FINAL EXAM: Pointers in Agrarian Reform and other social legislation:

I. SS Act of 1997

1. Jurisdiction; dacion en pago implementation (SSS v Atlantic Gulf)

2. Rep v Asiapro - Weekly stipends or excess in service surplus; e-e
3. “Project employees” (Chua v CA)
4. Taxi driver engaged on boundary basis
5. Labor-only contracting
6. Employment services not covered: purely casual (Mansal v Go-Checo)
7. Definition of “employer”
8. Sickness benefit – number of days that can be paid
9. Maternity leave benefit
10. Who determines e-e?
11. Effect of final judgment at NLRC on e-e
12. Contingencies covered; benefits where employer advances
13. Claims under Labor Code vis-à-vis SSS (Ortega v SSC)

Claims under the Labor Code for compensation and under against the hazards or risks of disability, sickness, old age
the Social Security Law for benefits are not the same as to or death, inter alia, irrespective of whether they arose
their nature and purpose. from or in the course of the employment.

On the one hand, the pertinent provisions of the Labor
Code govern compensability of work-related disabilities or
when there is loss of income due to work-connected or
work-aggravated injury or illness.
On the other hand, the benefits under the Social Security
Law are intended to provide insurance or protection
And unlike under the Social Security Law, a disability is
total and permanent under the Labor Code 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 regardless of whether he loses the use of any of
his body parts.

14. Compulsory coverage; when effective

15. Appeal from SSC; non-applicability of technical rules
16. Beneficiaries; Primary beneficiaries
17. Consent of SSS on filing of criminal action
18. Lack of criminal intent and good faith as defences

Tan, et al. vs. Ballena
G.R No. 168111, July 4, 2008
Facts:
Petitioners Antonio Tan, Danilo Domingo and Robert Lim
were officers od Footjoy Industrial Corporation (Footjoy), a
domestic corporation engaged in the business of
manufacturing shoes and other kinds of footwear, prior to
the cessation of its operations sometime in February 2001.
On March 19, 2001, respondents, and one
hundred thirty nine (139) other employees of Footjoy, filed
a Joint Complaint-Affidavit before the Office of the
Provincial Prosecutor of Bulacan against the company and
petitioners Tan and Domingo in their capacities as
owner/president and administrative officer, respectively.
The Complaint-Affidavit alleged that the
company did not regularly report the respondent
employees for membership at the Social Security System
(SSS) and that it likewise failed to remit their SSS
contributions and payment for their SSS loans, which were
already deducted from their wages.
According to respondents, these violated
Sections 9,10,22 and 24 paragraph (b) of R.A no. 1161, as
amended by R.A No. 8282, as well as Section 28,
paragraphs (e), (f), and (h) thereof, in relation to Article
315 of the Revised Penal Code.
In their Joint Counter-Affidavit, petitioners Tan
and Domingo blamed the economic distress that beset
their company for their failure to timely pay and update
the monthly SSS contributions of the employees. They
allege that the company’s dire situation became even
more aggravated when the buildings and equipment of
Footjoy were destroyed by the fire on February 4, 2001.
This incident eventually led to the cessation of the
company’s operations. Because of this, some of the
company’s employees tried to avail themselves of their SSS
benefits but failed to do so. It was then that employees
filed their compliant.
Petitioners Tan and Domingo thereafter
underlined their good faith and lack of criminal culpability
when they acknowledge their fault and demonstrated
their willingness to pay their obligations by executing a
memorandum of agreement with the SSS on April 10,
2001.
Issue: Whether GOOD FAITH and LACK OF CRIMINAL
INTENT Should be considered?
Ruling:
DOJ: Yes.
CA: No.
SC : Upheld CA’s contention. “Furthermore, the appellate
court held that the defense of the petitioners of good faith
and lack of criminal intent should not have been
considered, in as much as the offense charged were
violations of a special law and are therefore characterized
as mala prohibita, in which intent to commit is immaterial.
Only inquiry is, has the law been violated.
Thus, the petitioners’ admission in the instant cases of
their violations of the provisions of the SSS Law is more
than enough to establish the existence of probable cause
to prosecute them for the same.

19. Prescriptive period

20. Garcia v SSC – director liable? YES.
 Garcia vs. Social Security Commission Legal and
Collection, et. al.,
G.R No. 170735, December 17, 2007
Facts:
Petitioner Immaculada L. Garcia, Eduardo de Leon, Ricardo
de Leon, Pacita Fernandez, and Consuelo Villanueva were
directors of Impact Corporation. The corporation was
engaged in the business of manufacturing aluminum tube
containers and operated two factories. One was a “slug”
foundry-factory located in Cuyapo, Nueva Ecija, while the
other was an Extrusion Plant in Cainta, Metro Manila,
which processed the “slugs” into aluminum collapsible
tubesand similar containers for toothpaste and other
related products.
Records show that around 1978, Impact
Corporation started encountering financial problems. By
1980, labor unrest besieged the corporation.
They were unable to pay wages, unpaid 13th
month pay and non-remittance of loan amortization and
SSS premiums, we are for directing the company to pay
II. GSIS Act of 1997
1. Jurisdiction
2. Are judges covered?
3. Who is a dependent legitimate child?
4. New benefits; primary beneficiaries in case of survivorship
5. Separation benefit – for cause
6. COA disallowances
the same to the workers and to remit loan amortaizations
and SSS premiums previously decuted from their wages to
the Social Security System. Such claims were never
contested by the company.
Summons were served to however, their location
is either unknown or deceased, it was only petitioner who
was located. In her defense, she insisted that she was a
mere director without managerial functions, and she
ceased to be such in 1982. Even as a stockholder and
director of Impact Corporation, petitioner contended that
she cannot be made personally liable for thr corporate
obligations of Impact Corporation since her liability
extended only up to the extent of her unpaid subscription,
of which she had none since her subscription was fully
paid.
Issue: Is she liable?
Ruling:
SSC: ruled against petitioner, and holds her accountable
CA: again ruled against petitioner.
SC: affirmed in finality decision made by the CA.
Republic Act No. 8291.
SEC. 39. Exemption from Tax, Legal Process and Lien.-
The funds and/or the properties referred to herein as well as
the benefits, sums or monies corresponding to the benefits under
this Act shall be exempt from attachment, garnishment, execution,
levy or other processes issued by the courts, quasi-judicial agencies
or administrative bodies including Commission on Audit (COA)
disallowances and from all financial obligations of the members,
including his pecuniary accountability arising from or caused or
occasioned by his exercise or performance of his official functions or
duties, or incurred relative to or in connection with his position or
work except when his monetary liability, contractual or otherwise,
is in favor of the GSIS.
It is clear from the provision that COA disallowances cannot be
deducted from benefits under RA 8291. ( akong part kais a
retirement man. Murag any benefit basta g.grant sa GSIS)
7. Prescriptive period
8. GSIS v NLRC – security guards’ money claims
1. Jurisdiction
Section 27 Quasi-Judicial Functions of the GSIS. - The quasi-judicial
functions of the GSIS shall be vested in its Board of Trustees.
The GSIS shall have original and exclusive jurisdiction to settle any
dispute arising under Republic Act No. 8291, Commonwealth Act No.
186, as amended, including its implementing rules and regulations,
policies and guidelines, and other laws administered by the GSIS
with respect to:
• Coverage of government agencies and employees;
• Entitlement of members to the following benefits under these
Rules:
a. Separation benefits
b. Unemployment or involuntary separation benefits
c. Retirement benefits
d. Disability benefits
e. Survivorship benefits
f. Funeral benefits
g. Life Insurance benefits
• Collection and payment of contributions;
• Housing loans and all its related policies, procedures and
guidelines;
• Optional Life Insurance and Pre-Need Benefits;
• Criminal actions arising from this Act; and
• Any other matter related to any or all of the foregoing which is
necessary for their determination.
2. Are Judges covered? (for further info, ask lang ni Degolacion since
iya ni part, and I’m sure expert siya ani )
Yes, under sa IRR special members ang judges pero ilang
contribution is up to the life insurance
Sec. 2.4.1 As to type of members, there are regular and special
members:
a. Regular Members – are those employed by the government of the
Republic of the Philippines, national or local, legislative bodies,
government-owned and controlled corporations (GOCC) with
original charters, government financial institutions (GFIs), except
uniformed personnel of the Armed Forces of the Philippines, the
Philippine National Police, Bureau of Jail Management and Penology
(BJMP) and Bureau of Fire Protection (BFP), who are required by law
to remit regular monthly contributions to the GSIS.
b. Special Members – are constitutional commissioners, members of
the judiciary, including those with equivalent ranks, who are
required by law to remit regular monthly contributions for life
insurance policies to the GSIS in order to answer for their life
insurance benefits defined under RA 8291.
3. New Benefits (naglibog ko ani kung unsa pasabot ni sir sa new
benefits – separation benefits and unemployment benefits ba or
new benefits sa survivorship – wala mai something new sa
survivorship )…. Ako nalang ni ibutang…..
A) Separation Benefit
Sec. 6.1 Entitlement to Separation Benefit
Who are eligible?
a) A member who has rendered at least 3 years of service but
less than 15 years.
b) A member who has rendered at least 15 years of service and
less than 60 years of age upon separation
a) A member who has rendered at least 3 years of service but less
than 15 years.
- a cash payment equivalent to one hundred percent (100%) of
the average monthly compensation for every year of service the
member has paid contributions, but not less than Twelve thousand
pesos (P12,000) payable upon reaching sixty (60) years of age upon
separation, whichever comes later.
b) A member who has rendered at least 15 years of service and less
than 60 years of age upon separation.
- a cash payment equivalent to eighteen (18) times his basic
monthly pension, payable at the time of resignation or separation;
- an old-age pension benefit equal to the basic monthly
pension, payable monthly for life upon reaching the age of sixty (60).
> IRR, Rule II, Sec. 2.5 Effect of Separation from the Service
Separated for a cause - automatic forfeiture of his/her benefits
unless the terms of resignation or separation provide otherwise.
Not separated for a cause – the member shall continue to be a
member and shall be entitled to benefits that provide for
contingencies under RA 8291.
B) Unemployment Benefit
- Unemployment benefit is in the form of monthly cash
payments equivalent to fifty percent (50%) of the average monthly
compensation.
> Conditions for Entitlement to Unemployment Benefit
a) he/she was a permanent employee at time of separation;
b) his/her separation was involuntary due to the abolition of his/her
office or position resulting from reorganization; and
c) he/she has been paying the contributions specified under Rule 3.1
(a) for at least one (1) year prior to separation.
> The duration of benefit depends on length of service, it ranges
from 2 months to a maximum of 6 months.
Contributions Made Benefit Duration
One year but less than three years
2 months
Three or more years but
less than six years 3 months
Six or more years but than
nine years 4 months
Nine or more years but less
than 11 years 5 months
Eleven or more years but
less than fifteen 6 months
> A seven-day (7-day) waiting period shall be imposed on succeeding
monthly payments to determine whether the separated member
has found gainful employment either in the public or private sector.
Features in Survivorship Benefits
Survivorship Benefits
24.1 When a member or pensioner dies, the beneficiaries shall be
entitled to the following survivorship benefits, whichever is
applicable:
24.1.1. Survivorship pension consisting of:
a. the basic survivorship pension which is fifty percent (50%) of the
BMP; and
b. the dependent children’s pension equivalent to 10% of the BMP
for each child but not to exceed fifty percent (50%) of the BMP.
24.1.2. Cash payment equivalent to eighteen (18) months BMP;
24.1.3. Cash payment equivalent to one hundred percent (100%) of
the AMC for every year of service with paid contributions but not
less than Twelve Thousand Pesos (P12,000.00).
24.2 Survivorship Benefits of Members in Active Service.
24.2.1. If at the time of death, a member was in the service and has
rendered at least fifteen (15) years of creditable service:
a. his primary beneficiaries shall receive the survivorship pension
and cash payment equivalent to 18 x the BMP; or
b. in the absence of primary beneficiaries, his secondary
beneficiaries shall receive the cash payment equivalent to 18 x the
BMP; or
c. in the absence of secondary beneficiaries, the legal heirs shall
receive the cash payment equivalent to 18 x the BMP.
24.2.2. If at the time of death, the member was in the service with
less than fifteen (15) years of creditable service; his primary
beneficiaries shall receive the cash payment equivalent to 100% of
the AMC for every year of creditable service.
24.3 Survivorship Benefits of Inactive Members
24.3.1. Primary beneficiaries of inactive members who have at least
15 years of creditable service shall receive the survivorship pension
only.
a. Primary beneficiaries of inactive members who have at least 3
years but less than 15 years of creditable service and were less than
60 years old at the time of death shall receive the cash payment
equivalent to 100% of the AMC for every year of creditable service,
but not less than P12,000.00.
b. Primary beneficiaries of inactive members who have less than 15
years of creditable service but were at least 60 years old at the time
of separation and have received the corresponding separation
benefit, shall not be entitled to survivorship benefits. However, if the
member has not received yet his separation benefit within four
years after his/her separation, the primary beneficiaries shall receive
the cash benefit equivalent to 100% of the inactive member’s AMC
for every year of creditable service, but not less than P12,000.00.
24.4 Payment of Survivorship Benefits
24.4.1.The survivorship benefits shall be paid as follows:
a. When the dependent spouse is the only survivor, he shall receive
the basic survivorship pension;
b. When only the dependent children are the survivors, they shall be
entitled only to the dependent children’s pension equivalent to 10%
of the BMP for every dependent child, not exceeding five (5),
counted from the youngest and without substitution;
c. When the survivors are the dependent spouse and the dependent
children, the dependent spouse shall receive the basic survivorship
pension for life or until he remarries or cohabits, and the dependent
children shall receive the dependent children’s pension.
d. When the dependent spouse and dependent children are already
receiving the basic survivorship pension and dependent children’s
pension, respectively, any subsequent death, emancipation or
disqualification of any one of them shall not entitle the other
beneficiaries to the forfeited share.
e. In the absence of a natural guardian, the guardian de facto of
dependent children, as well as the physically or mentally
incapacitated dependent children, must file a Petition for
Guardianship to be able to claim the survivorship benefits on behalf
of the dependent children.
f. When the pensioner dies within the 5-year period after receiving
the five-year lump sum, the survivorship pension shall be paid only
after the end of the said five-year period. However, filing of claim for
survivorship benefit should be done before the end of the 4-year
prescription period.
PRIMARY BENEFICIARIES IN CASE OF SURVIVORSHIP
1. The primary beneficiaries shall be the following:
o The legitimate spouse, until s/he re-marries, or co-habits/engages
in common-law relationship; and
o The dependent legitimate, legally adopted or legitimated children,
including illegitimate children, who have not reached the age of
majority, or, have reached the age of majority but incapacitated and
incapable of self-support due to a mental or physical defect acquired
prior to age of majority.
 III. Portability Law
1. When applicable? When is totalization resorted to?
RA 7699
“An Act Instituting Limited Portability Scheme In The Social
Security Insurance Systems By Totalizing The Workers’
Creditable Services Or Contributions In Each Of The System”
 Sec. 2 (b). “Portability” shall refer to the transfer of funds for
the account and benefit of a worker who transfers from one
system t0 the other.
 These shall apply to ALL worker-members of the Government
Service Insurance System (GSIS) and/or Social Security System
(SSS) who transfer from one sector to another, and who wish
to retain their membership in both Systems.
Sec. 2 (e). “ Totalization” shall refer to the process of adding
up the periods of creditable services or contributions under
each of the Systems, for purposes of eligibility and
computation of benefits
RULE V (IRR): TOTALIZATION
Section 1: All creditable services or periods of contributions
made continuously or in the aggregate of a worker under
either of the Sectors shall be added up and considered for
purposes of eligibility and computation of benefits.
Section 2: All services rendered or contributions paid by a
member personally and those that were paid by the
employers to either of the System shall be considered in the
computation of benefits, which may be claimed from either or
both Systems. However, the amount of benefits to be paid by
IV. Employees’ Compensation
1. Valeriano v ECC - coverage formula — "arising out of" and "in the course of employment"; 24-hour-duty doctrine
2. Can a claim for benefit be defeated by the mere fact of separation from service? (GSIS v Cuanang, Aquino v SSS, etc.)
one System shall be in proportion to the services
rendered/periods of contributions made to that System.
Section 3: Totalization shall apply in the following instances:
If a worker is not qualified for any benefits from both Systems;
If a worker in the public sector is not qualified for any benefits
in the GSIS;
If a worker in the private sector is not qualified for any
benefits from the SSS.
For the purpose of computation of benefits, totalization shall
apply in all cases so that the contributions made by the
worker-member in both Systems shall provide maximum
benefits which otherwise will not be available. In no case shall
the contribution be lost or forfeited.
Section 4: if after totalization the worker-member still does
not qualify for any benefit listed in Rule III, Section 1 (j), the
member will then get whatever benefits correspond to his/her
contributions in either or both the system.
BENEFITS:
 Old-age benefit
 Disability benefit
 Survivorship benefit
 Sickness benefit
 Medicare benefit, provided that the member shall claim
said benefit from the system where he was last a
member, and
 Such other benefits common to the system that may be
availed of through totalization