati#e
65 Control of cooperati#e
12. CONTINGENCIES COVERED;
&ENEFITS W$ERE EMPLOYER
ADVANCES
-SS e#ol#ed from an age-old searc" of man for
protection against po#ert!$ &"ic" breeds gra#e
social ills t"at not onl! t"reaten "is s'r#i#al b't
also erode "is sense of "'man dignit!5 It
t"erefore becomes t"e d't! of t"e state to
operate a mec"anism t"at &o'ld pro#ide s'c"
protection to its people5
.o#ert! in t"e conteDt of contingenc! as
contemplated in t"e SS la&5 Contingencies
contemplated in SS la& &"ic" t"e program
see%s to address> deat"$ old age$ retirement$
sic%ness$ pregnanc!$ or disabilit!5
-t"e s!stem establis"ed a program &"ic"
relie#es fnancial &ant b! restoring income lost
t"ro'g" inabilit! to &or% d'e to deat"$ old age$
sic%ness$ pregnanc! or disabilit!
0Dample$ if a co#ered member of sss dies$ "e
ma! be left b! "is s'r#i#ing spo'se &"o ma!
not "a#e an! &or% or an! so'rce of income@ or
a co#ered emplo!ee retires5
-so &or%ers are protected from anDieties arising
o't of contingencies
-b't anot"er p"enomenon "as aro'sed a deep
anDiet! for &or%ing class- globaliMation ;ie$
cost-c'tting$ prod'cti#it! en"ancement$
do&nsiMing of personnel$ termination of :obs5<
T"ese ma! be fnancial b't t"ese are not
contingencies in t"e e!es of t"e ss la&5
Termination of :ob and 'nemplo!ment not
incl'ded in t"e contingenc!5
0mplo!ers need to ad#ance>
+5 Ad#ance SS and 0C sic%ness benefts once
appro#ed b! SSS
)5 Ad#ance SS maternit! benefts d'e
/5 File for reimb'rsement for all legall! ad#anced
sic%ness and maternit! benefts
1!. CLAIMS UNDER LA&OR CODE
VIS-.-VIS SSS (ORTEGA V SSC)
ORT0GA VS SSC
-Claims 'nder t"e Labor Code for compensation
and 'nder t"e Social Sec'rit! La& for benefts
are not t"e same as to t"eir nat're and
p'rpose5
-On t"e one "and$ t"e pertinent pro#isions of
t"e Labor Code go#ern compensabilit! of &or%-
related disabilities or &"en t"ere is loss of
income d'e to &or%-connected or &or%-
aggra#ated in:'r! or illness5
-On t"e ot"er "and$ t"e benefts 'nder t"e
Social Sec'rit! La& are intended to pro#ide
ins'rance or protection against t"e "aMards or
ris%s of disabilit!$ sic%ness$ old age or deat"$
inter alia$ irrespecti#e of &"et"er t"e! arose
from or in t"e co'rse of t"e emplo!ment5
-And 'nli%e 'nder t"e Social Sec'rit! La&$ a
disabilit! is total and permanent 'nder t"e
Labor Code if as a res'lt of t"e in:'r! or
sic%ness t"e emplo!ee is 'nable to perform
an! gainf'l occ'pation for a contin'o's period
eDceeding +)* da!s regardless of &"et"er "e
loses t"e 'se of an! of "is bod! parts5
1%. COMPULSORY COVERAGE;
W$EN EFFECTIVE
CO1.=LSORL COV0RAG0 ;1emoriMeV<
importance of t"e &ord Ecomp'lsor!F NO
CHOIC0 "a"a"a"a
0#en if t"e "o'se"old "elper re2'ests not to be
co#ered$ &"ic" normall! "appens$ ngan' man?
maibanan man a%oang s&eldo a!a& lng
ded'cti no" an!&a! naa bt& para SS a!a&
nlng i-ded'ct5 Ass'ming imong gi report$ &a
nimo gi-ded'ct$ ang emplo!er man'bag sa
balaodV Gili ang emplo!ee and remember &ala
rabai relations"ip5 Inig %i"a sa emplo!eer sa
emplo!ee$ a& %apapa ang emplo!er 5
Co#erage of 0mplo!ees
a5 A pri#ate emplo!ee &"o is not o#er 4* !ears
old
b5 A "o'se"old-"elper earning at least .+$*** a
mont" is co#ered starting Sept5 +$ +33/5
A "o'se"old-"elper is an! person &"o
renders domestic or "o'se"old ser#ices
eDcl'si#el! to a "o'se"old emplo!er s'c"
dri#er$ gardener$ coo%$ go#erness$ and ot"er
similar occ'pations5
c5 A Filipino seafarer 'pon t"e signing of t"e
standard contract or emplo!ment bet&een t"e
seafarer and t"e manning agenc! &"ic"$
toget"er &it" t"e foreign s"ip o&ner$ act as
emplo!ers5
d5 An emplo!ee of a foreign go#ernment$
international organiMation or t"eir &"oll!-
o&ned instr'mentalit! based in t"e ."ilippines$
&"ic" entered into an administrati#e
agreement &it" t"e SSS for t"e co#erage of its
Filipino &or%ers5
Are laborers contin'o'sl! assigned to
constr'ction pro:ects as carpenters$ &ielders$
are comp'lsor! co#ered?
Case of CH=A #s CA> t"ere &as still an 00-0R
relations"ip$ so co#ered5 mao na$ probationar!
emplo!ees$ t"e! are co#ered 'nder SSS5 &"!?
Regardless of t"e nat're of t"e emplo!ment5
0FF0CTIVITL> frst da! of emplo!ment5
So ad#ice %aron sa mga clients5 Naa! mo s'd$
as% if !o' "a#e an SS na5 In t"e same manner
in t"e criminal case for eDample$ if !o'r client
is s'ed for t"e #iolation of t"e SS la& in t"e
fscals oKce$ once mo ba!ad %a sa SS$ mo eDist
na ang SSS b't t"e 2'estion t"ere$ &"at is t"e
eAect of !o'r pa!ment %'ng d'na! labor case
gifle later on? eca'se for me$ t"at ma! be
considered as an admission t"at t"ere eDisted
an 00-0R relations"ip5 T"at is practical &"!?
!o' tr! to a#oid criminal case5
T"e emplo!er is gi#en /* da!s from da! to
emplo!ment to t"e report t"e emplo!er
co#erage to t"e SSS5
Comp'lsor! co#erage
+5 For an emplo!ee C on t"e frst da! of
emplo!ment
)5 For an emplo!er C on t"e frst da! t"e
emplo!er "ires emplo!eeUs5
W0mplo!er is gi#en /* da!s from date of
emplo!ment to report t"e emplo!ee for
co#erage to SSS5
/5 For self-emplo!ed C 'pon pa!ment of
frst #alid contrib'tion$ in case of initial
co#erage5
1'. APPEAL FROM SSC; NON-
APPLICA&ILITY OF TEC$NICAL
RULES
Sec 65 N;c< Co'rt Re#ie&5 X T"e decision of t"e
Commission 'pon an! disp'ted matter ma! be
re#ie&ed bot" 'pon t"e la& and t"e facts b!
t"e Co'rt of Appeals5 For t"e p'rpose of s'c"
re#ie& t"e proced're concerning appeals from
t"e Regional Trial Co'rt s"all be follo&ed as far
as practicable and consistent &it" t"e p'rposes
of t"is Act5 Appeal from a decision of t"e
Commission m'st be ta%en &it"in ffteen ;+7<
da!s from notifcation of s'c" decision5 If t"e
decision of t"e Commission in#ol#es onl!
2'estions of la&$ t"e same s"all be re#ie&ed
b! t"e S'preme Co'rt5 No appeal bond s"all be
re2'ired5 T"e case s"all be "eard in a s'mmar!
manner$ and s"all ta%e precedence o#er all
cases$ eDcept t"at in t"e S'preme Co'rt$
criminal cases &"erein life imprisonment or
deat" "as been imposed b! t"e trial co'rt s"all
ta%e precedence5 No appeal s"all act as
s'persedeas or a sta! of t"e order of t"e
Commission 'nless t"e Commission itself$ or
t"e Co'rt of Appeals or t"e S'preme Co'rt$
s"all so order5
Ho& appeal is ta%en?
S ! #erifed petition for re#ie& ;T"e Re#ised
R'les of SSC Y+33BZ<5
WNote> +33* R'les of SCC state t"at it is b!
notice of appeal5
45 Section ) Tec"nical r'les not binding C T"ese
r'les s"all be liberall! constr'ed to carr! o't
t"e ob:ecti#es of t"e Social Sec'rit! Act of
+33B and to assist t"e parties in obtaining
eDpeditio's and ineDpensi#e settlement or
resol'tion of an! disp'te arising 'nder t"e said
Act5
In an! proceeding$ &"ic" s"all be non-litigio's
in nat're$ t"e r'les of e#idence pre#ailing in
t"e co'rts of la& s"all not be controlling5
CAS0> Signe! #s5 SSS
SC> SC &ill not dist'rb fndings of fact of t"e
SSS &"ic" are s'pported b! s'bstantial
e#idence and aKrmed b! t"e SSC and t"e
Co'rt of Appeals5
1oreo#er$ petitioner o'g"t to be reminded of
t"e basic r'le t"at t"is co'rt is not a trier of
facts5
It is a &ell-%no&n r'le t"at in proceedings
before administrati#e bodies$ tec"nical r'les of
proced're and e#idence are not binding5 T"e
important consideration is t"at bot" parties
&ere aAorded an opport'nit! to be "eard and
t"e! a#ailed t"emsel#es of it to present t"eir
respecti#e positions on t"e matter in disp'te5
It m'st li%e&ise be noted t"at 'nder section )$
R'le + of t"e SSC Re#ised R'les of .roced're$
t"e r'les of e#idence pre#ailing in t"e co'rts of
la& s"all not be controlling5 In t"e case at bar$
t"e eDistence of a prior s'bsisting marriage
bet&een t"e deceased and 0dit"a is s'pported
b! t"e s'bstantial e#idence5 .etitioner$ &"o
"as f'll! a#ailed of "er rig"t to be "eard$ onl!
relied on t"e &ai#er of 0dit"a and failed to
present an! e#idence to in#alidate or ot"er&ise
contro#ert t"e confrmed marriage certifcate
registered 'nder LCR Registr! No5 )*O/ on )+
No#ember +34B5 S"e did not e#en tr! to allege
and pro#e an! infrmit! in t"e marriage
bet&een t"e deceased and 0dit"a5
1(. &ENEFICIARIES; PRIMARY
&ENEFICIARIES
T"e legal benefciaries of a member are>
S Legall! married dependent spo'se 'ntil
"e or s"e remarries@
S Gependent legitimate$ legitimated or
legall! adopted and illegitimate c"ildren5
T"ese t&o are primar! benefciaries5
Spo'se- common-la& relations"ip "as no rig"t
to claim5 =ntil "e or s"e remarries "a5 8"!?
T"ere is an ass'mption in la& t"at if t"ere is a
separation de facto$ t"e ass'mption is t"ere is
no more dependence5 If t"e! are li#ing
toget"er$ one is dependent to anot"er5
Q'estion "ere is$ &"at if one is &or%ing?
C"ildren- ta%e note$ t"ere is also t"e &ord
NdependentN5 Gependent$ not gainf'll!
emplo!ed$ not !et reac"ed t"e age of )+ !rs5
old5 Important p"rase "ere> Nnot gainf'll!
emplo!edN5 No defnition "ere in SS$ in GSIS$
t"ere is5
If single$ benefts &ill go to dependent parents
&"o are considered secondar! benefciaries5
In absence of bot" primar! and secondar!$ an!
ot"er person designated b! member5
17. CONSENT OF SSS ON FILING
OF CRIMINAL ACTION
- Not needed5
RA O)O)$ Sec5 )O ;i< Criminal action arising
from a #iolation of t"e pro#isions of t"is Act
ma! be commenced b! t"e SSS or t"e
emplo!ee concerned eit"er 'nder t"is Act or in
appropriate cases 'nder t"e Re#ised .enal
Code> .ro#ided$ T"at s'c" criminal action ma!
be fled b! t"e SSS in t"e cit! or m'nicipalit!
&"ere t"e SSS oKce is located$ if t"e #iolation
&as committed &it"in its territorial :'risdiction
or in 1etro 1anila$ at t"e option of t"e SSS5
1*. LACK OF CRIMINAL INTENT
AND GOOD FAIT$ AS DEFENCES
Tan #s allena
In ans&er to criminal complaint for #iolation of
SS la&$ petitioners interposed t"e defenses of
lac% of criminal intent and good fait" as t"eir
fail're to remit &as bro'g"t abo't b! alleged
economic diKc'lties$ and t"e! "a#e alread!
agreed to settle t"eir obligations &it" t"e SSS
t"ro'g" a memorand'm of agreement to pa!
in installments5
SC> As "eld b! t"e Co'rt of Appeals$ t"e claims
of good fait" and absence of criminal intent for
t"e petitionersP ac%no&ledged non-remittance
of t"e respondentsP contrib'tions deser#e scant
consideration5 T"e #iolations c"arged in t"is
case pertain to t"e SSS La&$ &"ic" is a special
la&5 As s'c"$ it belongs to a class of oAenses
%no&n as mala pro"ibita5
19. PRESCRIPTIVE PERIOD
Sic%ness eneft
.rescribed period in fling a claim of a member
confned in "ospitalU"ome>
- For "ospital$ claim for beneft m'st be
fled &it"in + !ear from last da! of
confnement@
- For "ome$ + !ear from start of illness5
WFail're to fle t"e claim &it"in t"e prescribed
period &ill res'lt to denial of claim5
Gisabilit! eneft
- +* !ears from t"e date of occ'rrence of
disabilit!
Rig"t to Instit'te ;NOT A CRI1INAL ACTION<
Sec5 )) - ET"e rig"t to instit'te t"e necessar!
action against t"e emplo!er ma! be
commenced &it"in t&ent! ;)*< !ears from t"e
time t"e delin2'enc! is %no&n or t"e
assessment is made b! t"e SSS$ or from t"e
time t"e beneft accr'es$ as t"e case ma! be5F
;normall! from t"e time of disco#er!<
.rescripti#e period in fling a disabilit! claim>
;Ta%e note of t"is<
+* !ears from t"e date of occ'rrence of
disabilit!5 ;emplo!ee fling claims against t"e
s!stem<
In order to conteDt'aliMe$ t"e ot"er prescripti#e
period is section ))> claims against t"e
emplo!er I )* !ears ;emplo!ee fling claims
against emplo!er<
In t"e SS &ebsite$ since t"e la& is silent as to
t"e period on retirement and deat" and
maternit! I no prescribed period5 Goes it
follo& t"at section )) &o'ld appl! ;)* !ears<?
NOT necessaril! since section )) is a claims
against t"e 01.LOL0R i5e5 ;emplo!er &as not
able to report<5
- According to SS Commission$ t"e ot"er
benefts not co#ered$ it is I1.R0SCRI.TIL0$
t"at is if !o' "a#e complied &it" t"e notices of
re2'irement5
2,. GARCIA V SSC + DIRECTOR
LIA&LE-
Garcia #s SSC
-SSC fo'nd Garcia$ t"e sole s'r#i#ing director
of Impact Corporation$ petitioner "erein$ liable
for 'nremitted SSS contrib'tions5
Iss'e is &"et"er or not petitioner$ as t"e onl!
s'r#i#ing director of Impact Corporation$ can
be made solel! liable for t"e corporate
obligations of Impact Corporation pertaining to
'nremitted SSS premi'm contrib'tions and
penalties t"erefore5
- .etitioner c"allenges t"e fnding of t"e Co'rt
of Appeals t"at 'nder Section )O ;f< of t"e
Social Sec'rit! La&$ a mere director or oKcer
of an emplo!er corporation$ and not
necessaril! a NmanagingN director or oKcer$
can be "eld liable for t"e 'npaid SSS premi'm
contrib'tions5
- Section )O ;f< of t"e Social Sec'rit! La&
pro#ides t"e follo&ing>
;f< If t"e act or omission penaliMed
b! t"is Act be committed b! an association$
partners"ip$ corporation or an! ot"er
instit'tion$ its managing "ead$ directors or
partners s"all be liable to t"e penalties
pro#ided in t"is Act for t"e oAense5 ;#er!
interesting pro#ision da&<
SC>
T"is Co'rt t"o'g" fnds no need to resort to
stat'tor! constr'ction5 Section )O ;f< of t"e
Social Sec'rit! La& imposes penalt! on>
;+< t"e managing "ead@
;)< directors@ or
;/< partners$ for oAenses
committed b! a :'ridical person
T"e said pro#ision does not 2'alif! t"at t"e
director or partner s"o'ld li%e&ise be a
Nmanaging directorN or Nmanaging partner5E
T"e la& is clear and 'nambig'o's
Alt"o'g" a corporation once formed is
conferred a :'ridical personalit! separate and
distinct from t"e persons comprising it$ it is b't
a legal fction introd'ced for p'rposes of
con#enience and to s'bser#e t"e ends of
:'stice5 T"e concept cannot be eDtended to a
point be!ond its reasons and polic!$ and &"en
in#o%ed in s'pport of an end s'b#ersi#e of t"is
polic!$ &ill be disregarded b! t"e co'rts5
II. GSIS A/0 12 1997
1. JURISDICTION
GSIS "as original and eDcl'si#e :'risdiction to
settle an! disp'te arising 'nder RA O)3+ &U
respect to>
- Co#erage
- 0ntitlement to benefts
- Collection and pa!ment of contrib'tions
- An! ot"er matter related to an! or all of t"e
foregoing &"ic" is necessar! for t"eir
determination
.rescripti#e period
Fo'r !ears from date of contingenc! eDcept life
and retirement &"ic" do not prescribe5
2. ARE JUDGES COVERED-
CO1.=LSORL COV0RAG0 OF (=GG0S =NG0R
GSIS> LIF0 INS=RANC0
Comp'lsor! Life Ins'rance NOT0
All emplo!ees$ incl'ding t"e members of t"e
:'diciar! and t"e constit'tional commissioners$
b't eDcl'ding t"e 'niformed members of t"e
Armed Forces of t"e ."ilippines ;AF.<$ t"e
."ilippine National .olice and t"e 'rea' of Fire
.rotection ;F.<$ and 'rea' of (ail
1anagement and .enolog!5
In contrib'tions$ t"ere is a col'mn 3T
emplo!ees$ +)T emplo!ers$ in eDcess of
+*$*** it is s'b:ect to )T5 T"ere is a col'mn for
members of t"e :'diciar! and t"e constit'tional
commissioners5 Ang percentage sa ilang
contrib'tion is /T representing comp'lsor! life
ins'rance5 And NOT0> TH0R0 IS NOTHING
TH0R0 AO=T 01.LOL0R,S CONTRI=TION5
8"!? eca'se t"e! are not co#ered5 Ang
co#erage nila is onl! &it" respect to life
ins'rance5
!. W$O IS A DEPENDENT LEGITIMATE
C$ILD-
%. NEW &ENEFITS; PRIMARY
&ENEFICIARIES IN CASE OF
SURVIVORS$IP
enefciaries 'nder GSIS>
+5 8"en a member or pensioner dies$ t"e
primar! benefciaries ;s'r#i#ing legal spo'se
and dependent c"ildren< or secondar!
benefciaries$ as t"e case ma! be$ s"all be
entitled to t"e applicable s'r#i#ors"ip benefts5
)5 T"e primar! benefciariesY+Z s"all be t"e
follo&ing>
a5 T"e legitimate spo'se$ 'ntil sU"e re-marries$
or co-"abitsUengages in common-la&
relations"ip@ and
b5 T"e dependent legitimate$ legall! adopted or
legitimated c"ildren$ incl'ding illegitimate
c"ildren$ &"o "a#e not reac"ed t"e age of
ma:orit!$ or$ "a#e reac"ed t"e age of ma:orit!
b't incapacitated and incapable of self-s'pport
d'e to a mental or p"!sical defect ac2'ired
prior to age of ma:orit!5
/5 T"e secondar! benefciaries s"all be t"e
dependent parents and$ s'b:ect to t"e
restrictions on dependent c"ildren$ t"e
legitimate descendantsY)Z5
T"e secondar! benefciaries s"all onl! be
entitled to s'r#i#ors"ip benefts if t"ere are no
primar! benefciaries5
1eaning of dependent?
Gependent means one &"o deri#es "is or "er
main s'pport from anot"er$ meaning$ rel!ing$
or s'b:ect to$ someone else for s'pport@ not
able to eDist or s'stain oneself$ or to perform
an!t"ing &it"o't t"e &ill$ po&er$ or aid of
someone else5 ;A51 No5 +**++3 C Ret5 Febr'ar!
))$ )**+ Y R0> A..LICATION FOR S=VIVOR,S
0N0FITS OF 1S5 1ALL0NN0 G5 1ANLAVI$
GA=GHT0R OF TH0 LAT0 0RN0STO R5
1ANLAVIZ<
A51 No5 +**++3 C Ret5 Febr'ar! ))$ )**+ Y R0>
A..LICATION FOR S=VIVOR,S 0N0FITS OF 1S5
1ALL0NN0 G5 1ANLAVI$ GA=GHT0R OF TH0
LAT0 0RN0STO R5 1ANLAVI<
'. SEPARATION &ENEFIT + FOR CAUSE
S0.ARATION 0N0FIT =NG0R GSIS> T8O
GISTINCTIONS> ;+< IF S0.ARATION IS FOR
CA=S0 OR ;)< NOT FOR CA=S0
IRR$ R'le II$ sec5 )7@ GISTINCTION
1ember separated for ca'se
o A'tomaticall! forfeit
o =nless terms of resignation or separation
pro#ide ot"er&ise
1ember separated not for ca'se
o S"all contin'e to be a member and entitled
s'b:ect to 2'alifcation and ot"er prescription
45 COA DISALLOWANCES
As a general r'le$ t"e! cannot be ded'cted
eDcept &"en "is monetar! liabilit! contract'al
or ot"er&ise in fa#or of gsis member separated
for ca'se a'tomaticall! forfeit 'nless terms of
resignation or separation pro#ide
ot"er&isemember separated not for ca'se s"all
contin'e to be member and entitled s'b:ect to
2'alifcation and ot"er prescription
8"at is COA disallo&ances?
Gisallo&ance - t"e disappro#al in a'dit of a
transaction$ eit"er in &"ole or in part5 T"e term
applies to t"e a'dit of disb'rsements a s
disting'is"ed from Nc"argeN &"ic" applies to
t"e a'dit of re#en'esUreceipts5
T"e scope of its a'dit and eDamination$
establis" t"e tec"ni2'es and met"ods re2'ired
t"erefor$ and prom'lgate acco'nting and
a'diting r'les and reg'lations incl'ding t"ose
for t"e pre#ention and disallo&ance of
irreg'lar$ 'nnecessar!$ eDcessi#e$ eDtra#agant$
or 'nconscionable eDpendit'res$ or 'ses of
go#ernment f'nds and properties5
Section 65 A'dit Gisallo&ancesU C"argesU
S'spensions - In t"e co'rse of t"e a'dit$
&"ene#er t"ere are diAerences arising from t"e
settlement of acco'nts b! reason of
disallo&ances or c"arges$ t"e a'ditor s"all
iss'e Notices of Gisallo&ancesUC"arge ;NGUNC<
&"ic" s"all iss'e Notices of
Gisallo&anceUC"arge ;NGUNC< &"ic" s"all be
considered as a'dit decisions$
recommendations or dispositions s"all be
s'pported b! applicable la&s$ reg'lations$
:'rispr'dence and t"e generall! accepted
acco'nting and a'diting principles5 T"e A'ditor
ma! iss'e Notices of S'spension ;NS< for
transactions of do'btf'l legalit!U#alidit!U
propriet! to obtain f'rt"er eDplanation or
doc'mentation5
NS0C5 /35 0Demption from TaD$ Legal .rocess
and Lien
NT"e f'nds andUor t"e properties referred to
"erein as &ell as t"e benefts$ s'ms or monies
corresponding to t"e benefts 'nder t"is Act
s"all be eDempt from attac"ment$ garnis"ment$
eDec'tion$ le#! or ot"er processes iss'ed b!
t"e co'rts$ 2'asi-:'dicial agencies or
administrati#e bodies incl'ding Commission on
A'dit ;COA< disallo&ances and from all
fnancial obligations of t"e members$ incl'ding
"is pec'niar! acco'ntabilit! arising from or
ca'sed or occasioned b! "is eDercise or
performance of "is oKcial f'nctions or d'ties$
or inc'rred relati#e to or in connection &it" "is
position or &or% eDcept &"en "is monetar!
liabilit!$ contract'al or ot"er&ise$ is in fa#or of
t"e GSIS5
COA disallo&ances cannot be ded'cted from
retirement benefts5
GSIS VS COA
T"e main contro#ers! of &"et"er COA
disallo&ances co'ld be ded'cted from
retirement benefts beca'se t"e oard ordered
t"e dismissal of respondents, claim for alleged
lac% of :'risdiction$ before it co'ld e#en decide
on t"e principal iss'e5
T"e lone iss'e is &"et"er COA disallo&ances
co'ld be legall! ded'cted from retirement
benefts on t"e gro'nd t"at t"ese &ere
respondents, monetar! liabilities to t"e GSIS
'nder t"e said pro#ision5 T"ere is no disp'te
t"at t"e amo'nts ded'cted b! GSIS
represented COA disallo&ances5 T"'s$ t"e onl!
2'estion left for t"e oard to decide is &"et"er
t"e ded'ctions are allo&ed 'nder RA O)3+5
.ro#ision of la& clearl! states t"at no amo'nt
&"atsoe#er co'ld be legall! ded'cted from
retirement benefts$ e#en t"ose amo'nts
representing COA disallo&ances5
6B575 0Demption of all F'nds of t"e GSIS from
TaD$ Attac"ment$ 0Dec'tion$ Le#! or Ot"er
Legal .rocesses5- T"e f'nds andUor t"e
properties referred to "erein as &ell as t"e
benefts$ s'ms or monies corresponding to t"e
benefts 'nder t"is Act s"all be eDempt from
attac"ment$ garnis"ment$ eDec'tion$ le#! or
ot"er processes iss'ed b! t"e co'rts$ 2'asi
:'dicial agencies or administrati#e bodies
incl'ding Commission on A'dit ;COA<
disallo&ances and from all fnancial obligations
of t"e members$ incl'ding "is pec'niar!
acco'ntabilit! arising from or ca'sed or
occasioned b! "is eDercise or performance of
"is oKcial f'nctions or d'ties$ or inc'rred
relati#e to or in connection &it" "is position or
&or% eDcept &"en "is monetar! liabilit!$
contract'al or ot"er&ise$ is in fa#or of t"e GSIS5
7. PRESCRIPTIVE PERIOD
NS0CTION )O5 .rescription5 [ Claims for
benefts 'nder t"is Act eDcept for life and
retirement s"all prescribe after fo'r ;6< !ears
from t"e date of contingenc!5
8"en t"e pensioner dies &it"in t"e 7-!ear
period after recei#ing t"e f#e-!ear l'mp s'm$
t"e s'r#i#ors"ip pension s"all be paid onl!
after t"e end of t"e said f#e-!ear period5
Ho&e#er$ fling of claim for s'r#i#ors"ip beneft
s"o'ld be done before t"e end of t"e 6-!ear
prescription period
*. GSIS V NLRC + SECURITY
GUARDS3 MONEY CLAIMS
GSIS #s5 NLRC ;important<
Remember t"ere is an indirect emplo!er 'nder
t"e labor code5
.ri#ate respondents &ere sec'rit! g'ards of a
sec'rit! agenc! assigned to Tacloban branc" of
GSIS5
T"e sec'rit! g'ards t"ereafter fled an illegal
dismissal against t"e agenc! and GSIS$
separation pa!$ salar! diAerential$ +/t" mont"
and 'npaid salar!5
8"en t"ere &as an eDec'tion against GSIS for
t"e mone! claims$ GSIS arg'ed$ !o' cannot
to'c" o'r f'nds$ in#o%ing S0C5 /3 of t"e
C"arter5
GSIS fled t"e present petition contending t"e
error committed beca'se it is eDempt from
eDec'tion per c"arter5
SC>
T"e fact t"at t"ere is no act'al and direct
emplo!er C emplo!ee relations"ip bet&een
petitioner and respondents does not absol#e
t"e former from liabilit! for t"e latter,s
monetar! claims5 8"en petitioner contracted
GNL sec'rit!,s ser#ices$ petitioner became an
indirect emplo!er of respondents$ p'rs'ant to
article +*B of t"e labor code5
After GNL sec'rit! failed to pa! respondents
t"e correct &ages and ot"er monetar! benefts$
petitioner$ as principal$ became :ointl! and
se#erall! liable$ as pro#ided in articles +*4 and
+*3 of t"e labor code5
Citing GSIS #s5 RTC of .asig5 SC did not agree
&it" petitioner t"at t"e enforcement of t"e
decision is impossible beca'se its c"arter
'ne2'i#ocall! eDempts it from eDec'tion5
.etitioner,s c"arter s"o'ld not be 'sed to
e#ade its liabilities to its emplo!ees$ e#en to its
indirect emplo!ees$ as mandated b! t"e labor
code5
.0O.L0 nagpad'ngog) nap'd bali% ang
contracting agenc! ec"'s sa LAOR5
1a!ga&s"""VVVV Sa'p ba!a %o atong essa!VVVV
III. PORTA&ILITY LAW
+5 W$EN APPLICA&LE- W$EN IS
TOTALI4ATION RESORTED TO-
8it" t"e "elp of RA B433$ ot"er&ise %no&n as
t"e .ortabilit! La&$ go#ernment retirees &"o
do not meet t"e re2'ired n'mber of !ears
pro#ided 'nder .G ++64 and RA O)3+ can still
a#ail of retirement and ot"er benefts5
=nder t"e sc"eme$ !o' ma! combine !o'r
!ears of ser#ice in t"e pri#ate sector
represented b! !o'r contrib'tions to t"e Social
Sec'rit! S!stem ;SSS< &it" !o'r go#ernment
ser#ice and contrib'tions to t"e GSIS to satisf!
t"e re2'ired !ears of ser#ice 'nder .G ++64
and RA O)3+5
Ho&e#er$ if !o' "a#e satisfed t"e re2'ired
!ears of ser#ice 'nder t"e GSIS retirement
option !o' "a#e c"osen$ !o' &o'ld not be
allo&ed to incorporate !o'r contrib'tions to t"e
SSS an!more for a#ailment of additional
benefts5
In case of deat"$ disabilit! and old age$ t"e
periods of creditable ser#ices or contrib'tions
to t"e SSS and GSIS s"all be s'mmed 'p to
entitle !o' to recei#e t"e benefts 'nder eit"er
.G ++64 or RA O)3+5
If 2'alifed 'nder RA O)3+$ all t"e benefts s"all
appl! 0JC0.T t"e cas" pa!ment5 T"e reason
for t"is is t"at t"e .ortabilit! La& or RA B433
pro#ides t"at onl! benefts common to bot"
S!stems ;GSIS and SSS< s"all be paid5 Cas"
pa!ment is NOT incl'ded in t"e benefts
pro#ided b! t"e SSS5
.ortabilit! enefts C RA B433
- A member of GSIS &"o does not 2'alif!
for old age and ot"er benefts b! reason of non-
f'lfllment of t"e re2'ired period of ser#ice ma!
be able to 2'alif! for s'c" benefts b! ma%ing
'se of t"e period d'ring &"ic" "e rendered
ser#ices to a pri#ate emplo!er and for &"ic"
contrib'tions &ere paid to SSS5 T"is is allo&ed
'nder RA B433 ;appro#ed 1a! +$ +336<
- T"e Act instit'ted a limited portabilit!
sc"eme in t"e GSIS and SSS b! totaliMing t"e
&or%ers, creditable ser#ices or contrib'tions in
eac" of t"e S!stems5
.ortabilit! C refers to transfer of f'nds for t"e
beneft and acco'nt of a &or%er &"o transfers
from one s!stem to t"e ot"er ;RA B433$ Sec5 )
YbZ<5
TotaliMation C refers to t"e process of adding 'p
t"e periods of creditable ser#ices or
contrib'tions in eac" of t"e S!stems for
p'rposes of eligibilit! and comp'tation of
benefts$ For p'rposes of totaliMation$
o#erlapping periods of members"ip s"all be
considered once onl! ;Sec5 /<
O#erlapping period C refers to t"e period d'ring
&"ic" a &or%er contrib'tes sim'ltaneo'sl! to
GSIS and SSS5
VI. EMPLOYEES3
COMPENSATION
1. VALERIANO V ECC - COVERAGE
FORMULA 5 6ARISING OUT OF6
AND 6IN T$E COURSE OF
EMPLOYMENT6; 2%-$OUR-DUTY
DOCTRINE
2. CAN A CLAIM FOR &ENEFIT &E
DEFEATED &Y T$E MERE FACT OF
SEPARATION FROM SERVICE-
(GSIS V CUANANG7 A8UINO V SSS7
ETC.)
WALA SA NOTES.