Republic of the Philippines SUPREME COURT Manila EN BANC G.R. No. 14924 !

ul" 11# 2 2 SOC$%& SECUR$T' S'STEM# petitioner, vs. COMM$SS$ON ON %U($T# respondent. )E&&OS$&&O# J.* THE FUNDS contributed to the Social Security Syste !SSS" are not only i bued #ith public interest, they are part and parcel o$ the $ruits o$ the #or%ers& labors pooled into one enor ous trust $und under the ad inistration o$ the Syste desi'ned to insure a'ainst the vicissitudes and ha(ards o$ their #or%in' lives. )n a very real sense, the trust $unds are the #or%ers& property #hich they could turn to #hen necessity bec%ons and are thus ore personal to the than the ta*es they pay. )t is there$ore only $air and proper that char'es a'ainst the trust $und be strictly scrutini(ed $or every la#$ul and +udicious opportunity to %eep it intact and viable in the interest o$ enhancin' the #el$are o$ their true and ulti ate bene$iciaries. This is a petition $or certiorari under ,ule -. o$ the 1997 Rules of Civil Procedure prayin' that this Court assess a'ainst the #or%ers& social security $und the a ount o$ /0,111.11 as contract si'nin' bonus o$ each o$$icial and e ployee o$ the SSS. The 'ratuity e anated $ro the collective ne'otiation a'ree ent !CNA" e*ecuted on 21 3uly 244- bet#een the Social Security Co ission !SSC" in behal$ o$ the SSS and the Alert and Concerned E ployees $or Better SSS !ACCESS", the sole and e*clusive ne'otiatin' a'ent $or e ployees o$ the SSS.2 )n particular, Art. 5))) o$ the CNA provided 6 As a 'esture o$ 'ood #ill and benevolence, the 7ana'e ent a'rees that once the Collective Ne'otiation A'ree ent is approved and si'ned by the parties, 7ana'e ent shall 'rant each o$$icial and e ployee o$ the S8STE7 the a ount o$ /0,111.11 as contract si'nin' bonus.9 To $und this underta%in', the SSC allocated /20,111,111.11 in the bud'etary appropriation o$ the SSS.: ;n 2< February 244= the Depart ent o$ Bud'et and 7ana'e ent !DB7" declared as ille'al the contract si'nin' bonus #hich the CNA authori(ed to be distributed a on' the personnel o$ the SSS.. ;n 2 3uly 244= the SSS Corporate Auditor disallo#ed $und releases $or the si'nin' bonus since it #as >an allo#ance in the $or o$ additional co pensation prohibited by the Constitution.>0 T#o !9" years later, in a letter dated 94 Septe ber 2444, ACCESS appealed the disallo#ance to the Co ission on Audit !C;A".- ;n 0 3uly 9112 despite the delay in the $ilin' o$ the appeal, a procedural atter #hich C;A considered to be inconse?uential,= C;A a$$ir ed the disallo#ance and ruled that the 'rant o$ the si'nin' bonus #as i proper.< )t held that the provision on the si'nin' bonus in the CNA had no le'al basis since Sec. 2- o$ RA 7658 !24<4"4 had repealed the authority o$ the SSC to $i* the co pensation o$ its personnel.21Hence the instant petition #hich, curiously, #as $iled in the na e o$ the Social Security Syste !and not ACCESS" by authority o$ the o$$icer6in6char'e $or the SSS22 throu'h its le'al sta$$.29

/etitioner SSS ar'ues that a si'nin' bonus ay be 'ranted upon the conclusion o$ ne'otiations leadin' to the e*ecution o$ a CNA #here it is speci$ically authori(ed by la# and that in the case at bar such le'al authority is $ound in Sec. :, par. !c", o$ RA 1161 as a ended !Charter o$ the SSS" #hich allo#s the SSC to $i* the co pensation o$ its personnel. ;n the other hand, respondent C;A asserts that the authority o$ the SSC to $i* the co pensation o$ its personnel has been repealed by Secs. 29 and 2- o$ RA 6758 and is there$ore no lon'er e$$ective. @e $ind no le'iti ate and co pellin' reason to reverse the C;A. To be'in #ith, the instant petition is $atally de$ective. )t #as $iled in the na e o$ the SSS althou'h no directive $ro the SSC authori(ed the instant suit and only the o$$icer6in6char'e in behal$ o$ petitioner e*ecuted the purported directive. Clearly, this is irre'ular since under Sec. ., par. 21, in relation to par. =,2: RA 1161 as a ended by RA 8282 (The Social Security Act of 1997, #hich #as already e$$ective2. #hen the instant petition #as $iled", it is the SSC as a colle'iate body #hich has the po#er to approve, con$ir , pass upon or revie# the action o$ the SSS to sue in court. 7oreover, the appearance o$ the internal le'al sta$$ o$ the SSS as counsel in the present proceedin's is si ilarly ?uestionable because under both RA 1161 and RA 8282 it is the Depart ent o$ 3ustice !Do3" that has the authority to act as counsel o$ the SSS.20 )t is #ell settled that the le'ality o$ the representation o$ an unauthori(ed counsel ay be raised at any sta'e o$ the proceedin's2- and that such illicit representation produces no le'al e$$ect.2= Since nothin' in the case at bar sho#s that the approval or rati$ication o$ the SSC has been underta%en in the anner prescribed by la# and that the Do3 has not dele'ated the authority to act as counsel and appear herein, the instant petition ust necessarily $ail. These procedural de$iciencies are serious atters #hich this Court cannot ta%e li'htly and si ply i'nore since the SSS is in reality con$essin' +ud' ent to char'e e*penditure a'ainst the trust $und under its custodianship. )n Pre iu !ar"le Resources v# Court of A$$eals 2< #e held that no person, not even its o$$icers, could validly sue in behal$ o$ a corporation in the absence o$ any resolution $ro the 'overnin' body authori(in' the $ilin' o$ such suit. 7oreover, #here the corporate o$$icer&s po#er as an a'ent o$ the corporation did not derive $ro such resolution, it #ould nonetheless be necessary to sho# a clear source o$ authority $ro the charter, the by6la#s or the i plied acts o$ the 'overnin' body.24 Un$ortunately there is no palpable evidence in the records to sho# that the o$$icer6in6char'e could all by hi sel$ order the $ilin' o$ the instant petition #ithout the intervention o$ the SSC, nor that the le'al sta$$ o$ SSS could act as its counsel and appear therein #ithout the intervention o$ the Do3. The po#er o$ attorney supposedly authori(in' this suit as #ell as the si'nature o$ the le'al counsel appearin' on the si'nin' pa'e o$ the instant petition is there$ore ine$$ectual. )ndeed #e $ind no erit in the clai that the e ployees and o$$icers o$ SSS are entitled to the si'nin' bonus provided $or in the CNA. )n the $irst place, the process o$ collective ne'otiations in the public sector does not enco pass ter s and conditions o$ e ploy ent re?uirin' the appropriation o$ public $unds 6 Sec. 2:. Ter s and conditions o$ e ploy ent or i prove ents thereo$, e*cept those that are $i*ed by la#, ay be the sub+ect o$ ne'otiations bet#een duly reco'ni(ed e ployees& or'ani(ations and appropriate 'overn ent authorities.91 7ore particularly 6 Sec. :. Those that re?uire appropriation o$ $unds, such as the $ollo#in', are not ne'otiableA !a" )ncrease in salary e olu ents and other allo#ances not presently

provided $or by la#B !b" Facilities re?uirin' capital outlaysB !c" Car planB !d" /rovident $undB !e" Special hospitali(ation, edical and dental servicesB !$" ,iceCsu'arCother subsidiesB !'" Travel e*pensesB !h" )ncrease in retire ent bene$its. Sec. .. 7atters that involve the e*ercise o$ ana'e ent prero'atives, such as the $ollo#in', are li%e#ise not sub+ect to ne'otiationA !a" Appoint entB !b" /ro otionB !c" Assi'n entCDetailB !d" ,eclassi$icationC up'radin' o$ positionB !e" ,evision o$ co pensation structureB !$" /enalties i posed as a result o$ disciplinary actionsB !'" Selection o$ personnel to attend se inar, trainin's, study 'rantsB !h" Distribution o$ #or% loadB !)" E*ternal co unication lin%a'es.92 /etitioner ho#ever ar'ues that the charter o$ SSS authori(es the SSC to $i* the co pensation o$ its e ployees and o$$icers so that in reality the si'nin' bonus is erely the $ruit o$ the e*ercise o$ such $unda ental po#er. ;n this issue, #e have to e*plain the relevant a end ents to the SSS charter in relation to the passa'e o$ RA 6758 !24<4" entitled %A& Act Prescri"i&' a Revised Co $e&satio& a&d Positio& Classificatio& i& the (over& e&t a&d for other Pur$oses#% @hen the si'nin' bonus #as besto#ed upon each e ployee and o$$icer o$ the SSS on 21 3uly 244-, #hich #as earlier approved by the SSC on : 3uly 244-, the 'overnin' charter o$ the SSS #as RA 1161 as a ended by Sec. 2, RA 2658, and Sec. 2, P) 7*5# Under this a ended statute, the SSC #as e po#ered to >appoint an actuary, and such other personnel as ay be dee ed necessary> and to >$i* their co pensation.>99 The la# also provided that >the personnel o$ the SSS shall be selected only $ro civil service eli'ibles and be sub+ect to civil service rules and re'ulations.>9: ;n 4 Au'ust 24<4 Con'ress passed RA 6758 #hich too% e$$ect on 2 3uly 24<4.9. )ts 'oal #as to >provide e?ual pay $or substantially e?ual #or% and to base di$$erences in pay upon substantive di$$erences in duties and responsibilities, and ?uali$ication re?uire ents o$ the positions.>90 To#ards this end, RA 6758 provided $or the consolidation o$ allo#ances and co pensation in the prescribed standardi(ed salary rates e*cept certain speci$ied allo#ances9- and such other additional co pensation as ay be deter ined by the Depart ent o$ Bud'et and 7ana'e ent.9= The la# also repealed >DaEll la#s, decrees, e*ecutive orders, corporate charters, and other issuances or parts thereo$, that e*e pt a'encies $ro the covera'e o$ the Syste , or that authori(e and $i* position classi$ication, salaries, pay rates or allo#ances o$ speci$ied positions, or 'roups o$ o$$icials and e ployees or o$ a'encies, #hich are inconsistent #ith the Syste , includin' the proviso under Section 9 and Section 2- o$ /residential Decree No. 4<0.>9< Althou'h it #as the clear policy intent o$ RA 6758 to standardi(e salary rates a on' 'overn ent personnel, the Fe'islature under Secs. 2994 and 2=:1 o$ the la# nonetheless sa# the need $or e?uity and +ustice in adoptin' the policy o$ non6di inution o$ pay #hen it authori(ed incu bents as o$ 2 3uly 24<4 to receive salaries andCor allo#ances over and above those authori(ed by RA 6758# )n Phili$$i&e Ports Authority v# Co issio& o& Audit:2 #e held that no $inancial or non6$inancial incentive could be a#arded to e ployees o$ 'overn ent o#ned and controlled corporations aside $ro bene$its #hich #ere bein' received by incu bent o$$icials and e ployees as o$ 2 3uly 24<4. This Court also observed 6 The conse?uential outco e, under sections 29 and 2=, is that i$ the incu bent resi'ns or is pro oted to a hi'her position, his successor is no lon'er entitled to his predecessor&s ,ATA privile'e * * * or to the transition allo#ance * * * * DAE$ter 3uly 2, 24<4, additional $inancial incentives such as ,ATA ay no lon'er be 'iven by G;CCs

#ith the e*ception o$ those #hich #ere authori(ed to be continued under Section 29 o$ ,A -=0<. Evidently, #hile RA 6758 intended to do a#ay #ith ultiple allo#ances and other incentive pac%a'es and the resultin' di$$erences in co pensation a on' 'overn ent personnel, the statute clearly did not revo%e e*istin' bene$its bein' en+oyed by incu bents o$ 'overn ent positions at the ti e o$ the passa'e o$ RA 6758 by virtue o$ Secs. 29 and 2= thereo$. )n previous rulin's o$ this Court, a on' the $inancial and non6$inancial incentives #hich #e allo#ed certain 'overn ent e ployees to en+oy a$ter the e$$ectivity o$ RA 6758 #ere car plan bene$its:9 and educational $undin' assistance:: $or incu bents o$ e*istin' positions as o$ 2 3uly 24<4 until such 'ratuity pac%a'es #ere 'radually phased out. @e have no doubt that RA 6758 odi$ied, i$ not repealed, Sec. :, par. !c", o$ RA 1161 as a ended, at least inso$ar as it concerned the authority o$ SSC to $i* the co pensation o$ SSS e ployees and o$$icers. This eans that #hatever salaries and other $inancial and non6 $inancial induce ents that the SSC #as inded to $i* $or the , the co pensation ust co ply #ith the ter s o$ RA 6758# Conse?uently, only the re uneration #hich #as bein' o$$ered as o$ 2 3uly 24<4, and #hich #as then bein' en+oyed by incu bent SSS e ployees and o$$icers, could be availed o$ e*clusively by the sa e e ployees and o$$icers separate $ro and independent o$ the prescribed standardi(ed salary rates. Un$ortunately, ho#ever, the si'nin' bonus in ?uestion did not ?uali$y under Secs. 29 and 2= o$ RA 6758# )t #as non6 e*istent as o$ 2 3uly 24<4 as it accrued only in 244- #hen the CNA #as entered into by and bet#een SSC and ACCESS. The si'nin' bonus there$ore could not have been included in the salutary provisions o$ the statute nor #ould it be le'al to disburse to the intended recipients. Phili$$i&e +&ter&atio&al Tradi&' Cor$oratio& v# Co issio& o& Audit :. is instructive on this point. Fi%e the SSS, the /hilippine )nternational Tradin' Corporation !/)TC" is a 'overn ent6 o#ned and controlled corporation #hich #as created under P) 252 !24=:" pri arily $or the purpose o$ pro otin' and developin' /hilippine trade in pursuance o$ national econo ic develop ent. )n the sa e +ud' ent #hich a$$ir ed the car $inancin' pro'ra and allied incentives bein' i ple ented prior to 2 3uly 24<4 #e held that the charter o$ /)TC #as i pliedly repealed by RA 6758 6 @e dee it necessary thou'h to resolve the third issue as to #hether /)TC is e*e pt $ro /D 4<0 as subse?uently a ended by ,A -=0<. Accordin' to petitioner, /)TC&s ,evised Charter, /D 21=2 dated 3anuary 90, 24==, as a ended by E; =0- dated Dece ber 94, 24<2, and $urther a ended by E; 21-= dated Nove ber 90, 24<0, e*pressly e*e pted /)TC $ro the ;$$ice o$ the Co pensation and /osition Classi$ication !;C/C" rules and re'ulations. /etitioner cites Section 9< o$ /.D. 21=2B Section - o$ E; =0-B and Section : o$ E; 21-=. Accordin' to the C;A in its Decision No. 4<61.< dated 3anuary 9=, 244<, the e*e ption 'ranted to the /)TC has been repealed and revo%ed by the repealin' provisions o$ ,A -=0<, particularly Section 2thereo$ #hich providesA Sec. 2-. ,epeal o$ Special Salary Fa#s and ,e'ulations. 6 All la#s, decrees, e*ecutive orders, corporate charters, and other issuances or parts thereo$, that e*e pt a'encies $ro the covera'e o$ the Syste , or that authori(e and $i* position classi$ications, salaries, pay rates or allo#ances o$ speci$ied positions, or 'roups o$ o$$icials, and e ployees or o$ a'encies, #hich are inconsistent #ith the Syste , includin' the proviso under Section 9 and Section 2- o$ /D No. 4<0 are hereby repealed.

To this, D/)TCE ar'ues that ,A -=0< #hich is a la# o$ 'eneral application cannot repeal provisions o$ the ,evised Charter o$ /)TC and its a endatory la#s e*pressly e*e ptin' /)TC $ro ;C/C covera'e bein' special la#s * * * * )n the case at bar, the repeal by Section 2- o$ ,A -=0< o$ >all corporate charters that e*e pt a'encies $ro the covera'e o$ the Syste > #as clear and e*pressed necessarily to achieve the purposes $or #hich the la# #as enacted, that is, the standardi(ation o$ salaries o$ all e ployees in 'overn ent o#ned and C or controlled corporations to achieve >e?ual pay $or substantially e?ual #or%.> Hence$orth, /)TC should no# be considered as covered by la#s prescribin' a co pensation and position classi$ication syste in the 'overn ent includin' ,A -=0<. This is #ithout pre+udice, ho#ever, as discussed above, to the non6di inution o$ pay o$ incu bents as o$ 3uly 2, 24<4 as provided in Sections 29 and 2= o$ said la#. So #e also rule in the instant case involvin' the charter o$ the SSS or RA 1161 as a ended. The enact ent o$ RA 8282 entitled %The Social Security Act of 1997% does not chan'e our holdin'. @hile it is true that Sec. :, par. !c", o$ RA 8282 e*pressly e*e pted the SSS $ro the provisions o$ RA 6758 and RA 7,*- (The Attritio& .a/ of 19920 thus 6 The Co ission, upon the reco endation o$ the SSS /resident, shall appoint an actuary and such other personnel as ay be dee ed necessaryB $i* their reasonable co pensation, allo#ances and other bene$its * * * * DtEhat the personnel o$ the SSS shall be selected only $ro civil service eli'ibles and be sub+ect to civil service rules and re'ulationsA /rovided, $inally, That the SSS shall be e*e pt $ro the provisions o$ ,epublic Act No. -=0< and ,epublic Act No. =.:1, it bears e phasis that RA 8282 too% e$$ect only on 9: 7ay 244=, i.e., $i$teen !20" days a$ter its co plete publication in t#o !9" ne#spapers o$ 'eneral circulation on = 7ay 244=:0 and < 7ay 244=.:- )t holds to reason that the prospective application o$ the statute renders irrelevant to the case at bar #hatever e$$ects this e*e ption ay have on the po#er o$ the SSC to $i* the co pensation o$ SSS personnel. )ronically, RA 8282 in $act buttresses our rulin' that the si'nin' bonus cannot escape the provisions o$ RA 6758# The need to e*pressly stipulate the e*e ption o$ the SSS can only ean that prior to the e$$ectivity o$ RA 8282, the SSS #as sub+ect to RA 6758 and even RA 7,*- $or, other#ise, there #ould have been no reason to rope in such provision in RA 8282# This Court has been very consistent in characteri(in' the $unds bein' ad inistered by SSS as a trust $und $or the #el$are and bene$it o$ #or%ers and e ployees in the private sector.:= )n 1&ited Christia& !issio&ary v# Social Security Co issio& :< #e #ere une?uivocal in declarin' the $unds contributed to the Social Security Syste by co pulsion o$ la# as $unds belon'in' to the e bers #hich #ere erely held in trust by the 'overn ent, and resolutely i posed the duty upon the trustee to desist $ro any and all acts #hich #ould di inish the property ri'hts o$ o#ners and bene$iciaries o$ the trust $und. Consistent #ith this declaration, it #ould indeed be very reasonable to construe the authority o$ the SSC to provide $or the co pensation o$ SSS personnel in accordance #ith the established rules 'overnin' the re uneration o$ trustees 6 * * * * the odern rule is to 'ive the trustee a reasonable re uneration $or his s%ill and industry * * * * )n decidin' #hat is a reasonable co pensation $or a trustee the court #ill consider the a ount o$ inco e and capital received and disbursed, the pay custo arily 'iven to a'ents or servants $or si ilar #or%, the success or $ailure o$ the #or% o$ the trustee, any unusual s%ill #hich the trustee had and used, the a ount o$

ris% and responsibility, the ti e consu ed, the character o$ the #or% done !#hether routine or o$ unusual di$$iculty" and any other $actors #hich prove the #orth o$ the trustee&s services to the cestuis * * * * The court has po#er to a%e e*traordinary co pensation allo#ances, but #ill not do so unless the trustee can prove that he has per$or ed #or% beyond the ordinary duties o$ his o$$ice and has en'a'ed in especially arduous #or%.:4 ;n the basis o$ the $ore'oin' pronounce ent, #e do not $ind the si'nin' bonus to be a truly reasonable co pensation. The 'ratuity #as o$ course the SSC&s 'esture o$ 'ood #ill and benevolence $or the conclusion o$ collective ne'otiations bet#een SSC and ACCESS, as the CNA #ould itsel$ state, but $or #hat ob+ectiveH A'itation and propa'anda #hich are so co only practiced in private sector labor6 ana'e ent relations have no place in the bureaucracy and that only a peace$ul collective ne'otiation #hich is concluded #ithin a reasonable ti e ust be the standard $or interaction in the public sector. This desired conduct a on' civil servants should not co e, #e ust stress, #ith a price ta' #hich is #hat the si'nin' bonus appears to be. +,ERE-ORE, the instant Petitio& for Certiorari under ,ule -., 1997 Rules of Civil Procedure, is ($SM$SSE(. The )ecisio& 2o# 2--1312* o$ the Co ission on Audit and the 2otice of )isallo/a&ce 2o# 973--23-1-1 (960 o$ the Social Security Syste Corporate Auditor prohibitin' the pay ent o$ /0,111.11 si'nin' bonus to each e ployee and o$$icer o$ the Social Security Syste as stipulated in Art. 5))) o$ the Collective Ne'otiation A'ree ent and as approved in ,esolution No. 04: o$ the Social Security Co ission are %--$RME(. No pronounce ent as to costs. SO OR(ERE(. )avide, 4r#, Pu&o, 5itu', 6a$u&a&, !e&do7a, Pa&'a&i"a&, 8uisu "i&', 9&ares3Sa&tia'o, Sa&doval3(utierre7, Car$io, Austria3!arti&e7, a&d Coro&a, 44#, concur. -ootnotes 2 Rollo, $$# 15322# 9 +d#, $#2-# : +d#, $# 2*# . +d#, $$# 25326# 0 The &otice of disallo/a&ce /as desi'&ated as 2) 2o# 973--23-1-1 (960 a&d issued "y Cor$orate Auditor Cor&elia C# Ra os: id#, $# 2,# - The a$$eal /as filed "y .eo$oldo S# 5eroy a&d Caroli&a !# ;asilio, <=ecutive 5ice3 Preside&t a&d Preside&t of ACC<SS, res$ectively: id#, $# 12# = C>A )ecisio& 2o# 2--1312* $e&&ed "y C>A Chair a& (uiller o 2# Cara'ue a&d co&curred i& "y Co issio&ers Raul C# ?lores a&d < a&uel !# )al a&: id#, $# 1*# < +d#, $# 1,# 4 >ther/ise @&o/& as the Co $e&satio& a&d Positio& Classificatio& Act of 1989# 21 Rollo, $$# 1*31,# 22 The officer3i&3char'e for SSS /as 1&dersecretary A&to&io !# ;er&ardo of the

)e$art e&t of ?i&a&ce /ho i& his ca$acity as >+C e=ecuted a s$ecial $o/er of attor&ey i& favor of the le'al cou&sel of the SSS to file the i&sta&t $etitio& a&d to si'& a&d e=ecute all docu e&ts &ecessary for fili&' this $etitio&: id#, $# 11# 29 The a$$oi&ted re$rese&tatives of the SSS i& the i&sta&t $etitio& /ere Se&ior 5ice Preside&t for .e'al a&d Collectio& )ivisio& A ador !# !o&teiro, Assista&t 5ice Preside&t for .e'al )e$art e&t <r&esto (# (asis a&d Se&ior Attor&ey Sa&tia'o )# R# A'de$$a, all officers of $etitio&er SSS# 2: The $rovisio&s readA %Sec# ,# Po/ers a&d )uties of the Co issio& a&d SSS#3 (a0 The Co issio&# 3 ?or the attai& e&t of its ai& o"Bectives as set forth i& Sectio& 2 hereof, the Co issio& shall have the follo/i&' $o/ers a&d duties = = = = (70 To a$$rove, co&fir , $ass u$o& or revie/ a&y a&d all actio&s of the SSS i& the $ro$er a&d &ecessary e=ercise of its $o/ers a&d duties herei&after e&u erated = = = = ("0 The Social Security Syste # 3 Su"Bect to the $rovisio& of Sectio& four (,0, $ara'ra$h seve& (70 hereof, the SSS shall have the follo/i&' $o/ers a&d duties = = = = (1-0 To sue a&d "e sued i& court = = =#% 2. The la/ too@ effect o& 2* !ay 1997 /hich is fiftee& (150 days after its co $lete $u"licatio& i& t/o (20 &e/s$a$ers of 'e&eral circulatio& o& 7 !ay 1997 a&d 8 !ay 1997# 20 Sec# 6 of RA 8282 states that the %Secretary of 4ustice shall "e the e=3officio cou&sel of the SSS% a&d that %he or his re$rese&tative shall act as le'al adviser a&d cou&sel thereof#% 2- Ra os v# Court of A$$eals, (#R# 2o# 99,25, * !arch 1997, 269 SCRA *,# 2= Cavili v# 5a e&ta, 199 Phil# 528 (19820: Re$u"lic v# Partisala, 2-* Phil# 75- (19820: Palu/a'a& &' ;aya& Savi&'s ;a&@ v# 6i&', (#R# 2o# 78252, 12 A$ril 1989, 172 SCRA 6-# 2< (#R# 2o# 96551, , 2ove "er 1996, 26, SCRA 11# 24 5isaya& v# 2.RC, (#R# 2o# 69999, *- A$ril 1991, 196 SCRA ,1-# 91 <#># 18- (19870# 92 Rules a&d Re'ulatio&s to (over& the <=ercise of the Ri'ht of (over& e&t < $loyees to Self3>r'a&i7atio&# 99 Sec# * (c0# 9: +"id# 9. Phili$$i&e Ports Authority v# Co 1992, 21, SCRA 65*# 90 Sec# 2# 9- Sec# 12: i#e#, re$rese&tatio& a&d tra&s$ortatio& allo/a&ces: clothi&' a&d lau&dry allo/a&ces: su"siste&ce allo/a&ce of ari&e officers a&d cre/ o& "oard 'over& e&t vessels a&d hos$ital $erso&&el: ha7ard $ay: allo/a&ces of forei'& service $erso&&el statio&ed a"road# 9= Sec# 12# 9< Sec# 16: The $roviso referred to statesA %That &ot/ithsta&di&' a sta&dardi7ed salary issio& o& Audit, (#R# 2o# 1--77*, 16 >cto"er

syste esta"lished for all e $loyees, additio&al fi&a&cial i&ce&tives ay "e esta"lished "y 'over& e&t cor$oratio& a&d fi&a&cial i&stitutio&s for their e $loyees to "e su$$orted fully fro their cor$orate fu&ds a&d for such tech&ical $ositio&s as ay "e a$$roved "y the Preside&t i& critical 'over& e&t a'e&cies#% 94 %Such other additio&al co $e&satio&, /hether i& cash or i& @i&d, "ei&' received "y i&cu "e&ts o&ly as of 4uly 1, 1989 &ot i&te'rated i&to the sta&dardi7ed salary rates shall co&ti&ue to "e authori7ed#% :1 %+&cu "e&ts of $ositio&s $rese&tly receivi&' salaries a&d additio&al co $e&satio&Cfri&'e "e&efits i&cludi&' those a"sor"ed fro local 'over& e&t u&its a&d other e olu e&ts, the a''re'ate of /hich e=ceeds the sta&dardi7ed salary rate as herei& $rescri"ed, shall co&ti&ue to receive such e=cess co $e&satio&, /hich shall "e referred to as tra&sitio& allo/a&ce# The tra&sitio& allo/a&ce shall "e reduced "y the a ou&t of salary adBust e&t that the i&cu "e&t shall receive i& the future#% :2 See 2ote 2,# :9 2atio&al To"acco Ad i&istratio& v# Co Au'ust 1999, *11 SCRA 755# issio& o& Audit, (#R# 2o# 119*85, 5 issio& o& Audit, (#R# 2o#

:: Phili$$i&e +&ter&atio&al Tradi&' Cor$oratio& v# Co 1*259*, 25 4u&e 1999, *-9 SCRA 177# :. See 2ote **# :0 The la/ /as first $u"lished i& the Phili$$i&e Star#

:- The seco&d $u"licatio& /as i& the Phili$$i&e )aily +&Duirer# +t /as $u"lished i& the >fficial (a7ette uch later or o& 28 4uly 1997 i& 97 >#(# 2o# *-, $# ,5,7, et seD# := Social Security Syste v# Court of A$$eals, 2-5 Phil# 6-9 (198*0: Raro v# < $loyeesE Co $e&satio& Co issio&, (#R# 2o# 58,,5, 27 A$ril 1989, 172 SCRA 8,5# :< 1,1 Phil# 6** (19690# :4 (#(# ;o'ert, Fa&d"oo@ of the .a/ of Trust (196*0, $$# *683*7-#