CONTENTS

Tintroduction........ccsccesssssesesesesessssssssssscssesessssscsesesescsesesssesessesenees

wey
Aigrarian Law ......csssscsscssssssrsssesssssvscesssssssssessesscessensssrseeenees
Social Legislation... essssesscsessssesessessesssessessessesseseressasoes

CHAPTER 1
THE COMPREHENSIVE AGRARIAN
REFORM LAW OF 1998
History of Philippine Agrarian Laws... we
Meaning of Agrarian Reform ............ccscssssseessesecessserseseeee
Applicability of the Comprehensive Agrarian
Reform Law ........ccsccsscssscsssesescesesceessesessesceneseseesssesseeeeees
Meaning of Agricultural Land
Constitutionality of the Comprehensive Agrarian
Reform Law ........cccssssscessccssccssscsscesesessessececsesssessescnsoeees
The Primary Objective of Agrarian Reform wee
Meaning of Economic Family-Size Farm ...........cccssseesesseee
Raising of Livestock, Poultry or Fish Not Embraced
in the Term “Agriculture”.............. esscesnesaeescestesneseasaneaees
Lands Covered by the Agrarian Reform Law..............
Lands Not Covered by the Agrarian Reform Law.......
Implementation Extended by Republic Act No. 9700...........
Retention right of the landowner ..........csccsssesvssseveeeevsseseees
Can a landowner who has already exercised his
retention rights under Presidential Decree No. 27
be entitled to the retention right under the
Comprehensive Agrarian Reform Law...........ssssessceeee 17
Can spouses retain 5 hectares each under the
agrarian reform law..............:scssccsssesscessesseesaccsseeeeeeeeees 17
Who has the right to choose the retention area............:.000+ 18
Can a landowner exercise his right to retention over the
land which has already been covered by an
Emancipation Patent or Certificate of Land
Ownership AWArd w...sssccsscsscsescssesssesscesessesesteseteeensecees 18

vii
Suppose the retention area chosen by the landowner
is tenanted, what happens to the tenant................00
Effect if the tenant chooses to remain in the
Vetained AVC 0.0... eseeeeecesececeseeeecesceetsceesesseeteeeasenseenens
Effect if the Tenant Chooses to be a Beneficiary
Children of the Landowner are Entitled to 3
Hectares Cach .......cscscscsccescsssessssscesesesseseseseeeetsseeeseeeeees
Right of Homesteaders vis-a-vis Rights of Tenants
Expropriation of Private Agricultural Lands by Local
Government Units... eeesesssescetecscceceeseccecseseeeseeens
The Import of the Law .0.........sesesssscssceseccsesessseseecsecesssssseeeees
Acquisition and Distribution Scheme .............:..scccssesseesreeene
Lands Possessed by Multinational Corporations are
Covered by the CARL ........cccscsssscestesssssesseessesseseeeeeeaes
Ancestral land defined............ccsssessscsessssessessesssssessesscesesssseses
Ancestral lands exempted from the Agrarian
Reform Law ........:cscsssssessscssessssscsssssessecssessesseesecesesnesssenes
Land classification in the tax declaration is not
CONCLUSIVE ........sscescessssseesessssseessesscsssessensessessesneestecsecnesseeees
Lands classified as non-agricultural prior to the
effectivity of the CARL are not covered
Lands with at least 18% slope............cssccsseeseeeee
School sites and CAMPUSES ...........scesesssscsssssetsensecesecssensseeseeees
Who has jurisdiction to exempt a property from
agrarian reform coverage
Commercial farms..........ssscccssessssssesesesseseseceseecseseesseceeseeseeeens
Implementation of Agrarian Reform Law deferred
On commercial farmS.....s.cccessessssssesssessssssssssecssessesssecseese
Mode of acquisition of commercial farms ............:cscceseseeseees
Manner of distribution of commercial farms..............ccccce
Qualifications of commercial farm beneficiaries ...................
Who are disqualified to become commercial farm .
beneficiaries ........ es cecscceescecesceeseseceeceseesseseseeeenasseceasees
Freedom of beneficiaries to choose the type of
ABTIDUSINESS ...........scsscsssccceseesccsscsssssceseessessesteseeeenesseeseeaes
Types of agribusiness venture arrangements................s008
Right of retention over commercial farms..........
Power of DAR to fix rentals... cessssssesssececeseceseesesseseeees
Applicability of the Law.......cccssssssssetscssescssessssssssssesseaseaee
Purpose of the LaW....sssscsssssssssssssescssssssssssssssscssssssssessssssessesion
Purpose of the Law
The Compulsory Acquisition Process .............:cssssssseseseeseees
viii
Two notices are required for validity of implementation .....
Land acquisition procedure should be stric tly construed.....
When title or ownership of the land is transferred
to the State... s asseskonsessesasencsscsssecsenecseanedeseceess
Opening of trust account does not constitute payment........
Concept of just CompensatiONn ........sccceerereeeeeeteceneteetees
The factors used in valuation of lands...........0008
The basic formula when all factors are present...
The formula when CNI factor is not present ......
The formula when CS factor is not present ...........cscsseereens
The formula when CS and CNI factors are not present ......
Reckoning of valuation..........cscsesssesenesseeeseeeseersenssesssessens
Procedure for determination of just compensation...............
Role of the Department of Agrarian Reform
Adjudication Board (DARAB).............
The valuation set by DAR not conclusive
Courts cannot disregard the formula.............
Consent of beneficiary not necessary in determining
just compensation.
Mode of payment ...........
Landowner cannot insist in cash payment ONLY... eesseseeee
Features of the Land Bank bonds..............
Documentary requirements for voluntary offers for sale.....
Voluntary land transfer no longer allowed
Mode of payment in voluntary land transfers
Who are eligible to become agrarian reform beneficiaries ...
Qualifications of an agrarian reform beneficiary ..................
Special qualifications for farm workers in commercial
« — farms or plantations ..........csccceeeeees
Managerial farm workers not qualified to become
beneficiaries .........ccecccscssecssscesseesereees
Who are disqualified to become agrarian veform.
beneficiaries .........ccccsccsessssseseeseseeeetes
Order of distribution.
41 Maximum area that can be owned by or awarded to
beneficiaries .........cccccccssersecnseeseesseees
41 Factors to be considered in determining the size
41 of land to be awarded .......2s.ssseseeeees
43 Transfer of ownership to the beneficiaries not automatic....
43 When does the DAR issue a Certificate of Land: ©
44 Ownership Award (CLOA)......
45 CLOA is indefeasible................008
46 Cancellation of CLOAS ........ssccsessreeee
48 Grounds for Cancellation of CLOAs...
ix
When will the rights and obligations of beneficiaries \‘unctions of the BARC under Executive Order No. 229...... 109
COMMENCE.......sscssscsessscessseseenssssseesseseeevsssessevscessensessssensenes Legal assistance .......csssssccssescseerseesstecsessstessunssssessssessecenecssneenes 110
Obligations of Agrarian Reform Beneficiaries... Rule-making power of DAR and PARC .........scssssesssesesesereees 110
Individual titles for every beneficiary .........c.ccccessssecsessessessees wo-Fold jurisdiction of the Department of
Conditions for issuance of collective titles...........c.cssceseseseeees Agrarian Reform (DAR)........sssssssssssessseeeestsoeseseneseees 111
Title must indicate that it is an EP or CLOA... The quasi-judicial jurisdiction of the DAR... 112
Schedule of payment 'The quasi-judicial powers of the DAR 112
Basis of amortization..........cccccssssssescssessssscsesesseesesees 'The Provincial Agrarian Reform Adjudicators (PARAD)..... 113
Effect of failure to pay the amortizations.............. Appeal from the decisions of the PARAD..........sssssssereeeeees 119
Sale or transfer of awarded lands prohibited 119
The Regional Agrarian Reform Adjudicators (RARAD) .......
Meaning of hereditary succession ..........cccsccsecsssssssesssssssscessees DARAB has no jurisdiction over matters pertaining
Effect of sale or transfer to the Government or 119
FO OWNEFSHIP «00... cscceeceseceeseeeceseceseecnecessessseeseesseesesseeeesens
the Land Bank ..0......cccscccsssssesessssssssscsesesecessssesecseaneasssess DARAB has no jurisdiction over retention or
Can a beneficiary who has not fully paid the EXEMPLION ISSUES ........cccssscesecceeereereesseseetseneteesensenensenes 120
amortizations sell the land to another ..............ccccccesese 120
DARAB has no jurisdiction over right of way issues............
Can the beneficiary lease the land to another person
DARAB has no jurisdiction to identify and classify
Can the beneficiary lease the land to the 121
landholdings for agrarian reform COVerage.......ee
former land OWNED............csccscsssssscssssssssssssssesssesescscssecseee
DARAB has no jurisdiction over matters pertaining to ,
Right over standing crops at the time of acquisition
identification and selection of beneficiaries .............00 121
Modes of distribution...........cccsscscsssecccesessesess
Agrarian case directly filed in court — action to be taken.... 122
Entitlement to homelot and small farmlot
The schemes under Section 31 are no longer operative Legal personality of unregistered associations cannot
be challenged...... 123
The Hacienda Luisita case........ccsssssscsssesssssscsssssesessesesesesesees
Judicial Review ........scccscssssssssseessessssssecsssesstesseesseeesseenenneseenenes 123
Section 32 — A Transitory Provision
Frivolous or dilatory appeals ............cscssssessecsreeseestesees 124
Section 32 — Declared unconstitutional with respect to
Prerequisite to filing of a complaint before the DARAB....... 124
livestock and poultry.......cccccccscscessscsssssscsesesesscessseseeeeaes
Incentives for Regular Fishpond or Prawn Farm BARC Certification not needed in judicial
Workers determination of just compensation ..........cecceseeseereeee 125
The remedy from an adverse ruling of the DAR.............00 125
The Import of the Law. ......sccccsecessseseseeenesenassneseesesessesesees 126
The Import of the Law ........cccscsscsssssssecscesesesecerese The RTC should be designated as Special Agrarian Court.. 126
Establishment of Agrarian Reform Communities Additional jurisdiction of the Special Agrarian
Support services to beneficiaries ..........c.cccescessssesessssesecsssesecase Court (SAC) ....ccescsssscescscscessessessesssesssosssneneessceseeeseseesnensees 127
Meaning of Rural Women................. Just compensation preliminarily determined by the
Support Services for Landowners.... DARAB should be filed with the SAC within
The Import of the Law ........cscccssssssscssssssssscsessssessssececssssssssessons fifteen (15) days from notice..........ccsesesreeseeseeeeeeesesseees 127
Opening of agrarian settlements in special areas Objections to the Commissioner’s report.... 128
Composition of the Presidential Agrarian Reform Interlocutory Orders......ciscscsossereseeseereereseesseeseesecssseeeeseseees 128
Council (PARC) 00... ccscssssecssesssssscesscsectessscecsescatssseseereecs Remedy from adverse decision of the Special
Composition of the PARCCOM Agrarian Court ......ccssssscessesesesesseecnssrsessseessssseessssscasanes 129
Manner of implementation of the Agrarian Remedy from adverse decision of the
Reform Program ..........cscssssssssesssesssssessssesecessosessscsesssseeeses Court of Appeals.........cssssssssssecesesseressenssessesssenseenteres 129
Composition of the Barangay Agrarian Reform The 15-day period is non-extendible.... we 129
Council (BARC) Applicability of the Rules of Court....... 130

xi
Expeditious disposition of agrarian cases is the objective ... 130 | Debts secured by mortgage on the land. 146
Funding of just compensation............ccscccsssssssssssssescseecscsseseees 132 Criminal violations ..........c cc ccscsssesssesecescceseeseneecscessessaeeseeees 148
Role of the Land Bank............ 133 | Sale resulting from foreclosure of mortgage not a
Meaning of conversion...........:s.cccsssesesees 134 criminal violation ..0.........ssesssceeeeseeeeseeseeesetesseesneseaneensees 150
Conversion differs from reclassification... 134 |
Effect of reclassification ..........ccsssssssseees 134 | CHAPTER 2
Scope of DAR’s conversion authority ... eee 134
Who can apply for comversion.......cccccccccssscccesssseseccssseesesereees 135 THE TENANT EMANCIPATION LAW —
When is the proper time to file the application
FOF CONVEFSION ........sccsssssesssssesescsesescssssssssscsscscseseececeesensaees Applicability of the Law 0... cescsesteeseseeceseesesseceseseeseseees 152
135 |
Under what conditions can an application for Transfer of lands to tenants ..........ccccsscsscsssesereetceeereens 152
Size of land to be transferred to the tenant-farmer ... 153
Conversion be filed... ssssessssescessessssssscsssssssssececessesecs 135
Obligations of the beneficiary if the application Stages of land transfer ..........ccscsssccssseseenecereees seteeeesseeees vee 153
Significance of the Certificate of Land Transfer (CLT)........ 153
for conversion is APPrOVed .........scsscecssssessssssvsssssessseeceeeees 136 | Significance of an Emancipation Patent (EP) ............ csc 153
Lands that cannot absolutely be subject to conversion........ 136 Indefeasibility of EPS ..0........cesessesesseseeseseeeeees 154
Areas highly restricted from CONVEYSION ........cccscssesecessseeeesees 1386 | Cancellation of EPS 0.0... scesseeseeeeees 154
Effect of failure to implement the approved
Jurisdiction over cancellation of EPs 155
CONVETSION PAN... essecssessesesseteseesscssesscscsevescssesssesaces 137 | Tenant-beneficiary cannot sell or transfer ownership
Conversion of public agricultural lands to fishponds ........... 138 Of the Land... eee eeeeecseeeseescceesesceaseceeeeseceseeseseateneeases 155
Conversion of private agricultural lands to fishponds.......... 138 | The tenant-farmer will pay the Land Bank... 155
Purpose of inventOry.......ccccccsssssessssssssssssssesssessscesecaesesereezenes 139 Payment of just compensation to landowner. sone 156
The Import of the Provision.......c..ssssssssssesessscesssssssscesseeeseees 140 | Retention right of landowner............:cccssssscesesesseesscsssesseeesseese 157
Change of crops does not need DAR approval ............csssee 140 | Retention right under Presidential Decree No. 27
Land transferred to beneficiaries exempted from vis-a-vis retention right under the CARL... 157
taxes and £08... sceccssssessesssesssssscssscssssssscscsssssesseeres 141 Jurisdiction over retention or exemption issues 158
Exemption from registration fees... ee 141
No injunction policy........cccccccsssssssessssscscecececececssccsssseseseacsacses 141. | CHAPTER 3
Inter-Agency Cooperation 142
Affidavit of aggregate landholding — a requirement THE CODE OF AGRARIAN REFORMS
for registration ..0......ccccscscsesescsesescsesssssssesecscacsesssssceescsees 142 History of the Code of Agrarian Reforms ..............ccccseeeees 159
When the bank or financial institution is deemed as _ Objective of the Code of Agrarian Reforms ...............scssseee 159
the new landowne’...........ccccccsesssesessssssssssssssvscscscscsvecssaees 143 Code of Agrarian Reforms vis-a-vis Comprehensive
When the bank or financial institution is deemed Agrarian Reform Law............cccscsscssccsssessscesecssneees 159
AS lien-holder oo... esessesesessssssscsessessesessecsssssssssecececsesees 143 The salient features of the Code of Agrarian Reforms 160
Rights and privileges of the bank or financial The Code of Agrarian Reforms abolished share tenancy ..... 160
institution as new landowne’............sscscssesssssscsssesssees 144 Extent of application of the leasehold principles
Rights and privileges of the bank or financial under the Code of Agrarian Reforms ceceeaeeseteaeeceteteaeeaees 160
institution as lien-holder...........ccccssscseesssssersessscsesseceeees "144 Form of lease contract 161
Obligations of the bank or financial institution Terms and conditions of the lease contract 162
as the new landowne?...........cccsscsessssssssssssscccscceesssesceesece 145 Mode of payment of rental... 163
Obligations of the bank or financial institution Term of the lease .......ccssccssscsecsscssesssssssscsssessecsereesesescaseeesetens 164
AS lien-holder oo... sssssessesesessssssscecssessesssssssscteassvacseaees 145 Expiration of lease contract does not terminate the
146 leasehold relation ........ccscssesescessesceseesceecesssesetsesseseeceees 164

xiii
Transfer of ownership of the land does not terminate Rights and privileges of domestic worker ..............:cssesceeeee 189
the leasehold relation .0........ eee eesessesseetseseeeeessceeeesenes 164 Obligations of domestic workerS...........seceseeeee 191
Death or physical incapacity of the lessee does not Araw ng mga kasambahay............. 191
terminate the leasehold relation............cccscssssesteseeees 165 Prohibited Activities ......... ec eeceeseceesesecseesseseceneeeneees vee 191
When the agricultural leasehold is extinguished.................. 165 When the employment relation can be terminated .............. 192
Abandonment of the Landholding.............ccscssesscssssseeseetseees 166 | Kiffect of termination without notice or before the |
Voluntary Surrender of the Landholding ............. eee 166 | stipulated Period ............ccccccssscscsessecssceesecetecnscsenessntensees 192
Termination of leasehold by agricultural lessee .................. 166 | The just causes for termination of employment
DispOSSeSSiONn ........s.cssscsssessecesceseesseecscesseesesesseasersceacsacensaeeasscses 167 by the domestic Worker.............ccecceceseceeseseeseeeeeeeeteeeeees 193
Obligations of the agricultural lessor..............cscssccceeeeeesens 168 The just causes for termination of employment
Obligations of the agricultural lessee .............cccssssessesesseens 168 by the employer...c.ccccsccssscsssssesesssseesseseees sedveavandessneseesease 193
Rights of the agricultural lessor............ccccscssscssesseecsesseseeeseees 170 Certificate of Employment... 194
Rights of agricultural lessee .............c:ccccssssssessessessessesteseeesenes 170 Criminal acts... csesssessesesecsesetsseesseeeseeees oe 194
Right of lessee to be indemnified for his labor.................... 170 Criminal sanction ..........c.cssessssssesssseccesecsccssesseccsesssssseresseaees 195
Right of pre-emption..........cccecsscssscssssessssseeesessessesseereseesessees 171
Right of redemption. ..........csceccescssesseessscscesseectscsecsessssesseeseaes 173 | CHAPTER 5
Rights of agricultural worker..............cccccsssssessesssessessessteneees 174
Acts which the agricultural lessor is forbidden to do........... 174 THE MIGRANT WORKERS AND OVERSEAS
Acts which the agricultural lessee is forbidden to do........... 175 | FILIPINOS ACT OF 1995
Enforceability of loans obtained by an agricultural
Migrant Worker .............:cccssseeeseees 196
TOSSCC ......eseeessscesececceseecesassecescccnscsecsssnesceseesscssssnesaeeerenee 175
Properties of the lessee that are exempt from liens Deployment of Migrant Workers 196
or execution ........ 175 | Liability of the POEA Governing Board, Government
Prescription of action 176 | Officials and Employees...........ccccsccescsscsssessecsersesseeeneees 197
The Department of Agrarian Reform... 176 Compulsory Insurance Coverage for agency-hired
The Land Banko... scsscesssessesscecsseessssecseeeeesseecssceseeseeeesees 178 Migrant WOLKEYLS...........ccccccesccsssceessscsssecssseeeesscessseeseeees 197
Disqualification .................. 198
CHAPTER 4 Coverage of the insurance 199
Repatriation of migrant workers fee 200
DOMESTIC WORKERS ACT Emergency Repatriation............cscsscccsresssssrseseeseccsesseneeseeeas 201
Applicability of the Law ...........cccccssesscsscsscsssesseescssssesesseseeeaes 181 Repatriation of underage migrant workers — mandatory... 201
Meaning of Domestic Worker .............ccsscsscsscssesseeeseeee 181 Illegal recruitment of migrant worker ...........:.scscsssesecseeens 201
Minimum age for employment of domestic workers... 183 Syndicated Illegal Recruitment................. 204
Hiring of domestic workers........cccccccsssssescsesesesesssessesescsessseeees 183 Large-Scale Illegal Recruitment.... vee 205
Recruitment of domestic workers by private Economic Sabotage ...........:cccsscccssscsssnccesseccesseesesesecssecesssneebanee 205
employment Agencies ......... ce eeescesesscersesserscessenseeseseeeaes 183 Who can file the criminal complaint for illegal
Liability of private employment agencies............:ccscseseeeees 184 TECTUILMENE .......ccccsccecscssccesscsseessssesesersccsesssassescssesseressess 205
Responsibility of private employment agencies .................6 - 184 Prescriptive period for illegal recruitment of migrant
Recruitment and Finder’s Fees ........c.cccccsscsscssscstesssesseseeseseseees 185 WOLKEYS.......csccsccesccsssessceneceesscceccesocseseeencessecsscecsaeseceeeeeenaes 205
Employment Contract 0... csessessscsssesessescenessseessesseneeseeesees 185 Penalty for illegal recruitment of migrant workers... 205
Basic contents of the employment contract.... 185 Jurisdiction of the POBA ...... cc ccsessesesecsesseeseeeseesees 206
Registration of domestic workers ..............0005 186 Power of POEA to order closure of establishment..... 206
Terms and conditions of employment of domestic Effect of closure Order ........cscsscsssssscsscssssserssesssseeeneeees tees 207
WOTKELS.......csscescsssececeseeccsctscesseccecesesacssenssnesseesesssseesenesersees 186 Remedies from a closure Order ........ccseseeesceseeecscesceeeeceeceeeeeees 207
Who can file a motion to reopen the establishment ............. 207 | Discrimination against persons with disability,
Who can file a motion to lift a closure order....... 208 PLOWIDI GEM ees cscestecetceseeeeeeeensessesenccseresseceesenssessess 232
Ground for lifting of the closure order..... 208 Ridicule of persons with disability, prohibited..................0 235
Appel oo... cceccsccccsesrcsessceesserssscessssessseasssseeseseersees 209 Villification of persons with disability, prohibited... 235
Prescriptive period for filing administrative cases ............... 209 Tax incentives for benefactors ..........:cc:cccsesstcesseessees . 236
POEA has no jurisdiction over claims of migrant Pernal Sanctions ......cccccssssessessescescssessssssesssesesseseesessestessensensees 238
WOPKEYS........ccscssccesseccenecessnceecgceeeseeeessnsesonseerees 209
Reliefs for illegally dismissed migrant workers..............00 209 CHAPTER 9
Recruitment agencies are solidarily liable with
THE SPECIAL PROTECTION
the principal ........ cece ccseesecsereeseeseeseesenees 209
OF CHILDREN AGAINST ABUSE, EXPLOITATION
Exceptions to the solidary liability rule... ccesseseseeeeee 210
AND DISCRIMINATION ACT
Services and privileges available to migrant workers 210
Migrant Workers Day.........cccsscsssssesseesseeeeseens 213 Purpose of the Law..... 240
Meaning of children 240
CHAPTER 6 Employment of children we 241
’ THE PATERNITY LEAVE ACT OF 1996 Suspension or cancellation of work permit..............ccccseseee 242
Hours of Work of Working Children ............c.ccccscssessesseesseeee 243
Meaning of Paternity Leave oo... ceeeecscseeneeeee 214 | Prohibited child employment .........uc.. eee 243
‘Coverage of the Law................ 214 Handling of child’s income or property te 245
Duration of paternity leave...... 214 | Child abuse — a criminal offense ............ccscsscessessessestecseseseees 245
Not convertible to cash......icicccecesseseereerenees 214 Child prostitution or sexual abUSe .........csesesscesseseesseseeeeeeete _ 246
Conditions for entitlement of paternity leave... 215 Attempt to commit child prostitution ................ 247
When to avail of the paternity leave............... 215 Child Trafficking ..0.......cccsssssscsssssssecsesssessesseeeee 248
How to avail of the paternity leave...... 215 Attempt to commit child trafficking 248
Proof of childbirth or miscarriage ..... 216 Obscene publications and indecent shows 249
Penal Sanctions ..........ccescseesesesesesseecneeesesscsneeees 216 | Other acts of child abuse ............ccsscsseeeseseeeees we 249
Sanctions for erring establishments...............cccccsccssscseessersees 251
CHAPTER 7 Jurisdiction 252
7 THE SOLO PARENTS’ WELFARE ACT OF 2000 252
252
Solo Parent ........:ccssccssccseeseseseseesseseseresesecsssessessees 217 | 253
Benefits available to a solo parent 218 253
Flexible work schedule.............cee 218 | Rights of children arrested for reasons related to
Parental leave for solo parents.......... 219 armed Conflict 0... ce sceeseseceeseceteeseeeeeeeeeeeeeneeeeeee Sesseeee 254
Housing benefits ............:cccsscceseesesseesereseoseeeessesees 219 | 255
Educational benefits ............:cccssccssssccesssseseesseeenes nee necercnceonceces 220 Minimum age of criminal responsibility 257
Medical Assistance ...........c:ccsssccsscsesecsreeeseesaceeneees 221 Determination of age .........ccsssesssesesscsssssesseeesseeeeeseees we | 257
Children not criminally liable for certain offenses ............... 258
CHAPTER 8 Procedure for taking the child in conflict with the
, MAGNA CARTA OF PERSONS WITH DISABILITY law into CUStOGY .........ccceeecetestectssstessesseseessenseses Peer 259
Treatment of children below the age of criminal
Persons with disability... cssssssesseeeeeeeees PreErreyiety seeeneee 222 LESPONSIDILItY «0... eeeeessesseneeccectscesesesesesessesecseeseeneseenees 261
Rights and privileges of persons with disability 222 Petition for involuntary commitment. 261

xvi xvii
Detention pending trial... cee ssssesesecseteseeeeeeenseesseeeeees 261 CHAPTER 12
Automatic suspension of Sentence............cesseseseeeeeeseseeeetenee 262
Execution of judgment. ............cccccsscccsscecsssessenecssseeesseeeeeseeesees 263 “ANTI-TRAFFICKING OF PERSONS ACT OF 2003

Meaning of Trafficking in Persons .............ececcssecsceeeeeeenenss 299

CHAPTER 10 Acts of Trafficking in Persons..........ccccssssseesseesenees 299
THE MAGNA CARTA OF WOMEN Acts that promote Trafficking in Persons... wee 300
Qualified Trafficking in Persons..........cccssssceseessesecseesesseesees 301
Objective of the Law 265 Use of Trafficked Persons ...........:csccssesseseeceeceseeseeseseesseneseaeees 302
The rights of women 267 Venue of criminal action... 303
Rights of “Women in Especially Difficult Circumstances” ... 277 Who may file a complaint ...........0.00.0 303
SANctions oo... cesecsssesscesseesescsecsseeeersessaceeesessecseesessesseeseesaneees 278 Immunity from criminal prosecution.......... 303
Aggravating Circumstance.............c:cccsssccssssecesstesseeeceseeeeeeess 279 Institution of Criminal and Civil Actions... 304
Prescriptive Period..........cscsccccessecseeseeseseceees 304
CHAPTER 11 Confidentiality of proceedings ..... 304
7, ANTI-VIOLENCE AGAINST WOMEN
AND THEIR CHILDREN ACT OF 2004 CHAPTER 13
THE ANTI-SEXUAL HARASSMENT ACT OF 1995
Violence against women and their children... 280
Physical violence 281 Meaning of sexual harassment............cscsessesseescestessessessenes 306
Sextial violence... cssseesesecsceeseeaceeccseseaeeeereceeceseneeeeseebeseneees 281 Where can sexual harassment be committed.............ccccee 307
Psychological violence............ccccsssscccccesssserecesssssecessessneeeeeseseaees 282 How is sexual harassment committed in a
ECONOMIC ADUSE..........:ccsscesecesecsecessecessecseessacecaceesevsaeeesacenseesaees 282 work-related envirOnMent ...........sccsccscessessecseceessseseeesenes 307
Remedies of victims of violence against women and How is sexual harassment committed in an education
their children... sscssseseessseseesessecseessseseeseeseeseees 283 or training ENVITONMENL .........ccesessesessereceeeeetecseceeeeeeees 307
The crime of violence against women and their children..... 283 Who can be victims of sexual harassment.. 308
Aggravating circumstances 286 Who may be liable for sexual harassment 308
Prohibited defense ..............sceee 286 Obligations of employer or head of educational or
Battered woman syndrome i isa defense for the woman....... 286 training institution 00... csscstesssseetecseseeseeeesessneeees 308
Public crime... cece ceseseeseeceecseeseessevdesserssesesesssscsseneorenes 286 Composition of the Committee on Decorum
Exemption from liability 00.0... eeeeeeseseeceseeesseeeesseeseesesesees 287 and Investigation ...........ccccscsssssscssscsescescsessessssseseseeses 309
No compromise on crimes involving violence against Liability of the employer, educational or training
women and their children 0.0.0.0... esesesseseeeeeeeeeeeeeeeee 287 INSTItUTIONS............cescccessccessscecessccesseeecsecesseeereseseessaeeesces 309
Venue of criminal action .........c.csccccessessssssessssesessesesecsecsscseees 287 Penalties .......ccecccssssssscssessesscessesseencentessesccessesecstessserseseasassasees 310
Protection Order ...........ccccsssccsssccessrccessncsecsecessresesseeessseeseseaseess 287 Prescriptive period.... wes 310
Who can file petition for protection order..............ccsseeseeeees 288 Illustrative Cases........ccsccsscsscsssscsesccsscceeccsecsssessessssessssessecessees 310
How to obtain protection order .........eeecsssssessseesseessesetseeeees 288
Barangay Protection Order (BPO) .........::sscsssseseseseceseeeneeseees 289 CHAPTER 14
Judicial Protection Order .............::escceseeseeecteceseeeeeeeseseeeeceeeenees 291
Enforceability of protection orders..... wes 296 7 THE SENIOR CITIZENS ACT
Confidentiality of Proceedings ...............cssssssceessreesssecesreeeenee 297
Semior Citizen... .cccsssssesssssscssssssessseessssseessseeseseeteceeteees esos 314
Custody of children.........cccccesssssssssssesessssesssesessesesssensseeeeseess 297
Privileges of Senior Citizens... ceeeseececctcesscerssessseseeees 314
Leave for victims of violence against women
Senior Citizen Discount and VAT Exemption applies
and their Children 0.0.0... cscsssesessecsseesesseescssaseensesenees 297
also to credit card payMents ..........cccsssseeseseeeseeeees 319

xviii xix
Conditions for availment of the senior citizens’. Wnrollment of beneficiaries .............:esceesecseeessseseeneessenereneees 336
PYIVIleES... eee ceteecceseeeeeeceenssesseeecneseretesssssseseeserereens 319 Ninrollment Requirements 337
No double discounts..............ccccsssccesecsscssscssresesereesesseereneeeeseeees 319 Declaration of dependents.... 338
The senior citizen’s discount can be claimed Health insurance ID card .... 339
AS tax CEduction ........ccscsescsesetecsseecestessversssesssssssseseeees 319 Premium contributions... cessseesecseeseseesesesesseseessseenesseees 339
Additional privileges for indigent senior citizens vase 320 Premium contributions of individually-paying members ..... 340
Discount for DSWD-Accredited senior citizens center.......... 321 Persons not obliged to pay premium contributions 340
Incentives for Foster Care .........ccsscessesccesssseesseesssetessssseeserecs 322 Premium contributions for indigent members .............scc00 341
Addition tax deduction for private entities that Renefits under the National Health Insurance
employ senior CitiZENS.............scsseesessseesesteceseeseessetecses 322 PYOQTAM 0... eesseseseevsscsessscseeesavsacensssssesensensnesesenenseeseenes 341
Criminal Offenses and Penalties............ sees 322 Health services not covered by the National Health
The Office for Senior Citizens Affairs..... a 324 Insurance Program ...........ssccsscssssssccssecssecssesesesensesseeoes 342
Qualifications of the OSCA Head... eeeeeeeeee wee 324 Conditions for entitlement to benefits .... 342
Functions of the OSCA.........ccccssssccsccssesteesecseeeeseeceereeeeseteneees 325 Health care providers ..........cccssssseseerssessrevensoes 343
Health care providers should be accredited ...... 344
CHAPTER 15 Payment of Claims ........cccceseesesseseesecteeseeereseees 345
Grounds for denial or reductions of claims ............c:ccseeeeeees 346
, THE HOME DEVELOPMENT MUTUAL
Compensability of confinement for less than 24 hours......... 346
FUND LAW OF 1980
The Philippine Health Insurance Corporation... 347
The Forerunner of the Present Home Development
Mutual Furr... cece ecsceceseeeesecseeesesseveeesseseesssssesseseeess 327 CHAPTER 17
Objective of the Law... ese eeeeeeeeeees vine 327 / THE SOCIAL SECURITY ACT OF 1997
The Home Development Mutual Fund .. wee 328
Corporate Entity ........ccccessessssesseeseseeeees ves 328 Development of the Law ..........ccssssscsssrsseesestscsseeseeeseeseeensers 348
COVELAZE oo. escesccesseesereseeeeeees ses 329 Rationale behind the enactment of the Social
Fund Contributions vee 829 Security LAW......ccccscssecsssssrsceseseneessscstecssessnesssesorenseseees 348
Meaning of monthly compensation............. ven 330 . | Validity of the Social Security Law vase 349
Term of membership ...........ccccessssssssssesssceseseseseesesosssesesessevenes 330 Construction of the Social Security Law ..........:cscssessssseeee 349
Suspension of cONtVIDUION............ ess ceeceseeeeteesnecseceesesesessanees 330 Social Security Law is not a law on succession ...........0000008 349
Withdrawal of contributions sees 330 Social Security Law is not part of the taxation system ....... 349
Housing features... cessescssescssssscsesseserssessssensssssceeesseeeseres 331 The funds of the Social Security System are
Waiver and suspension of coverage from the Home private funds ............... 349
Development Mutual Fund .00..... cee ceeecsecseesrecnereenens 331 Coverage of the SSS law.. 350
Substitute retirement plan 334 Compulsory coverage........... 350
Penal provisions.............scccescssecsssesscsesseseesesessescessesseesenesosaevenes 334 Effective date of coverage : 351
Voluntary COVETAgE ........:ceeesetevecctesesseseseecssssessassssenssesesssenenes 351
CHAPTER 16 When a person has secured an S88 number does it
/ THE NATIONAL HEALTH INSURANCE ACT OF 1995 mean that he is already an SSS member ............000000 351
Can a member withdraw his membership with the SSS..... 351
The rationale behind the enactment of the National Employees not covered by the SSS Law... cccsssssesseseeees 351
Health Insurance Act..........cscsscescsesssessssseessssssseeeeee 335 Obligations of the employer under the Social
The National Health Insurance Program ........ccscessseseeeees 335 Security Law... cccscsssssesssesssesevessssceesseesssesessseeseeases 352
Coverage of the National Health Insurance Program........... 336 Effect of non-reporting or non-remittance 352

xx xxi
Effect of failure to make timely remittance Unemployment or involuntary separation benefits .............. 372
Of CONTVIDUTION ...... eee cceseteeseeeeeeesecescessessenesessenssenenss 353 l‘ermanent Total Disability Benefits 373
Good faith is not a defense 353 | lormanent Partial Disability Benefits 375
Demand is not a condition precedent for remittance ‘'omporary Total Disability Benefits...........cccccscsscessssssseceee .376
Of premium CONTTVIDUTIONS ...... cscs eeteceeceeeseneeeeees 353 Huspension of disability benefits ......... 377
Contributions of the self-employed............scessecssessssseesseeseeees 353 | Vorfeiture of disability benefits ..... 377
Policy on the primacy of regular employment over Rotirement Benefits... 378
Self-employMent ........ccccssescssseesesseeseseeseseereseeseeseeeeseees 354 | Survivorship Benefits ............ccccsesee 379
Effect of interruption of business or professional income.... 354 | luneral Benefits ............ 381
Effect of separation from employment ............csccesesesessoeseee 354 life Insurance Benefit..............cccccecee 381
The Social Security Benefits 2.0.0.0... ete essetscssetsessceseneoseeseees 354 Prescriptive period for filing of claims 381
Maternity Leave Benefit ......... 355 |
Sickness Benefit .............ccescssscssseseeseees 356 |
Permanent Total Disability Benefits....... 357 |
Permanent Partial Disability Benefits.... 359
Retirement Benefits............c.cssseseosseeee vee 360 |
Death Benefits 0.0... cc ececsssessesecessccssecesesssereseessasseeeseeess aeeeees 362 |
Funeral Benefits .........ccscsseseseseeeseesessceessoesosseesseusssaseeseeaeeees 362
The Primary Beneficiaries ...... 362
The Secondary Beneficiaries...... 363
The dependents ..............:cscsesescceeeeeeseesceeceeeceeeeeneseeeees 363 |
The dependents’ pension ..............cscscsseesssestesensenee 364 |
The Social Security System (SSS)... eee ven 364 |
Social Security System may sue and be sued ................ee 365 |
The Social Security Commission (SSC)............cscsssessesereeesees 366
Quasi-judicial functions of the SSC sone 368
Appeal from decisions of the SSC ..0.........eeccecesseeeceeeseeeeeeeee 368 |

CHAPTER 18
THE GOVERNMENT SERVICE INSURANCE
SYSTEM ACT OF 1997
Coverage of the Government Service Insurance
System (GSIS) occ eescesstessecssssesseseessssseesssseesssaseeseass 369
Compulsory memberSship.............sscsssssssessesscessscsesessessessssevees 369
Employees not subject to compulsory coverage
Of the GSIS oo... ecscssssscssceccsecsnssecsesecssessensesessensseesersneees 370
Classes of GSIS membership ................:ccsctecssessssssseeeseeeeseseees 370
Effective date of GSIS membership ...........scssescsessrsssseeseseees 371
Separation from the service does not terminate
GSIS membership ..........cccccssscsscsececeeceeeecceeeeevsereseseaseees 371 |
The GSIS benefits............ vee 371 |
Separation benefits ..........cssccsssscsscsseseeesecsesssessesssessenessesecensees 372

xxii xxiii
 INTRODUCTION

Agrarian Law
The term “agrarian” is derived from the Latin word “ager,”
which means a field. Lexically, the word agrarian means “relating to
land or to the ownership or division of land.”
Agrarian law, therefore, basically refers to the distribution
of public agricultural lands, large estates, and regulation of the
relationship between the landowner and the farmer who works on
the land. It embraces all laws that govern and regulate the rights
and relationship over agricultural lands between landowners,
tenants, lessees or agricultural workers. ,

Presently, the focus of agrarian laws is on agrarian reform, the

thrust of which is the redistribution of agricultural lands. Our basic
law on Agrarian Reform is the Comprehensive Agrarian Reform
Law, supplemented by the Tenant Emancipation Law® and the
Code of Agrarian Reforms.‘
The primary objective of the agrarian reform program is to
breakup agricultural lands and transform them into economic-size
farms to be owned by the farmers themselves, with the end in view
of uplifting their socio-economic status.
The agrarian reform program is founded on the right of farmers
and regular farm workers who are landless, to own, directly or
collectively the lands they till or, in the case of other farm workers,
ta receive a just share in the fruits thereof. §

'Webster’s New World Dictionary, 2nd Concise Edition.

°R.A. No. 6657, as amended by R.A. Nos. 7881, 7905, 8532 and 9700.
8P.D. No. 27, as amended.
4R.A. No. 6389.
5DAR Administrative Order No. 02, series of 2009.

1
2 AGRARIAN LAW AND SOCIAL LEGISLATION

Social Legislation
There is no precise definition for social legislation. Social
legislation is so broad that it covers labor laws, agrarian laws, and
welfare laws. The emphasis is more on the aspect of general public CHAPTER 1
good and social welfare. Essentially, these are laws or statutes
THE COMPREHENSIVE AGRARIAN
enacted pursuant to the social justice clause of the Constitution.
REFORM LAW OF 1998

REPUBLIC ACT NO. 6657

[As amended by Republic Act Nos. 7881, 7905, 8532 and 9700]

AN ACT INSTITUTING A COMPREHENSIVE AGRARIAN

REFORM PROGRAM TO PROMOTE SOCIAL JUSTICE AND
INDUSTRIALIZATION, PROVIDING THE MECHANISM FOR
ITS IMPLEMENTATION, AND FOR OTHER PURPOSES

CHAPTER I
PRELIMINARY CHAPTER
SECTION 1. Title. — This Act shall be known as the Com-
prehensive Agrarian Reform Law of 1998.

NOTES:
Agrarian Law
Agrarian law embraces all laws that govern and regulate the
rights and relationship over agricultural lands between landowners,
tenants, lessees or agricultural workers.

History of Philippine Agrarian Laws

During the Spanish era, the relationship between landowners
and tenants was governed by the Civil Code, particularly by the
Special Provisions for Rural Leases.
During the American regime, the Rice Share Tenancy Act:
was promulgated. This law regulated the relationship between

Act 4054.
4 AGRARIAN LAW AND SOCIAL LEGISLATION
landlords and tenants on rice lands. Thereafter, the Sugar Tenancy
Act? was enacted to regulate the relationship between landlords and
tenants on lands planted to sugar cane.
During the commonwealth period, Commonwealth Act 53
was passed. This law recognized the testimony of the tenant as
prima facie evidence of the terms of a tenancy contract that was
not reduced in writing in a language known to him. Subsequently,
Commonwealth Act 178 was enacted to amend the provisions of the
Rice Share Tenancy Act. Thereafter, Commonwealth Act 271 was
enacted to amend Act No. 4113 by extending its application to sugar
farm workers. Afterwards, Commonwealth Act 461 was enacted to
provide security of tenure to agricultural tenants. This law was later
amended by Commonwealth Act 608. ' Meaning of Agrarian Reform
After the grant of independence, Republic Act No. 34 was en-
acted to amend the Rice Share Tenancy Act by introducing changes
in crop division. Thereafter, the Agricultural Share Tenancy
Act was enacted. This law repealed all the earlier tenancy laws
except the Sugar Tenancy Act. Subsequently, Republic Act No. 2263
amended Republic Act No. 34.
Thereafter, Republic Act No. 1400 was passed, setting in
motion the expropriation of all tenanted estates. On August 13,
1963, the Agricultural Land Reform Code‘ was enacted. The.
Agricultural Land Reform Code abolished share tenancy. In its place,
it instituted the agricultural leasehold system. The Agricultural
Land Reform Code was later amended by Republic Act No. 6389 and
was denominated as the Code of Agrarian Reforms.
Immediately after the declaration of martial law, President
Ferdinand E. Marcos promulgated the Tenant Emancipation
Law: which provided for the transfer of lands primarily devoted
to rice and corn to the tenants. Thereafter, the Court of Agrarian
Relations was reorganized with the enactment of Presidential
Decree No, 946. Subsequently, Presidential Decree No. 1038 was
promulgated to strengthen the security of tenure of tenants in non-
rice or corn agricultural lands. The Code of Agrarian Reforms was
later amended by Presidential Decree Nos. 251, 444, 1039, and 1817.
Act 4113.
5R.A. No. 1199.
4R.A. No. 3844,
5P.D. No. 27.
Sec. 1 Moo. 1 CHAPTER 1 5
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
On July 17, 1987, President Corazon C. Aquino, exercising her
powers under the Transitory Provisions of the 1987 Constitution,
\mnued Executive Order No. 228 (declaring full land ownership in
fuvor ofbeneficiaries under Presidential Decree No. 27) and Executive
Order No. 229 (providing the mechanics for its implementation).
Nubsequently, Proclamation No. 131 instituting a comprehensive
tyrarian reform program was issued.
On June 10, 1988, the Comprehensive Agrarian Reform
Law of 1988° was enacted. Thereafter, Republic Act Nos. 7881,
7905, 8532 and 9700 were enacted to amend certain provisions of
the Comprehensive Agrarian Reform Law.
Agrarian Reform means the redistribution of lands, regardless
of crops or fruits produced to farmers and regular farmworkers who
ure landless, irrespective of tenurial arrangement, to include the
totality of factors and support services designed to lift the economic
Hlatus of the beneficiaries and all other arrangements alternative
(o the physical redistribution of lands, such as production or profit-
sharing, labor administration, and the distribution of shares of
xtocks, which will allow beneficiaries to receive a just share of the
fruits of the lands they work.’
;
Gleaned from the foregoing definition, it can be seen that
ugrarian reform is not confined to distribution of lands to landless
farmers and regular farmworkers — it includes other alternative
modes, such as: (a) labor administration; (b) profit-sharing; and (c)
stock distribution. The reason is because to confine agrarian reform
to land distribution is simply not feasible, considering there is not
enough agricultural land that can be distributed to every farmer or
regular farmworker. ,
Applicability of the Comprehensive Agrarian Reform Law
The Comprehensive Agrarian Reform Law applies only to
agricultural lands. It does not apply to lands classified as residential,
commercial, industrial, mineral, or forest land.*
5R.A. No. 6657,
7Sec. 3 (a), R.A. No. 6657.
8Sec. 3 (c), Comprehensive Agrarian Reform Law, as amended,
6 AGRARIAN LAW AND SOCIAL LEGISLATION Sec.1
Meaning of Agricultural Land
Agricultural land refers to land devoted to agricultural activi-
ties. It contemplates lands that are arable and suitable for farm-
ing.?
NATALIA REALTY V. DAR
225 SCRA 279
[1992]
FACTS: Natalia Realty, Inc. (NATALIA) is the owner
of a 125-hectare land in Antipolo, Rizal. On April 18, 1979,
Presidential Proclamation No. 1637 set aside 20,312 hectares of
land located in Antipolo, San Mateo and Montalban as townsite
areas to absorb the population overspill in the metropolis. The
NATALIA properties were situated within the areas proclaimed
as townsite reservation.
Private landowners were allowed to develop their proper-
ties into low-cost housing subdivisions within the reservation.
The Human Settlements Regulatory Commission (now Housing
and Land Use Regulatory Board) granted NATALIA the neces-
sary permit to develop the land into a subdivision.
’ When the Comprehensive Agrarian Reform Law took
effect on June 15, 1988, the Department of Agrarian Reform
issued a Notice of Coverage on the undeveloped portions of the
subdivision. NATALIA sought the cancellation of the Notice of
Coverage on the ground that the land in question ceased to be
agricultural lands when Presidential Proclamation No. 1637
transformed it into a townsite reservation.
ISSUE: Whether or not the undeveloped portions of
the NATALIA properties are covered by the Comprehensive
Agrarian Reform Law.
HELD: The undeveloped portions of the NATALIA
properties are not covered by the Comprehensive Agrarian
Reform Law because they are not agricultural lands. Agricultural
lands do not include commercial, industrial or residential lands.
The NATALIA properties ceased to be agricultural lands upon
approval of their inclusion in the townsite reservation.
*Sec. 3 (c), Comprehensive Agrarian Reform Law as amended; Luz Farms v.
Secretary of Agrarian Reform, 192 SCRA 51; De Guzman v. Court of Appeals, 504
SCRA 238.
| Mi, 2 CHAPTER 1 7
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
Constitutionality of the Comprehensive Agrarian Reform Law
j The Comprehensive Agrarian Reform law is not unconstitu-
{ tlonal because it is a valid exercise of police power.
SECTION 2. Declaration of Principles and Policies ~— It is
the policy of the State to pursue a Comprehensive Agrarian
Reform Program (CARP). The welfare of the landless farmers
and farmworkers will receive the highest consideration
to promote social justice and to move the nation toward
sound rural development and industrialization, and the
establishment of owner cultivatorship of economic-size
farms as basis of Philippine agriculture.
The State shall promote industrialization and full
employment based on sound agricultural development and
agrarian reform, through industries that make full and
efficient use of human and natural resources, and which are
competitive in both domestic and foreign markets: Provided,
That the conversion of agricultural lands into industrial,
commercial or residential lands shall take into account,
tillers’ rights and national food security. Further, the State
shall protect Filipino enterprises against unfair foreign
competition and trade practices.
The State recognizes that there is not enough agricul-
tural land to be divided and distributed to each farmer and
regular farmworker so that each one can own his/her eco-
nomic-size farm. This being the case, a meaningful agrarian
reform program to uplift the lives and economic status of the
farmer and his/her children can only be achieved through
simultaneous industrialization aimed at developing a self-
reliant and independent national economy effectively con-
trolled by Filipinos.
To this end, the State may, in the interest of national
welfare or defense, establish and operate vital industries.
A more equitable distribution and ownership of land,
with due regard to the rights of landowners to just compen-
sation, retention rights under Section 6 of Republic Act 6657,
Association of Small Landowners v. Secretary of Agrarian Reform, 175 SCRA
343.

8 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 2
as amended, and to the ecological needs of the nation, shall
be undertaken to provide farmers and farmworkers with the
opportunity to enhance their dignity and improve the qual-
ity of their lives through greater productivity of agricultural
lands.
The agrarian reform program is founded on the right of
farmers and regular farmworkers, who are landless, to own
directly or collectively the lands they till or, in the case of
farmworkers, to receive a just share of the fruits thereof. To
this end, the State shall encourage and undertake the just
distribution of all agricultural lands, subject to the priorities
and retention limits set forth in this Act, taking into account
ecological, developmental, and equity considerations, and
Subject to the payment of just compensation. The State shall
respect the rights of small landowners, and shall provide
incentive for voluntary land-sharing.
As much as practicable, the implementation of the
program shall be community-based to assure, among others,
that the farmers shall have greater control of farmgate
prices, and easier access to credit.
The State shall recognize the right of farmers, farm-
workers and landowners, as well as cooperatives and other
independent farmers’ organizations, to participate in the
planning, organization, and managément of the program,
and shall provide support to agriculture through appropri-
ate technology and research, and adequate financial, pro-
duction, marketing and other support services.
The State shall recognize and enforce, consistent with
existing laws, the rights of rural women to own and control
land, taking into consideration the substantive equality
between men and women as qualified beneficiaries, to receive
a just share of the fruits thereof, and to be represented in
advisory or appropriate decision-making bodies. These
rights shall be independent of their male relatives and of
their civil status.
The State shall apply the principles of agrarian reform,
or stewardship, whenever applicable, in accordance with
law, in the disposition or utilization of other natural
resources, including lands of the public domain, under
lease or concession, suitable to agriculture, subject to prior
Mew, 2 CHAPTER 1 9
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
rights, homestead rights of small settlers and the rights of
indigenous communities to their ancestral lands.
The State may resettle landless farmers and farmwork-
ers in its own agricultural estates, which shall be distributed
to them in the manner provided by law.
| By means of appropriate incentives, the State shall
encourage the formation and maintenance of economic-size
| family farms to be constituted by individual beneficiaries
and small landowners.
The State shall protect the rights of subsistence fisher-
men, especially of local communities, to the preferential use
of communal marine and fishing resources, both inland and
offshore. It shall provide support to such fishermen through
appropriate technology and research, adequate financial,
production and marketing assistance and other services.
I'he State shall also protect, develop and conserve such
| resources. The protection shall extend to offshore fishing
grounds of subsistence fishermen against foreign intrusion.
Fishworkers shall receive a just share from their labor in the
utilization of marine and fishing resources.
The State shall be guided by the principles that land has
a social function and land ownership has a social respon-
sibility. Owners of agricultural land have the obligation to
cultivate directly or through labor administration the lands
they own and thereby make the land productive.
The State shall provide incentives to landowners to
invest the proceeds of the agrarian reform program to
promote industrialization, employment and privatization
of public sector enterprises. Financial instruments used as
payment for lands shall contain features that shall enhance
negotiability and acceptability in the marketplace.
The State may lease undeveloped lands of the public
domain to qualified entities for the development of capital-
intensive farms, and traditional and pioneering crops
especially those for exports subject to the prior rights of the
beneficiaries under this Act."
11As amended by R.A. No. 9700.
 10 AGRARIAN LAW AND SOCIAL LEGISLATION Sec.3
NOTES:
The Primary Objective of Agrarian Reform
The primary objective of agrarian reform is to breakup
agricultural lands and transform them into economic-size farms }
to be owned by the farmers themselves, with the end in view of. |
uplifting their socio-economic status.
The agrarian reform program is founded on the right of farmers
and regular farm workers who are landless, to own directly or
collectively the lands they till or, in the case of other farm workers, to
receive a just share in the fruits thereof.” But it does not guarantee .
improvement in the lives of the agrarian reform beneficiaries — at
best, it merely provides for a possibility or a favorable chance of
uplifting the economic status of the agrarian reform beneficiaries,
which may or may not be attained."
Meaning of Economic Family-Size Farm
Economic family-size farm means an area of farm land that
permits efficient use of labor and capital resources of the farm
family and will produce an.income sufficient to provide a modest
standard of living to meet.a farm family’s needs for food, clothing,
shelter, and education with possible allowance for payment of yearly
installments on the land, and reasonable reserves to absorb yearly
fluctuations in income."
I SECTION 3. Definitions. — For the purpose of this Act,
unless the context indicates otherwise:
‘I (a) Agrarian Reform means the redistribution of lands,
| regardless of crops or fruits produced to farmers and regu-
il lar farmworkers who are landless, irrespective of tenurial
arrangement, to include the totality of factors and support
services designed to lift the economic status of the beneficia-
ries and all other arrangements alternative to the physical
redistribution of lands, such as production or profit-shar-
ing, labor administration, and the distribution of shares of
DAR Administrative Order No. 02, series of 2009.
Hacienda Luisita Inc. v. PARC, 653 SCRA 154.
Sec. 166 (20), Code of Agrarian Reforms, as amended.
| Mee, 3 CHAPTER 1 11
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
stocks, which will allow beneficiaries to receive a just share
of the fruits of the lands they work.
(b) Agriculture, Agricultural Enterprise orAgricultural
Activity means the cultivation of the soil, planting of crops,
rowing of fruit trees, including the harvesting of such farm
products, and other farm activities and practices performed
by a
farmer in conjunction with such farming operations
dlone by persons whether natural or juridical.
|
| (c) Agricultural Land refers to land devoted to agri-
| cultural activity as defined in this Act and not classified as
mineral, forest, residential, commercial or industrial land.
(d) Agrarian Dispute refers to any controversy relating
to tenurial arrangements, whether leasehold, tenancy,
atewardship or otherwise, over lands devoted to agriculture,
including disputes concerning farmworkers’ associations or
representation of persons in negotiating, fixing, maintaining,
changing, or seeking to arrange terms or conditions of such
tenurial arrangements.
It includes any controversy relating to compensation of
lands acquired under this Act and other terms and conditions
of transfer of ownership from landowners to farmworkers,
| tenants and other agrarian reform beneficiaries, whether the
| disputants stand in the proximate relation of farm operator
and beneficiary, landowner and tenant, or lessor and lessee.
(e) Idle or Abandoned Land refers to any agricultural
land not cultivated, tilled or developed to produce any crop
nor devoted to any specific economic purpose continuously
for a period of three (3) years immediately prior to the re-
ceipt of notice of acquisition by the government as provided
under this Act, but does not include land that has become
permanently or regularly devoted to non-agricultural pur-
poses. It does not include land which has become unproduc-
tive by reason of force majeure or any other fortuitous event,
Provided that prior to such event, such land was previously
used for agricultural or other economic purpose.
(f) Farmer refers to a natural person whose primary
livelihood is cultivation of land or the production of
agricultural crops, livestock and/or fisheries either by
himself/herself, or primarily with the assistance of his/her
 12 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 3 Hue, 4 CHAPTER 1 13
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

immediate farm household, whether the land is owned by j NOTES:

him/her, or by another person under a leasehold or share |
Raising of Livestock, Poultry or Fish Not Embraced in the Term
tenancy agreement or arrangement with the owner thereof. |
“Agriculture”
(g) Farmworker is a natural person who renders j
services for value as an employee or laborer in an agricultural | Lands devoted to raising of livestock, poultry, and swine are .
classified as industrial, not agricultural, hence, exempt from the
enterprise or farm regardless of whether his compensation ;
is paid on a daily, weekly, monthly or “pakyaw” basis. The '
agrarian reform program."
term includes an individual whose work has ceased as a | In the case of Luz Farms v. Secretary of Agrarian Reform,
consequence of, or in connection with, a pending agrarian {92 SCRA 51, the Supreme Court declared unconstitutional the
dispute and who has not obtained a substantially equivalent | inclusion of lands devoted to raising of livestock, poultry, and swine
and regular farm employment. within the term “agriculture.” The reason is because in livestock,
poultry, or swine farming, no land is tilled and no crop is harvested.
(h) Regular Farmworker is a natural person who is | Land is not the primary resource in raising of livestock, poultry or
employed on a permanent basis by an agricultural enterprise | even swine. Livestock, poultry, or swine do not sprout from the land,
~~

or farm. hence, they are not “fruits of the land.”*

(i) Seasonal Farmworker is a natural person who is |
employed on a recurrent, periodic or intermittent basis by | CHAPTER II
an agricultural enterprise or farm, whether as a permanent | COVERAGE
or a non-permanent laborer, such as “dumaan,” “sacada,”
and the like. SECTION 4. Scope. — The Comprehensive Agrarian
Reform Law of 1988 shall cover, regardless of tenurial
(Gj) Other Farmworker is a farmworker who does not
arrangement and commodity produced, all public and
fall under paragraphs (g), (h) and (i). private agricultural lands as provided in Proclamation No.
(k) Cooperatives shall refer to organizations composed | 131 and Executive Order No. 229, including other lands of
primarily of small agricultural producers, farmers, farm- the public domain suitable for agriculture: Provided, That
workers, or other agrarian reform beneficiaries who | landholdings of landowners with a total area of five (5)
voluntarily organize themselves for the purpose of pooling | hectares and below shall not be covered for acquisition and
I: land, human, technological, financial or other economic distribution to qualified beneficiaries.
resources, and operated on the principle of one member, one More specifically, the following lands are covered by the
vote. A juridical person may be a member of a cooperative, | CARP:

“|ijMI|
' with the same rights and duties as a natural person.
| (a) All alienable and disposable lands of the pub-
@) Rural women refer to women who are engaged |: lic domain devoted to or suitable for agriculture. No re-
directly or indirectly in farming and/or fishing as their source classification of forest or mineral lands to agricultural
of livelihood, whether paid or unpaid, regular or seasonal, or | lands shall be undertaken after the approval of this Act
in food preparation, managing the household, caring for the until Congress, taking into account ecological, devel-
children, and other similar activities." . opmental and equity considerations, shall have deter-
mined by law, the specific limits of the public domain;

1SAs amended by R.A. No. 9700. “Republic v. Salvador N. Lopez Agri-Business Corp., 6839 SCRA 49.
16As amended by R.A. No. 9700. DAR v. Sutton, 473 SCRA 392.
14 AGRARIAN LAW AND SOCIAL LEGISLATION Sec.4 | Roos, 5-6 CHAPTER 1 15
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

(b) All lands of the public domain in excess of (c) Private lands actually, directly and exclusively used
the specific limits as determined by Congress in the ; for prawn farms and fishponds;
preceding paragraph;
(d) Lands actually, directly, and exclusively used and
(c) All other lands owned by the Government | found to be necessary for:
devoted to or suitable for agriculture; and
(i) national defense;
(d) All private lands devoted to or suitable for | (ii) school sites and campuses;
agriculture regardless of the agricultural products
raised or that can be raised thereon. (iii) experimental farm stations operated for educa-
tional purposes;
A comprehensive inventory system in consonance |
(iv) seeds and seedling research and pilot production
with the national land use plan shall be instituted by the |,
center;
Department of Agrarian Reform (DAR), in accordance with |
the Local Government Code, for the purpose of properly (v) church sites and convents appurtenant thereto;
identifying and classifying farmlands within one (1) 1 (vi) mosque sites and Islamic centers appurtenant
year from effectivity of this Act, without prejudice to the | thereto; ae
implementation of the land acquisition and distribution.” (vii) communal burial grounds and cemeteries;
(viii) penal colonies and penal farms actually
NOTES: worked by the inmates;
Lands Covered by the Agrarian Reform Law (ix) research and quarantine centers; and
As a general rule, the Comprehensive Agrarian Reform Law (x) all lands with eighteen percent (18%) slope and
covers the following lands: over, except those already developed.”

(a) all public and private agricultural lands; and SECTION 5. Schedule of Implementation. — The distribution
(b) other lands of the public domain suitable for agri- of all lands covered by this Act shall be implemented
culture.” immediately and completed within ten (10) years from the
effectivity thereof.
Lands Not Covered by the Agrarian Reform Law
The following lands are not covered by the Comprehensive NOTES:
Agrarian Reform Law: Implementation Extended by Republic Act No. 9700 .
(a) Private lands with a total area of five (5) hectares Section 7 of Republic Act No. 9700 extended the implementa-
and below; tion of the Comprehensive Agrarian Reform Law, particularly, the
acquisition and distribution of agricultural lands, to June 30, 2014.
(b) Lands actually, directly, and exclusively used for
parks, wildlife, forest reserves, reforestation, fish sanctuaries
and breeding grounds, watersheds and mangroves; SECTION 6. Retention Limits. — Except as. otherwise
provided in this Act, no person may own or retain, directly
or indirectly, any public or private agricultural land, the
19As amended by R.A. No. 9700.
20Sec. 4, Comprehensive Agrarian Reform Law, as amended.
Sec, 4, Ibid. 2Sec. 10, Comprehensive Agrarian Reform Law, as amended by R.A. No. 7881.

16 AGRARIAN LAW AND SOCIAL LEGISLATION
size of which shall vary according to factors governing
a viable family-size farm, such as commodity produced,
terrain, infrastructure, and soil fertility as determined by
the Presidential Agrarian Reform Council (PARC) created
hereunder, but in no case shall retention by the landowner
exceed five (5) hectares. Three (3) hectares may be awarded
to each child of the landowner, subject to the following
qualifications: (1) that he is at least fifteen (15) years of
age; and (2) that he is actually tilling the land or directly
managing the farm: Provided, That landowners whose lands
have been covered by Presidential Decree No. 27 shall
be allowed to keep the areas originally retained by them
thereunder: Provided, further, That original homestead.
grantees or their direct compulsory heirs who still own
the original homestead at the time of the approval of this
Act shall retain the same areas as long as they continue to
cultivate said homestead.
The right to.choose the area to be retained, which |
shall be compact or contiguous, shall pertain to the |
landowner: Provided, however, That in case the area selected
for retention by the landowner is tenanted, the tenant shall
have the option to choose whether to remain therein or be
a beneficiary in the same or another agricultural land with
similar or comparable features. In case the tenant chooses
to remain in the retained area, he shall be considered a
leaseholder and shall lose his right to be a beneficiary under
this Act. In case the tenant chooses to be a beneficiary in
another agricultural land, he loses his right as a leaseholder
to the land retained by the landowner. The tenant must
exercise this option within a period of one (1) year from
the time the landowner manifests his choice of the area for
retention.
In all cases, the security of tenure of the farmers
farmworkers on the land prior to the approval of this: Act
shall be respected.
Upon the effectivity of this Act, any sale, disposition,
lease, management, contract or transfer of possession of
private lands executed by the original landowner in violation
of this Act shall be null and void: Provided, however,
those executed prior to this Act shall be valid only when
registered with the Register of Deeds within a period of three
Maw, 6 CHAPTER 1 17
Sec.6 |
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
| (8) months after the effectivity of this Act. Thereafter, all
| Iltogisters of Deeds shall inform the Department ofAgrarian
| fteform (DAR) within thirty (80) days of any transaction
| involving agricultural lands in excess of five (5) hectares.
|
NOTES:
Retention right of the landowner
|
Under Section 6 of the Comprehensive Agrarian Reform Law,
the landowner has the right to retain not more than five (5) hectares
of his landholdings. The retained area need not be personally
cultivated by the landowner — cultivation can be done indirectly
through labor administration.”
| Can a landowner who has already exercised his retention rights
| under Presidential Decree No. 27 be entitled to the retention right
under the Comprehensive Agrarian Reform Law?
If the landowner has already exercised his right of retention
under Presidential Decree 27, he can no longer exercise the retention
right under Comprehensive Agrarian Reform Law.
However, if the landowner chooses to retain five (5) hectares
under Comprehensive Agrarian Reform Law, the seven (7) hectares
previously retained by him under Presidential Decree 27 shall
be immediately placed under the coverage of the comprehensive
agrarian reform law.*
reform
Can spouses retain 5 hectares each under the agrarian
law?
It depends:
(a) if the property regime is conjugal or absolute
community — the spouses can retain only five (5) hectares.
or
(b) if the property regime is separation of property
—’the spouses can retain five (5) hectares each (a total of 10
hectares).
239ec. 2 (b), DAR Administrative Order No. 05-00.
That
24Sec, 6, Comprehensive Agrarian Reform Law, as amended.
Sec, 3, DAR Administrative Order No. 05-00.
26Sec. 9 (g) and (h), DAR Administrative Order No. 05-00.
 18 AGRARIAN LAW AND SOCIAL LEGISLATION *%.
Who has the right to choose the retention area?
The landowner has the right to choose the area to be retainedg
The chosen area should be compact or contiguous.” As long as the
area to be retained is compact or contiguous, and it does not exceed
the retention ceiling of five (5) hectares, the landowner’s choice of
the area to be retained must prevail.”
‘ Miia relationship can be determined by the following elements:
The landowner should exercise his right of retention within sixty
(60) days from receipt of the Notice of Coverage.” If the landowne
does not exercise his right of retention within the specified period,
the Municipal Agrarian Reform Officer (MARO) will designate the
retained area for the landowner. If the landowner disagrees with the
area selected for retention, he may file a protest with the MARO.»
Can a landowner exercise his right to retention over the land which]
has already been covered by an Emancipation Patent or Certificate]
of Land Ownership Award?
‘ If the tenant chooses to remain in the retained area, he will no
The issuance of Emancipation Patent (EP) or Certificate o
Land Ownership Awards (CLOA) to beneficiaries does not absolutely
bar the landowner from retaining the area covered thereby. If the}
landowner has been deprived of his right to retention, he may file
a petition for cancellation of the EP or CLOA that may have been!
issued to the tenants.” Under Administrative Order No. 2, series of
1994, an EP or CLOA may be cancelled if the land covered is later }
found to be part of the landowner’s retained area.”
; farm practices;
Suppose the retention area chosen by the landowner is tenanted, 1
what happens to the tenant?
If the area selected for retention by the landowner is tenanted, 4
the tenant may choose on whether to remain therein or be af
beneficiary*in the same or another agricultural land with similar
or j
comparable features. The tenant must exercise this option within |
a period of one (1) year from the time the landowner manifests his |
choice of the area for retention.
*7Sec. 6, Comprehensive Agrarian Reform Law, as amended.
*8Daez v. Court of Appeals, 325 SCRA 856.
Sec. 4, DAR Administrative Order No. 05-00.
3°Sec. 5, ibid.
Tenants of the Estate of Dr. Jose Sison v. Court of Appeals, 201 SCRA
545.
*Daez v. Court of Appeals, 325 SCRA 856.
*8Sec. 6, Comprehensive Agrarian Reform Law, as amended,
Sec. 6 hw. 6 Cc HAPT ER 1 19
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
It should be noted that the law speaks of tenant, and not just
fl uny settler on the land. In short, the relationship of randlord
(onunt must exist. Mere occupation or cultivation of an agricultura
lund will not ipso facto make the tiller an agricultural tenant.
ie person claiming to be an agricultural tenant must prove y
substantial evidence the existence of landlord-tenant relationsl ip.
(a) The landowner has engaged a person to personally
cultivate an agricultural land; and
(b) The landowner is compensated in terms of share
in the produce (share tenancy) or in terms of a price certain
or ascertainable in produce or in money or both (leasehold
tenancy).
Effect if the tenant chooses to remain in the retained area
longer be considered as a tenant but as an agricultural lessee and,
ho will no longer qualify as an agrarian reform beneficiary.”
As an agricultural lessee, he will be entitled to:
(a) Peaceful possession and enjoyment of the land;
(b) Manage and work on the land in a manner and
method of cultivation and harvest which conform to proven
(c) Mechanize all or any phase of his farm work;
(d) Deal with millers and processors and attend to the
issuance of guedans and warehouse receipts for the produce
due him;*
(e) Be afforded a homelot;”
(f) Be indemnified for the cost and expenses incurred
in the cultivation, planting or harvesting and other expenses
incidental to the improvement of his crop in case he surrenders
or abandons his landholding for just cause or ejected therefrom;*
“Rodriguez v. Salvador, 651 SCRA 429.
35Sec, 6, Comprehensive Agrarian Reform Law as amended.
38Sec, 23, Code of Agrarian Reforms, as amended.
5"Sec. 24, ibid.
88Sec. 25, ibid.
 20 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. Hoe. 6 CHAPTER 1 21
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

(g) Buy the agricultural landholding under reasonablé (b) Absence of successor (i.e., surviving spouse, eldest
terms and conditions in case the agricultural lessor decides té direct descendant by consanguinity, or next eldest descendant
sell the same; or descendants in the order of their age) in the event of death
(h) Redeem the landholding at a reasonable price anj or permanent incapacity of the lessee.”
consideration in case the agricultural lessor sold the same to & The leasehold relation is not necessarily extinguished by death
third person without his knowledge.“ ' wr incapacity of the lessee. If the lessee dies or is permanently
fi Correlative to the foregoing rights are the following obliga tisabled, the leasehold continues between the agricultural lessor
ions: und the person who can cultivate the landholding personally, which
the lessor can choose from among the following:
(a) Tocultivate and take care of the farm, growing crops;
and other improvements on the landholding as a good father of (a) the surviving spouse;
a family and perform all the work therein in accordance with (b) the eldest direct descendant by consanguinity; or
proven farm practices;
(c) the next eldest descendant or descendants in the
; (b) Inform the agricultural lessor within a reasonabld order of their age.”
time of any trespass committed by third persons upon the farm#
without prejudice to his direct action against the trespasser; | Likewise, the agricultural leasehold is not terminated or
oxtinguished by the mere expiration of the term or period in a
(c) Take reasonable care of the work animals and farm leasehold contract. Neither is it terminated by the transfer of
implements delivered to him by the agricultural lessor and sed ownership or legal possession of the landholding. If the agricultural
that they are not used for purposes other than those intended
lessor transfers the ownership or legal possession of the landholding,
or used by another without the knowledge and consent of thd
the transferee becomes the agricultural lessor.“
agricultural lessor; -
(d) Keep his farm and growing crops attended to during] Effect if the Tenant Chooses to be a Beneficiary
the work season; :
If the tenant chooses to be a beneficiary in the same or another
(e) Notify the agricultural lessor at least three (3) days} agricultural land, he loses his right to be a lessee of the land retained
i before the date of harvesting or, whenever applicable, of by the landowner.
threshing; and
i, (f) Pay the lease rental to the agricultural lessor when} Children of the Landowner are Entitled to 3 hectares each

| it falls due.“ q If the landowner owns more than five (5) hectares of agricul-
tural land, the excess area may be awarded to the children of the
i What is the term of the lease? landowner to the extent of three (3) hectares for each child under
‘i The agricultural leasehold relation once established continues! the following conditions:
until such leasehold rélation is extinguished through any of the (a) the child is at least fifteen (15) years old; and
following means:
(b) the child is actually tilling the land or directly
(a) Abandonment or voluntary surrender of the land-} managing the farm.
holding by the lessee; or

#Secs. 7, and 8, ibid.

3Sec. 11, ibid. Sec. 9, ibid.
Sec. 12, ibid.
“Sec. 10, ibid.
“Sec. 26, Code of Agrarian Reforms, as amended.
Sec. 6, ibid.
 22 AGRARIAN LAW AND SOCIAL LEGISLATION
The child need not directly or personally till the land — it is
enough that he directly manages the farm. 4 sive Agrarian Reform Law respect the superiority of the rights of
A qualified child who owns less than five (5) hectares of agri ;
cultural larid is still entitled to an award of his parent’s landhold-
ing provided that his total area, including the area to be awarded
does not exceed the 5-hectare ownership ceiling. For example, iff
the child already owns three (3) hectares of agricultural land, he
can still be awarded two (2) hectares from his parent’s landholding:
Lands awarded to qualified children of landowners cannot]
be sold, transferred or conveyed within a period of ten (10) years,
except:
(a) through hereditary succession;
(b) to the government;
(c) to the Land Bank of the Philippines; or
(d) to other qualified beneficiaries.
The children or the spouse of the transferor can repurchase|
the land from the government or the Land Bank of the Philippines
within a period of two (2) years from the date of transfer.“
Right of Homesteaders vis-a-vis Right of Tenants
Section 6 of Article XIII of the Constitution provides that:
“The State shall apply the principles of agrarian reform or
stewardship, whenever applicable in accordance with law, in the
disposition or utilization of other natural resources, including
lands of public domain under lease or concession suitable to
agriculture, subject to x x x homestead rights of small
settlers, and the rights of indigenous cultural communities to
their ancestral lands.” . subject to the five (5)-hectare retention limit under this
Section 6 of the Comprehensive Agrarian Reform Law
provides that:
“x x x original homestead grantees or their direct
compulsory heirs who still own the original homestead at the
time of the approval of this Act shall retain the same areas
as long as they continue to cultivate said homestead.”
Sec. 2, DAR Administrative Order No. 06-06.
“Sec. 4, ibid.
4Emphasis supplied.
Emphasis supplied.
Sec. G Hoc. 6-A CHAPTER 1 23
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
It can be seen that both the Constitution and the Comprehen-
homesteaders over the rights of tenants. While the agrarian reform
law is a remedial measure promulgated pursuant to the social jus-
lice precepts of the Constitution, it cannot be invoked to defeat the
very purpose of the enactment of the Commonwealth Act 141. The
Homestead Act has been enacted for the welfare and protection of
the poor. The law gives a needy citizen a piece of land where he may
build a modest house for himself and family and plant what is nec-
essary for subsistence and for the satisfaction of life’s other needs.”
j Therefore, the owners (or their direct compulsory heirs) of
lands acquired through homestead grants or Free Patents under
Commonwealth Act 141 are entitled to retain the entire area (even
if it exceeds 5 hectares), provided that:
(a) they were cultivating the same at the time of the
' approval of the Comprehensive Agrarian Reform Law (i.e.,
June 15, 1988); and
(b) they continue to cultivate the same.
SECTION 6-A. Exception to Retention Limits. — Provincial,
city and municipal government units acquiring private
agricultural lands by expropriation or other modes of
acquisition to be used for actual, direct and exclusive public
purposes, such as roads and bridges, public markets, school
sites, resettlement sites, local government facilities, public
_ parks and barangay plazas or squares, consistent with the
approved local comprehensive land use plan, shall not be
Section and Sections 70 and 73 (a) of Republic Act No. 6657,
also 1 as amended: Provided, That lands subject to CARP shall
first undergo the land acquisition and distribution process —
of the program: Provided, further, That when these lands
have been subjected to expropriation, the agrarian reform
beneficiaries therein shall be paid just compensation.“
‘Alita v. Court of Appeals, 170 SCRA 706.
51Added by R.A. No. 9700.
24 AGRARIAN LAW AND SOCIAL LEGISLATION Secs. 6-B4
% ‘
NOTES:
Expropriation. of Private Agricultural Lands By Local Governme
Units
If a Local Government Unit (LGU) expropriates a privat
agricultural land for actual, direct, and exclusive public purposeg
the Department of Agrarian Reform should first subject it td
agrarian reform coverage. This means that the land should first bé
acquired by the national government through the Department oj
Agrarian Reform who will pay just compensation to the landowne
Thereafter, the Department of Agrarian Reform will distribute thé
land to the agrarian reform beneficiaries. After distribution, the LGU
will expropriate the land and pay the agrarian reform beneficiaries
the just compensation.
SECTION 6-B. Review of Limits of Land Size. — Within six
(6) months from the effectivity of this Act, the DAR shall
submit a comprehensive study on the land size appropriat 3
for each type of crop to Congress for a possible review of
limits of land sizes provided in this Act.”
NOTES:
The Import of the Law
Section 6-B of the Comprehensive Agrarian Reform Law is an
implied recognition that the uniform setting of a 5-hectare
5- limit for
all agricultural landholding may not be feasible, considering the!
economic differences for each type of agricultural product. Surely,
lands planted to rice, corn, coconut, mango, sugar, pineapple, cacao}
etc., cannot be treated identically.
SECTION 7. Priorities. — The DAR, in coordination with
the Presidential Agrarian Reform Council (PARC) shall plan’
and program the final acquisition and distribution of all!
remaining unacquired and undistributed agricultural lands’
from the effectivity of this Act until June 30, 2014. Lands
shall be acquired and distributed as follows:
Phase One: During the five (5)-year extension period |
hereafter all remaining lands above fifty (50) hectares
52Added by R.A, No. 9700.
CHAPTER 1 25
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
shall be covered for purposes of agrarian reform upon
the effectivity of this Act. All private agricultural lands
1 of landowners with aggregate landholdings in excess of
fifty (50) hectares which have already been subjected
to a notice of coverage issued on or before December
10, 2008; rice and corn lands under Presidential
Decree No. 27; all idle or abandoned lands; all private
lands voluntarily offered by the owners for agrarian
reform: Provided, That with respect to voluntary land
transfer, only those submitted by June 30, 2009 shall
be allowed: Provided, further, That after June 30, 2009,
the modes of acquisition shall be limited to voluntary
offer to sell and compulsory acquisition: Provided,
1 furthermore, That all previously acquired lands wherein
valuation is subject to challenge by landowners shall be
completed and finally resolved pursuant to Section 17 of
Republic Act No. 6657, as amended: Provided, finally, as
mandated by the Constitution, Republic Act No. 6657, as
amended, and Republic Act No. 3844, as amended, only
farmers (tenants or lessees) and regular farmworkers
actually tilling the lands, as certified under oath by
the Barangay Agrarian Reform Council (BARC) and
attested under oath by the landowners, are the qualified
beneficiaries. The intended beneficiary shall state
under oath before the judge of the city or municipal
court that he/she is willing to work on the land to make
it productive and to assume the obligation of paying the
amortization for the compensation of the land and the
land taxes thereon; all lands foreclosed by government
1 financial institutions; all lands acquired by the
Presidential Commission on Good Government (PCGG);
and all other lands owned by the government devoted
to or suitable for agriculture, which shall be acquired
and distributed immediately upon the effectivity of this
Act, with the implementation to be completed by June
30, 2012;
Phase Two: (a) Lands twenty-four (24) hectares
up to fifty (50) hectares shall likewise be covered for
purposes of agrarian reform upon the effectivity of this
Act. All alienable and disposable public agricultural
lands; all arable public agricultural lands under agro-
forest, pasture and agricultural leases already cultivated
26 AGRARIAN LAW AND SOCIAL LEGISLATION “ Secif
and planted to crops in accordance with Section 4
Article XIII of the Constitution; all public agriculturg
lands which are to be opened for new developmen
and resettlement; and all private agricultural lands o
landowners with aggregate landholdings: above twenty,
four (24) hectares up to fifty (50) hectares which havi
already been subjected to a notice of coverage issued of
or before December 10, 2008, to implement principall;
the rights of farmers and regular farmworkers, who ar
landless, to own directly or collectively the lands the
till, which shall be distributed immediately upon th
effectivity of this Act, with the implementation to bi
completed by June 30, 2012; and
(b) All remaining private agricultural lands o
landowners with aggregate landholdings in excess gj
twenty-four (24) hectares, regardless as to whethe
these have been subjected to notices of coverage or not
with the implementation to begin on July 1, 2012 and t¢
be completed by June 30, 2013; ; provinces as priority land reform areas, in which case the
Phase Three: All other private agricultural landé
commencing with large landholdings and proceeding
to medium and small landholdings under the following
schedule:
(a) Lands of landowners with aggregate land|
holdings above ten (10) hectares up to twenty-foui
(24) hectares, insofar as the excess hectarage abové
ten (10) hectares is concerned, to begin on July
2012 and to be completed by June 30, 2013; and
(b) Lands of landowners with aggregate land
holdings from the retention limit up to ten (10) hect
ares, to begin on July 1, 2013 and to be completed
by June 30, 2014; to implement principally the righ¢
of farmers and regular farmworkers who are land
less, to own directly or collectively the lands they
till.
The schedule of acquisition and redistribution of al
agricultural lands covered by this program shall be made
in accordance with the above order of priority, which
shall be provided in the implementing rules to be prepared}
by the PARC, taking into consideration the following:
.'t CHAPTER 1 27
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
Qwnership; the distribution of lands to the tillers at the
‘(arliest practicable time; the enhancement of agricultural
Productivity; and the availability of funds and resources to
jplement and support the program: Provided, That the PARC
all design and conduct seminars, symposia, information
‘@mpaigns, and other similar programs for farmers who
fre not organized or not covered by any landholdings.
Completion by these farmers of the aforementioned seminars,
symposia, and other similar programs shall be encouraged
q in the implementation of this Act particularly the provisions
: F Of this Section.
Land acquisition and distribution shall be completed by
F gune 30, 2014 on a province-by-province basis. In any case,
|. the PARC or the PARC Executive Committee (PARC EXCOM),
/ pon recommendation by the Provincial Agrarian Reform
- Ovordinating Committee (PARCCOM), may declare certain
acquisition and distribution of private agricultural lands
therein under advanced phases may be implemented ahead
of the above schedules on the condition that prior phases
(n these provinces have been completed: Provided, That
notwithstanding the above schedules, phase three (b)
shall not be implemented in a particular province until
at least ninety percent (90%) of the provincial balance of
_ that particular province as of January 1, 2009 under Phase
]j Qne, Phase Two (a), Phase Two (b), and Phase Three (a),
excluding lands under the jurisdiction of the Department
of Environment and Natural Resources (DENR), have been
successfully completed.
The PARC shall establish guidelines to implement the
ubove priorities and distribution scheme, including the
determination of who are qualified beneficiaries: Provid-
ed, That an owner-tiller may be a beneficiary of the land he/
she does not own but is actually cultivating to the extent
of the difference between the area of the land he/she owns
and the award ceiling of three (3) hectares: Provided, fur-
ther, That collective ownership by the farmer beneficiaries
shall be subject to Section 25 of Republic Act No. 6657, as
amended: Provided, furthermore, That rural women shall
 28 AGRARIAN LAW AND SOCIAL LEGISLATION ~% Sec. 4
be given the opportunity to participate in the developmeng
planning and implementation of this Act: Provided, final
ly, That in no case should the agrarian reform beneficiaries
sex, economic, religious, social, cultural and political attril
butes adversely affect the distribution of lands. 53
NOTES:
Acquisition and Distribution Scheme
This provision lays down the scheme for the final acquisitioy
and distribution of all remaining agricultural lands during thé
_5-year extension period up to June 30 2014, in SOND Wine order of
“priority:
(a) Lands with an area of more than fifty (50) = XIII of the Constitution;
to be completed by June 30, 2012, specifically:
(i) those which have already been subjected to d
Notice of Coverage on or before December 10, 2008;
(ii) rice and corn lands;
(iii) idle or abandoned lands; |
NOTE: Idle or abandoned land refers to any agricultural}
land not cultivated, tilled or developed to produce any croy
nor devoted to any specific economic purpose continuously fox
a period of three (3) years immediately prior to the receipt of
notice of acquisition by the government as provided under thig
Act, but does not include land that has become permanently
or regularly devoted to non-agricultural purposes. It does nofj
include land which has become unproductive by reason of forcél
majeure or any other fortuitous event, provided that prior td
such event, such land was previously used for agricultural ov
other economic purpose.*
(iv) private lands voluntarily offered by the owner
for agrarian reform;
(v) lands foreclosed by government financial insti-
tutions;
53As amended by R.A. No. 9700.
54Sec. 3 (e), R.A. No, 6657, as amended.
CHAPTER 1 29
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
(vi) lands acquired by the Presidential Commission
on Good Government (PCGG); and
(vii) all other lands owned by the government
devoted to or suitable for agriculture.
(b) Lands with an area of twenty-four (24) hectares
up to fifty (50) hectares, to be completed by June 30, 2013,
specifically:
(i) all alienable and disposable public agricultural
lands;
(ii) all arable public agricultural lands under agro-
forest, pasture and agricultural leases already cultivated
and planted to crops in accordance with Section 6, Article
4
(iii) all public agricultural lands which are to be
opened for new development and resettlement;
(iv) all private agricultural lands which have already
been subjected to a Notice of Coverage issued on or before
December 10, 2008; and
(v) all remaining private agricultural lands regard-
less as to whether they have been subjected to notices of
coverage.
(c) Lands with an area of more than ten (10) hectares
up to twenty-four (24) hectares, to be completed by June 30,
2013; and
(d) Lands from the retention limit up to ten (10)
hectares, to be completed by June 30, 2014.
~ Only farmers (tenants or lessees) and regular farm-
workers actually tilling the lands, as certified under oath by
the Barangay Agrarian Reform Council (BARC) and attested
under oath by the landowners, can be considered as qualified
beneficiaries.
The intended beneficiary shall state under oath before
the judge of the city or municipal court that he/she is willing
to work on the land to make it productive and to assume the
obligation of paying the amortization for the compensation of
the land and the land taxes thereon.
30 AGRARIAN LAW AND SOCIAL LEGISLATION
SECTION 8. Multinational Corporations. — All lands of thi
public domain leased, held or possessed by multinationa
corporations or associations, and other lands owned bj
the government or by government-owned or controlle(
corporations, associations, institutions, or entities, devote
to existing and operational agri-business or agro-industria
enterprises, operated by multinational corporations an
associations, shall be programmed for acquisition ang
distribution immediately upon the effectivity of this Acf
with the implementation to be completed within three (¥
years. 4 « fipon its valid termination,
Lands covered by the paragraph immediately precedin; J
under lease, management, grower or service contracts, an
the like, shall be disposed of as follows:
(a) Lease, management, grower or service con
tracts covering such lands covering an aggregate are¢
in excess of 1,000 hectares, leased or held by foreign ig
dividuals in excess of 500 hectares are deemed amendeg
to conform with the limits set forth in Section 3 of Ay
ticle XII of the Constitution.
(b) Contracts covering areas not in’ excess o ayreement and for all other legitimate purposes. Until a new
1,000 hectares in the case of such corporations ang
associations, and 500 hectares, in the case of
individuals, shall be allowed to continue under theif
original terms and conditions but not beyond Augus
:29, 1992, or their valid termination, whichever comej
sooner, after which, such agreements shall, continuf
only when confirmed by the appropriate governmenj
agency. Such contracts shall likewise continue eve
after the land has been transferred to beneficiaries of
awardees thereof, which transfer shall be immediate};
commenced and implemented, and completed withis
the period of three (3) years mentioned in the
paragraph hereof.
(c) In no case will such leases and other agree
ments now being implemented extend beyond Augus
29, 1992, when all lands subject hereof shall have beer
distributed completely to qualified beneficiaries
awardees.
Such agreements can continue thereafter only under4
new contract between the government or qualified benefi
_ See, j iw, 8 CHAPTER 1
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
tlaries or awardees, on the one hand, and said enterprises,
wn the other.
Lands leased, held or possessed by multinational cor-
porations, owned by private individuals and private non-
qovernmental corporations, associations, institutions and
entities, citizens of the Philippines, shall be subject to
Immediate compulsory acquisition and distribution upon the
@xpiration of the applicable lease, management, grower or
service contract in effect as of August 29, 1987, or otherwise,
whichever comes sooner, but
not later than after ten (10) years following the effectivity
| of this Act. However during the said period of effectivity,
the government shall take steps to acquire these lands for
immediate distribution thereafter.
In general, lands shall be distributed directly to the in-
ttividual worker-beneficiaries. In case it is not economically
feusible and sound to divide the land, then they shall form
a workers’ cooperative or association which will deal with
the corporation or business association or any other prop-
er party for the purpose of entering into a lease or growers
agreement is entered into by and between the workers’ co-
suck operative or association and the corporation or business as-
sociation or any other proper party, any agreement existing
at the time this Act takes effect between the former and the
previous landowner shall be respected by both the workers’
- (ooperative or association and the corporation, business, as-
sociation or such other proper party. In no case shall the
implementation or application of this Act justify or result
In the reduction of status or diminution of any benefits re-
gecived or enjoyed by the worker-beneficiaries, or in which
they may have a vested right, at the time this Act becomes
firs]
offective. |
q
The provisions of Section 32 of this Act, with regard to
production and income-sharing shall apply to farms operated
by multinational corporations.
0: During the transition period, the new owners shall
be assisted in their efforts to learn modern technology in
production. Enterprises which show a willingness and
commitment and good-faith efforts to impart voluntarily
 32 AGRARIAN LAW AND SOCIAL LEGISLATION “% Sec.4
such advanced technology will be given preferential treat
ment where feasible.
In no ease shall a foreign corporation, association, er
tity or individual enjoy any rights or privileges better thaj
those enjoyed by a domestic corporation, association, entit;
or individual.
NOTES:
Lands Possessed by Multinational Corporations are Covered Dy
the CARL
Agricultural lands leased, held or possessed by multinationd
corporations are also subject to compulsory acquisition ang
distribution. The land shall be distributed directly to the individual
worker-beneficiaries.
If it is not economically feasible and sound to divide the land
the individual worker-beneficiaries shall form a workers’ cooperativ§
or association which will deal with the corporation by way of lease of
growers’ agreement and other legitimate purposes.
SECTION 9. Ancestral Lands. — For purposes of this Act}
ancestral lands of each indigenous cultural community shal
include, but not be limited to, lands in the actual, continuo
and open possession and occupation of the community ang
" its members: Provided, That the Torrens System shall
respected.
wh
The right of these communities to their ancestra
lands shall be protected to ensure their economic, social]
and cultural well-being. In line with the principles of self f
r' determination and autonomy, the systems of land ownership}
land use, and the modes of settling land disputes of all thes¢
H il
communities must be recognized and respected.
Any provision of law to the contrary notwithstanding}
the PARC may suspend the implementation of this Act with
respect to ancestral lands for the purpose of identifying and
delineating such lands: Provided, That in the autonomous
regions, the respective legislatures may enact their owy
laws on ancestral domain subject to the provisions of the
Constitution and the principles enunciated in this Act and
other national laws.
Hoc. 10 CHAPTER 1 33
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
NOTES:
Ancestral land defined
Ancestral lands are lands of the public domain that have
been in open, continuous, exclusive, and notorious occupation and
cultivation by members of the National Cultural Communities by
themselves or through their ancestors, under a bona fide claim of
ucquisition of ownership according to their customs and traditions
for a period of at least thirty (3Q) years before the date of approval of
q Presidential Decree No. 410.
It refers to lands occupied, possessed and utilized by indi-
viduals, families, and clans who are members of the indigenous
cultural communities or indigenous peoples since time immemorial,
by themselves ‘or through their predecessors-in-interest, under
claims of individual or traditional group ownership, continuously,
to the present except when interrupted by war, force majeure or
displacement by force, deceit, stealth, or as a consequence of
government projects and other voluntary dealings entered into by
1
government and private individuals/corporations, including, but not
limited to, residential lots, rice terraces or paddies, private forests,
swidden farms, and tree lots.
Ancestral lands exempted from the Agrarian Reform Law
bé Ancestral lands are exempted from the coverage of the
agrarian reform program. The comprehensive agrarian reform law
recognizes and respects the systems of land ownership, land use,
and the modes of settling land disputes of all indigenous cultural
communities or indigenous peoples, in line with the principles of
self-determination and autonomy. °
In the autonomous regions, the respective legislatures may
enact their own laws on ancestral domain subject to the provisions of
the Constitution and the principles enunciated in the comprehensive
agrarian reform law and other national laws.
SECTION 10. Exemptions and Exclusions. — a) Lands
actually, directly and exclusively used for parks, wildlife,
forest reserves, reforestation, fish sanctuaries and breeding
®5Sec. 3 (b), R.A. No. 8871.

34 AGRARIAN LAW AND SOCIAL LEGISLATION
grounds, watersheds and mangroves shall be exempt from |
the coverage of this Act.
b) Private lands actually, directly and exclusively
used for prawn farms and fishponds shall be exempt from
the coverage of this Act: Provided, That said prawn farms
and fishponds have not been distributed and Certificate of
Land Ownership Award (CLOA) issued to agrarian reform
beneficiaries under the Comprehensive Agrarian Reform
Program.
In cases where the fishponds or prawn farms have been
subjected to the Comprehensive Agrarian Reform Law, by
voluntary offer to sell, or commercial farms deferment or
notices. of compulsory acquisition, a simple and absolute
majority of the actual regular workers or tenants must
consent to the exemption within one (1) year from the
effectivity of this Act. When the workers 6r tenants do not
agree to this exemption, the fishponds or prawn farms
shall be distributed collectively to the worker-beneficiaries
or tenants who shall form a cooperative or association to
manage the same.
T In cases where the fishponds or prawn farms have not |
been subjected to the Comprehensive Agrarian Reform Law,
the consent of the farm workers shall no longer be necessary, |
however, the provision of Section 32-A hereof on incentives 4
shall apply.
ty
c) Lands actually, directly and exclusively used and
found to be necessary for national defense, school sites and
q campuses, including experimental farm stations operated by
i public or private schools for educational purposes, seeds and
seedling research and pilot production center, church sites
and convents appurtenant thereto, mosque sites and Islamic
centers appurtenant thereto, communal burial grounds
and cemeteries, penal colonies and penal farms
worked by the inmates, government and private research }
and quarantine centers and all lands with eighteen percent
(18%) slope and over, except those already developed, shall
be exempt from the coverage of this Act.”
BT Ac amondad hu R A Na 7RRQ1
1 WO CHAPTER 1 35
See. 10 THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
NOTES:
band classification in the tax declaration is not conclusive
. The land classification embodied in the tax declaration is
§ i conclusive. Tax declarations are not the sole basis of land
fannification. Thus, even if the tax declaration classifies the land as
; ricultural, such classification is not irrefutable.*
|
; REPUBLIC V. COURT OF APPEALS
342 SCRA 189
} [2000]
| FACTS: Green City Estate & Development Corp. is the
4 owner of a parcel of land located in Jala-Jala, Rizal, with a total
| area of 112 hectares. Under the tax declaration, the land. is
1 classified as agricultural. Hence, the Department of Agrarian
} Reform (DAR) subjected the land to compulsory acquisition
| under the agrarian reform law.
| Thereafter, Green City Estate & Development Corp.
} filed an application for exemption from agrarian reform on the
| ground that the land is non-agricultural because it is within
the residential and forest conservation zones of the town plan/
zoning ordinance of Jala-Jala. The DAR denied the application
for exemption on the basis of the classification embodied in the
tax declaration.
ISSUE: Was the DAR correct in denying the application
for exemption on the mere fact that the tax declaration classified
the land as agricultural?
HELD: The DAR was not correct in denying the appli-
q cation for exemption by the mere fact that the tax declaration
4 classified the land as agricultural. There is no law or jurispru-
|
|
dence that holds that the land classification embodied in the tax
declarations is conclusive and final nor would proscribe further
| inquiry. Furthermore, the tax declarations are not clearly. the
| sole basis of the classification of a land. In fact, DAR Adminis-
trative Order No. 6 lists other documents, aside from tax decla-
actually {
rations, that must be submitted when applying for exemption
from CARP. ,
5*Republic v. Salvador N. Lopez Agri-Business Corp., 639 SCRA 49,
 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 104
Lands classified as non-agricultural prior to the effectivity of the]
CARL are not covered
Lands already classified for residential, commercial or indus-|
trial use by the Housing and Land Use Regulatory Board prior to}
the effectivity of the Comprehensive Agrarian Reform Law (CARL)
are not subject to agrarian reform.” : thirty (30) years as of the effectivity of the Forestry Reform Code, it
In the case of Natalia Realty v. DAR, 225 SCRA 278, the
Supreme Court held that:
“Based on the foregoing, it is clear that the undeveloped
portions of the Antipolo Hills Subdivision cannot in any
language be considered as ‘agricultural lands.’ These lots were
intended for residential use. They ceased to be agricultural
lands upon approval of their inclusion in the Lungsod Silangan
Reservation. Even today, the areas in question continued to be
developed as low cost housing subdivision, albeit a a snail’s
pace. This can be gleaned from the fact that SAMBA members
even instituted an action to restrain petitioners from continuing
with such development. The enormity of the resources needed
for developing a subdivision may have delayed its completion
but this does not detract from the fact that these lands are still
residential lands and outside of the ambit of the CARL.
Indeed, lands not devoted to agricultural activity are out-
side the coverage of CARL. These include lands previously con-
verted to non-agricultural uses prior to the effectivity of CARL
by government agencies other than respondent DAR. x x x
Since the NATALIA lands were converted prior to 15
hi June 1988, respondent DAR is bound by such conversion. It
ai
was therefore error to include the undeveloped portions of the
Antipolo Hills subdivision within the coverage of CARL.”
Lands with at least 18% slope
MP
The reason for exempting lands with at least 18% slope from
the coverage of agrarian reform is to prevent adverse effects on thel
lowlands and streams resulting from soil erosion. That is why all
lands of the public domain with at least 18% slope are considered as}
permanent forests or forest reserves, regardless of the condition off
vegetative cover, occupancy, or use of any kind, and therefore, not4
alienable or disposable.
‘°Buklod Ng Magbubukid sa Lupaing Ramos v. E.M. Ramos & Sons, 645 SCRA,
401; Heirs of Dr. Jose Deleste v. LBP, 651 SCRA 352.
Hoc, 10 CHAPTER.1 37
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
Ifthe land with at least 18% slope has been previously classified
us alienable or disposable, but not yet titled, it shall be reverted
lo the category of public forest. However, if the land has been
covered by an approved public land application or occupied openly,
continuously, adversely, and publicly for a period of not less than
shall remain as such alienable or disposable on condition that the
land is kept in a vegetative state sufficient to prevent erosion and
udverse effects on the lowlands and streams.”
School sites and campuses -
Lands actually, directly, and exclusively used and found
necessary for school sites and campuses are exempted from the
coverage of agrarian reform. The School is in the best position to
determine whether the land is necessary for use as school site or
campuses. The DAR has no right to substitute its judgment or
discretion for that of the school.
CMU V. DARAB
215 SCRA 86
[1992]
FACTS: Central Mindanao University (CMU) is an
agricultural institution which owns 3,000 hectares of land. In
1984, CMU adopted a livelihood program under which its land
resources were leased to its faculty and employees (groups of
5 members each group) to enable each group to cultivate 4 to
5 hectares of land for lowland rice project. Later, these faculty
and employees filed before the Department of Agrarian Reform
(DAR) a complaint praying that they be declared as tenants
under the Comprehensive Agrarian Reform Law.
Acting on the said complaint, the DAR found that the
faculty and employees were not tenants, and cannot therefore
qualify as an agrarian reform beneficiary. However, the DAR
segregated 400 hectares of suitable, compact, and contiguous
portions of the CMU land and subjected it to agrarian reform
coverage for distribution to qualified beneficiaries, on the ground
that it was not directly, actually, and exclusively used for school
site.
Sec. 16, P.D. No. 389 otherwise known as the Forestry Reform Code of the
Philippines.
S'CMU v. DARAB, 215 SCRA 86; DAR v. DECS, 426 SCRA 217.
 38 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 11 3
Hue, 11 CHAPTER 1 39
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
ISSUE: Whether or not the DAR was correct in segregat-
ing the 400 hectares of CMU land. The provisions of Section 32 of the Act, with regard to
HELD: The construction given by the DAR to Section
production and income sharing shall apply to commercial
10 of the Comprehensive Agrarian Reform Law restricts the furms.
land area of the CMU to its present needs or to a land area
presently, actively exploited and utilized by the university in NOTES:
carrying out its present educational program with the present
student population and academic facility — overlooking the Commercial farms
very significant factor of growth of the university in the years
to come. By the very nature of the CMU, which is a school Commercial farms are lands devoted to:
established to promote agriculture_and industry, the need for (a) saltbeds;
vast tract of agricultural land for future expansion is obvious.
As to the determination of when and what lands are found to be (b) fruit farms;
necessary for use by the CMU, the school is in the best position
to resolve and answer the question and pass upon the problem (c) orchards;
of its needs in relation to its avowed objectives. (d) vegetable and cut-flower farms; and

Who has jurisdiction to exempt a property from agrarian*seform | (e) cacao, coffee and rubber plantations.
coverage?
Implementation of Agrarian Reform Law deferred on commercial
The Secretary of Agrarian Reform has the jurisdiction and |
farms
authority to exempt or exclude a property from the coverage of the |
agrarian reform program.” Compulsory acquisition and distribution of commercial farms
has been deferred for 10 years:
SECTION 11. Commercial Farming. — Commercial farms, |
(a) from the effectivity of Comprehensive Agrarian
which are private agricultural lands devoted to saltbeds, |
Reform Law (i.e., June 15, 1988) — for farms already existing
fruit farms, orchards, vegetable and cut-flower farms, and }
ll cacao, coffee and rubber plantations, shall be subject to
when the law took effect; and
immediate compulsory acquisition and distribution after | (b) from the first year of commercial production and
Wy ten (10) years from the effectivity of this Act. In the case of | operation — for new farms.
new farms, the ten-year period shall begin from the first year '
I
MN of commercial production and operation, as determined by | Mode of acquisition of commercial farms

| 4 ba the DAR. During the ten-year period, the Government shall

initiate steps necessary to acquire these lands, upon payment
of just compensation for the land and the improvements
|

|
} Commercial farms may be acquired through:
I Ji} | (a) Voluntary offer to sell (VOS);
thereon, preferably in favor of organized cooperatives or |
associations which shall thereafter manage the said lands j (b) Compulsory acquisition (CA); or
for the workers-beneficiaries.* (c) Direct payment scheme (DPS).
If the DAR determines that the purposes for which }
this deferment is granted no longer exists, such areas shall | Manner of distribution of commercial farms
automatically be subject to redistribution.
; Commercial farms may be distributed individually or collec-
tively. Individual beneficiaries are entitled to three (3) hectares
®Milestone Farms, Inc. v. Office of the President, 644 SCRA 217.
®8As amended by R.A. No. 7881.
 Hoc, 11 CHAPTER 1 41
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
- 40 AGRARIAN LAW AND SOCIAL LEGISLATION See. 11;

Farm workers who have worked the longest on the land con-
tinuously will be given ppriority.
each or a minimum of one (1) hectare each, if the land is not suf
ficient to accommodate them.*
Who are disqualified to become commercial farm beneficiaries?
The following order of priority shall be observed in the distri:
The following are disqualified from becoming a commercial
bution:
fnrm beneficiary:
(a) agricultural lessees and share tenants;
(a) Farm workers who have retired from service,
(b) regular farm workers; whether optional or compulsory;
(c) seasonal farm workers;
(b) Farm workers who have resigned from their
(d) other farm workers; employment with the farm;
(e) actual tillers or occupants of public lands; (c) Farm workers who have been dismissed for cause;
(f) collectives or cooperatives of the above beneficiaries;
(d) Farm workers, lessees, or tenants who waive or
and
refuse to be a beneficiary; and
(g) others directly working on the land.*
(e) Farm workers, lessees or tenants who have com-
If it is not economically feasible and sound to divide the land,| i mitted a violation of agrarian reform laws and regulations.”
the beneficiaries will be obliged to form a workers cooperative or’
association.®” }
Freedom of beneficiaries to choose the type of agribusiness
Infrastructure facilities and improvements which are necessary |
Beneficiaries of commercial farms have the full freedom:
and beneficial to the operations of the farm, including buildings, roads,
Hl machinery, receptacles, instruments or implements permanently’ (a) To choose the type of agribusiness venture
attached to the land may be subject to acquisition, as determined 4 arrangement that will maintain the economic viability of the
by the Department of Agrarian Reform upon the recommendation of farm;
il the agrarian reform beneficiaries.”
(b) To market their products or enter into marketing
Qualifications of commercial farm beneficiaries arrangements; and
ia
Agrarian reform beneficiaries for acquired commercial farms} (c) To avail of the services or assistance of individuals,

iv
i must have the following qualifications: associations or non-government organizations in negotiating
for the most advantageous agribusiness venture arrangement,
(a) Must be 18 years old at the time of the filing of the’ | enterprise development, and capability building.”
i “i application as beneficiary;
(b) Must have the willingness, aptitude, and ability to Types of agribusiness venture arrangements
cultivate and make the land productive; and y
Under Section 29 of DAR Administrative Order No. 09, series
(c) Must have been employed in the commercial farm | of 1998, among the agribusiness venture arrangements which
between June 15, 1988 and June 15, 1998 or upon the expiration |
of the deferment.
Sec. 4, ibid.
®Sec. 17, DAR Administrative Order 09, series of 1998. Sec. 5, DAR Administrative Order 09, series of 1998.
Sec, 2 (b), ibid. “8ec. 2 (i), ibid.
®*Sec. 2 (e), ibid.
608A, 9O/A\ shit
42 AGRARIAN LAW AND SOCIAL LEGISLATION
commercial farm beneficiaries or their cooperatives may enter into}
are the following:
(a) Joint Venture Arrangement — In a joint venture]
arrangement, a company is organized and co-owned by an!
investor and the agrarian reform beneficiaries through their]
cooperative or association. The investor may provide the
management and marketing skills, technology infrastructure;
and capital, while the contribution or participation of the}
agrarian reform beneficiaries includes labor, usufructuary]
rights to the land, and capital infusion, if available.” 4
(b) Lease Arrangement — This is a scheme whereby:
the agrarian reform beneficiaries through their cooperative or!
association, enter into a contract of lease with the landowner’
or investor. The lessee controls the farm operations within an’
agreed period of time not exceeding ten (10) years, extendible}
by agreement.” % in accordance with Section 34 of Republic Act No. 3844, as
(c) Contract Growing/Growership Arrangement — This}
is an arrangement whereby the agrarian reform beneficiaries}
or their cooperative produce certain crops for an investor or}
agribusiness firm which buys the produce at pre-arranged|
terms.”
(d) Management Contract — This is an arrangement!
whereby the agrarian reform beneficiaries or their cooperative/
association hire the services of the landowner or investor toj
manage and operate the farm in exchange for fixed wages or]
commission.”
(e) Build-Operate-Transfer Scheme — This
arrangement whereby the project proponent undertakes the%
financing and construction of a given infrastructure facility’
and the operation and maintenance thereof for an agreed}
period of time not exceeding twenty-five (25) years, subject to}
extension.”
Sec. 3(i), ibid.
Sec. 3(j), ibid.
Sec. 3(e), ibid.
Sec. 3(k), ibid.
Sec. 3(b), DAR Department Order No. 09 series of 1998.
Sec. 11
Sec. 12 CHAPTER 1 43
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
Right of retention over commercial farms
Owners of commercial farms, whether individual or corporate,
are entitled to the retention rights granted by Section 6 of the
Comprehensive Agrarian Reform Law.”
CHAPTER III
IMPROVEMENT OF TENURIAL AND
LABOR RELATIONS
SECTION 12. Determination of Lease Rentals. — In order
to protect and improve the tenurial and economic status of
the farmers in tenanted lands under the retention limit and
lands not yet acquired under this Act, the DAR is mandated
to determine and fix immediately the lease rentals thereof
amended: Provided, That the DAR shall immediately and
periodically review and adjust the rental structure for
different crops, including rice and corn, or different regions
in order to improve progressively the conditions of the
farmer, tenant or lessee.
’
NOTES:
Power of DAR to fix rentals
Under Section 6 of the Comprehensive Agrarian Reform
Law, the tenant may choose to remain in the portion retained by
is an| the landowner, in which case, he will no longer be considered as a
tenant but as a lessee.
In order to protect the economic status of the farmer, the
Department of Agrarian Reform is empowered to determine and fix
the lease rental. The Department of Agrarian Reform has fixed the
rentals in this wise:
(a) For lands devoted to rice and other crops — 25% of
the average normal harvest after deducting the amount used
for seeds and the cost of harvesting, or threshing. If there has
been no normal harvests, then the estimated normal harvest
Sec. 2 (c), ibid.
Sec. 12, R.A No. 6657.
 44 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 13 Necs. 14-15 CHAPTER 1 45
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

during the three (3) agricultural years immediately preceding (c) Commercial farms, i.e., those devoted to saltbeds,
the date the leasehold was established.” fruit farms, orchards, vegetable and cut flower farms, cacao,
(b) For sugar cane lands — 25% of average normal] coffee or rubber plantations.
harvest less the value of the cost of seeds/cane points,|
harvesting (cutting), loading, hauling, and/or trucking fee, and CHAPTER IV
cost of processing.” REGISTRATION
(c) For coconut lands — 25% of the average normal}
harvest for a specific area for the preceding three (3) calendar SECTION 14. Registration of Landowners. — Within one
hundred eighty (180) days from the effectivity of this Act, all
years less the value of production cost.
persons, natural or juridical, including government entities,
that own or claim to own agricultural lands, whether in
SECTION 13. Production-Sharing Plan. — Any enterprise |
their names or in the name of others, except those who have
adopting the scheme provided for in Section 32 or operating |
already registered pursuant to Executive Order No. 229, who
under a production venture, lease, management contract 7
shall be entitled to such incentives as may be provided for the
or other similar arrangement and any farm covered by.
PARC, shall file a sworn statement in the proper assessor’s
. Sections 8 and 11 hereof is hereby mandated to execute.
office in the form to be prescribed by the DAR, stating the
within ninety (90) days from the effectivity of thi? Act, a!
following information:
production-sharing plan, under guidelines prescribed by the ;
appropriate government agency. (a) the description and area of the property;
Nothing herein shall be construed to sanction the dimi- (b) the average gross income from the property
nution of any benefits such as salaries, bonuses, leaves and for at least three (3) years;
working conditions granted to the employee-beneficiaries |
(c) the names of all tenants and farmworkers
under existing laws, agreements, and voluntary practice by j
therein;
the enterprise, nor shall the enterprise and its employee-|
beneficiaries be prevented from entering into any agree- | (d) the crops planted in the property and the area
ment with terms more favorable to the latter. covered by each crop as of June 1, 1987;
(e) the terms of mortgages, leases, and manage-
oy) NOTES: ment contracts subsisting as of June 1, 1987, and
Applicability of the Law (f) the latest declared market value of the land as
itl This provision which obliges the establishment of a production- { determined by the city or provincial assessor.
ti sharing plan, applies only to:
iat NOTES:
(a) Farms operating under a production venture, lease,
management contract or other similar arrangement; Purpose of the Law
(b) Farms leased or operated by multinational corpo- | The purpose of the sworn statement is to help the Department
rations; of Agrarian Reform identify the lands and their owners for effective
implementation of the agrarian reform program.

Sec. 34, R.A. No. 3844, as amended. SECTION 15. Registration of Beneficiaries. — The DAR in
NAR Administrative Order No. 02-06. coordination with the Barangay Agrarian Reform Committee
‘bid. (BARC) as organized in this Act, shall register all agricultural
 "16 CHAPTER 1 Aq
46 AGRARIAN LAW AND SOCIAL LEGISLATION Sec, if THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

personal delivery or registered mail, and post the

lessees, tenants and farmworkers who are qualified -to b same in a conspicuous place in the municipal building
beneficiaries of the CARP. These potential beneficiaries wit] and barangay hall of the place where the property is
the assistance of the BARC and the DAR shall provide the located. Said notice shall contain the offer of the DAR
following data: j to pay a corresponding value in accordance with the
(a) names and members of their immediate farny valuation set forth in Sections 17, 18, and other pertinent
household; ‘ provisions hereof.

(b) owners or administrators of the lands they (b) Within thirty (30) days from the date of receipt
work on and the length of tenurial relationship; q of written notice by personal delivery or registered mail,
the landowner, his administrator or representative
(c) location and area of the land they work; shall inform the DAR of his acceptance or rejection of
(d)_ crops planted; and the offer.
(e) their share in the harvest or amount of rent (c) Ifthe landowner accepts the offer of the DAR,
paid or wages received. the Land Bank of the Philippines (LBP) shall pay the
landowner the purchase price of the land within thirty
A copy of the registry or list of all potentidt CARH
(30) days after he executes and delivers a deed of
beneficiaries in the barangay shall be posted in the barangay
transfer in favor of the Government and surrenders the
hall, school or other public buildings in the barangay wher@
Certificate of Title and other monuments of title.
it shall be open to inspection by the public at all reasonable
hours. 1 (d) Incase of rejection or failure to reply, the DAR
shall conduct summary administrative proceedings to
- NOTES: - determine the compensation for the land by requiring
the landowner, the LBP and other interested parties to
Purpose of the Law submit evidence as to the just compensation for the land,
The purpose of requiring registration of agricultural lessees within fifteen (15) days from the receipt of the notice.
tenants, and farm workers is to develop a databank of potential After the expiration of the above period, the matter is
and qualified beneficiaries for the effective implementation of thé deemed submitted for decision. The DAR shall decide
agrarian reform program.” the case within thirty (30) days after it is submitted for
decision.
Mn CHAPTER V (e) Upon receipt by the landowner of the corre-
hihii
LAND ACQUISITION sponding payment or, in case of rejection or no response
' vl from the landowner, upon the deposit with an accessi-
SECTION 16. Procedure for Acquisition and Distribution of ble bank designated by the DAR of the compensation
Private Lands.— For purposes of acquisition of private landsj in cash or in LBP bonds in accordance with this Act,
the following procedures shall be followed: the DAR shall take immediate possession of the land
_ (a) After having identified the land, the land‘ and shall request the proper Register of Deeds to issue
owners and the beneficiaries, the DAR shall send its a Transfer Certificate of Title (TCT) in the name of the
notice to acquire the land to the owners thereof, b Republic of the Philippines. The DAR shall thereafter
proceed with the redistribution of the land to the quali-
fied beneficiaries.
®DAR Administrative Order No. 4, series of 1998.
 48 AGRARIAN LAW AND SOCIAL LEGISLATION See. 16 | . i CHAPTER 1 49
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

(f) Any party who disagrees with the decision { (ii) if the landowner does not respond to the Notice
may bring the matter to the court of proper jurisdiction’ of Acquisition.
for final determination of just
just co: compensation.
ion.” (e) Request by the Department of Agrarian Reform to
the Register of Deeds to issue a Transfer Certificate of Title to
NOTES: the Republic of the Philippines;
The Compulsory Acquisition Process - (f) Distribution of the land to the qualified beneficiaries.
This provision outlines the procedure to be followed in’
compulsory acquisition of agricultural lands.
f
Simply stated, the ¥o notices are required for validity of implementation
procedure is as follows:
For a valid implementation of the agrarian reform program,
(a) Identification by the Department of Agrarian Reform } 1) (2) notices to the landowner are required, namely:
of the land, landowner and beneficiary;
(a) Notice of Coverage pursuant to DAR Administrative
(b) Notice by the Department of Agrarian Reform to } Order No. 12, series of 1989; and
the landowner about the compulsory acquisition and the price '
; (b) Notice of Acquisition pursuant to Section 16 of the
offer, thru the following means: 4 a . = 84

(i) personal notice or by registered mail; and Ce.

The first notice is in compliance with administrative due
| (ii) posting of the notice in a conspicuous place in
the barangay hall and municipal hall where the land is
eon considering that implementation of the agrarian reform law
un exercise of police power and the power of eminent domain.”

il
| located. |

oo
(c) Reply by the landowner about his acceptance or { Land acquisition procedure should be strictly construed
rejection of the offered price: E
, it E Since land acquisition under the agrarian reform law is an
(i). If the landowner accepts the offered price _ 4 E extraordinary method of expropriation, it must be strictly construed.
the Land Bank will pay the landowner within thirty (30). § : Honce, the failure of the Department of Agrarian Reform or any of
al) days from execution and-delivery of Deed of Transfer; . F |tx agencies to comply with the proper procedure for expropriation,
(ii). If the landowner rejects the offer — the { j¢., when no Notice of Coverage was issued, it should be treated
iM Department of Agrarian Reform will determine the just ” f- as violation of constitutional due process and should be deemed
compensation thru summary administrative proceedings; ‘| | arbitrary, capricious, whimsical and tainted with grave abuse of
fi (iii) If the landowner disagrees with the decision {
discretion.”
UM of the Department of Agrarian Reform, he may bring }
When title or ownership of the land is transferred to the State
i st the matter to the regular courts of justice for final
determination of just compensation. q Title and ownership over the land will be transferred to the
Ropublic of the Philippines only upon full payment of the just
(d) Taking of immediate i f the | 7
6 possession of the land by the compensation. Until the just compensation is finally determined
Department of Agrarian Reform:
(i) if the landowner receives the corresponding
payment; or &Sta. Rosa Development Corp. v. Court of Appeals, 367 SCRA 175.
%Roxas & Co. v. Court of Appeals, 321 SCRA 106; Heirs of Dr. Jose Deleste v.
land Bank, 651 SCRA 352.
®8As amended by R.A. No. 9700. Heirs of Nicolas Jugalbot v. Court of Appeals, 518 SCRA 202.
 50 AGRARIAN LAW AND SOCIAL LEGISLATION
p17 CHAPTER 1 51
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

and fully paid, the title and ownership remains with the lando nl
This is so even if the Department of Agrarian Reform has deposi :
the offered price with the Land Bank. The mere fact, therefore, iH
the Department of Agrarian Reform has deposited the offered Pp
does not warrant the cancellation of the owner’s title.*”
Opening of trust account does not constitute payment
Opening of a trust account does not constitute paym J
because the law requires just compensation to be paid in cash af
Land Bank bonds and not by trust account.
CHAPTER VI
JUST COMPENSATION
SECTION 17. Determination of Just Compensation. —
determining just compensation, the cost of acquisition 4
the land, the value of the standing crop, the current value?
like properties, its nature, actual use andi income, the sw of
valuation by the owner, the tax declarations, the assessmé
made by government assessors, and seventy percent (709
of the zonal valuation of the Bureau of Internal Revent
(BIR), translated into a basic formula by the DAR shall
i considered, subject to the final decision of the proper cour
The social and economic benefits contributed by the farme
il and the farmworkers and by the Government to the propert
as well as the nonpayment of taxes or loans secured from ar
M1. measure is not the taker’s gain, but the owner’s loss.” The word
i \iut” is used to intensify the meaning of the word “compensation” to
Mivey the idea that the equivalent to be rendered for the property
) he taken shall be real, substantial, full and ample.”
The concept of just compensation embraces not only the correct
elormination of me. amount to be paid to the landowner, but also
prompt payment, ” i.e, payment within a reasonable time from
tw taking. There is no “prompt payment” when reimbursement
# conditioned upon the Land Bank’s approval and release of the
~ amount is made to depend upon compliance with some documentary
raquirements.”
Prompt payment of just compensation does not only contemplate
tho immediate deposit and release of the provisional compensation
- it also encompasses the full payment of the finally adjudged just
wmpensation. There can be no “prompt payment” when there is
imly partial payment of the just compensation.” Without prompt
puyment, compensation cannot be considered “just” because the
lund owner is made to suffer the consequence of being immediately
tloprived of his land while being made to wait for some time before
netually receiving the amount necessary to cope with his loss.
The factors used in valuation of lands
The following are the factors in the valuation of lands:
(a) Capitalized Net Income (CNI) which is based on

an government financing institution on the said land shall } land use and productivity;
considered as additional factors to determine its valuation n
Py (b) Comparable Sales (CS) which is based 70% of the
BIR zonal value; and
I NOTES:
(c) Market Value (MV) which is based on the Tax
|;ley
Concept of just compensation Declaration.®
ail!
Just compensation has been defined as “the full and fai
equivalent of the property taken from its owner by the expropriato €

Hacienda Luisita v. PARC, G.R. No, 171101, April 24, 2012.

*Association of Small Landowners v. Secretary of Agrarian Reform, 175 SCR4 ‘Land Bank v. Dumlao, 572 SCRA 108.
343, Land Bank v. Soriano, 620 SCRA 347.
Heirs of Francisco Tantoco v. Court-of Appeals, 489 SCRA 590. 3],and Bank v. Orilla, 656 SCRA 102.
®As amended by R.A. No. 9700. *4.and Bank v. Court of Appouls, 258 SCRA 407.
%sDAR Administrative Ordor No. 02, series of 2009.

52 AGRARIAN LAW AND SOCIAL LEGISLATION
The basic formula when all factors are present
is as follows:
CNI x 0.60 + CS x 0.30 + MV x 0.10 = Land Value
The formula when CNI factor is not present
If the Capitalized Net Income (CNI) factor is not present, th
formula is as follows: 1 pensation for a considerable length of time. That just compensa-
CS x 0.90 + MV x 0.10 = Land Value
The formula when CS factor is not present
If the Comparable Sales (CS) factor is not present, the formull
is as follows: 4
CNI x 0.90 +MV x 0.10 = Land Value
i 7 prehensive Agrarian Reform Law commences with Land Bank
The formula when CS and CNI factors are not present
| If the Comparable Sales (CS) and Capitalized Net Incom}
ny (CNI) factor are not present, the formula is as follows: _ 4
“Hit MV x 2 = Land Value
Reckoning of valuation
il In determining just compensation, the value of the property
at the time it was taken from the owner and appropriated by thg
Naa government shall be the basis. If the government takes possessioy
of the land before the institution of expropriation proceedings, thq
value should be fixed as of the time of the taking of possession, nof
of the filing of the complaint. The ‘time of taking’ does not only refed
to that stage when the title is transferred to the Republic of thd
Philippines or the beneficiaries — it also refers to the time when thd
agricultural land voluntarily offered by a landowner was approved
by Presidential Agrarian Reform Council (PARC) for agraria’
reform coverage through the stock distribution scheme.”
— However, if there is undue delay in payment, the value of the]
property should be determined not at the time of taking of the land,}
ee
Hacienda Luisita v. PARC, G.R. No. 171101, April 24, 2012.
7 CHAPTER 1 53
Sec.-4
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
{nt the time of full payment of the just compensation. As held
Ay (he Supreme Court in Lubrica v. Land Bank, G.R. No. 170220,
wwember 20, 2006:
“Petitioners were deprived of their properties way back in
1972, yet to date (2006), they have not yet received just compen:
sation. Thus, it would certainly be inequitable to determine just
compensation based on the guideline provided by P.D. No. 227
and E.O. No. 228 considering the failure to determine just com-
tion should be determined in accordance with R.A. No. 6657 and
not P.D. No. 227 or E.O. No. 228, is important considering that
just compensation should be the full and fair equivalent of the
property taken from its owner by the expropriator, the equiva-
lent being real, substantial, full and ample.”
Procedure for determination of just compensation
The determination of just compensation under the Com-
E delormining the value of the lands. Using Land Bank’s valuation, the
E . Department of Agrarian Reform makes an offer to the landowner. In
guno the landowner rejects the offer, the Department of Agrarian
lelorm conducts a summary administrative proceeding to determine
the compensation for the land by requiring the landowner, the
{nd Bank and other interested parties to submit evidence as to
(he just compensation. A party who disagrees with the decision of
(ho adjudicator may bring the matter to the Regional Trial Court
designated as a Special Agrarian Court for final determination of
just compensation.
‘Role of the Department of Agrarian Reform Adjudication Board
(DARAB)
The DARAB or its Provincial Agrarian Reform Adjudicators
(PARAD) can conduct a summary administrative proceeding for
the preliminary determination of just compensation in order to
tlotermine whether land valuation computations of the Land Bank
tre in accordance with the rules or administrative orders.”
The preliminary proceedings of land valuation for the purpose
of the determination of just compensation for its acquisition shall be
conducted by:
Sec. 1, Rule XIX, 2009 DARAB Rules of Procedure.

54 AGRARIAN LAW AND SOCIAL LEGISLATION
(a) PARAD — when the initial land valuation
Land Bank is less than P10M;
(b) Regional Agrarian Reform Adjudicators (RARAD
_ when the initial land valuation of the Land Bank is P10M
P50M; and 4 6f just compensation which the Department of Agrarian Reform
(c) DARAB — when the initial land valuation of
Land Bank is above P50M.
In the event of non-availability, inhibition, or disqualificaty
of a designated PARAD in the locality, the RARAD concerned mi
conduct preliminary proceedings of land valuation notwithstandij
that the jurisdictional amount is less than P10M.
On account of non-availability, inhibition or disqualification]
the RARAD concerned, the DARAB may conduct the prelimina
proceedings of land valuation or designate the same to an Adjudicat p
from among the PARADs in the region.”
The valuation set by DAR not conclusive
The valuation set by the Land Bank is not conclusive.
landowner can still contest the same in the proper court, i.e.,
Regional Trial Court designated as Special Agrarian Court. Secti
6, Rule XIX of the 2009 DARAB Rules of Procedure provides:
“SECTION 6. Filing of Original Action with the Special
Agrarian Court for Final Determination. — The party who
disagrees with the decision of the Board/Adjudicator may
Mil contest the same by filing an original action with the Special
Agrarian Court (SAC) having jurisdiction over the subject
property within fifteen (15) days from his receipt of the Board/
mIl Adjudicator’s decision.
Immediately upon filing with the SAC, the party shall file
H . a Notice of Filing of Original Action with the Board/Adjudicator,
|
‘ult
together with a certified true copy of the petition filed with the
SAC.
Failure to file a Notice of Filing of Original Action or to
submit a certified true copy of the petition shall render the
decision of the Board/Adjudicator final and executory. Upon
receipt of the Notice of Filing of Original Action or certified true
copy of the petition filed with the SAC, no writ of execution shall
be issued by the Board/Adjudicator.”
%8Sec. 2, Rule XIX, 2009 DARAB Rules of Procedure.
E flew. 18 CHAPTER 1 55
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
@ourts cannot disregard the formula
of} ‘
While the determination of just compensation is essentially a
judicial function vested in the Regional Trial Court acting as special
fgrurian court, it cannot disregard the formula laid down by the
Department of Agrarian Reform.” The factors for the determination
14 qonverted into a formula are mandatory and not mere guides which
the designated Regional Trial Court may disregard.”
i
Gonsent of beneficiary not necessary in determining just com-
pensation
The consent of the farmer-beneficiary is not required in
E getormining the proper compensation of the landowner. Gleaned
ftom Section 18 of the Comprehensive Agrarian Reform Law,
q the only parties in the valuation of land are the landowner, the
F Pepartment of Agrarian Reform, and the Land Bank. Thus:
SECTION 18. Valuation and Mode of Compensation. —
The LBP shall compensate the landowner in such amount as
may be agreed upon by the landowner and the DAR and the
LBP in accordance with the criteria provided for in Sections
16 and 17 and other pertinent provisions hereof, or as may be
4 finally determined by the court as the just compensation for the
land (emphasis supplied).
The law does not mention the participation of the farmer-
heneficiary. Therefore, the Land Bank cannot refuse to pay the
viluation set by the Provincial Agrarian Reform Adjudicator
(PARAD) simply because the consent of the farmer-beneficiary was
not obtained in fixing the just compensation.
SECTION 18. Valuation and Mode of Compensation. — The
LBP shall compensate the landowner in such amounts as
may be agreed upon by the landowner and the DAR and the
LBP, in accordance with the criteria provided for in Sections
16 and 17 and other pertinent provisions hereof, or as may
Land Bank v. Barrido, 628 SCRA 454.
10Land Bank v. Colarina, 629 SCRA 614; Land Bank v. Escandor, 632 SCRA
fi04; Allied Banking Corp. v. Land Bank, 581 SCRA 301.
101Land Bank v. Pascual, G.R. No. 128557, December 29, 1999.
 56 AGRARIAN LAW AND SOCIAL LEGISLATION

hy, 1H CHAPTER 1 57
HE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
be finally determined by the court, as the just compensatié THE CO
for the land.
interest or his assigns, up to the amount of their face
The compensation shall be paid in one of the follow value, for any of the following:
modes, at the option of the landowner:
Gi) Acquisition ofland or other real properties
(1) Cash payment, under the following terms of the government, including assets under the Asset
conditions;
Privatization Program and other assets foreclosed
(a) For lands above Twenty-five percent (259 by government financial institutions in the same
fifty (50) hectares, insofar cash, the balance to be pa province or region where the lands for which the
as the excess hectarage is in. government financi bonds were paid are situated;
concerned. instruments negotiable
(ii) Acquisition of shares of stock of govern-
any time.
ment-owned or controlled corporations or shares
(b) For lands above Thirty percent (30%) cas] of stocks owned by the government in private cor-
twenty-four (24) hectares the balance to be pafj porations;
and up to fifty (50) hectares. in government financ{
instruments negotiable j (iii) Substitution for surety or bail bonds
any time. for the provisional release of accused persons, or

i (c) For lands twenty- Thirty-five percent (354

performance bonds;

four (24) hectares and cash, the balance to be pajj (iv) Security for loans with any government
[ below. in’ government financi financial institution; Provided, that the proceeds
thy instruments negotiable ¢ of the loans shall be invested in an economic
any time. enterprise, preferably in a small- and medium-
“Hy scale industry, in the same province or region as
(2) Shares of stock in government-owned or controlle| the land for which the bonds are paid;
corporations, LBP preferred shares, physical assets or othe
iil qualified investments in accordance with guidelines set b
(v) Payment for various taxes and fees to
government; Provided, That the use of these bonds
the PARC;
Wy for these purposes will be limited to a certain
(3) Tax credits which can be used against any ta percentage of the outstanding balance of the

flUl liability;
(4) LBP bonds, which shall have the following features
financial instruments: Provided, further, That the
PARC shall determine the percentage mentioned
a | above;
i ‘hail+ (a) Market interest rates aligned with 91-daj (vi) Payment for tuition fees of the immediate
treasury bill rates. Ten percent (10%) of the fac
family of the original bondholder in government
value of the bonds shall mature every year from thi
universities, colleges, trade schools, and other
date of issuance until the tenth (10th) year: Provided
institutions;
That should the landowner choose to forego the cas k
‘portion, whether in full or in part, he shall be paid q (vii) Payment for fees of the immediate family
correspondingly in LBP bonds; of the original bondholder in government hospitals;
(b) Transferability and negotiability. Such LB. and
bonds may be used by the landowner, his successors in (viii) Such other uses as the PARC may from
time to time allow.
 flee. 18 CHAPTER 1 59
_ 58 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 1 THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

4 Bank bonds. As rationalized by the Supreme Court in the case of

In case of extraordinary inflation, the PARC shall takj E Asnoviation of Small Landowners v. Secretary of Agrarian Reform,
appropriate measures to protect the economy. | 11) SCRA 343:
“It cannot be denied from these cases that the traditional
NOTES: method for the payment of just compensation is money and no
Mode of payment other. And so, conformably, has just compensation been paid in
the past solely in that medium. However, [th]e [Court] do[es]
Payment of compensation may be done through the followi , not deal here with the traditional exercise of the power of
modes, at the option of the landowner: q eminent domain. This is not an ordinary expropriation where
only a specific property of relatively limited area is sought to be
(A) Cash and financial instruments of the governmenj taken by the State from its owner for a specific and perhaps local
payable as follows: purpose. What [th]e [Court] deal[s] with here is a revolutionary
kind of expropriation.
(a) Lands above 50 hectares (with respect to t XXX xxx xxx
excess hectarage): 4 7 Accepting the theory that payment of the just com-
pensation is not always to be made fully in money, [th]e [Court]
(i) 25% in cash; and
find[s] further that the proportion of cash payment to the other
things of value constituting the total payment, as determined
l Gi) 75% in government financial instruments. |
on the basis of the areas of the lands expropriated, is not
(b) Lands above 24 hectares to 50 hectares: unduly oppressive upon the landowner. It is noted that the
[ (i) 30% in cash; and
smaller the land, the bigger the payment of money, primarily
because the small landowner will be needing the it more than
iy the biglandowners, who can afford bigger balance in bonds
Gi) 70% in government financial instruments.|
and other things of value. No less importantly, the government
ies (c) Lands above 24 hectares and below: financial instruments making up the balance of the payment
are ‘negotiable at any time.’ The other modes, which are
(i) 35% in cash; and likewise available to the landowner at his option, are also not
Ail Gi) 65% in government financial instruments. unreasonable because payment is made in shares of stock, LBP
bonds, other properties or assets, tax credits, and other things of
value equivalent to the amount of just compensation.”
Wan (B) Shares of stocks in governmenttowned or -controlle
corporations, preferred shares of the Land Bank, physic
ll assets or other qualified investments; Features of the Land Bank bonds
The features of the Land Bank bonds are as follows:
hi i (C) Tax credits which can be used against tax liabilitie
‘al
and (a) Ten percent (10%) of the face value of the bonds
(D) Land Bank bonds which shall mature every yed shall mature every year from the date of issuance until the
tenth (10th) year;
until the 10th year.
(b) The bonds are transferable and negotiable;
Landowner cannet insist in cash payment only (c) The bonds can be used for any of the following:
The landowner cannot insist in cash payment only because ] (i) Acquisition of land or other real properties of
is not sanctioned by the agrarian reform law. The law says that thj the government, including assets under the Asset Priva-
just compensation shall be paid partly in cash and the remainder hb
means of bonds, government financial instruments, shares of stoc| —————

‘22Santos v. Land Bank, G.I. No. 187431, September 7, 2000.

in government owned or controlled corporations, tax credits or Lan
 60 AGRARIAN LAW AND SOCIAL LEGISLATION . 20-21 CHAPTER 1 61
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

tization Program and other assets foreclosed by govel
ment financial institutions in the same province or regi
where the lands for which the bonds were paid are sif
ated;
(Gi) Acquisition of land shares of stock of gover
ment-owned or -controlled corporations or shares ofstog
owned by the government in private corporations;
(iii) Bail bonds for the provisional release of accust
persons, or performance bonds;
(iv) Security for loans with government financi
institution, provided that the proceeds of the loans shg
be invested in an economic enterprise; ‘
(v) Payment for various taxes and fees to gove
ment;
(vi) Payment for tuition fees of the immediate famii
of the original bondholder in government universitid
colleges, trade schools, and other institutions; and
(vii) Payment for fees of the immediate family of t
original bondholder in government hospitals.
SECTION 20. Voluntary Land Transfer. — Landowners of
lcultural lands subject to acquisition under this Act may
ter into a voluntary arrangement for direct transfer of
oir lands to qualified beneficiaries subject to the following
idelines:
(a) All notices for voluntary land transfer must
be submitted to the DAR within the first year of the
implementation of the CARP. Negotiations between the
landowners and qualified beneficiaries covering any
voluntary land transfer which remain unresolved after
one (1) year shall not be recognized and such land shall
instead be acquired by the government and transferred
pursuant to this Act.
(b) The terms and conditions of such transfer
shall not be less favorable to the transferee than those
of the government’s standing offer to purchase from the
landowner and to resell to the beneficiaries, if such of-
fers have been made and are fully known to both par-
4 ties.
(c) The voluntary agreement shall include sanc-
tions for non-compliance by either party and shall be
duly recorded and its implementation monitored by the
DAR.

hl SECTION
Landowners,
19. Incentives for Voluntary
other than banks and
Offers for Sale. }
other financial instit E NOTES:
tions, who voluntarily offer their lands for sale shall be e
Voluntary land transfer.no longer allowed
ui titled to an additional five percent (5%) cash payment.
Zz Section 7 of the Comprehensive Agrarian Reform Law, as
il NOTES: amended by Republic Act No. 9700, allowed voluntary land transfer
mK Documentary requirements for voluntary offers for sale
Eup to June 30, 2009 only. After June 30, 2009, the modes of acquisi-
; (lon are limited to voluntary offer to sell and compulsory acquisition.
lt

Landowners who voluntarily offer their agricultural lands ‘|

sale must attach the following documents to their written offer: | UnderSECTION
Voluntary 21.
LandPayment
Transfer.of —Compensation by Beneficiaries
Direct payments in cash
(a) Title or proof of ownership, if untitled; or in kind may be made by the farmer-beneficiary to the
landowner under terms to be mutually agreed upon by both
(b) Tax declaration; and parties, which shall be binding upon them, upon registration
(c) Approved survey plan. with and approval by the DAR. Said approval shall be
considered given, unless notice of disapproval is received by
Ifthe landowner fails to submit the documentary requirement | the farmer-beneficiary within thirty (30) days from the date
the land will be subjected to compulsory acquisition. E of registration.
 62 AGRARIAN LAW AND SOCIAL LEGISLATION
vu CHAPTER 1 63
‘THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
In the event they cannot agree on the price of land
the procedure for compulsory acquisition as provided ij ; productive as possible. The DAR shall adopt a system of
Section 16 shall apply. The LBP shall extend financing to thj gnitoring the record or performance of each beneficiary,
beneficiaries for purposes of acquiring the land. 4 ® that any beneficiary guilty of negligence or misuse of the
Al or any support extended to him shall forfeit his right to
NOTES: Sntinue as such beneficiary. The DAR shall submit periodic
; ports on the performance of the beneficiaries to the PARC.
Mode of payment in voluntary land transfers If, due to the landowner’s retention rights or to the
Unlike in compulsory acquisition, the farmer-beneficiary pay, ber of tenants, lessees, or workers on the land, there
the agreed price of the land directly to the landowner. 4 ; not enough land to accommodate any or some of them,
Mey may be granted ownership of other lands available for
CHAPTER VII Sstribution under this Act, at the option of the beneficiaries.
LAND REDISTRIBUTION Farmers already in place and those not accommodated
the distribution of privately-owned lands will be given
MeO RD aed iuified Beneficiaries. — The lands coveregiii urontial rights in the distribution of lands from the
by the CARP shall be distributed as much as possible
landless residents of the same barangay, or in the absence
thereof, landless residents of the same municipality in th

f
inh
following order of priority:
(a) agricultural lessees and share tenants;
5
[Who are eligible to become agrarian reform beneficiaries?
(b) regular farmworkers; To be eligible to become an agrarian reform beneficiary, a
vit}
(c) seasonal farmworkers; pernon must be ’ a landless resident of the same barangay, or of the
no municipality.
i (d) other farmworkers;
A landless resident is a farmer or tiller who owns less than
(e) actual tillers or occupants of public lands; F thru (3) hectares of land.” It could refer to any of the following:
NUIT . (f) collectives or cooperatives of the above ben: (a) agricultural lessees and share tenants;
ciaries; and
(elt (g) others directly working on the land. (b)
lar fe kers;
regular farmworkers
Nis Provided, however, That the children of landowner
(c) seasonal farmworkers;
an who are qualified under Section 6 of this Act shall be givey (d)° other farmworkers;
preference in the distribution of the land of their parents
(ey actual tillers or occupants of public lands;
and Provided, further, That actual tenant-tillers in thé
landholdings shall not be ejected or removed therefrom. _; (f) collectives or cooperatives of the above beneficiaries;
and
Beneficiaries under Presidential Decree No. 27 whd a
have culpably sold; disposed: of, or abandoned their land aré (g) others directly working on the land.
disqualified to become beneficiaries under this Program. 4
A basic qualification of a beneficiary shall be his willings
ness, aptitude, and ability to cultivate and make the lan df
 a) ’ CHAPTER 1 65
64 AGRARIAN LAW AND SOCIAL LEGISLATION Sed THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

(b) Those who have waived their right to become an

Qualifications of an agrarian reform beneficiary
To qualify as an agrarian reform beneficiary, the
(whether tenant, lessee, or worker) must be:
(a) Filipino citizen;
(b) Resident of the barangay or municipality wher 4
landhol ding is located;
(c) At least fifteen (15) years old at the time of ident
cation, screening and selection; and
agrarian reform beneficiary in exchange for compensation,
fe a provided that.the waiver has not been questioned in the proper
4 government entity;
(c) Those who have not paid an aggregate of three (3)
annual amortizations;
(d) Those who have failed to exercise right of redemption/
q
repurchase within two (2) years resulting in the foreclosure of
mortgage by the Land Bank of the Philippines of a previously
: awarded land;

(d) Willing, able, and equipped with aptitude to cultivs (e) Those who refused to pay three (3) annual amorti-
zations for land acquired through voluntary land transfer or
and make the land productive.
direct payment’scheme, resulting in the repossession by the
landowner;
I Special qualifications for farm workers in commercial farms;
plantations (f) Those who have been dismissed for cause;
|
ih

In addition to the aforementioned qualifications, farm work (g) Those who have obtained substantially equivalent
h |
employment, i.e., any employment or profession from which
[ in commercial farms of plantations can qualify as an agrarian r
the applicant-farmer derives income equivalent to the income
er beneficiary if they were already employed as of June 15, 1988 in’
of a regular farm worker at the time identification, screening,
mn landholding covered by the comprehensive agrarian reform law.
and selection of the beneficiary;
= . q
.
(h) Those who have retired or voluntarily resigned from
"
Mi /
| Managerial farm workers not qualified to become beneficiaries,
their employment;
i Farm workers holding managerial (or supervisory) positi
(i) Those who have misused the land or diverted the
| as of June 15, 1988 are not qualified to become agrarian refo financial support services extended by the government;
beneficiaries. — {
-
(j) Those who have misrepresented material facts in
Mh | However, farm workers promoted to managerial or supervist their basic qualifications;
| | position after they were identified, screened and selected will re my
() Those who have sold, disposed, or abandoned the
il as qualified agrarian reform beneficiaries."
Wan | lands awarded to them by the government;

Who are disqualified to become agrarian reform beneficiaries ?4 (m) Those who have converted agricultural lands to non-
we
agricultural use without prior approval of the Department of
The following tenants, lessees, or farm workers are disqua! if Agrarian Reform;
from becoming an agrarian reform beneficiary under the agra q (n) Those who have been finally adjudged guilty of
4
reform law:
forcible entry or unlawful detainer over the property: and
(a) “Those who do not meet the basic qualifications; (0) Those who have violated agrarian reform laws and
regulations.”

10D AR Administrative Order No. 2, series of 2009.

bid. ‘DAR Administrative Order No. 2, series of 2009.
 a CHAPTER 1 67
66 AGRARIAN LAW AND SOCIAL LEGISLATION Secs. 22-A-2 THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

ENOTES:
SECTION 22-A. Order of Priority. — A landholding of 4
landowner shall be distributed first to qualified beneficiaries jaximum area that can be owned by or awarded to beneficiaries
under Section 22, subparagraphs (a) and (b) of that samé
The maximum agricultural land area that can be owned by
landholding up to a maximum of three (3) hectares each. Only
OF uwarded to an agrarian reform beneficiary is three (3) hectares.
when these beneficiaries have all received three (3) hectare§
; Pherofore, if a tenant or farm worker already owns two (2) hectares
each, shall the remaining portion of the landholding,
eof apricultural land, he can still be awarded one (1) hectare.
any, be distributed to other beneficiaries under Section 22
subparagraphs (c), (d), (e), (f), and (g).'" q Ifthe particular landholding is not enough to meet the 3-hectare
Award ceiling for each agricultural lessee or tenant, the area to be
NOTES: distributed to them will be based on the actual size of tillage by each
Order of distribution
E lenxoc or tenant.

As per Section 22 of the Comprehensive Agrarian Reform Law} If the landholding is more than enough to accommodate the
children of the landowner enjoy first preference in the distribution of @-huctare limit for each agriéultural lessee or tenant, the excess will
| the landholding. Each child is entitled to three (3) hectares if he is:{ he distributed to agrarian reform beneficiaries in the following order
of priority:
| (a) fifteen (15) years old; and
(a) seasonal farm workers;
tH (b) actually tilling the land or directly managing
fi the farm.’ ' (b) other farmworkers;

ite
After the. children, the covered :landholding will be distributed f (c) actual tillers or occupants of public lands;
= to the following:
(d) collectives or cooperatives of the above beneficiaries.
(Nap (a) agricultural lessees and share tenants;
regular farmworkers. If it is not economically feasible and sound to divide the excess
(b)

ih
lund to the seasonal or other farm workers, the following criteria for
Tf the lessees, tenants and regular farm workers have already prioritization shall be observed:
received their three (3) hectares, the remaining portion of the land
will be distributed to: (a) willingness, aptitude, and ability to cultivate and
unlit make the land productive;

i
(a) seasonal farm workers;
(b) physical capacity; and
(b) other farm workers;
(c) length of service.
(c) actual tillers or occupants of public lands;
tall
(d) collectives or cooperatives of the above beneficiariesy If the-seasonal or other farm workers equally meet the fore-
and : 4 going criteria, priority shall be given to those who have continu-
(e) others directly working on the land. ously worked on the subject landholding. The other farm workers
who cannot be accommodated will be put in a wait list of potential
boneficiaries in other landholdings.”
SECTION 23: Distribution Limit. — No qualified benefi4
ciary may own more than three (3) hectares of agricultural
land. q

108As amended by R.A. No. 9700. NOMAR Administrative Ordor No. 2, series of 2009.
109Sec. 6, Comprehensive Agrarian Reform Law.
 68 AGRARIAN LAW AND SOCIAL LEGISLATION Sec, 24
If the beneficiaries opt for collective ownership, such as farmers
cooperative, the total area must coincide with the total number
members or co-owners multiplied by the 3-hectare limit.“
Factors to be considered in determining the size of land to b@
awarded
In determining the size of the land for distribution, the follow4
ing factors are to be considered:
(a) Type of crop;
(b) Type of soil;
(c) Weather patterns; and
(d) Other pertinent factors critical for the:success of th é|
beneficiaries.
SECTION 24. Award to Beneficiaries. — The rights and
responsibilities of the beneficiaries shall commence fro
their receipt of a duly registered emancipation paten j
or certificate of land ownership award and their actual
ie physical possession of the awarded land. Such award sha
be completed in not more than one hundred eighty (180) dayg
it from the date of registration of the title in the name of the
Republic of the Philippines: Provided, That the emancipation
tl) patents, the certificates of land ownership award, and other
titles issued under any agrarian reform program shall bd
indefeasible and imprescriptible after one (1) year from its
WMI registration with the Office of the Registry of Deeds, subject ta,
the conditions, limitations and qualifications of this Act, the
il property registration decree, and other pertinent laws. The
emancipation patents or the certificates of land ownership!
NH) I award being titles brought under the operation of the
habe Torrens system, are conferred with the same indefeasibility;
and security afforded to all titles under the said system, aj;
provided for by Presidential Decree No. 1529, as amended by
Republic Act No. 6732. 4
It. is the ministerial duty of the Registry
of Deeds to]
register the title of the land in the name of the Republic;
11Sec, 25, Comprehensive Agrarian Reform Law.
N27bid.
Bow. 2d CHAPTER 1 69
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
: of the Philippines, after the Land Bank of the Philip
pines
Of (LBP) has certified that the necessary deposit in the name
4 of the landowner constituting full payment in cash or in
bond with due notice to the landowner and the registration
of the certificate of land ownership award issued to the
henoficiaries, and to cancel previous titles pertaining
EB thereto.
Identified and qualified agrarian reform beneficiaries,
© based on Section 22 of Republic Act No. 6657, as amended,
shall have usufructuary rights over the awarded land as
Woon as the DAR takes possession of such land, and such
tight shall not be diminished even pending the awarding of
the emancipation patent or the certificate of land ownership
award.
All cases involving the cancellation of registered
@mancipation patents, certificates of land ownership award,
and other titles issued under any agrarian reform program
aro within the exclusive and original jurisdiction of the
Wacretary of the DAR.
NOTES:
Transfer of ownership to the beneficiaries not automatic
Compulsory acquisition
uwnership of the land to the
wnd ownership over the land
does not mean automatic transfer of
tenant, lessee, or farm worker. Title
can be transferred to the beneficiaries
wnly upon full payment of the just compensation to the landowner.“
When does the DAR issue a Certificate of Land Ownership Award
(CLOA)?
The DAR will issue the CLOA only upon full payment of
ttmortization by the farmer-beneficary. The CLOA in turn, becomes
tho basis for the issuance in his name of an original or transfer
cortificate of title.
4
'l3As amended by R.A. No. 9700.
'4Association of Small Landowners v. Secretary of Agrarian Reform, 175
NCRA 343; Land Bank v. Court of Appeals, 249 SCRA 149; Land Bank v. Abello, 584
HCRA 342; Mago v. Barbin, 603 SCRA 383,
"6Padua v. Court of Appealu, 517 SCRA 282.
 70 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 24
: Mew, 26 CHAPTER 1 71
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
CLOA is indefeasible
(tom their receipt of a duly registered CLOA and their actual
CLOAs are titles brought under the operation of the Torreng
physical possession of the awarded land.
system. Hence, they are conferred with the same indefeasibilityy
and security as provided for by Presidential Decree No. 1529, agi Pending issuance of CLOA, the identified and qualified
amended by Republic Act No. 6732. CLOAs and other titles issued] agrarian reform beneficiaries have usufructuary rights over the -
under the agrarian reform program become indefeasible andj awarded land which the Department of Agrarian Reform, has taken
imprescriptible after one (1) year from its registration with thé possession.
Office of the Registry of Deeds, subject to the conditions, limitations}
and qualifications under Comprehensive Agrarian Reform Law, the Obligations of Agrarian Reform Beneficiaries
Property Registration Decree, and other pertinent laws."
Agrarian reform beneficiaries are obliged to:
Cancellation of CLOAs (a) Exercise due diligence in the use, cultivation, and
All cases involving the cancellation of CLOAs, and other titles! maintenance of the land, including improvements thereon; and
issued under any agrarian reform program are within the exclusivé (b) Pay the Land Bank thirty (30) annual amortizations
and original jurisdiction of the Secretary of the Department of! with 6% interest per annum;
Agrarian Reform.”
The amortization will start one (1) year from the date of
Grounds for Cancellation of CLOAs registration of the CLOA. However, if actual occupancy of the land
[iA, takes place after the registration of the CLOA, the 1-year period
% CLOAs may be cancelled on the following grounds: shall be reckoned from constructive occupation of the land by the
ee (a) Abandonment of the land;
honeficiary.

ar (b) Neglect or misuse of land;*

SECTION 25. Award Ceilings for Beneficiaries. — Bene-
(c) Failure to pay three (3) annual amortizations;” - ficilaries shall be awarded an area not exceeding three (3)

ith vices;!”
(d) Misuse or diversion of financial and support sery hectares, which may cover a contiguous tract of land or
weveral parcels of land cumulated up to the prescribed
award limits. The determination of the size of the land for
WINE: (e). Sale, transfer or conveyance of the right to use the} distribution shall consider crop type, soil type, weather
land; and patterns and other pertinent variables or factors which are
4 (f) Tegal conversion of the land. deemed critical for the success of the beneficiaries.
Wi For purposes of this Act, a landless beneficiary is one
alls te | When will the rights and obligations of beneficiaries commence? who owns less than three (3) hectares of agricultural land.
The rights and responsibilities of the beneficiaries will begin{ Whenever appropriate, the DAR shall encourage the
agrarian reform beneficiaries to form or join farmers’ coop-
eratives for purposes of affiliating with existing cooperative
N6Sec, 24, Comprehensive Agrarian Reform Law. banks in their respective provinces or localities, as well as
UIbid. forming blocs of agrarian reform beneficiaries, corporations,
48Sec. 22, Comprehensive Agrarian Reform Law.
Sec, 26, ibid. and partnerships and joining other farmers’ collective orga-
12Sec. 37, ibid.
11S ec, 73, ibid.
122Sec. 78, ibid. 1238ec, 24, ibid; Pasco v, Pison-Arceo Agricultural Dev. Corp., 485 SCRA 514.
'24Sec. 24, ibid.
 72 AGRARIAN LAW AND SOCIAL LEGISLATION
Sec. 28
rectors, and an equitable share i in the profit.
In general, the land awarded to a farmer-beneficiary,
should be in the form of an individual title, covering one (1); )
contiguous tract or several parcels of land cumulated up
a maximum of three (3) hectares.
The beneficiaries may opt for collective ownership, suc
as co-workers or farmers cooperative or some other form
collective organization and for the issuance of collectiv
ownership titles: Provided, That the total area that may bel
awarded shall not exceed the total number of co-owners!
or members of the cooperative or collective organization/
multiplied by the award limit above prescribed, except in:
meritorious cases as determined by the PARC.
The conditions for the issuance of collective titles are’
[ as follows:
it (a) . The current farm management system of the!
land covered by CARP will not be appropriate for indi-'
a vidual farming of farm parcels;
il (b) The farm labor system is specialized, where;
the farmworkers are organized by functions and not by:
specific parcels such as spraying, weeding, packing an
Mn other similar functions; “y
Ny 1 (c) The potential beneficiaries are currently not:
farming individual parcels but collectively work on)
mi large contiguous areas; and :
han: (d) The farm consists of multiple crops being’
farmed in an integrated manner or includes non-crop |
production areas that are necessary for the viability,
of farm operations, such as packing plants, storage
areas, dikes, and other similar facilities that cannot be:
subdivided or assigned to individual farmers.
For idle and abandoned lands or underdeveloped agri-
cultural lands to be covered by CARP, collective ownership
shall be allowed only if the beneficiaries opt for it and there |
is a clear development plan that would require collective |
Efe, 26 CHAPTER 1 73
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
j farming or integrated farm operations exhibiting the con-
| Gitions described above. Otherwise, the land awarded to a
furmer-beneficiary should be in the form of an individual
: ttle, covering one (1) contiguous tract or several parcels of
© land cumulated up to a maximum of three (3) hectares.
In case of collective ownership, title to the property
phall be issued in the name of the co-owners or the coopera-
tive or collective organization as the case may be. If the cer-
| tficates of land ownership award are given to cooperatives
then the names of the beneficiaries must also be listed in the
game certificate of land ownership award.
With regard to existing collective certificates of land
; Ownership award, the DAR should immediately undertake
the parcelization of said certificates of land ownership
award, particularly those that do not exhibit the conditions
for collective ownership outlined above. The DAR shall
conduct a review and redocumentation of all the collective
certificates of land ownership award. The DAR shall prepare
a prioritized list of certificates of land ownership award to be
parcelized. The parcelization shall commence immediately
upon approval of this Act and shall not exceed a period
of three (3) years. Only those existing certificates of land
ownership award that are collectively farmed or are operated
In an integrated manner shall remain as collective.
NOTES:
Individual titles for every beneficiary
As a general rule, the land should be awarded to the individual
farmer-beneficiary and should be covered by an individual title.
However, if the beneficiaries opt for collective ownership, such
as farmers cooperative, collective ownership title may be issued in
the name of the co-owners or the collective organization. If the title
Is issued in the name of the collective organization, the names of the
beneficiaries must be listed in the same certificate of land ownership
uward.16
125As amended by R.A. No. 9700.
126Sec. 25, Comprehensive Agrarian Reform Law.
 74 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 2
q 46 CHAPTER 1 15
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

Conditions for issuance of collective titles

pt be more than five percent (5%) of the value of the annual
There are certain conditions that must be complied with befoq
EMross production as established by the DAR. Should the
a collective ownership title can be issued, namely: ;
f Wheduled annual payments after the fifth (5th) year exceed
(a) The farm management system of the land covered if Elen percent (10%) of the annual gross production and the
not appropriate for individual farming; j fullure to produce accordingly is not due to the beneficiary’s
fault, the LBP shall reduce the interest rate and/or reduce
(b) The farm labor system is specialized, i.e., where t hg
E {he principal obligation to make the repayment affordable.
farmworkers are organized by functions and not by specifi
parcels such as spraying, weeding, packing and other similaf : The LBP shall have a lien by way of mortgage on the
functions; land awarded to the beneficiary; and this mortgage may be
oo. ae ek »reclosed by the LBP for non-payment of an aggregate of
4 (c) The beneficiaries are currently not farming indivi “4 three (3) annual amortizations. The LBP shall advise the DAR
| ual parcels but collectively work on large contiguous areas; an E of such proceedings and the latter shall subsequently award
(d) The farm consists of multiple crops being farmed it the forfeited landholding to other qualified beneficiaries.
{| an integrated manner or includes non-crop production are A beneficiary whose land, as provided herein, has been
that are necessary for the viability of farm operations, such foreclosed shall thereafter be permanently disqualified from
it packing plants, storage areas, dikes, and other similar facilities hwcoming a beneficiary under this Act.”
. that cannot be subdivided or assigned to individual farmers." aa
[ | NOTES: .
ites Title must indicate that it is an EP or CLOA ! Schedule of payment

4: The title of the land awarded under the agrarian reform must The cost of the awarded land is payable to the Land Bank
Ys indicate that it is an Emancipation Patent (EP) or a Certificate | (by the beneficiaries) in thirty (30) annual amortizations with six
Land Ownership Award (CLOA). porcent (6%) interest per annum.
Al The subsequent transfer title must also indicate that it is a
Payment starts one (1) year from:
ae emancipation patent or a certificate of land ownership award.
At y : (a) date of registration of the Certificate of Land
Mili SECTION 26. Payment by Beneficiaries. — Lands awarded| Ownership Award (CLOA); or
pursuant to this Act shall be paid for by the beneficiaries to (b) date of actual occupancy, if the occupancy took place
mM \ the LBP in thirty (80) annual amortizations at six percent after the registration of the CLOA.
iWhi (6%) interest per annum. The annual amortization shall start
one (1) year from the date of the certificate of land ownership!
Aah 1h
Basis of amortization
award registration. However, if the occupancy took place
after the certificate of land ownership award registration,! The maximum amortization is 5% of the annual gross produc-
the amortization shall start one (1) year from actual; tion as established by the Department of Agrarian Reform.
occupancy. The payments for the first three (3) years after}
After the 5th year, the interest rate and/or the principal
the award shall be at reduced amounts as established by the’
obligation may be reduced by the Land Bank to make the repayment
PARC: Provided, That the first five (5) annual payments may’
affordable:

27bid.
128Sec. 27, Comprehensive Agrarian Reform Law. —_
As amended by R.A. No, 9700.
 76 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 24 Faw, 27 CHAPTER 1 77
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

(a) If due to failure of production, the scheduled annual In the event of such transfer to the LBP, the latter
payments exceed 10% of the annual gross production; and . thall compensate the beneficiary in one lump sum for the
E amounts the latter has already paid, together with the value
(b) the failure to produce is not due to the beneficiary’
fault. of improvements he/she has made on the land."

Effect of failure to pay the amortizations

If the beneficiary fails to pay three (3) annual amortizationg,
the Land Bank can forfeit the landholding and award it to otheg
qualified beneficiaries.
The beneficiary whose land has been foreclosed or forfeited wi
F NOTES:
] Bale or transfer of awarded lands prohibited
Agrarian reform beneficiaries cannot, within a period of ten
(10) years, sell or transfer ownership of the land awarded to them,
except:

| be permanently disqualified from becoming a beneficiary. a (a) through hereditary succession;

tt SECTION 27. Transferability of Awarded Lands. — Landg

(b) to the Government;
acquired by beneficiaries under this Act or other agrarian (c) tothe Land Bank of the Philippines; or
if reform laws shall not be sold, transferred or conveyed except}
through hereditary succession, or to the government, or to
(d) to other qualified beneficiaries.
the LBP, or to other qualified beneficiaries through the DAR
for a period of ten (10) years: Provided, however, That th Meaning of hereditary succession
Hae children or the spouse of the transferor shall have a right t Hereditary succession means succession by intestate succession
repurchase the land from the government or LBP within qj ur by will to the compulsory heirs — it does not pertain to succession
“WE period of two (2) years. Due notice of the availability of thd lo other persons. The prohibition against transfer to persons other
land shall be given by the LBP to the BARC of the barangay, than the heirs of the agrarian reform beneficiary stems from the _
ail where the land is situated. The PARCCOM,
provided, shall, in turn, be given due notice thereof by thd
as: herei policy of the Government to develop generations of farmers to attain
lis avowed goal to have an adequate and sustained agricultural
BARC. production with certitude. Such objective will not see the light of the
AQ day if lands covered by agrarian reform can easily be converted to
The title of the land awarded under the agrarian reforn{
non-agricultural purposes."
a‘ must indicate that it is an emancipation patent or a certifi4
cate of land ownership award and the subsequent transfer
N ihe title must also indicate that it is an emancipation patent or a Effect of sale or transfer to the Government or the Land Bank
ait y certificate of land ownership award. 4 If the beneficiary sells or transfers ownership of the land to the
If the land has not yet been fully paid by the beneficiary; Government or to the Land Bank of the Philippines, the children or
the rights to the land may be transferred or conveyed, with! the spouse of the transferor can repurchase the land within two (2)
prior approval of the DAR, to any heir of the beneficiary or to] years from the date of transfer.”
any other beneficiary who, as a condition for such transfer or‘
conveyance, shall cultivate the land himself/herself. Failing}
compliance herewith, the land shall be transferred to the]
LBP which shall give due notice of the availability of the;
139As amended by R.A. No. 9700.
land in the manner specified in the immediately preceding]
131Eistate of the Late Encarnacion Vda. De Panlilio v. Dizon, 5836 SCRA 565.
paragraph. 12DAR Administrative Ordor No, 2, series of 2009.
 a

He, 29 CHAPTER 1 79
78 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 24 THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

Can a beneficiary who has not fully paid the amortizations sell th
j ENOTES:
E
land to another? Ight over standing crops at the time of acquisition
If the land has not yet been fully paid by the beneficiary, if The landowner retains his right over crops not yet harvested at
may sell transfer, or convey his rights to the land under the followin; Z Ww time the Department of Agrarian Reform took possession of the
conditions: i nd.
(a) Approval of the Department of Agrarian Reform
must first be obtained; CHAPTER VIII
CORPORATE FARMS
(b) The land should be sold only to an heir of thebene!
ficiary or to any other qualified beneficiary; and j SECTION 29. Farms Owned or Operated by Corporations or
(c) The transferee must undertake to cultivate the lang Other Business Associations. — In the case of farms owned or
himself, otherwise, the Land Bank will take the land for proper ‘ f= Operated by corporations or other business associations, the
disposition. 4 @ following rules shall be observed by the PARC:
If the sale or transfer complies with the foregoing conditions| In general, lands shall be distributed directly to the
the Land Bank will compensate the beneficiary (i.e., the seller or individual worker-beneficiaries.
transferor) in one lump sum for the amounts he has already paid, a In case it is not economically feasible and sound to
together with the value of improvements he has made on the land. f divide the land, then it shall be owned collectively by the
= worker-beneficiaries who shall form a workers’ cooperative
Can the beneficiary lease the land to another person? or association which will deal with the corporation or
What the law prohibits is the transfer of ownership, not business association. Until a new agreement is entered into
transfer of possession. Therefore, the beneficiary can lease the land} hy and between the workers’ cooperative or association
to another person, provided that the lease is also for agricultur al and the corporation or business association, any agreement
purposes. If the lease is for non-agricultural purpose, such as le xlsting at the time this Act takes effect between the former
to a telecommunications company for cellsites or antennas, tha and the previous landowner shall be respected by both the
beneficiary must seek the approval of the Department of Agrariad workers’ cooperative or association and the corporation or
Reform. husiness association.
ni

My Can/the beneficiary lease the land to the former landowner? NOTES:

’ The beneficiary can lease the land to its former owner. Howevs Modes of distribution
He er, this can only be done after obtaining approval from the Depart There are two (2) modes of distribution of corporate farms,
oy ment of Agrarian Reform through the Provincial Agrarian Reform) fiamely:
Coordinating Committee.”
(a) direct; or
(b) indirect.
The landowner shall retain his share of any standing Y erond
unharvested at the time the DAR shall take possession of As a rule, corporate farms are to be distributed directly to the
(ndividual worker-beneficiaries.
the land under Section 16 of this Act, and shall be given a’
reasonable time to harvest the same. If it is not economically feasible and sound to divide the land,
then it shall be distributed indirectly to the worker-beneficiaries
—___-___ (through a workers’ cooperative or association.
188Sec, 44 (a) (3), Comprehensive Agrarian Reform Law.

oN
is in recognition of the fact that land reform may become success: i
even if it is done through the medium of juridical entities compo
of farmers. In the words of the Supreme Court in Hacienda Luisité
Inc. v. PARC, G.R. No. 171101, July 5, 2011: i : uo us the site of his permanent dwelling and for raising vegetables,
“As it were, the principle of ‘land to the tiller’ and the old
pastoral model of land ownership where non-human juridical
persons, such as corporations, were prohibited from owning
agricultural lands are no longer realistic under existing
conditions. Practically, an individual farmer will often face
|
greater disadvantages and difficulties than those who exercise
ownership in a collective manner through a cooperative or
corporation. The former is too often left to his own devices when
| faced with failing crops and bad weather, or compelled to obtain
usurious loans in order to purchase costly fertilizers or farming
equipment. The experiences learned from failed land reform
activities in various parts of the country are lack of financing,
lack of farm equipment, lack of fertilizers, lack of guaranteed
il
!
buyers of produce, lack of farm-to-market roads, among
others. Thus, at the end of the day, there is still no successful
implementation of agrarian reform to speak of in such a case.
ney Although success is not guaranteed, a cooperative or a
corporation stands in a better position to secure funding and
competently maintain the agri-business than the individual
wha farmer. While direct singular ownership over farmland does
offer advantages, such as the ability to make quick decisions
i
unhampered by interference from. others, yet at best, these
advantages only but offset the disadvantages that are often
associated with such ownership arrangement. Thus, government
must be flexible and creative in its mode of implementation
vi to better its chances of success. One such option is collective
ownership through juridical persons composed of farmers.”
i SECTION 30. Homelots and Farmlots for Members |
Hi 1 Cooperatives. — The individual members of the cooperative;
or corporations mentioned in the preceding section shall bj
wee
provided with homelots and small farmlots for their famil}
use, to be taken from the land owned by the cooperative Oo}
corporation.
NOTES:
Entitlement to homelot and smail farmlot
As stated earlier, if it is not economically feasible and soun
to divide the farm owned or operated by corporations or othef
owt CHAPTER 1 81
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
E buniness associations, it will be distributed indirectly to the worker-
ppamivess 089 through a workers’ cooperative or association. Under
E (hin situation, the beneficiaries are entitled to a homelot and a small
E farmlot not exceeding 1,000 square meters which the beneficiary can
: poultry, pigs and other animals and engaging in minor industries.
The homelot and small farmlot will be taken from the land
awurded to the cooperative or association.
If the existing homelot is situated within the retained area of
4ho landowner, the beneficiary may be made to transfer his dwelling
jn his farmlot or other area designated for his homelot, provided,
(hut the landowner shoulders the cost of the transfer.
E SECTION 31. Corporate Landowners. — Corporate land-
f owners may voluntarily transfer ownership over their
| agricultural landholdings to the Republic of the Philippines
| pursuant to Section 20 hereof or to qualified beneficiaries,
* under such terms and conditions, consistent with this Act,
E an they may agree upon, subject to confirmation by the DAR.
F Upon certification by the DAR, corporations owning
agricultural lands may give their qualified beneficiaries the
rlght to purchase such proportion of the capital stock of the
E worporation that the agricultural land, actually devoted to
agricultural activities, bears in relation to the company’s
total assets, under such terms and conditions as may be
agreed upon by them. In no case shall the compensation
E poceived by the workers at the time the shares of stocks are
| (lntributed be reduced. The same principle shall be applied
" to associations, with respect to their equity or participation.
Corporations or associations which voluntarily divest
& proportion of their capital stock, equity or participation
in favor of their workers or other qualified beneficiaries
under this section shall be deemed to have complied with
the provisions of this Act: Provided, That the following
conditions are complied with:
a) Inorder to safeguard the right of beneficiaries
who own shares of stocks to dividends and other financial
14D AR Administrative Ordor No. 12-91.
 82 AGRARIAN LAW AND SOCIAL LEGISLATION
CHAPTER 1 83
''HE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
benefits, the books of the corporation or associatif
shall be subject to periodic audit by certified pub Hacienda Luisita case
accountants chosen by the beneficiaries; y
HACIENDA LUISITA, INC. V. PARC
b) Irrespective of the value of their equity in tf G.R. No. 171101
corporation or association, the beneficiaries shall | July 5, 2011
assured of at least one (1) representative in the board}
directors, or in a management FACTS: In 1957, Tarlac Development Corporation
or executive committe
if one exists, of the corporation or association; and (‘'ADECO) bought Hacienda Luisita and Central Azucarera De
‘wrlac from their Spanish owners. The Philippine government,
b °) ; Any shares acquired by such workers 2 1 through the then Central Bank of the Philippines, assisted
eneficiaries shall have the same right: f ‘'ADECO in obtaining a dollar loan from a US bank to pay for
all other shares; ghts and features (he dollar component of the sale, while the Government Service
Insurance System (GSIS) extended a P5.911 million loan in
d) . Any transfer of shares of stocks b y the origing
ieinl tuvor of TADECO to pay the peso price component of the sale.
beneficiaries shall be void ab initio unless said transad
tion is in favor of a qualified and registered beneficiazt One of the conditions for the GSIS loan was that the lots
within the same corporation. comprising the HACIENDA LUISITA shall be subdivided by
: 'ADECO and sold at cost to the tenants, if any, and whenever
If within two (2) years from the approval of this A of conditions should exist warranting such action under the
the land or stock transfer envisioned above is not made ¢ provisions of the Land Tenure Act.
realized or the plan for such stock distribution approved 1 On May 7, 1980, the martial law administration filed a
the PARC within the same period, the agricultural land d complaint with the Regional Trial Court against TADECO
the corporate owners or corporation shall be subject to thi to compel it to surrender HACIENDA LUISITA to the then
compulsory coverage of this Act. Ministry of Agrarian Reform (now Department of Agrarian
Reform) so that the land can be distributed to the tenants.

NOTES: Although TADECO maintained that HACIENDA LUISITA

does not have tenants, and therefore, not covered by existing
The schemes under Section 31 are no longer operative agrarian reform legislations, the Regional Trial Court rendered
u Decision ordering TADECO to surrender HACIENDA
Under Section 31, > there are two sch emes availabl
i ; LUISITA to the Ministry of Agrarian Reform.
landowners, namely: Die to corpora TADECO appealed the Decision to the Court of Appeals.
(a) Voluntary land transfer; and During the pendency of the appeal, the Office of the Solicitor
General (OSG) moved to withdraw the government’s case
(b) Stock distribution. against TADECO. The Court of Appeals granted the motion on
Both. schemes: are no longer o perative. condition that TADECO must submit a Stock Distribution Plan
i i
Section 7 of the Com duly approved by the Presidential Agrarian Reform Council
prehensive Agrarian Reform Law, as amended by Republic Act Ni
(PARC) which must be implemented after such approval.
9700, allowed voluntary land transfers and stock distribution onl#
Failure to comply with these conditions will result in the revival
up to June 30, 2009. After June 30, 2009, the modes of acquisitioy of the case.
Thos
are limited
i ed to voluntary offer to sell and compulsory a
acquisition;
On August 23, 1988, TADECO organized the HACIENDA
LUISITA, INC. (HLD, as a vehicle to facilitate stock acquisition
“Section 4. Priorities — xx x (a)fter June 30, 2009, the
by the farm workers. For this purpose, TADECO assigned
modes of acquisition shall be limited to voluntary offer to sell and conveyed to HLI the agricultural land portion (4,915.75
and compulsory acquisition;” hectares) and other farm-related properties of Hacienda Luisita
in exchange for HLI shares of stock.
 AGRARIAN LAW AND SOCIAL LEGISLATION
To accommodate the transfer of assets from TADECO to
HLI, the latter increased its capital stock from P1.5M (divided
into 1,500,000 shares with a par value of Pl/share) to PAM
wo into 400,000,000 shares also with par value of P1/
share).
of the 400,000,000 shares, 150,000,000 were to be issued
to qualified and registered agrarian reform beneficiaries, and
the remaining 250,000,000 were to be issued to any stockholder
of the corporation.
Under the Stock Distribution Plan, the properti
assets which TADECO contributed to the capital stock of Hl
amounted to P590,554,220, Deducting the total liabilities of
the farm in the amount of P235,422,758 leaves a net value of
P355,531,462. This translated to 355,531,462 shares with a par
value of P1/share.
oo
In a referendum conducted on May 9, 1989, 93% of the
farmworker-beneficiaries of HACIENDA LUISITA signified
their acceptance of the proposed HLI’s Stock Distribution
Option Plan.
Thus, on May 11, 1989, a Stock Distribution Option
Agreement was entered into by TADECO, HLI, and the 5,848
qualified farm worker-beneficiaries. As may be gleaned from the
Stock Distribution Option Agreement, included as part of the
distribution plan are: , under Republic Act No. 6657 despite the implementation of
(a) _production-sharing equivalent to three percent
(3%) of gross sales from the production of the agricultural
land payable to the farm worker-beneficiaries in cash
dividends or incentive bonus, irrespective of whether HLI
makes money or not; and
(b) distribution of free homelots of not more than
240 square meters each to family-beneficiaries.
The Stock Distribution Option Agreement was approved
by the Presidential Agrarian Reform Council. pprove
On August 15, 1995, HLI applied for the conversion of 500
hectares of land of the hacienda from agricultural to industrial
use. On August 14, 1996, the Department of Agrarian Reform
approved the application subject to payment of three percent
(3%) of the gross selling price to the beneficiaries and to HLI’s
continued compliance with its undertakings under the Stock
Distribution Plan.
On December 13, 1996, HLI, ceded 300 hectares
converted area to Centennary Holdings, Inc. The remaining 200
hectares was transferred to Luisita Realty Corporation.
Sec ] CHAPTER 1 85
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
Subsequently, Centennary sold the entire 300 hectares to
Luisita Industrial Park Corporation (LIPCO) for the purpose of
developing an industrial complex. Later on, in a Deed of Absolute
Assignment dated November 25, 2004, LIPCO transferred the
parcels Rizal Commercial Banking Corporation (RCBC) by way
of dacion en pago in payment of LIPCO’s PhP431,695,732.10
loan obligations.
Apart from the 500 hectares of converted area, another
80.51 hectares of HACIENDA LUISITA were later acquired by
the government as part of the Subic-Clark-Tarlac Expressway
(SCTEX) complex. Thus, 4,335.75 hectares remained of the
original 4,915 hectares which TADECO ceded to HLI.
Thereafter, a group of supervisors filed with the Depart-
ment of Agrarian Reform a petition to revoke the Stock Distri-
bution Option Agreement alleging that HLI had failed to give
them their dividends and the 1% share in gross sales, as well as
the 33% share in the proceeds of the sale of the converted 500
hectares of land.
Another petition to revoke the Stock Distribution Option
Agreement was filed by another group of beneficiaries who
wanted distribution of land and not stock option.
Finding that HLI has not complied with its obligations
the Stock Distribution Plan, the Presidential Agrarian Reform
Council revoked the Stock Distribution Option Agreement and
placed HACIENDA LUISITA under the compulsory coverage of
the agrarian reform law.
Later, RCBC and LIPCO intervened in the proceedings,
questioning the inclusion of the lands that they had acquired
from HLI in the coverage of the agrarian reform program.
ISSUES: 1. Does the Presidential Agrarian Reform
Council (PARC) have jurisdiction, power and authority to nullify
or revoke the Stock Distribution Option Agreement?
2. Was the PARC correct in nullifying or revoking the
Stock Distribution Option Agreement?
3. | Was the PARC correct in including the lands that
RCBC and LIPCO had acquired from HLI in the coverage of the
agrarian reform program.
of the 4. Should the 80.51-hectare land transferred to the
government for use as part of the SCTEX, be excluded from the
compulsory agrarian reform coverage?

86 AGRARIAN LAW AND SOCIAL LEGISLATION
HELD: 1. The PARC has jurisdiction, power and authority
to nullify or revoke the Stock Distribution Option Agreement.
While Republic Act No. 6657 or other executive issuances on
agrarian reform do not explicitly vest the PARC with the power
to revoke or recall an approved Stock Distribution Plan, such
power or authority is deemed possessed under the doctrine of
necessary implication, a basic postulate that what is implied in
a statute is as much a part of it as that which is expressed.
Following the doctrine of necessary implication, it may be stated
that the conferment of express power to approve a plan for
stock distribution of the agricultural land of corporate owners
necessarily includes the power to revoke or recall the approval
of the plan.
2. The PARC was correct in nullifying or revoking the
Stock Distribution Option Agreement. a
Firstly, because HLI has not fully complied with its
undertaking to distribute homelots to the beneficiaries
under the Stock Distribution Plan despite the lapse of
16 years. With regard to the homelots already awarded
or earmarked, the beneficiaries are not obliged to return
the same to HLI or pay for its value since this is a benefit
granted under the Stock Distribution Plan. The homelots
do not form part of the 4,915.75 hectares covered by the
Stock Distribution Plan but were taken from the 120.9234
hectare residential lot owned by TADECO. Those who did
not receive the homelots as of the revocation of the Stock
Distribution Plan will no longer be entitled to homelots.
Thus, in the determination of the ultimate agricultural
land that will be subjected to land distribution, the
Wife aggregate area of the homelots will no longer be deducted.
However, since the Stock Distribution Plan was
8 already revoked with finality, the government
My through the Department of Agrarian Reform must
1 bi pay HLI the just compensation for said homelots
# rt) in consonance with Sec. 4, Article XIII of the 1987
Constitution that the taking of land for use in the
agrarian reform program is “subject to the payment
of just compensation.” (as modified by the Supreme
Court Resolution dated April 24, 2012)
Secondly, because the mechanics and timelines of
stock distribution violate the provisions of DAO 10. The
distribution of the shares of stock although not entailing
a cash out from the beneficiaries, is contingent
the number of “man days,” that is, the number of days
that the beneficiaries have worked during the year. By
11 CHAPTER 1 87
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
providing that the number of shares of the original 1989
beneficiaries shall depend on the number of “man days,”
HLI violated the rule on stock distribution and effectively
deprived the beneficiaries of equal shares of stock in
the corporation, for, in net effect, these 6,296 qualified
beneficiaries, who theoretically had given up their rights
to the land that could have been distributed to them,
suffered a dilution of their due share entitlement. HLI
has chosen to use the shares earmarked for farmworkers
as reward system chips to water down the shares of the
original 6,296 beneficiaries. It is clear that the original
6,296 beneficiaries, who were qualified at the time of the
approval of the Stock Distribution Plan, suffered from
watering down of shares. Each original beneficiary is
entitled to 18,804.32 HLI shares. The original beneficiaries
got less than the guaranteed 18,804.32 HLI shares per
beneficiary, because the acquisition and distribution of
the HLI shares were based on “man days” or “number
of days worked” by the beneficiaries in a year’s time. As
explained by HLI, a beneficiary needs to work for at least
87 days in a fiscal year before he or she becomes entitled
to HLI shares. If it falls below 37 days, the beneficiary
unfortunately, does not get any share at year end.
3. The Presidential Agrarian Reform Council was
not correct in including the lands that RCBC and LIPCO had
acquired from HLI in the coverage of the agrarian reform
program. As bona fide purchasers for value, both LIPCO and
RCBC have acquired rights which cannot just be disregarded.
However, considering that the sale and transfer of the 500
hectares of land subject of the August 14, 1996 Conversion
Order came after compulsory coverage has taken place, the
beneficiaries should have their corresponding share of the
land’s value. HLI shall be liable for the value received for the
sale of the 200-hectare land to Luisita Realty Corporation and
the equivalent value of the 12,000,000 shares of its subsidiary,
Centennary, for the 300-hectare lot sold to LIPCO.
4. As regards the 80.51-hectare land transferred
to the government for use as part of the SCTEX, this should
also be excluded from the compulsory agrarian reform
coverage considering that the transfer was consistent with the
government’s exercise of the power of eminent domain and none
of the parties actually questioned the transfer. But considering
that the sale and transfer of the 80.51-hectare SCTEX lot came
after compulsory coverage has taken place, the beneficiaries
on should have their corresponding share of the land’s value, for
which HLI is liable.
 88 AGRARIAN LAW AND SOCIAL LEGISLATION
The 6,296 original beneficiaries shall forfeit andrelinquish |
their rights over the HLI shares of stock issued to them in 3
favor of HLI. The 4,206 non-qualified FWBs shall remain as 4
stockholders of HLI.™
SECTION 32. Production-Sharing. — Pending final lg
transfer, individuals or entities owning, or operating un¢
lease or management contract, agricultural lands are he ¢
mandated to execute a production-sharing plan with thi
farmworkers or farmworkers’ organization, if any, wherd
three percent (3%) of the gross sales from the producti
of such lands are distributed within sixty (60) days of {
end of the fiscal year as compensation to regular and otf
farmworkers in such lands over and above the compensat{
they currently receive: Provided, That these individuals,
entities realize gross sales in excess of five million pesos yf
annum unless the DAR, upon proper application, determi
a lower ceiling. 4 profit after tax, to be distributed to regular and other farm-
{ workers.
In the event that the individual or entity realizes a pro}
an additional ten percent (10%) of the net profit after ¢
shall be distributed to said regular and other farmworkéd
within ninety (90) days of the end of the fiscal year.
To forestall any disruption in the normal operat: \
of lands to be turned over to the farmworker-beneficis
mentioned above, a transitory period, the length of whi
shall be determined by the DAR, shall be established.
ni During this transitory period, at least one percent (Ij
fi of the gross sales of the entity shall be distributed to t
a managerial, supervisory and technical group in place|
a the time of the effectivity of this Act, as compensation f
such transitory managerial and technical functions as it y ‘
Pay
perform, pursuant to an agreement that the farmworke
beneficiaries and the managerial, supervisory and techni i
group may conclude, subject to the approval of the DAR. °j
'6As modified by the Supreme Court Resolution dated November 22, 2011.
e
A CHAPTER 1 89
‘HE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
E
- KB:
Ls
Wlon 32 — A Transitory Provision
® ‘This provision applies only while the land transfer is being
anod and finalized. The scheme requires individuals or entities
Ny, or operating an agricultural land under lease or manage-
At contract to adopt a production sharing with farm workers in
ffollowing manner:
(a) if more than P5M gross sales/year are realized:
(i) 3% of the gross sales — to be distributed to
regular and other farm workers (over and above the
compensation they currently receive)
(ii) 1% of the gross sales — to be distributed to the
managerial, supervisory and technical employees
(b) If profits are realized — additional 10% of the net
ation 32 — Declared unconstitutional with respect to livestock
poultry
* Bection 32 of the Comprehensive Agrarian Reform Law which
ta corporate farms to execute and implement production-
Bring plans (pending final redistribution of their landholdings),
# unreasonable, confiscatory, and violative of due process, hence,
Mall and void for being unconstitutional, insofar as it includes the
Yentock, poultry and swine farms in its coverage.
SECTION 32-A. Incentives. — Individuals or entities
i, ning or operating fishponds and prawn farms are hereby
ndated to execute within six (6) months from the effectivity
W this Act an incentive plan with their regular fishpond or
awn farmworkers or fishpond or prawn farm workers’
anization, if any, whereby seven point five percent
2 \%) of their net profit before tax from the operation of the
lhpond or prawn farms are distributed within sixty (60)
# at the end of the fiscal year as compensation to regular
find other pond workers in such ponds over and above the
mpensation they currently receive.
{
“Luz Farms v. Secretary of Agrarian Reform, 192 SCRA 51.

90 AGRARIAN LAW AND SOCIAL LEGISLATION Secs.
In order to safeguard the right of the regular fishpf
or prawn farm workers under the incentive plan, the ba
of the fishpond or prawn farm owners shall be subje ef
periodic audit or inspection by certified public accountal
chosen by the workers.
' The foregoing provision shall not apply to agriculti :
lands subsequently converted to fishpond or prawn fi ay
provided the size of the land converted does not exceed
retention limit of the landowner.” j
NOTES:
f Incentives for Regular Fishpond or Prawn Farm Workers
a
This provision applies to individuals or entities owning
operating fishponds and prawn farms. The incentive is 7.5% off
it net profit before tax over.
SECTION 33. Payment of Shares of Cooperative or Assog
I tion. — Shares of a cooperative or association acquired|
Werte: farmer-beneficiaries or worker-beneficiaries shall be fi
paid for in an amount corresponding to the valuation as q
may termined in the immediately succeeding section. The lag
owner and the LBP shall assist the farmer-beneficiaries 4]
INR worker-beneficiaries in the payment for said shares by. p}
viding credit financing.
WH NOTES:
Te Value of shares
The value of shares of a cooperative or association wi ld
Mie determined by the Land Bank.
ad yer
SECTION 34. Valuation of Lands. — A valuation sche
for the land shall be formulated by the PARC, taking ig
account the factors enumerated in Section 17, in additfj
to the need to stimulate the growth of cooperatives af
the objective of fostering responsible participation of |
worker-beneficiaries in the creation of wealth.
187Added by R.A. No. 7881.
wy CHAPTER 1 91
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
§: In the determination of a price that is just not only to
individual but to society as well, the PARC shall consult
ly with the landowner and the worker-beneficiaries.
a In case of disagreement, the price as determined by
% PARC, if accepted by the worker-beneficiaries, shall
§ followed, without prejudice to the landowner’s right to
ition the Special Agrarian Court to resolve the issue of
n Land Bank now determines the valuation
lixecutive Order No. 405 promulgated on June 14, 1990, has
inferred the authority of the Presidential Agrarian Reform
m\incil (PARC) to determine the valuation or just compensation to
Ao land Bank. Section 1 of the said Executive Order provides as
lows:
“SECTION 1. The Land Bank of the Philippines shall be
primarily responsible for the determination of the land valuation
und compensation for all private lands suitable for agriculture
under either the Voluntary Offer to Sell (VOS) or Compulsory
Acquisition (CA) arrangement as governed by Republic Act No.
6657. The Department of Agrarian Reform shall make use of
the determination of the land valuation and compensation by
the Land Bank of the Philippines, in the performance of its
j functions.”
CHAPTER Ix
:j SUPPORT SERVICES
£i SECTION 35. Creation of Support Services Office. — There is
7 hereby created the Office of Support Services under the DAR
‘ | lo be headed by an Undersecretary.
The Office shall provide general support and coordina-
F (lve services in the implementation of the program, particu-
: larly in carrying out the provisions of the following services
| fo farmer beneficiaries and affected landowners:
1) Irrigation facilities, especially second crop or
“4 dry season irrigation facilities;
2) Infrastructure development and public works
projects in areas and settlements that come under
 92 AGRARIAN LAW AND SOCIAL LEGISLATION uu CHAPTER 1 93
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

agrarian reform, and for this purpose, the preparatf
of the physical development plan of such settlemef
providing suitable barangay sites, potable water @
power resources, irrigation systems, seeds and seed
banks, post harvest facilities, and other facilities fof
sound agricultural development plan. For the purp q
of providing the aforecited infrastructure and facilitj
the DAR is authorized to enter into contracts w
interested private parties on long term basis or throu
joint-venture agreements or build-operate-trang
scheme;
3) Government subsidies for the use of irrigatf
facilities;
promote marketing and minimize spoilage of agricul-
tural produce and products;
12) Create a credit guarantee fund for agricultural
landowners that will enhance the collateral value of
agricultural lands that are affected or will be affected
by coverage under the agrarian reform program; and
13) Administration, operation, management and
funding of support services programs and projects
including pilot projects and models related to agrarian
reform as developed by the DAR."
l TES:

4). Price support and guarantee for all agricultt me Import of the Law
al produce; : The success of agrarian reform depends on the provision of the
5) Extending to small landowners, farmers al (wHsary Support services and an organizational vehicle that will
farmers’ organizations the necessary credit, like c¢ )pol the beneficiaries to attain economic independence and self-
cessional and collateral-free loans, for agro-industrij Blinnce. The lives of agrarian reform beneficiaries will be uplifted
ization based on social collaterals like the guarantees Mirvugh the provision of support services.”
farmers’ organizations;
SECTION 36. Funding for Support Services. — In order to
6) Promoting, developing and extending finand) over the expenses and cost of support services, at least forty
In assistance to small and medium-scale industries| bercent (40%) of all appropriations for agrarian reform dur-
agrarian reform areas; ‘ uw the five (5)-year extension period shall be immediately
It 7) Assigning sufficient numbers
extension workers to farmers’ organizations;
of agricultul et uside and made available for this purpose: Provided, That
ane DAR shall pursue integrated land acquisition and distri-
Te jution and support services strategy requiring a plan to be
8) Undertake research, development and disse}
veloped parallel to the land acquisition and distribution
ination of information on agrarian reform, plants af
eeMt process. The planning and implementation for land acqui-
crops best suited for cultivation and marketing, af
tion and distribution shall be hand-in-hand with support
low-cost and ecologically sound farm inputs and ted
{1 , rvices delivery: Provided, further, That for the next five
nologies to minimize reliance on expensive and i impo! ) years, as far as practicable, a minimum of two (2) Agrar-
byes
ed agricultural inputs;
in Reform Communities (ARCs) shall be established by the
9) Development of cooperative managemé R, in coordination with the local government units, non-
skills through intensive training; 4 pvernmental organizations, community-based cooperatives
fand people’s organizations in each legislative district with
. 10) Assistance in the identification of rea ' FA predominant agricultural population: Provided, further-
markets for agricultural produce and training in nore, That the areas in which the ARCs are to be established
other various aspects of marketing;
11) Conduct an effective information dissemi: .
'8Ag amended by R.A. No. 7906.
tion system through the Department of Agriculture { “DAR Administrative Ordor No, 5, series of 1995.
 94 AGRARIAN LAW AND SOCIAL LEGISLATION
shall have been substantially covered under the provisig
of this Act and other agrarian or land reform laws: Provj
ed, finally, That a complementary support services delivé
strategy for existing agrarian reform beneficiaries that g
not in barangays within the ARCs shall be adopted by f
DAR. ;
For this purpose, an Agrarian Reform Community}
composed and managed by agrarian reform beneficiar:
who shall be willing to be organized and to undertake t
integrated development ofan area and/or their organizatiof§
federations approved by the farmers-beneficiaries th
shall take the lead in the agricultural development of t]
area. In addition, the DAR, in close coordination
of financial assistance from any source.”
Watt
NOTES:
IK
1. Establishment of Agrarian Reform Communities
This provision mandates the Department of Agrarian Refog
to establish Agrarian Reform Communities in each legislati
Nite district with a predominant agricultural population.
i"
Lae
The Agrarian Reform Community will be composed of @
managed by agrarian reform beneficiaries who shall be willing to4
organized and to undertake the integrated development of an arg
Oye Pay their organizations or cooperatives.
SECTION 37. Support Services for the Agrarian Refor
Beneficiaries. — The State shall adopt the integrated policy}
support services delivery to agrarian reform beneficiarié
To this end, the DAR, the Department of Finance, and 2
Bangko Sentral ng Pilipinas (BSP) shall institute reforms ]
M40As amended by R.A. No. 9700.
17 CHAPTER 1 95
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
beralize access to credit by agrarian reform beneficiaries.
1) PARC shall ensure that support services for agrarian
form beneficiaries are provided, such as:
(a) Land surveys and titling;
(b) Socialized terms on agricultural credit facili-
ties;
Thirty percent (30%) of all appropriations for sup-
port services referred to in Section 36 of Republic Act
No. 6657, as amended, shall be immediately set aside and
made available for agricultural credit facilities: Provid-
ed, That one-third (1/3) of this segregated appropriation
shall be specifically allocated for subsidies to support
the initial capitalization for agricultural production
with th to new agrarian reform beneficiaries upon the award-
ing of the emancipation patent or the certificate of land
ownership award and the remaining two-thirds (2/3)
shall be allocated to provide access to socialized credit
to existing agrarian reform beneficiaries, including the
leaseholders: Provided, further, the LBP and other con-
cerned government financial institutions, accredited
savings and credit cooperatives, financial service co-
operatives and accredited cooperative banks shall pro-
vide the delivery system for disbursement of the above
financial assistance to individual agrarian reform ben-
eficiaries, holders of collective titles and cooperatives.
For this purpose, all financing institutions may ac-
cept as collateral for loans the purchase orders, mar-
keting agreements or expected harvests: Provided, That
loans obtained shall be used in the improvement or de-
velopment of the farmholding of the agrarian reform
,
beneficiary or the establishment of facilities which shall
enhance production or marketing of agricultural prod-
ucts or increase farm income therefrom: Provided, fur-
ther, That of the remaining seventy percent (70%) for
the support services, fifteen percent (15%) shall be ear-
marked for farm inputs as requested by the duly accred-
ited agrarian reform beneficiaries’ organizations, such
as, but not limited to: (1) seeds, seedlings and/or plant-
ing materials; (2) organic fertilizers; (3) pesticides; (4)
herbicides; and (5) farm animals, implements/machiner-
 96 AGRARIAN LAW AND SOCIAL LEGISLATION
ies; and five percent (5%) for seminars, trainings an t
like to help empower agrarian reform beneficiarie:
' (ce) Extension services by way of planting, cr
ping, production and post-harvest technology transg
as well as marketing and management assistance q
support to cooperatives and farmers’ organizations;; j
(d) Infrastructure such as, but not
access trails, mini-dams, public utilities, marketing
storage facilities;
(e) Research, production and use of organic feg
lizers and other local substances necessary in farm
and cultivation; and i‘
(f) Direct and active DAR assistance in the edu§
tion and organization of actual and potential agrar{
reform beneficiaries, at the barangay, municipal, ci
provincial, and national levels, towards helping thi
understand their rights and responsibilities as own
cultivators developing farm-related trust relationshj
among themselves and their neighbors, and increasij
farm production and profitability with the ultimate e]
of empowering them to chart their own destiny. T
representatives of the agrarian reform beneficiaries
the PARC shall be chosen from the nominees of the di
accredited agrarian reform beneficiaries’ organij
tions, or in its absence, from organizations of actual aj
potential agrarian reform beneficiaries as forwarded}
TEL]
H
and processed by the PARC EXCOM.
The PARC shall formulate policies to ensure that s
Nt, ib
port services for agrarian reform beneficiaries shall be pi
vided at all stages of the program implementation with t
wey
concurrence of the concerned agrarian reform beneficiari¢
The PARC shall likewise adopt, implement, and moni
policies and programs to ensure the fundamental equality}
women and men in the agrarian reform program as well
respect for the human rights, social protection, and decé
working conditions of both paid and unpaid men and wom{
farmer-beneficiaries.
The Bagong Kilusang Kabuhayan sa Kaunlaran (BKKE
Secretariat shall be transferred and attached
1, NT-A CHAPTER 1 97
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
ger its supervision including all its applicable and existing
Rinds, personnel, properties, equipment and records.
, | Misuse or diversion of the financial and support servic-
herein provided shall result in sanctions against the ben-
lary guilty thereof, including the forfeiture of the land
fwansferred to him/her or lesser sanctions as may be provid-
xd by the PARC, without prejudice to criminal prosecution.“
limited |
@ OTES:
bupport services to beneficiaries
This provision mandates the Government to extend support
Pervices to agrarian reform beneficiaries, most notable of which are:
(a) Land surveys and titling;
(b) Liberalized access to credit; 8
(c) Socialized terms on agricultural credit facilities;
(d) Technology transfer;
(e) Infrastructure, such as storage facilities, mini dams,
etc.
SECTION 37-A. Equal Support Services for Rural Women.
+: Support services shall be extended equally to women and
men agrarian reform beneficiaries.
The PARC shall ensure that these support services, as
4 provided for in this Act, integrate the specific needs and well-
ing of women farmer-beneficiaries taking into account the
: apecific requirements of female family members of farmer-
beneficiaries.
The PARC shall also ensure that rural women will be
able to participate in all community activities. To this effect,
rural women are entitled to self-organization in order to
obtain equal access to economic opportunities and to have
access to agricultural credit and loans, marketing facilities
and technology, and other support services, and equal
| treatment in land reform and resettlement schemes.
to the LB 41As amended by R.A. No. 9700.
 98 AGRARIAN LAW AND SOCIAL LEGISLATION ; ) LH CHAPTER 1 99
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

The DAR shall establish and maintain a womej lands acquired with stocks and bonds issued by the
desk, which will be primarily responsible for formulatij National Government, the BSP and other government
and implementing programs and activities related | Institutions and instrumentalities;
the protection and promotion of women’s rights, as wi
(c) Marketing of agrarian reform bonds, as well
as providing an avenue where women can register thg
us promoting the marketability of said bonds in tradi-
complaints and grievances principally related to their ruff
tional and non-traditional financial markets and stock
activities.”
exchanges; and/or

NOTES: (d) Other services designed to utilize productive-

ly the proceeds of the sale of such lands for rural indus-
Meaning of Rural Women trialization.
a

Rural women are those engaged directly or indirectly} A landowner who invests in rural-based industries shall
farming or fishing as their source of livelihood, whether paid ontitled to the incentives granted to a registered enter-
unpaid, regular or seasonal, or in food preparation, managing ine engaged in a pioneer or preferred area of investment
3

household, caring for the children, and other similar activities. § provided for in the Omnibus Investment Code of 1987,
sS

Under Section 40(5) of the Comprehensive Agrarian Refoy to such other incentives as the PARC, the LBP, or other
ue es
Law, all qualified women members of the agricultural labor for
are guaranteed and assured of the following:
vernment financial institutions shall provide.
The LBP shall redeem a landowner’s agrarian reform
I", (a) equal right to ownership of the land; nds at face value as an incentive: Provided, That at least
fty percent (50%) of the proceeds thereof shall be invested
Were
(b) equal shares of the farm’s produce; and Fin a» Board of Investments (BOI)-registered company or
Mare (c) representation in advisory or appropriate decisio ein any agri-business or agro-industrial enterprise in the
making bodies. Efeglon where the CARP-covered landholding is located. An

ht SECTION38. Support Services for Landowners. ~ The PA

ditional incentive of two percent (2%) in cash shall be
paid to a landowner who maintains his/her enterprise as a
_ with the assistance of such other government agencies al : F golng concern for five (5) years or keeps his/her investments
Naliee instrumentalities as it may direct, shall provide landown €) fin a BOl-registered firm for the same period: Provided,
3 further, That the rights of the agrarian reform beneficiaries
ya affected by the CARP and prior agrarian reform progray
with the following services: aro not, in any way, prejudiced or impaired thereby.
oy
I} . (a) Investment information, financial and co i
The DAR, the LBP and the Department of Trade and
tn seling assistance, particularly investment informatig¢ Industry shall jointly formulate the program to carry out
on government-owned and/or -controlled corporatiog those provisions under the supervision of the PARC: Provid-
and disposable assets of the government in pursu ed, That in no case shall the landowners’ sex, economic, reli-
fous, social, cultural and political attributes exclude them
national industrialization and economic independen@q
om accessing these support services.“
(b) Facilities, programs and schemes for the cof
version or exchange of bonds issued for payment of ti

21bid. ————__—_.
48Sec. 3 (1), Comprehensive Agrarian Reform Law. '4As amended by R.A. No. 9700.
 100 AGRARIAN LAW AND SOCIAL LEGISLATION Secs. 39 to CHAPTER 1 101
r : THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

NOTES: Blowing principles in these special areas of concern shall

Support services for landowners ® observed:

This provision outlines the support services that are availa | , (Ll) Subsistence Fishing. — Small fisherfolk, including
weed farmers, shall be assured of greater access to the
to landowners, the most notable of which is the incentive granted! ;
a landowner who invests in rural-based industries. i
lization of water resources.

A landowner who invests in rural-based industry is entitled { F. (2) Logging and Mining Concessions. — Subject to the
the incentives granted to a registered enterprise engaged in a pif Rg uirement of a balanced ecology and conservation of water
wurces, suitable areas, as determined by the Depart-
neer or preferred area of investment under the Omnibus Investmeg

f
Code of 1987. Sent of Environment and Natural Resources (DENR), in
Sgyulng, mining and pasture areas, shall be opened up for
Moreover, the Land Bank will redeem the landowner’s agraria Mgrarian settlements whose beneficiaries shall be required

E reform bonds at its face value if at least 50% of the proceeds there{
are invested in a Board of Investments (BOD-registered compay
— undertake reforestation and conservation production
Methods. Subject to existing laws, rules and regulations,
; or in any agri-business or agro-industrial enterprise in the regid
where the CARP-covered landholding is located.
Mattlers and members of tribal communities shall be allowed
enjoy and exploit the products of.the forest other than
‘Umber within the logging concessions.
uh Furthermore, if the landowner maintains his enterprise as,
going concern or keeps his investments in a BOI-registered firm fq ; (3) Sparsely Occupied Public Agricultural Lands. — Sparsely

I,
five (5) years, he is entitled to be paid an additional incentive of 29 PQucupied agricultural lands of the public domain shall be
in cash. fl Efurveyed, proclaimed and developed as farm settlements for
Way te i f Qualified landless people based on an organized program to
SECTION 39. Land Consolidation. — The DAR shall carr‘ F @naure their orderly and early development.
ar es out land consolidation projects to promote equal distributiof]
E Agricultural land allocations shall be made for ideal
of landholdings, to provide the needed infrastructurd

IN.
' ' family-size farms as determined by the PARC. Pioneers and
in agriculture, and to conserve soil fertility and prever
erosion. ‘q
; other settlers shall be treated equally in every respect.
3 Subject to the prior rights of qualified beneficiaries,
Msi NOTES: . \incultivated lands of the public domain shall be made
_wvnilable on a lease basis to interested and qualified parties.
I The Import of the Law
This provision is intended to:
| Parties who will engaged in the development of capital-
Intensive, traditional or pioneering. crops shall be given
it.) : priority.
Wrens, (a) promote equal distribution of landholdings;
: The lease period, which shall not be more than a total
(b) provide the needed infrastructures in agriculturd
and : 4 F of fifty (50) years, shall be proportionate to the amount of
Investment and production goals of the lessee. A system of
(c) conserve soil fertility and prevent erosion. } evaluation and audit shall be instituted.

CHAPTER X (4) Idle, Abandoned, Foreclosed and Sequestered Lands.

SPECIAL AREAS OF CONCERN - Idle, abandoned, foreclosed and sequestered lands shall
be planned for distribution as home lots and family-size
SECTION 40. Special Areas of Concern. — As an integral] farmlots to actual occupants. If land area permits, other
part of the Comprehensive Agrarian Reform Program, the} Inndless families shall be accommodated in these lands.
 102 AGRARIAN LAW AND SOCIAL LEGISLATION
(5) Rural Women. — All qualified women members q
the agricultural labor force must be guaranteed and assure
equal right to ownership of the land, equal shares of thé
farm’s produce, and representation in advisory or appropri
ate decision-making bodies.
(6) Veterans and Retirees. — In accordance with Sectiog
7 of Article XVI of the Constitution, landless war veteran
and veterans of military campaigns, their surviving spousel
and orphans, retirees of the Armed Forces of the Philippinef
f
(AFP) and the Integrated National Police (INP), returnees
surrenderees, and similar beneficiaries shall be given dué
consideration in the disposition of agricultural lands of thé
fi public domain. : - agrarian reform beneficiaries with a substantial number of
t (7) Agriculture Graduates. — Graduates of agricultur. al
schools who are landless shall be assisted by the government
through the DAR, in their desire to own and till agricultural
lands.
Nith: NOTES:
Opening of agrarian settlements in special areas
nyt Farm settlements may be opened up in the following areas:
(a) Logging and mining concessions — farm settlementg
Ht
ane (b) Sparsely occupied public agricultural lands
farm settlement may be opened up here for qualified landlesg
ne) people pursuant to an organized program to ensure orderly§
lay development.
a
YP CHAPTER XI
PROGRAM IMPLEMENTATION
SECTION 41. The Presidential Agrarian Reform Council. —'
The Presidential Agrarian Reform Council (PARC) shall be}
composed of the President of the Philippines as Chairperson, ‘
the Secretary of Agrarian Reform as Vice-Chairperson and]
the following as members: Secretaries of the Departments,
of Agriculture; Environment and Natural Resources; Budget4
and Management; Interior and Local Government; Public{
Sec. 4 i WH, 42-43 CHAPTER 1 103
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
Works and Highways; Trade and Industry; Finance; and La-
E hor and Employment; Director-General of the National Eco-
jnomic and Development Authority; President, Land Bank of
E (he Philippines; Administrator, National Irrigation Adminis-
tration; Administrator, Land Registration Authority; and six -
; (6) representatives of affected landowners to represent Lu-
F won, Visayas and Mindanao; six (6) representatives of agrar-
| lan reform beneficiaries, two (2) each from Luzon, Visayas
F and Mindanao: Provided, That at least one (1) of them shall be
E from the indigenous peoples: Provided, further, That at least
F one (1) of them shall come from a duly recognized national
y Organization of rural women or a national organization of
women members: Provided, finally, That at least twenty per-
wont (20%) of the members of the PARC shall be women but
in no case shall they be less than two (2).
| SECTION 42. Executive Committee. — There shall be an
Kxecutive Committee (EXCOM) of the PARC composed of the
Secretary of the DAR as Chairman, and such other members
aus the President may designate, taking into account Article
XIII, Section 5 of the Constitution. Unless otherwise directed
by the PARC, the EXCOM may meet and decide on any and
all matters in between meetings of the PARC; Provided,
however, That its decisions must be reported to the PARC
immediately and not later than the next meeting.
SECTION 43. Secretariat. — A PARC Secretariat is hereby
-
established to provide general support and coordinative
services such as inter-agency linkages; program and project
appraisal and evaluation and general operations monitoring
j
for the PARC.
The Secretariat shall be headed by the Secretary of
Agrarian Reform who shall be assisted by an Undersecretary
and supported by a staff whose composition shall be
determined by the PARC Executive Committee and whose
compensation shall be chargeable against the Agrarian
Reform Fund. All officers and employees of the Secretariat
shall be appointed by the Secretary of Agrarian Reform.
145As amended by R.A. No. 9700.
 AGRARIAN LAW AND SOCIAL LEGISLATION Secs. 4244 W 44 CHAPTER 1 105
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

NOTES: (b) at least one (1) should come from a duly recognized
national organization of rural women or a national organization
Composition of the Presidential Agrarian Reform Council (PA\ of agrarian reform beneficiaries with a substantial number of
The PARC is composed of the following: women members.
Chairperson — President of the Philippines At least 20% of the members of the PARC should be women but
E in no case should they be less than two (2).
Vice-Chairperson — Secretary of Agrarian Reform
Members — Secretary of — the Department of Agricult SECTION 44. Provincial Agrarian Reform Coordinating
—the Department of Enviroff j @ummittee (PARCCOM). — A Provincial Agrarian Reform
ment and Natural Resources 4 [= Qoordinating Committee is hereby created in each province,
mposed of a Chairman, who shall be appointed by the
— the Department of Budget ail resident upon the recommendation of the EXCOM, the
Management } Provincial Agrarian Reform Officer as Executive Officer,
— the Department of Interior al a ah F and one (1) representative each from the Departments of
Local Government— | Agriculture, and of Environment and Natural Resources
F and from the LBP; one (1) representative each from existing
and Highways’ | farmers’ organizations, agricultural cooperatives and
f fion-governmental organizations in the province; two (2)
— the Department of Trade aril — representatives from landowners, at least one (1) of whom
Industry shall be a producer representing the principal crop of the
' — the Department of Finance f province, and two (2) representatives from farmer and
Te —the Department of Labor ang _
. farmworker or beneficiaries, at least one (1) of whom shall
be a farmer or farmworker representing the principal crop
Employment
ll
: of the province, as members: Provided, That in areas where
— Director-General — National Economic a there are cultural communities, the latter shall likewise
Development Authority - have one (1) representative.
C = President — Land Bank of the Philippines The PARCCOM shall coordinate and monitor the
3 implementation of the CARP in the province. It shall provide
ienH
ib
— Administrator — National Irrigation Admin
tration wd
{information on the provisions of the CARP, guidelines issued
by the
— Administrator — Land Registration Authority!
Mis PARC and on the progress of the CARP in the province;
— 6 representatives of affected landowners to rept in addition, it shall:
resent Luzon, Visayas and Mindanao;
a) Recommend to the PARC the following:
— 6 representatives of agrarian reform benefic
1) Market prices to be used in the determi-
ries, two (2) each from Luzon, Visayas and M ns
danao:
nation of the profit sharing obligation of agricul-
tural entities in the province;
Of the 6 representatives of the agrarian reform beneficiaries: q
2) Adoption of the direct payment scheme
(a) at least one (1) should be from the indigenous peo between the landowner and the farmer and/
ples; or farmworker beneficiary: Provided, that the
 106 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 4 ie Ab CHAPTER 1 107
4 THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

amount and terms of payment are not more but 2 representatives from — landowners, at least one (1)
densome to the agrarian reform beneficiary thag of whom shall be a producer
under the compulsory coverage provision of th¢ representing the principal crop
CARL: Provided, further, That the agrarian refo: of the province
beneficiary agrees to the amount and terms of pa:
ment: Provided, furthermore, That the DAR shal 2 representatives from — farmer and farmworker or
act as mediator in cases of disagreement betwee beneficiaries, at least one (1)
the landowner and the farmer and/or farmworke} of whom shall be a farmer or
beneficiary; Provided, finally, That the farmer and farmworker representing the
or farmer beneficiary shall be eligible to borro¥ principal crop of the province
f from the LBP an amount equal to eighty-five pe 1 representative from — cultural communities, in
“a cent (85%) of the selling price of the land that the¥ % areas where there are cultural
£ have acquired; " communities
; 3) Continuous processing of applications faj
te lease back arrangements, joint-venture agreementg SECTION 45. Province-by-Province Implementation. — The
' and other schemes that will optimize the operati ng LA PARC shall provide the guidelines for the province-by-
| size for agricultural production and also promot | province implementation of the CARP, taking into account
. both security of tenure and security of income t¢ fF the peculiarities and needs of each place, kind of crops
Me | farmer beneficiaries: Provided, That lease baci needed or suited, land distribution workload, beneficiaries
rt arrangements should be the last resort. ‘ f (evelopment activities and other factors prevalent or
E obtaining in the area. In all cases, the implementing agencies
wari NOTES: at the provincial level shall promote the development of
. Composition of the PARCCOM identified ARCs without neglecting the needs and problems
‘Ail . co “% of other beneficiaries. The ten-year program of distribution
Ht i Chairman — appointed by the Presidenj of public and private land in each province shall be adjusted
- upon the recommendation q from year to year by the province’s PARCCOM in accordance
(tute the EXCOM { with the level of operations previously established by
Executive Officer — Provincial Agrarian Refornj : the PARC, in every case ensuring that support services
\" Officer f ure available or have been programmed before actual
f
Iifs 1 representative each from — the Department of Agricultur (llstribution is effected.
Pay — the Department of Environ NOTES:
ment and Natural Resources ‘4
Manner of implementation of the Agrarian Reform Program
— the Land Bank
Section 45 of the Comprehensive Agrarian Reform Law man-
1 representative each from — existing farmers’ organiza
(utes the implementation of the agrarian reform program on a
. tions, agricultural cooperatives
province-by-province basis because of the peculiarities and needs
and non-governmental organi+
zations in the province
of each province, such as the kind of crops needed or suited, land

“46As amended by R.A. No. 7905. 475 amended by R.A. No. 7906.
108 AGRARIAN LAW AND SOCIAL LEGISLATION a, 4 CHAPTER 1 109
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

distribution workload, and other factors prevalent or obtaining} SECTION 47. Functions of the BARC. — (1) In addition to
the area. thone provided in Executive Order No. 229, the BARC shall
pauve the following functions:
The PARCCOM coordinates and monitors the implementatig
of the agrarian reform program in the province. : (a) Mediate and conciliate between parties in- —
volved in an agrarian dispute including matters related
to tenurial and financial arrangements;
SECTION 46. Barangay Agrarian Reform Committee (BARG
— Unless otherwise provided in this Act, the provisions ¢ (b) Assist in the identification of qualified benefi-
Executive Order No. 229 regarding the organization of ty ciaries and landowners within the barangay;
Barangay Agrarian Reform Committee (BARC) shall be f (c) Attest to the accuracy of the initial parcellary
effect. i mapping of the beneficiary’s tillage;
(d) Assist qualified beneficiaries in obtaining
NOTES: credit from lending institutions;
Composition of the Barangay Agrarian Reform Council (BARC) ’ (e) Assist in the initial determination of the value
of the land;
The Barangay Agrarian Reform Council (BARC) is composed G
representatives coming from the following: (f) Assist the DAR representatives in the prepara-
tion of periodic reports on the CARP implementation
(a) Farmers and farmworkers beneficiaries; for submission to the DAR;
(b) Farmer and farmworkers non-beneficiaries; (g) Coordinate the delivery of support services to
(c) Agricultural cooperatives; beneficiaries; and

(d) Other farmer organizations; (h) Perform such other functions as may be
assigned by the DAR.
(e) Barangay Council;
(2) The BARC shall endeavor to mediate, conciliate and
(f) Non-government organizations; settle agrarian disputes lodged before it within thirty (30)
days from its taking cognizance thereof. If after the lapse
(g) Landowners;
of the thirty-day period, it is unable to settle the dispute, it
(h) Land Bank; whall issue a certificate of its proceedings and shall furnish a
copy thereof upon the parties within seven (7) days after the
Gi) Official of the Department of Agriculture assigned expiration of the thirty-day period.
_ the barangay;

(j) Official of the Department of Environment anf NOTES:

Natural Resources official assigned to the area; and 4]
Functions of the BARC under Executive Order No. 229
(k) Department of Agrarian Reform Technologis The functions of the BARC under Section 19 of Executive Order
assigned to the area who shall act as the Secretary." ; No. 229 are the following:
(a) To participate and give support to the implementa-
tion of programs on agrarian reform;
(b) To mediate, conciliate or arbitrate agrarian conflicts
“48Sec. 19, E.O. No. 229 dated July 22, 1987. and issues that are brought to it for resolution; and
 110 AGRARIAN LAW AND SOCIAL LEGISLATION Secs. 4 a
(c) To perform such other functions that the PA z
its Executive Committee, or the DAR Secretary may dele
from time to time.
SECTION 48. Legal Assistance. — The BARC or ag
member thereof may, whenever necessary in the exercise}
any of its functions hereunder, seek the legal assistance!
the DAR and the provincial, city, or municipal governmen|
NOTES:
Legal assistance
In the exercise of its mediation or conciliation functions, tf
Barangay Agrarian Reform Council can ask for legal advice from t}
Department of Agrarian Reform to ensure that its proposed soluti¢
to the dispute is within the bounds of law.
SECTION 49. Rules and Regulations. — The PARC and ti
DAR shall have the power to issue rules and regulation
whether substantive or procedural, to carry out the objec
and purposes of this Act. Said rules shall take effect ten (1
days after publication in two (2) national newspapers ¢
general circulation.
NOTES:
Rule-making power of DAR and PARC
Wi
This provision authorizes the Department of Agrarian Reforg
| Is and the Presidential Agrarian Reform Council to promulgate rul 4
ae and regulations to carry out the purposes of the agrarian reforg
fabs program. In the exercise of their rule-making power, the Departmey
Med of Agrarian Reform and the Presidential Agrarian Reform Coung
cannot enlarge or amend the provisions of the statute.
CHAPTER XII
ADMINISTRATIVE ADJUDICATION
SECTION 50. Quasi-Judicial Powers of the DAR. — Tt
DAR is hereby vested with primary jurisdiction to determin
and adjudicate agrarian reform matters and shall hav
exclusive original jurisdiction over all matters involvin
. . AO CHAPTER 1 111
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
Implementation of agrarian reform, except those falling
é (lor the exclusive jurisdiction of the Department of
Agriculture (DA) and the DENR.
It shall not be bound by technical rules of procedure
«] evidence but shall proceed to hear and decide all cases,
inputes or controversies in a most expeditious manner,
ploying all reasonable means to ascertain the facts of every
wo in accordance with justice and equity and the merits
if the case. Toward this end, it shall adopt & uniform rule
f procedure to achieve a just, expeditious and inexpensive
termination of every action or proceeding before it.
It shall have the power to summon witnesses, administer
ths, take testimony, require submission of reports, compel
« production of books and documents and answers to
interrogatories and issue subpoena, and subpoena duces
"4m and to enforce its writs through sheriffs or other
uly deputized officers. It shall likewise have the power to
punish direct and indirect contempts in the same manner
Eand subject to the same penalties as provided in the Rules
F of Court.
: Responsible farmer leaders shall be allowed to represent
E themselves, their fellow farmers, or their organizations in any
: proceedings before the DAR: Provided, however, That when
E (hore are two or more representatives for any individual or
F (roup, the representatives should choose only one among
E themselves to represent such party or group before any DAR
F proceedings.
F Notwithstanding an appeal to the Court of Appeals, the
F decision of the DAR shall be immediately executory except
| # decision or a portion thereof involving solely the issue of
E just compensation.”
| NOTES:
; Two-Fold jurisdiction of the Department of Agrarian Reform (DAR)
3 The jurisdiction of the DAR under Section 50 of the Com-
, prehensive Agrarian Reform Law is two-fold, fo wit:
Ag amended by R.A. No. 9700,
 112 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 1 113
) HO
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

* The first is essentially executive and pertains to : (c) administer oaths;

enforcement and administration of the laws, carrying ther
into practical operation and enforcing their due observanc d (d) take testimony;

* The second is judicial and involves the determinatioj (e) issue subpoena ad testificandum or duces tecum;
of rights and obligations of the parties.» (f) issue writs of execution; and
Therefore, a line must be drawn between the functi ions 0: f 13 punish direct or indirect contempt.
of the D. (g)
DAR Regional , Office and the functions
Board (DARAB). Thus: e DAR Adjudica
@ Provincial Agrarian Reform Adjudicators (PARAD)
° The function of the DAR Regional Office concerns
| Ingeneral, the PARAD has primary and exclusive jurisdiction
implementation of agrarian reform laws.
» hoar and decide agrarian disputes. Agrarian dispute is defined in
* The functions of the DAR Adjudication Boar d gnix manner:
including the Regional Agrarian Reform Adjudicators (RARATH
or Provincial Agrarian Reform Adjudicators (PARAD) conce al “Agrarian dispute refers to any controversy relating to
adjudication of agrarian reform cases. i tenurial arrangements, whether leasehold, tenancy, steward-
ship or otherwise, over lands devoted to agriculture, including ra
The first is essentially executive because it: pertains to thi disputes concerning farmworkers’ associations or representa-
enforcement and administration of the laws, carrying them int tion of persons in negotiating, fixing, maintaining, changing, or
practical operation and enforcing their due observance. The seconé seeking to arrange terms or conditions of such tenurial arrange-
is judicial in nature, involving as it does the determination of right{ ments.
and obligations of the parties. “ It includes any controversy relating to compensation of
lands acquired under this Act and other terms and conditions of
wth The quasi-judicial jurisdiction of the DAR transfer of ownership from landowners to farmworkers, tenants
and other agrarian reform beneficiaries, whether the disputants
The quasi-judic
asi-judicial power of the DAR, . which it exercis es thro oh stand in the proximate relation of farm operator and beneficiary,
the DAR Adjudication Board (DARAB), embraces the following: landowner and tenant, or lessor and lessee.”
(a) Primary jurisdiction to determine and adjudica’ |
ihe HP : reform
agrarian matters; and It must be noted that not every case involving an agricultural
Fland automatically makes it an agrarian dispute upon which the
(b) . Appellate jurisdiction over orders and decisiisions of; E ARAB has jurisdiction. The mere fact that the land is agricultural
the Agrarian Reform Adjudicators. ‘ Edvos not ipso facto make the possessor an agricultural lessee or
Etenant. Tenancy is not a purely factual relationship dependent
“Pho The quasi-judicial powers of the DAR on what the alleged tenant does upon the land. It is also a legal
In the exercise of its quasi-judicial powers, the DARAB F telationship. The intent of the parties, the understanding when the
ig
authorized to: rmer is installed, and their written agreements, provided these are
4
ymplied with and are not contrary to law, are even more important.
(a) hear and decide cases within its jurisdiction; he law states that an agrarian dispute must be a controversy
(b) summon witnesses; E ruluting to a tenurial arrangement over lands devoted to agriculture.
uch arrangement may be leasehold, tenancy or stewardship. If
18Soriano v. Bravo, 638 SCRA 403,
Cabral v. Court of Appeals, G.R. No. 101974, July 12, 2001. TS
193Sec, 3 (d), Comprehensive Agrarian Reform Law.
162G, . 2
ec. 2, Rule II, 2009 DARAB Rules of Procedure.
114 AGRARIAN LAW AND SOCIAL LEGISLATION is, fi CHAPTER 1 115
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

the occupancy and possession was by mere tolerance, there isf q
agrarian dispute to speak of.1%
Specifically, the PARAD has primary and exclusive jurisdictf
determine and adjudicate matters pertaining to:
Bunk, and payments for lands awarded under agrarian laws,
including payment for residential, commercial, and industrial
lots within the settlement and resettlement areas under the
udministration and disposition of the DAR; :

(a) Rights and obligations of persons engaged in ¢] (i) Boundary disputes over lands under the adminis-
management, cultivation, and use of all agricultural lari (ration and disposition of the DAR and the Land Bank, which
covered by the Comprehensive Agrarian Reform Law and otf were transferred, distributed, or sold to tenant-beneficiaries
related agrarian laws; und covered by deeds of sale, patents, and certificates of title;
(b) Preliminary administrative determination of ré (j) Cases previously falling under the original and
sonable and just compensation of lands acquired under Pre] exclusive jurisdiction of the defunct Court of Agrarian Relations
dential Decree No. 27 and the Comprehensive Agrarian under Section 12 of Fresidential Decree No. 946 except those
form Program; cases falling under the proper courts or other quasi-judicial
7
bodies; and
(c) Annulment or rescission of lease contracts or d
of sale of lands under the administration and dispos (k) Such other agrarian cases, disputes, matters or
of the DAR or Land Bank, including amendment concerns referred to it by the Secretary of the Department of
of titles:
agricultural lands under the administration and dispositig Agrarian Reform.
of the DAR, Land Bank, as well as Emancipation Pateng
NOTE: Section 12 of Presidential Decree No. 946 provides as
issued under Presidential Decree No. 266, Homestead Patent
E Allows:
Free Patents, and miscellaneous sales patents to settlers{
settlement and re-settlement areas under the administratig “SECTION 12. Jurisdiction over Subject Matter. — The
and disposition of the DAR; Courts of Agrarian Relations shall have original and exclusive
jurisdiction over:
(d) Ejectment and dispossession of tenants or 1]
holders; easy a) Cases involving the rights and obligations of
persons in the cultivation and use of agricultural land except
(e) Sale, alienation, pre-emption, and redemption those cognizable by the National Labor Relations Commission;
agricultural lands under the coverage of the Comprehensi Provided, That no case involving the determination of rentals
Agrarian Reform Law, as amended or other agrarian laws; over any kind of tenanted agricultural land shall be taken
cognizance of by the Courts of Agrarian Relations unless there
(f) Correction, partition, secondary and subsequeif has been a prior fixing of provision rental by the Department of
issuances such as reissuance of lost or destroyed owner’ Agrarian Reform, except that the tenant-farmer may directly
duplicate copy and reconstitution of Certificates of Lang bring the case for immediate determination by the Courts of
Ownership Award and Emancipation Patents which ar Agrarian Relations;
registered with the Land Registration Authority; 4 b) Questions involving rights granted and obligations
(g) Review of leasehold rentals and fixing of disturbang j imposed by laws, Presidential Decrees, Orders, Instructions,
Rules and Regulations issued and promulgated in relation to
compensation;
the agrarian reform program; Provided, however, That matters
(h) Collection of amortization payments, foreclosu involving the administrative implementation of the transfer of
d
and similar disputes concerning the functions the land to the tenant-farmer under Presidential Decree No. 27
of the Land
and amendatory and related decrees, orders, instructions, rules

‘4Tsidro v. Court of Appeals, 216 SCRA 503.

155Sec, 1, Rule II, 2009 DARAB Rulos of Procedure.
 AGRARIAN LAW AND SOCIAL LEGISLATION ho CHAPTER 1 117
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

and regulations, shall be exclusively cognizable by the Secretary nettlement and resettlement areas under the administration
of Agrarian Reform, namely: und disposition of the Department of Agrarian Reform;
(1) classification and identification of landhold- ] d) Cases involving collection of amortizations on pay-
ings; ments for farm machineries and implements distributed and
(2) identification of tenant-farmers and landown- nold by the Department of Agrarian Reform and the Land
§
ers, and determination of their tenancy relationship; Bank of the Philippines to tenant-farmers, agricultural lessees,
xottlers, owner-cultivators, amortizing owner-cultivators, the
(8) parcellary mapping; Samahang Nayon, compact farms, farmers’ cooperatives, and
(4) determination of the total production and 4 other registered farmers’ associations or organizations, as well as
value of the land to be transferred to the tenant-farmer; payment for indebtedness of settlers by reason of the assistance
yiven them by the Department of Agrarian Reform in the form
(5) issuance, recall or cancellation of certificates of | of seeds, work animals, houses, subsistence, transportation,
land transfer in cases outside the purview of Presidential ’ medicines, farm implements, tools, and the like;
Decree No. 816;
e) Cases involving collection of amortizations on
(6) right of retention of the landowner; payments for irrigation systems and/or water rights grants, as
(7) _ right of the tenant-farmer to a home lot; well as irrigation fees, charge and/or rentals;
(8) disposition of the excess area in the tenant’s 4 f) Cases involving collection of rentals on agricultural
farmholding; lands leased by the Department of Agrarian Reform or Land
Bank and collection of agricultural loans granted to tenant-
(9) change of crop from rice and/or corn to any
farmers, agricultural lessees, settlers, owner-cultivators, amor-
other agricultural crop;
tizing owner-cultivators, the Samahang Nayon, compact farms,
(10) issuance of certification for the conversion of farmers’ cooperatives and other registered farmer associations
tenanted rice and/or corn land for residential, commercial or organizations;
industrial, or other urban purposes, it being understood
He g) Cases involving the annulment or rescission of lease
that the authority to issue certificates for conversion of
other kinds of tenanted agricultural land for the same —4
contracts and deeds of sale, and the cancellation or amendment of
titles pertaining to agricultural lands under the administration
i’ purposes remains vested in the Secretary of Agrarian
Reform;
and disposition of the Department of Agrarian Reform and
the Land Bank, as well as emancipation patents issued under
(11) transfer, surrender or abandonment by the Presidential Decree No. 266, homestead patents, free patents,
Me tenant-farmer of his farmholding and its disposition; and and miscellaneous sales patents to settlers in settlement and
(12) increase of tillage area by a tenant-farmer; resettlement areas under the administration and disposition of
the Department of Agrarian Reform;
aye Provided, further, That the decision of the Secretary
h) Cases involving boundary disputes over lands
in of Agrarian Reform may be appealed to the. President of the
Philippines. under the administration and disposition of the Department of
Agrarian Reform and the Land Bank, which are transferred,
UR si

c) Cases involving the collection of amortizations on distributed and/or sold to tenant-beneficiaries and are covered
payments for lands acquired under Presidential Decree No. by deeds of sale, patents and certificates of titles;
27, as amended, Commonwealth Act Numbered twenty, as
amended, Commonwealth Act Numbered five hundred thirty- D Cases arising out of, or in connection with, member-
nine, as amended, Republic Act Numbered eleven hundred and ship in the Samahang Nayon, compact farms, farmers’ coopera-
sixty, ds amended, Republic Act Numbered fourteen hundred tives and other registered farmers’ associations or organizations,
as amended, Republic Act Numbered
and the rights and obligations arising from such membership;
thirty-eight hundred
and forty-four, as amended, and other related laws, decrees > Cases arising directly or indirectly between corpo-
orders, instructions, rules and regulations, as well as payment rations or partnerships covered by General Order No. 47 and
for residential, commercial and industrial lots within the tenant-farmers, agricultural lessees, settlers, owner-cultiva-
 118 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 1 119
‘''HE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

tors, amortizing owner-cultivators, the Samahang Nayon, com-4 ieal from decisions of the PARAD
pact farms, farmers’ cooperatives, and other registered farmers’ {
associations or organizations, and between such corporation or§ F Hucisions of the PARAD are appealable to the DAR Adjudication
partnerships and other corporations, partnerships, associations 4 (DARAB) within fifteen (15) days.
or single proprietorships where the question involved affects the’ j
rights and interests of the persons herein mentioned; j Regional Agrarian Reform Adjudicators (RARAD)
k) Cases involving the determination of title to agri-} E lho RARAD is the Executive Adjudicator in the Region. It is
cultural lands where this issue is raised in an agrarian dispute |
ad with the following functions:
by any of the parties or a third person in connection with the!
possession thereof for the purpose of preserving the tenure of 3 4 (a) Administrative supervision over the PARAD includ-
the agricultural lessee or actual tenant-farmer and effecting | ing the monitoring of cases in the Region,
the ouster of the interloper or intruder in one and the same’
proceeding; ; Ff (b) Conduct hearing and adjudication of agrarian dis-
1) Cases involving the sale, alienation, mortgage fore- | putes within the Region;
closure, pre-emption and redemption of tenanted ‘agricultural | (c) Conduct hearing on the following:
land; {
(i) Cases that cannot be handled by the PARAD
m) Cases involving expropriation of all kinds of land in |
furtherance of the agrarian reform program; j on account of inhibition, disqualification or when there is
no PARAD designated in the locality;
n) Expropriation proceedings for public purpose of §
all kinds of tenanted agricultural land, whether instituted by % (ii) Matters of such complexity and sensitivity
the State, its political subdivisions and instrumentalities, or ‘ that the decision thereof would constitute an important
corporations and entities authorized by laws to expropriate;
precedent affecting regional interest as may be
0) Cases involving acquisition by the Department recommended by the concerned RARAD and approved by
MNS of Agrarian Reform of irrigation systems and/or water rights 4 the Board; and
grants for the benefit of tenant-farmers, agricultural lessees, -

MN settlers, owner-cultivators, amortizing owner-cultivators, the

Samahang Nayon, compact farms, farmers’ cooperatives, and
other registered farmers’ associations or organizations, the
!
§
Gii) Preliminary determination of just compensa-
tion of lands valued at P10M to P50M.
Department of Agrarian Reform being hereby vested with the } (iv) Conduct hearing on applications for the
Hah! authority to construct irrigation systems and apply for water 4 issuance of a writ of preliminary injunction or temporary
rights grants for the purpose herein provided; 4
| a4, restraining order and such other cases which the Board
ye p) Ejectment proceedings instituted by the Department 4 may assign."
. | hee of Agrarian Reform and the Land Bank involving lands under |
their administration and disposition, except urban properties - y RAB has no jurisdiction over matters pertaining to ownership
Pe hae
belonging to the Land Bank; i
q) Cases involving violations of the penal provisions When the controversy pertains to ownership, there is no
|
of Republic Act Numbered eleven hundred and ninety-nine, as 4 arian dispute, hence, the matter is beyond the jurisdiction of
amended, Republic Act Numbered thirty eight hundred and | DARAB. As held by the Supreme Court in the case of Heirs of
forty-four, as amended, Presidential Decrees and laws relating : lyrman Rey Santos v. Court of Appeals, G.R. No. 109992, March 7,
to agrarian reform; Provided, however, That violations of the 3
said penal provisions committed by any Judge shall be tried by |
the courts of general jurisdiction; and
r) Violations of Presidential Decrees Nos. 815 and ''6Sec, 2, Rule II; Sec. 1, Rule XIV, 2009 DARAB Rules of Procedure.
816.” 's78ec¢. 2, Rule II, 2009 DARAB Rules of Procedure.
 120, — AGRARIAN LAW AND SOCIAL LEGISLATION
“Petitioners and private respondent have no tenurialyi4
leasehold, or any agrarian relations whatsoever that could have 4
brought this controversy under the ambit of the agrarian reforni|
laws. Consequently, the DARAB has no jurisdiction over the'%
controversy and should not have taken cognizance of private
respondent’s petition for injunction in the first place.”
DARAB has no jurisdiction over retention or exemption issu 4
Issues pertaining to retention rights of the landowner | {
the exclusion or exemption from agrarian reform coverage are}
cognizable by the DARAB, but by the Secretary of the Departm
of Agrarian. Reform because they pertain to administraj
implementation of agrarian law." 4 between the parties. Obviously, the issue of a right of way or
DARAB has no jurisdiction over right of way issues
The DARAB cannot entertain a petition for right of way ff
by agrarian reform beneficiaries against an adjoining landov
because the issue of a right of way or easement over private prop @|
without tenancy relations is outside the jurisdiction of the DAR ‘
LAGUNA ESTATES V. COURT OF APPEALS
: G.R. No. 119357
July 5, 2000
FACTS: Some 234.76 hectares of agricultural land
situated in Barangay Casile, Cabuyao,
Laguna belonging to the Sta. Rosa Realty Development
ie Corporation (“SRRDC,” hereafter) was placed by the Department
of Agrarian Reform (DAR) under the compulsory acquisition
rl
scheme of the Comprehensive Agrarian Reform Program
(CARP), and subsequently, Certificates of Land Ownership
ee Award (CLOA’s) were issued to the farmers-beneficiaries.
YBa The aforesaid agricultural lands are isolated and/or
separated from the rest of the Municipality of Cabuyao, and
the only passage way or access road leading to said private
respondents’ agricultural lands is the privately owned road
network situated within the premises of Laguna Estate. The
subject road network is open to the public. But after agrarian
reform beneficiaries were awarded the aforesaid agricultural
land, Laguna Estate prohibited and denied the agrarian reform
168Sta. Ana v. Carpo, 572 SCRA 463; Magno v. Francisco, 616 SCRA 402.
CHAPTER 1 121
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
E beneficiaries from utilizing the subject road network, thereby
j. preventing the ingress to, and egress from, Bgy. Casile where
; the farmlands awarded to private respondent are located.
On petition by the agrarian reform beneficiaries, the
DARAB ordered Laguna Estate to give a right of way over the
wubject road network owned by Laguna Estate.
ISSUE: Whether or not the DARAB has jurisdiction to
yrant the beneficiaries of the agrarian reform program a right of
- way over Laguna Estate’s network of private roads intended for
their exclusive use.
HELD: DARAB has no jurisdiction. For DARAB to have
) jurisdiction over a case, there must exist a tenancy relationship
easement over private property without tenancy relations is
outside the jurisdiction of the DARAB. This is not an agrarian
{asue. Jurisdiction is vested in a court of general jurisdiction:
AB has no jurisdiction to identify and classify landholdings
agrarian reform coverage
The jurisdiction to classify and identify landholdings for agrar-
reform coverage is reposed in the Secretary of Agrarian Reform
not with the DARAB because the matter of agrarian reform
erage is strictly a part of the administrative implementation of
agrarian reform program.’
b RAB has no jurisdiction over matters pertaining to identification
selection of beneficiaries
4
Identification and selection of agrarian reform beneficiaries are
i futters involving administrative implementation of the agrarian
form program. Therefore, the matter is cognizable by the Secretary
Agrarian Reform and not by the DARAB. Hence, any party who
ims to have priority over those who have been identified by the
unicipal Agrarian Reform Officer (MARO) should file his protest
{th the MARO or Provincial Agrarian Reform Officer (PARO)
- nd later to the Department of Agrarian Reform, but not with the
ARAB.
| el
‘sAlangilan Realty v. Office of the President, 616 SCRA 633.
Concha v. Rubio, 617 SCRA 223,
 122 AGRARIAN LAW AND SOCIAL LEGISLATION M452 CHAPTER 1 123
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

SECTION 50-A. Exclusive Jurisdiction on Agrarian Dis} lsinins the case. Instead, it should refer the matter to the DAR for
~ No court or prosecutor’s office shall take cognizand § jurpose of determining whether an agrarian dispute exists.
cases pertaining to the implementation of the CARP ex
| ‘lhe aggrieved party has fifteen (15) days to appeal the ruling
those provided under Section 57 of Republic Act No. @
PAR to the:
as amended. If there is an allegation from any of the pag
that the case is agrarian in nature and one of the parties (a) Regional Trial Court — For cases referred by the
farmer, farmworker, or tenant, the case shall be automati q Municipal Trial Court or the prosecutor’s office; and
referred by the judge or the prosecutor to the DAR wk
(b) Court of Appeals — For cases referred by the
shall determine and certify within fifteen (15) days qja
Regional Trial Court.
referral whether an agrarian dispute exists: Provided, ¥
from the determination of the DAR, an aggrieved party 5
have judicial recourse. In cases referred by the munié gal personality of unregistered associations cannot be chal-
Miged
trial court and the prosecutor’s office, the appeal shal
with the proper regional trial court, and in cases refer Courts can still entertain complaints or petitions filed by
by the regional trial court, the appeal shall be to the Cd di registered associations or cooperatives composed of agrarian
of Appeals. q Mfirm beneficiaries despite the fact that they are not incorporated
In cases where regular courts or quasi-judicial ba tlh the Securities and Exchange or registered with the Cooperative
Bevalopment Authority.

iie
have competent jurisdiction, agrarian reform beneficia
or identified beneficiaries and/or their associations sf
have legal standing and interest to intervene concert
their individual or collective rights and/or interests ur
ee the CARP.
The fact of non-registration of such associations
the Securities and Exchange Commission, or Cooperat
Development Authority, or any concerned govern my
agency shall not be used against them to deny the existeg
ch of their legal standing and interest in a case filed before sq
courts and quasi-judicial bodies.“
Nn
iMuai NOTES:
pl
Agrarian case directly
filed in court — action to be taken
The primary jurisdiction to determine and adjudicate agral
reform matters is vested with the Department of Agrarian Ref Of
Should a party directly file a case with the regular court andg
pleading alleges that the case is agrarian in nature and one of?
parties is a farmer, farmworker, or tenant, the Court should!
. SECTION 51. Finality of Determination. — Any case or
putroversy before it shall be decided within thirty (30)
ayn after it is submitted for resolution. Only one (1) motion
fer reconsideration shall be allowed. Any order, ruling or
Mmacision shall be final after the lapse of fifteen (15) days from
Peccipt of a copy thereof.
NOTES:
| Judicial Review
; The aggrieved party can elevate the order or ruling of the DAR
W the Court of Appeals by way of a petition for review on certiorari
d Funder Rule 43 of the Rules of Court.
F SECTION 582. Frivolous Appeals. — To discourage frivolous
(Or dilatory appeals from the decisions or orders on the
‘local or provincial levels, the DAR may impose reasonable
penalties, including but not limited to fines or censures upon
F erring parties.

161As amended by R.A. No. 9700.

 124 AGRARIAN LAW AND SOCIAL LEGISLATION , 64-55 CHAPTER 1 125
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

NOTES: or Agrarian Reform Program Technologist certifies the non-

Frivolous or dilatory appeals oxistence of the BARC or the inability of the BARC to convene.”

As to what is a frivolous or dilatory appeal is a factual matt RC Certification not needed in judicial determination of just
which should be decided according to the surrounding facts af empensation
circumstances.
The BARC is needed only for cases filed before the DARAB.
4 In not needed in petitions filed with the special agrarian courts
SECTION 53. Certification of the BARC. — The DAR shd
f determination of just compensation, because the jurisdiction
not take cognizance of any agrarian dispute or controver
unless a certification from the BARC that the dispute has be@ Apecial Agrarian Courts over petitions for determination of just
submitted to it for mediation and conciliation without gmpensation is original and exclusive.
ag
success of settlement is presented: Provided, however,
if no certification is issued by the BARC within thirty (3¢ CHAPTER XIiilI
days after a matter or issue is submitted to it for mediati JUDICIAL REVIEW
or conciliation, the case or dispute may be brought befog
the PARC. i SECTION 54. Certiorari. — Any decision, order, award or
{
4
ling of the DAR on any agrarian dispute or on any matter
NOTES: Sertaining to the application, implementation, enforcement,
i interpretation of this Act and other pertinent laws on
Prerequisite to filing of a complaint before the DARAB Agrarian reform may be brought to the Court of Appeals
The Department of Agrarian Reform Adjudication Boag certiorari except as otherwise provided in this Act within
(DARAB) or its Adjudicators shall not take cognizance of af fteen (15) days from the receipt of a copy thereof.
agrarian case, dispute, or controversy, unless a certification fro} . The findings of fact of the DAR shall be final and
the Barangay Agrarian Reform Committee (BARC) of the barangg pnclusive if based on substantial evidence.
where the land involved is located is presented, to the effect t 1 :
the dispute has been submitted to it for mediation or conciliatig NOTES:
without any success or settlement. .
@ remedy from an adverse ruling of the DAR
However, BARC certification is not necessary in the followii
cases: “ 4 The remedy from an adverse ruling of the DAR is to file a
(a) where the issue involves the valuation of land 1 petition for review on certiorari under Rule 43 of the Rules of Court
determine just compensation for its acquisition; FWithin fifteen (15) days from notice of the ruling.

(b) where one party is a public or private corporatiog SECTION 55. No Restraining Order or Preliminary Injunction.
partnership, association or juridical person, or a public officg _» Except for the Supreme Court, no court in the Philippines
or employee and the dispute relates to the performance of hi rphall have jurisdiction to issue any restraining order or
official functions; 4 eWrit of preliminary injunction against the PARC, the DAR,
. (c) where the Secretary of the Department of Agrarig or any of its duly authorized or designated agencies in
Reform directly refers the matter to the DARAB or Adjudicatg fany case, dispute or controversy arising from, necessary
or FW, or in connection with the application, implementation,
(d) where the Municipal Agrarian Reform Officer or, j
his absence, the Senior Agrarian Reform Program Technologi sige, 1, Rule III, 2009 DARAB Rulos of Procedure.
 126 AGRARIAN LAW AND SOCIAL LEGISLATION
enforcement, or interpretation of this Act and other perting
laws on agrarian reform. (as amended by Republic Act }
9700)
NOTES:
The Import of the Law
What Section 55 seeks to prohibit is the issuance of restrain i
orders or injunctions against the proceedings before the Departnif
of Agrarian Reform or the Presidential Agrarian Reform Coun
re
program. But once a ruling is rendered and the aggrieved paj
brings the matter to the proper courts, the prohibition will no long
[Sr 6s Seg
or injunction as an ancillary relief, particularly when jurisdictiog
error or grave abuse of discretion was committed in rendering | t
ruling. i
SECTION 56. Special Agrarian Court. — The Supref
Court shall designate at least one (1) branch of the Regiog
Trial Court (RTC) within each province to act as a Spec CH
Agrarian Court.
The Supreme Court may designate more branches}
constitute such additional Special Agrarian Courts as mj
be necessary to cope with the number of agrarian cases{
each province. In the designation, the Supreme Court shi
give preference to the Regional Trial Courts which haj
3
been assigned to handle agrarian cases or whose presidi§
judges were former judges of the defunct Court of Agrar
Relations.
The Regional Trial Court (RTC) judges assigned to s&
courts shall exercise said special jurisdiction in addition}
the regular jurisdiction of their respective courts.
The Special Agrarian Courts shall have the powers ag
prerogatives inherent in or belonging to the Regional
Courts.
NOTES:
The RTC should be designated as Special Agrarian Court
The Regional Trial Court should specifically be designate
by the Supreme Court as a Special Agrarian Court. Regional Trié
) 17-58 CHAPTER 1 127
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
Bur'iy which have not been designated as special agrarian courts
Biol hear petitions for determination of just compensation even if
j Jund subject of such cases happen to be within their territorial
Sriadiction.
E SECTION 57. Special Jurisdiction. — The Special Agrarian
giuris shall have original and exclusive jurisdiction over
a} petitions for the determination of just compensation to
Andowners, and the prosecution of all criminal offenses
Miler this Act. The Rules of Court shall apply to all
pocvedings before the Special Agrarian Courts, unless
Builified by this Act.
The Special Agrarian Courts shall decide all appropri-
mie cases under their special jurisdiction within thirty (30)
Bays from submission of the case for decision.
r OTES:
ditional jurisdiction of the Special Agrarian Court (SAC)
: In addition to their vested jurisdiction, Special Agrarian Courts
Fire conferred original and exclusive jurisdiction to hear and decide:
(a) petitions for the determination of just compensation
to landowners; and
(b) criminal violations of the Comprehensive Agrarian
Reform Law.
. just compensation preliminarily determined by the DARAB should
filed with the SAC within fifteen (15) days from notice
Under Section 6, Rule XIX of the 2009 DARAB Rules of
Pyocedure, the party who disagrees with the decision of the
(judicator may contest the same by filing an original action with
hw Special Agrarian Court having jurisdiction over the subject
SECTION 58. Appointment of Commissioners. — The Special
» Agrarian Courts, upon their own initiative or at the instance
'93.and Bank v. Villegas, 616 SCRA 626.
 128 AGRARIAN LAW AND SOCIAL LEGISLATION Secs.’ ‘
of any of the parties, may appoint one or more commissioif
to examine, investigate and ascertain facts relevant to!
dispute, including the valuation of properties, and to fi
written report thereof with the court.
NOTES:
Objections to the Commissioner’s report
Under the Rule 32 of the Rules of Court, a party has text q
days within which to signify grounds for objections to the findf
Ae
of the report. Upon expiration of the 10-day period, the matter
be set for hearing after which the court will issue an order adoptf
See
modifying or rejecting the report in whole or in part. .
i
SECTION 59. Orders of the Special Agrarian Courts. —%
order of the Special Agrarian Courts on any issue, questi
ES
matter or incident raised before them shall be elevat
to the appellate courts until the hearing shall have t
—
terminated and the case decided on the merits.
NOTES:
Interlocutory Orders
Interlocutory orders of the Special Agrarian Court cannoff
challenged before the higher court until the case is decided on§
merits. The obvious purpose is to expedite the resolution of agra’
disputes.
SECTION 60. Appeals. — An appeal may be taken from{
decision of the Special Agrarian Courts by filing a petit
for review with the Court of Appeals within fifteen (15)¢ i
from receipt of notice of the decision; otherwise, the decis i
shall become final.
An appeal from the decision of the Court of Appealsg
from any order, ruling or decision of the DAR, as the eq
may be, shall be by a petition for review with the Supref
Court within a non-extendible period of fifteen (15) da
from receipt of a copy of said decision.
Ww, 59-60 CHAPTER 1 129
: THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
NOTES:
| lamedy from adverse decision of the Special Agrarian Court
|
3 The remedy from an adverse decision rendered by the Regional
FT'rinl Court acting as Special Agrarian Court is appeal via petition
[or review under Rule 43 of the Rules of Court, and not an ordinary
: ‘bppeal. This is so even if Special Agrarian Courts are not mentioned
t|n Rule 48 of the Rules of Court. As held in the case of Land Bank v.
FDe Leon, G.R. No. 143275, September 10, 2002:
“x x x the failure to mention Special Agrarian Courts in
Section 1 of Rule 43 of the Revised Rules of Civil Procedure
cannot be construed to mean that a petition for review is not
permissible for decisions of the said special courts. In fact, the
said Rule is not relevant to determine whether a petition for
review is the proper mode of appeal from decisions of Regional
Trial Courts in agrarian cases, that is, when they act as Special
Agrarian Courts. Section 1 of Rule 43 of the 1997 Revised Rules
of Civil Procedure merely mentions the Court of Tax Appeals and
the other different quasi-judicial agencies without exclusivity in
its phraseology. Such omission cannot be construed to justify
the contention that a petition for review is prohibited for
decisions on special agrarian cases inasmuch as the category is
for quasi-judicial agencies and tax courts to which the Regional
Trial Courts do not properly belong. Although Supreme Court
Circular No. 1-91 (precursor to Rule 43 of the Revised Rules
of Civil Procedure) included the decisions of Special Agrarian
Courts in the enumeration requiring petition for review, its
non-inclusion later on in Rule 43 merely signifies that it was
inappropriately classified as a quasi-judicial agency.
4 What is indisputable is that Section 60 expressly regards
a petition for review as the proper way of appealing decisions of
agrarian courts. So far, there is no rule prescribed by th[e] Court
expressly disallowing the said procedure.”
Remedy from adverse decision of the Court of Appeals
The remedy from an adverse decision of the Court of Appeals
E in appeal by certiorari with the Supreme Court under Rule 45 of the
Rules of Court, within fifteen (15) days from notice.
; The 15-day period is non-extendible
By express provision of Section 60 of the Comprehensive
;
Agrarian Reform law, the 15-day period within which to file petition
tor review with the Supreme Court is non-extendible.
 130 AGRARIAN LAW AND SOCIAL LEGISLATION Secs. 6144
SECTION 61. Procedure on Review. — Review by the Coug
of Appeals or the Supreme Court, as the case may be, shal
be governed by the Rules of Court. The Court of Appea I
however, may require the parties to file simultaneou
memoranda within a period of fifteen (15) days from notic
after which the case is deemed submitted for decision. 4
NOTES:
Applicability of the Rules of Court
On appeal, the procedures outlined in the Rules of Court wij
govern. To expedite the proceedings, the Court can just require th
parties to submit simultaneous memorandum within fifteen (19
days after which the case will be deemed submitted for decision.
SECTION 62. Preferential Attention in Courts. — All court
in the Philippines, both trial and appellate, shall give preg
erential attention to all cases arising from or in connectiof
with the implementation of the provisions of this Act. d the properties of the Government in foreign countries,
All cases pending in court arising from or in connectiog
with the implementation of this Act shall continue to b
heard, tried and decided into their finality, notwithstanding
the expiration of the ten-year period mentioned in Section §
hereof.
NOTES:
Expeditious disposition of agrarian cases is the objective
Considering the nature of an agrarian case, it is imperativg
that the case be decided with expeditiously for the benefit of bot
the agrarian reform beneficiary and the landowner who is entitled
to prompt payment of just compensation.
VP yoali] |
CHAPTER XIV
FINANCING
SECTION 63. Funding Source. - The amount needed t¢
further implement the CARP as provided in this Act, until
June 30, 2014, upon expiration of funding under Republiq
Act No. 8532 and other pertinent laws, shall be funded
from the Agrarian Reform Fund and other funding source
E flew, 63 CHAPTER 1 131
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
fln the amount of at least One hundred fifty billion pesos
E (P'150,000,000,000.00).
; Additional amounts are hereby authorized to be appro-
| priated as and when needed to augment the Agrarian Reform
Fund in order to fully implement the provisions of this Act
| during the five (5)-year extension period.
Sources of funding or appropriations shall include the
F following:
(a) Proceeds of the sales of the Privatization and
Management Office (PMO);
(b) All receipts from assets recovered and from
sales of ill-gotten wealth recovered through the PCGG
excluding the amount appropriated for compensation to
victims of human rights violations under the applicable
law;
(c) Proceeds of the disposition and development of
for the specific purposes of financing production credits,
infrastructure and other support services required by
this Act;
(d) All income and collections of whatever form
and nature arising from the agrarian reform operations,
projects and programs of the DAR and other CARP
implementing agencies;
(e) Portion of amounts accruing to the Philippines
from all sources of official foreign aid grants and
concessional financing from all countries, to be used for
the specific purposes of financing productions, credits,
d
infrastructures, and other support services required by
this Act;
(f) Yearly appropriations of no less than Five
billion pesos (P5,000,000,000.00) from the General
Appropriations Act;
(g) Gratuitous financial assistance from legitimate
sources; and
(h) Other government funds not otherwise appro-
priated.
132 AGRARIAN LAW AND SOCIAL LEGISLATION Maw, 65 CHAPTER 1 133
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

All funds appropriated to implement the provisio| f NOTES:

of this Act shall be considered continuing appropriatiog
during the period of its implementation: Provided, That if tk | Role of the Land Bank
need arises, specific amounts for bond redemptions, inter 7 The Land Bank is the financial arm of the agrarian reform pro-
payments and other existing obligations arising from t] - frum. The determination of just compensation under the Compre-
implementation of the program shall be included in tf E hwnsive Agrarian Reform Law commences with the Land Bank de-
- ormining the value of the lands. Using Land Bank’s valuation, the
all just compensation payments to landowners, includig _ Popartment of Agrarian Reform makes an offer to the landowner.
execution of judgments therefor, shall only be sourced fr :
the Agrarian Reform Fund: Provided, however, That ju CHAPTER XV
compensation payments that cannot be covered within tk E GENERAL PROVISIONS
approved annual budget of the program shall be chargealhj ;
against the debt service program of the national governmet SECTION 65. Conversion of Lands. — After the lapse of
or any unprogrammed item in the General Appropriatiog five (6) years from its award, when the land ceases to be eco-
Act: Provided, finally, That after the completion of t¢ | Nomically feasible and sound for agricultural purposes, or
land acquisition and distribution component of th _ the locality has become urbanized and the land will have a
CARP, the yearly appropriation shall be allocated fully 4 f (reater economic value for residential, commercial or indus-
’ _ trial purposes, the DAR, upon application of the beneficiary
requirements of the DAR and the other CARP implementif F ur the landowner with respect only to his/her retained area
agencies.’ d ; Which is tenanted, with due notice to the affected parties,
E and subject to existing laws, may authorize the reclassifica-
= (lon or conversion of the land and its disposition: Provid-
NOTES:
, ed, That if the applicant is a beneficiary under agrarian laws
Funding of just compensation | and the land sought to be converted is the land awarded to
} him/her or any portion thereof, the applicant, after the con-
The just compensation payments to landowners can only § ¢ vorsion is granted, shall invest at least ten percent (10%) of
sourced from the Agrarian Reform Fund. If the annual budget f F the proceeds coming from the conversion in government se-
the agrarian reform fund is not sufficient, the just compensati¢ | Ourities: Provided, further, That the applicant upon conver-
payments shall be charged against the debt service program of ¢f | wlon shall fully pay the price of the land: Provided, further-
national government, or any unprogrammed item in the Geney | more, That irrigated and irrigable lands, shall not be subject
Appropriations Act. 4 E to conversion: Provided, finally, That the National Irrigation
. Administration shall submit a consolidated data on the lo-
SECTION 64. Financial Intermediary for the CARP. 4 E (ution nationwide of all irrigable lands within one (1) year
The Land Bank of the Philippines shall be the finance from the effectivity of this Act.
intermediary for the CARP, and shall insure that the socij : Failure to implement the conversion plan within five
justice objectives of the CARP shall enjoy a prefereng , (5) years from the approval of such conversion plan or any
among its priorities. q ; Violation of the conditions of the conversion order due to the
F fault of the applicant shall cause the land to automatically
F be covered by CARP.

164As amended by R.A. Nos. 8532 and 9700. ‘65 As amended by R.A. No, 9700.
 134 AGRARIAN1 LAW AND SOCIAL LEGISLATION Sec. 6 Met, (35 CHAPTER 1 135
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

NOTES:
: gluarance or authority from the Department of Agrarian Reform
Meaning of conversion
Fhetnuse the said lands are not covered by the agrarian reform
Conversion is; the act of chan : program.’”
angi
gi ng the curre: i
agricultural land into some other The authority of the Department of Agrarian Reform to ap-
use, to wit: nt use ofa piece a
(a) For residential so): . : E prove or disapprove conversion of agricultural land into residential,
non-agricultural purposes: commercial, industrial, and othe 3 (mercial or industrial use can only be exercised after the effectiv-
, E ity of Republic Act No. 6657 on June 15, 1988. After June 15, 1998,
(b) For another ¢ ype of agricultural activity such agl4 F wmversion approval is necessary even if the land has been reclas-
livestock, poultry, and fishpond the sified as non-agricultural by the local government units or by way
effect of which is to exempt
the land from CARP coverage; . wf Presidential Proclamation. Reclassification alone will not suffice
me
———— Ss

(c) For non-agricultural . a F (0 use the agricultural lands for non-agricultural purposes. Conver-
Sr ura! use other than that previousl 7 F wlon is needed to change the current use of reclassified agricultural
Innds.!
SE

considered as a conversion
ion ini the use or nature of the land. - Who can apply for conversion?
se

Conversion differs from reclassification The following persons can apply for land conversion:
(a) the beneficiary; or
(b) the landowner with respect only to his retained area
of Agrarian Reform. which is tenanted.
chal “classification is the act
of specifying how agricultural land
S s:
utilized for non-agricultural uses such When is the proper time to file the application for conversion?
ndvatrial, and commercial, as as resiid ial, ; |
embodied in the land use plan, The application for conversion can be filed after the lapse of
€ requirements abe {
and procedures for land use conversi
on, 1 ed five (5) years from the award of the land.
Effect of reclassification
Under what conditions can an application for conversion be filed?
A mere reclassification of a Nn agri
icultural land does not ¥3 The application for conversion can be filed if any of the following
matically allow the landowner to
change its use. He has to nndecge conditions exist:
the process of conversi; on b efore he 1
isi i i c u l - |
tural land for other purposes. 19 (a) when the land ceases to be economically feasible for
Permlied Y0 use the agricul
agricultural purposes, or
Scope of the DAR’s conversion auth
ority (b) when the locality has become urbanized andtheland —
Agricultural
r lands that w ere already or reclassifi will have a greater economic value for residential, commercial
agricultural prior to June 15, 1998 ed as
does not require any conversion. or industrial purposes.

Sec. 3, DAR Administrative Order

No. 01-99.
Sec. 65-D, Comprehensive Agrarian
Reform Law.
168CREBA v. Secretary of Agrarian
Reform, 621 SCRA 295.
bid. 1S¢a. Rosa Realty v. Court of Appeals, G.R. No. 112526, October 12, 2001.
1CREBA v. Secretary of Agrarian Reform, supra.
 136 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 66
Obligations of the beneficiary if the application for conversion
approved
If the conversion application is approved, the beneficiaryiif
required to:
(a) invest 10% of the proceeds from the conversion i j
government securities; and
(b) pay the Land Bank the full price of the land upor al
conversion.
—tLands that cannot absolutely be subject to conversion
The following lands are absolutely not subject to conversion: ‘4
(a) Agricultural lands within protected areas designated:
under the National Integrated Protected Areas Systemf
(NIPAS), including watershed and recharged areas ofaquifers, |
as determined by the Department of Environment and Natural!
Resources (DENR);
(b) All irrigated lands, as delineated by the Depart]
ment of Agriculture (DA) and/or the National Irrigation}
Administration (NIA), where water is available to support]
rice and other crop production, and all irrigated lands where;
water is not available for rice and other crop production but aré]
within areas programmed for irrigation facility rehabilitation’
by the DA and/or the NIA;
{c) All irrigable lands already covered by irrigation|
projects with firm funding commitments, as delineated by DAI
and/or NIA; and
(d) All agricultural lands with irrigation facilities ope
rated by private organizations.”
.
~— Areas highly restricted from conversion
The following areas are highly restricted from conversion:
(a) Irrigable lands not covered by irrigation projects: '
with firm funding commitment;
(b) Agro-industrial croplands, or lands presently plant- ]
12Sec. 4, DAR Administrative Order No. 01-99.
Hoc. 65-A. CHAPTER 1 137
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
ig
ed to industrial crops that support the economic viability of ex-
q isting agricultural infrastructure and agro-based enterprises;
(c) Highlands or areas located in elevations of 500
meters or above and have the potential for growing semi-
temperate and usually high-value crops;
(d) Lands issued with notice of land valuation and ac-
quisition, or subject of a perfected agreement between the land-
; owner and the beneficiaries under the voluntary land transfer/
direct payment scheme (VLT/DPS) under the Comprehensive
Agrarian Reform Program (CARP); and
(e) Environmentally critical areas (ECAs) as determined
by the DENR in accordance with law.
These lands are highly restricted from conversion because they
require, apart from the standard requirements, a project feasibility
study and environmental compliance certificate."
]
Effect of failure to implement the approved conversion plan
If the approved conversion plan is not implemented within five
(5) years from approval, the land will continue to be covered by the
agrarian reform program.
SECTION 65-A. Conversion Into Fishpond and Prawn Farms.
F — No conversion of public agricultural lands into fishponds
and prawn farms shall be made except in situations where
the provincial government with the concurrence of the
Bureau of Fisheries and Aquatic Resources (BFAR) declares
a coastal zone as suitable for fishpond development. In
such case, the Department of Environment and Natural
Resources (DENR) shall allow the lease and development
of such areas: Provided, That the declaration shall not
apply to environmentally critical projects and areas as
contained in title (A) sub-paragraph two, (B-5) and (C-1)
and title (B), number eleven (11) of Proclamation No. 2146,
entitled “Proclaiming Certain Areas and Types of Projects
as Environmentally Critical and Within the Scope of the
Environmental Impact Statement (EIS) System established
Sec, 5, DAR Administrative Order No. 01-99.
 138 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 6 :
of river systems, aquifers and mangrove vegetatiog
from pollution and environmental degradation: Provid o
further, That the approval shall be in accordance with a s¢
of guidelines to be drawn up and promulgated by the DA]
and the BFAR: Provided, furthermore, That small-farmé
cooperatives and organizations shall be given preference {j
the award of the Fishpond Lease Agreement (FLAs).
No conversion of more than five (5) hectares of privag
lands to fishpond and prawn farms shall be allowed after thi
passage of this Act, except when the use of the land is mor
economically feasible and sound for fishpond and/or praw
farm, as certified by the Bureau of Fisheries and Aquati
Resources (BFAR), and a simple and absolute majority of th
regular farm workers or tenants agree to the conversion, thi
Department of Agrarian Reform, may approve applicatioy)
for change in the use of the land: Provided, finally, That nl
piecemeal conversion to circumvent the provisions of thi
Act shall be allowed. In these cases where the change a
use is approved, the provisions of Section 32-A hereof of
incentives shall apply.
NOTES:
Conversion of public agricultural lands to fishponds
Public agricultural lands can be converted into fishponds aitf
prawn farms only when the coastal zone is declared suitable
fishpond development by the provincial government and the Bureaf
of Fisheries and Aquatic Resources.
If the condition is complied with, the Department of Environg
wll) ment and Natural Resources (DENR) can allow the lease and deve :
opment of the area.
Conversion of private agricultural lands to fishponds
Private agricultural lands can be converted into fishpondsant
prawn farms up to a maximum area of five (5) hectares.
4 Added by R.A. No. 7881.
E Mev, 66-B CHAPTER 1 139
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
Exceptionally, the Department of Agrarian Reform may
P Wpprove the conversion of more than five (5) hectares of agricultural
- lund to fishponds and prawn under the following conditions:
(a) when the use of the land is more economically _
feasible and sound for fishpond and/or prawn farm, as certified
by the Bureau of Fisheries and Aquatic Resources (BFAR); and
(b) asimple and absolute majority of the regular farm
workers or tenants agree to the conversion.
SECTION 65-B. Inventory. — Within one (1) year from
| the effectivity of this Act, the BFAR shall undertake and
| finish an inventory of all government and private fishponds
fF and prawn farms, and undertake a program to promote the
wustainable management and utilization of prawn farms
f and fishponds. No lease under Section 65-A hereof may be
F granted until after the completion of the said inventory.
The sustainable management and utilization of prawn
, farms and fishponds shall be in accordance with the
Feffluent standards, pollution charges and other pollution
; oontrol measures such as, but not limited to, the quantity
F of fertilizers, pesticides and other chemicals used, that may
| he established by the Fertilizer and Pesticide Authority
(IPA), the Environmental Management Bureau (EMB),
fF and other appropriate government regulatory bodies, and
existing regulations governing water utilization, primarily
Presidential Decree No. 1067, entitled “A Decree Instituting
A Water Code, Thereby Revising and Consolidating the
Laws Governing the Ownership, Appropriation, Utilization,
Exploitation, Development, Conservation and Protection of
Water Resources.”
NOTES:
Purpose of inventory
The inventory of all government and private fishponds and
prawn farms will help the Department of Agrarian Reform monitor
unauthorized conversions of lands into fishponds and prawn farms.
15 Added by R.A, No. 7881.
 140 AGRARIAN LAW AND SOCIAL LEGISLATION Secs. 66-Caf 141
1-68 THE COMPREHENSIVE CHAPTER
AGRARIAN1 REFORM LAW OF 1998

SECTION 65-C. Protection of Mangrove Areas. — In existin be nveyance or transfer thereof; Provided, That all arrearages
Fishpond Lease Agreements (FLAs) and those that rh
real property taxes, without penalty or interest, shall be
be issued after the effectivity of this Act, a portion of thy
Baductible from the compensation to which the owner may
fishpond area fronting the sea, sufficient to protect
tk entitled.
environment, shall be established as a buffer zone and bi
planted to specified mangrove species to be determines
in consultation with the regional office of the DENR. NOTES:
f 3
Secretary of Environment and Natural Resources sha’ nds transferred to beneficiaries exempted from taxes and fees
provide the penalties for any violation of this undertaking
as well as the rules for its implementation. : Deeds of transfer of ownership to agrarian reform beneficiaries,
" lhwther voluntary transfer or compulsory acquisition are exempted
From capital gains tax, and other applicable taxes or fees.

rhe ln SECTION 67. Free Registration of Patents and Titles. — All

The Import of the Provision F Registers of Deeds are hereby directed to register, free from
This provision is intended to harmonize agrarian reform with fpryment of all fees and other charges, . patents, titles and
the environmental laws.
" - 4 y jocuments required for the implementation of the CARP.
SECTION 65-D. Change of Crops. — The change of crops
commercial crops or high value crops shall not be considered | NOTES:
as a conversion in the use or nature of the land. The chang@ F Exemption from registration fees
in crop should however, not prejudice the rights of tenantg
or leaseholders should there be any and the consent of ai Lands acquired by agrarian reform beneficiaries and those
Ni simple and absolute majority of the affected farm workers, E ywtnined by the landowner are exempted from transfer fees,
if : Myistration fees, etc.
any, shall first be obtained.”
; SECTION 68. Immunity of Government Agencies from Undue
NOTES: ' Interference. — In cases falling within their jurisdiction: no
Change of crops does not need DAR approval F Injunction, restraining order, prohibition or mandamus sha
F he issued by the regional trial courts, municipal trial courts,
j municipal circuit trial courts, and metropolitan trial courts
value Considering
crops is not that change of crops to commercial crops or hig! af
considered as a conversion in the use or naturé, | against the DAR, the DA, the DENR, and the Department o
of the land, approval of the Department,of Agrarian Reform is Justice in their implementation of the Program.’
not;
required. 3
F NOTES:
SECTION 66. Exemptions from Taxes and Fees of Land}
Transfers. — Transactions under this Act involving a transfe No injunction policy
r |
of ownership, whether from natural or juridical persons,
| The purpose of the law in prohibiting lower courts from issuing
shall be exempted from taxes arising from capital gains.3
Injunction is to ensure the unhampered, speedy, and smooth imple-
These transactions shall also be exempted from the paymen
t} mentation of the agrarian reform program.
of registration fees, and all other taxes and fees for the:

“Ibid.
"TAdded by R.A. No. 7881. 178As amended by R.A. No. 9700.
142 AGRARIAN LAW AND SOCIAL LEGISLATION Secs. 6
SECTION 69. Assistance of Other Government Entities. — Tj
PARC, in the exercise of its functions, is hereby authoriz
to call upon the assistance and support of other governm ai
agencies, bureaus and offices, including government-own
or controlled corporations.
NOTES:
Inter-Agency Cooperation
This provision emphasizes the utmost importance given by
government to the agrarian reform program. ; ; When
SECTION 70. Disposition of Private Agricultural Lands.j
The sale or disposition of agricultural lands retained by
landowner as a consequence of Section 6 hereof shall.J
valid as long as the total landholdings that shall be own{
by the transferee thereof inclusive of the land to be acquit
shall not exceed the landholding ceiling provided for in tl ii
Act.
Any sale or disposition of agricultural lands after tf
effectivity of this Act found to be contrary to the provisiog
hereof shall be null and void.
Transferees of agricultural lands shall furnish the ag
propriate Register of Deeds and the BARC an affidavit q
testing that his total landholdings as a result of the sal
acquisition do not exceed the landholding ceiling. The Re
ister of Deeds shall not register the transfer of any agricy
tural land without the submission of this sworn statemej
together with proof of service of a copy thereof to the BARC
NOTES:
Affidavit of aggregate landholding — a requirement for registratl a
Aside from the normal requirements for registration, the buy§
of an agricultural land is required, as a condition for registrati
of title, to submit to the Register of Deeds an affidavit of aggregat
landholding (with confirmation from the Assessor’s Office) in ord@
to ensure that the landholding of the buyer does not exceed
5-hectare limit.
F 0,71 CHAPTER 1° 148
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
SECTION 71. Bank Mortgages. — Banks and other
financial institutions allowed by law to hold mortgage rights
fr security interests in agricultural lands to secure loans
sand other obligations of borrowers, may acquire title to
hese mortgaged properties, regardless of area, subject to
f existing laws on compulsory transfer of foreclosed assets
and acquisition as prescribed under Section 13 of this Act.
‘ NOTES:
the bank or financial institution is deemed as the new
E landowner
For purposes of covering the property under the agrarian
form program, the bank or financial institution, as mortgagee,
¥ considered as the new landowner if before the deposit of just
nn pensation:
(a) The bank or financial institution is the purchaser in
the foreclosure sale and the redemption period, as provided by
q law, has already expired in cases where the right of redemption
exists; or
(b) The bank or financial institution is the purchaser in
the foreclosure sale and said foreclosure sale is confirmed by the
court in cases where only equity of redemption is provided.”
b When the bank or financial institution is deemed as lien-holder
The bank or financial institution, as mortgagee, is considered a
{en-holder if on the date the land transfer claim was received by the
-'Tuind Bank from the Department of Agrarian Reform (DAR):
(a) The mortgage debt is not yet due and demandable;
or
(b) The mortgage debt is already due and demandable
but the bank or financial institution has not foreclosed on the
property; or
(c) The mortgage has already been foreclosed but the
period to exercise the right of redemption, in cases provided
thi
Sec, 4, DAR Administrative Order No.-01-00.

144 AGRARIAN LAW AND SOCIAL LEGISLATION
by law, has not yet expired; or the foreclosure sale has not y@
been confirmed by the court in cases where there is only equi Ui
of redemption. ‘ As new landowner, the bank or financial institution is obliged
Rights and privileges of the bank or financial institution as ne¥
landowner
As new landowner, the bank, financial institution, or oth i
concerned person is entitled to:
(a) Receive all notices, advices, correspondence,
all other communications from the Department of Agrariel
Reform (DAR) or Land Bank (LB), such as, but not limited t@
Notice of Coverage, Notice of Land Valuation and Acquisitio: .
Letter-Requirement for Processing and Payment of ‘Claim, etd!
_(b) Transact with DAR or LB regarding all aspects a
subject land transfer claim, to the exclusion of all other persorif
(c) Be named as the recipient of all cash and bon
deposits; and
; (d) Receive all the proceeds of subject land transfed
claim, less deductions to which the land may be liable.
Rights and privileges of the bank or financial institution as lieni
holder
As lien-holder, the bank, financial institution, or other cong
cerned person is entitled to: , ‘and the like shall be disposed of as follows:
(a) Receive payment for the obligation of the mortgago|
from the land transfer proceeds up to an amount equivalent t
the landowner’s compensation value; and
(b) Receive notices, advices, and all other communicel
tions pertaining to the obligation of the landowner-debtor, i.e,
mortgagor.
18Gec, 5, ibid.
181S ec, 8, ibid.
82Sec. 8, DAR Administrative Order No. 01-00.
CHAPTER 1 145
See,’ 7 1 12
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
pligations of the bank or financial institution as the new land-
ner
(a) Comply with all the requirements for processing
and payment of the claim such as surrender of the Owner’s
Duplicate Copy of Title; and
(b) Sign all land transfer documents required as a con-
a f sequence of the processing and payment of the land transfer
claim such as: Deed of Assignment, Warranties and Undertak-
ing, Deed of Transfer, Deed of Confirmation of Coverage and
Transfer, etc.’
IDbligations of the bank or financial institution as lien-holder
As lien-holder, the bank or financial institution is obliged to:
(a) Issue a release of mortgage, or execute a deed of
J redemption, and deliver the Owner’s Duplicate Copy of Title
after payment of the value of the lien; and
(b) Sign all other documents necessary to effect the
cancellation of the mortgage.’
SECTION 72. Lease, Management, Grower or Service Con-
1 Inicts, Mortgages and Other Claims. — Lands covered by this
PAct under lease, management, grower or service contracts,
(a) Lease, management, grower or service con-
tracts covering private lands may continue under their
original terms and conditions until the expiration of
the same even if such land has, in the meantime, been
transferred to qualified beneficiaries.
(b) Mortgages and other claims registered with
the Register of Deeds shall be assumed by the govern-
ment up to an amount equivalent to the landowner’s
compensation value as provided in this Act.
——<$<$———
Sec, 9, ibid.
Ibid.
 CHAPTER 1 147
146 AGRARIAN LAW AND SOCIAL LEGISLATION Bee 1753
1998
THE COMPREHENSIVE AGRARIAN REFORM LAW OF

NOTES: conversion under Section 65 of Republic Act No. 6657,

the deed
The term of contractual arrangements will be respected as amended. The date of the registration of
respect
of conveyance in the Register of Deeds with
tax
' If at the time when the land was placed under agradl to titled lands and the date of the issuance of the
rty with
reform coverage, any contract of lease, management contr declaration to the transferee of the prope
be, shall
grower or service contracts, will be respected until their expf respect to unregistered lands, as the case may
notwithstanding the fact that the 1 and has already been transfe 7
to the beneficiaries, be conclusive for the purpose of this Act;
(f) The sale, transfer or conveyance by a bene--
ry
Debts secured by mortgage on the land . ficiary of the right to use or any other usufructua
acqui red by virtue of being
right over the land he/she
of
If the land subject of a grarian
i reform coverage has bi a beneficiary, in order to circumvent the provisions
mortgaged, the government will assume the obligation ind this Act;
amount not} exceeding what the landow: ner woul act
compensation for the land.
i ‘ (g) The unjustified, willful, and malicious
mid rovelve aa § by a responsible officer or officers of the government
through the following:
SECTION 78. Prohibited Act 's and is
Omissions. — The foll a
a
ing are prohibited: (1) The denial of notice and/or reply to land-
owners;
tek (a) The ownership or possession, for the purp ;
0. circumventing the provisions of this Act, of agricf (2) The deprivation of retention rights;
tural lands in excess of the total retention limits (3) The undue or inordinate delay in the
award ceilings by any person, natural or juridical, ‘ preparation of claim folders; or
Slurion
pt those under collective own ershipi by farmer-ben a:
(4) Any undue delay, refusal or failure in the
¥ payment of just compensation;
(b) The forcible entry or illegal detainer the
persons who are not qualified beneficiaries under ti (h) The undue delay or unjustified failure of
PARC COM, and any con-
Act to avail themselves of the rights and benefits of tf DAR, the LBP, the PARC, the
official
Agrarian Reform Program; cerned government agency or any government
red report , data and/or
or employee to submit the requi
ving the imple menta tion
i ; (c) Any conversion b y any landowner of his other official document invol
as requi red by the partie s
agricultural land into any non-agricultural ase wi} of the provisions of this Act,
the House of Repre senta -
intent to avoid the application of this Act to his or the government, including
as their
landholdings and to dispossess his/her bonafide tena! tives and the Senate of the Philippines as well
congr essio nal overs ight
farmers; ‘ respective committees, and the
committee created herein;
(d) _The malicious and willful prevention ]
obstruction by any person, association or entity of (i) The undue delay in the compliance with the
n of the
implementation of the CARP; obligation to certify or attest and/or falsificatio
on 7
certification or attestation as required under Secti
(e) The sale, transfer, » co conveyance or change é of Republic Act No. 6657, as amended; and
the nature of lands outside of urban centers and citi
limits either in whole or in part after the effectivity @ (j) Any other culpable neglect or willful violations
this Act, except after final completion of the appropriat of the provisions of this Act.
 148 AGRARIAN LAW AND SOCIAL LEGISLATION 149
pA CHAPTER 1
OF 1998
THE COMPREHENSIVE AGRARIAN REFORM LAW

In | the case of gove

In vent
g rnm ent officiials and empl i acquired by virtue of being a beneficiary, if done to circum
conviction under this Act is without preju ive Agrari an Reform Law;
dice to amy‘ci the provisions of the Comprehens
or appropriate administrative pr i und act by a
civil service law, rules and regulations. (g) Unjustified, willful, and malicious
2 2 s

Proceedings
°
! h the
responsible officer or officers of the government throug
Any person convicted under this Act shall
not be entit] i following:
to any benefit provi i :
program. provided for in any agrarian reform law 4 (1) Denial of notice and/or reply to landowners;
(2) Deprivation of retention rights;
NOTES:
(3) Undue or inordinate delay in the preparation
Criminal violations of claim folders; or :

The following are the crim e a Undue delay, refusal or failure in the payment
(4)
Agrarian Reform Law: criminal Violations of the Comp rehens} of just compensation;
ned
(a) Ownership or possession i of agrici ultural la ine (h) Undue delay or unjustified failure by any concer
govern ment. official or employ ee
cess of the total retention limits.or award ceilin
gs if Gon f government agency or any
data and/or other official
the
: purpose of circumventi the provisions
pr is : to submit the required report,
sive Agrarian Reform Law: ng g the of the Compreheg ions
document involving the implementation of the provis
m Law, as requir ed
a of the Comprehensive Agrarian Refor
(b) Forcible entry or ille gal detaini er by ing the House of
not qualified beneficiaries under the Comprehens
pers e 1 by the parties or the government, includ
pines as well as
ive ‘Aeros : Representatives and the Senate of the Philip
ght
their respective committees, and the congressional oversi
agrarian refor m pr ‘ogram,
| committee. created herein;
(
(c) Conversion of agri
gricultural land to non-agriculturg | (i) Undue delay in the compliance with the obligation
oe: if done with intent to avoid the applic cation or
ation of “thd to certify or attest and/or falsification of the certifi
omprehensive Agrarian Reform Law to his landholdin 7 of Republ ic Act No.
gs anf attestation as required under Section
to dispossess his bonafide tenant farmers:
=e 6657, as amended; and
(d) Malicious and willful ion (j) Any other culpable neglect or willful violations of
the implementation of the CARP,
OF obstruction g the provisions of this Act.
(e) Sale,
Sale, transfer, . conve yance or change of the nature
, Section
oe eaeiee of prban centers and city limits either
in whol SECTION 73-A. Exception. — The provisions of
after the effectivity of the Comprehensi ary notwi thsta nding , the sale
iat : 4, paragraph (e), to the contr
Reform Law, , exce pt after final completionof of th land in cases where such
the apa itd iaté f und/or transfer of agricultural
a result
conversion under Section 65 of Republic Act
No. 6657, ; hale, transfer or conveyance is made necessary as
land is hereby
amended; | of a bank’s foreclosure of the mortgaged
(f) Sale, , transfer or con veyance by a beneficiary F permitted.”
of th:é
right to use or any other usufructuary right over
the lend ;
—_
As amended by R.A. No. 9700. —_—<—_—<$<—$——<$———
186 Added by R.A. No. 7881,
 150 AGRARIAN LAW AND SOCIAL LEGISLATION
Soon "76-7" 1B COMPREHENSIVE CHAPTER 1
AGRARIAN REFORM LA W OF 1998
161

— Section
i 35 o f Republic
SECTION 76. Repealing Clause. the last istwo
Sale resulting from forecl Presi tial Decree No. 316,
sae, osure of mortgage nota Me eee
criminal violg Decree
The sale or transfer of ae se ot erodes 13 of Presidential . de »
result of a bank’s forecl
a mortgaged agricultural
land Neitentiol } No. 1038, and all other
art
Pp

osure is not a criminal issuances

2

lations,
2

d
.

violation of identiat tore, ru

i

Comprehensive Agrarian
Reform Law. th
with A
thie
this Act are hereby" repea led or
q sroof , fyin: orusiotent
hereof
mended accordingly.
j j 7.
Separability Clause. — If, for any reason,
isions : ofof th thisane Act
isi etl!
shal any een or provision of this Act is: declared n ull and void,
not less than one (1) mo ws
p other section, provision,
ffected
thereof shall be a
ov ore and effect.
fand the same shall rema
000.00
) and not more than — This Act shall “OD take
thousand pesos (P15,000. Fifti tivity Clause "
00), or both. leas t tw
court: Provided, That on a at
the following correspo
nding penalf SECON aly after publicati
shall be imposed for the specific per s of gene ral circ
i ulati on.
vio lations hereunder: i ational newspa
(a) Imprisonment of three
to six (6) years or a fin (3) years and one (1)
e of not less than Fif
Pesos (P50,000.00) and ty thousg
not more than One hu
thousand pesos (P150, ndred {fj
000.00), or both, at the
of the court upon any discreti
person who violates
subparagraphs (a), (b), (f), Section {
No. 6657, as amended; (g), and (h) of Republic A
and ; ‘
(b) Imprisonment of |

six (6) years and one (1)

4

twelve (12) years or a day

fine of not less than Two
thousand pesos (P200, hundr§
000.00) and not more
million pesos (P1,000,0 tha n O¢
00.00),
of the court upon any
pers ‘on who violates
subparagraphs (ec), (d), Section i
(e), and (i) of Republic
6657, as amended. Act i
If the offender is a cor
poration or association,
cer responsible therefor the o: ff
shall be criminally lia
ble.
SECTION 75, Suppletor
y Application of Existing
~ The provisions of Legislatia }
Republic Act No, 384
Presidential Decree Nos 4 as amendet
. 27 and 266 as a mended
Order Nos. 228 and 229 , Executi .
, both Series of 1 987;
not inconsistent with and other la i
this Act shall have sup
pletory effect,

87As amended by R.A. No.

9700.
 CHAPTER 2 , 153
THE TENANT EMANCIPATION LAW

f tho land to the tenant or lessee. There has to be full payment

f unt, compensation before the landowner could be divested of his
inl, otherwise, the land would be taken without just compensation
CHAPTER 2 violation of the constitutional injunction against taking of private
porty without just compensation. Therefore, notwithstanding
THE TENANT EMANCIPATION LAW
ig phrase “shall be deemed owner,” or “are now deemed full
lwners” the title and ownership over the land will be transferred to
PRESIDENTIAL DECREE NO. 27 y lhoneficiaries only upon full payment of the just compensation to
[as amended by Executive Order No. 228) @ Jundowner.

of land to be transferred to the tenant-farmer

The tenant-farmer is entitled to:

Applicability of the Law (a) five (5) hectares, if not irrigated; or
The Tenant Emancipation Law su pplements the (b) three (3) hectares, if irrigated;
Compreffpref
sive Agrarian Reform Law. It applies only to
private agricultt
lands primarily devoted to rice and corn under
lease-tenancy, share tenan ages of land transfer
The land transfer under Presidential Decree No. 27 is effected
Transfer of lands to tenants A iwo (2) stages, namely:
Presidential Decree No. 27 provides that: (a) Issuance of a Certificate of Land Transfer (CLT) to
the farmer-beneficiary; and
“The tenant farmer, ; whether in land classifi ied
as landed (b) Issuance of Emancipation Patent (EP).
estate or not, shall be deemed owner of a
portion constituting 4
a family-size
(3) hectares if farm of five (5) hectares if not
irrigated.” ir
not irrigated and three 4
; Ignificance of the Certificate of Land Transfer (CLT)

Section 1 of Executive Order No. 228 further provides that:' ! The CLT does not vest upon the tenant-beneficiary ownership
er the land. It merely qualifies the tenant-beneficiary to possess the
a “SECTION 1. All qualified farmer beneficiaries are nd and comply with certain conditions preparatory to ownership.
now 4
leemed full owners as of October 21, 1972 of the
land they Sf (he tenant-beneficiary complies with the conditions, he is issued
acquired by virtue of Presidential D tmancipation Patent.
referred to as P.D. No. 27). i
peree No. 27 (hereinafter
j

Hi Ignificance of an Emancipation Patent (EP)

The phrase “shall be deemed owner” or “are
now dee; ; q The EP vests upon the farmer-beneficiary absolute ownership
full owners” does not mean automatic transfer
of title or owners §ver the landholding, and it constitutes conclusive authority for the
danuance of an original or transfer certificate of title in his name.*
Sec. 75, R.A. No. 6657,
?Emphasis supplied.
*Emphasis supplied. ~————____—__
‘Heirs of Dr. Jose Deleste v. Land Bank, 651 SCRA 352.
®5Levardo v. Yatco, 682 SCRA 98; Vinzons-Magana v. Estrella, 201 SCRA 536.
152 "Maylem v. Ellano, 592 SCRA 440.
 154 AGRARIAN LAW AND SOCIAL LEGISLATION
, THE TENANT EMANCIPATION LAW
Indefeasibility of EPs
EPs are titles brought under the operation of the Tor
System. Hence, they are conferred with the same indefeasibility!
security as provided for by Presidential Decree No. 1529, as ameti
by Republic Act No. 6732. Emancipation patents become indefea a
Office of the Registry of Deeds, subject to the conditions, limita f
and qualifications under the Comprehensive Agrarian Reform
provided for in Section 24 of the Comprehensive Agrarian. Ref
Law, the pertinent portion of which reads as follows:
“SECTION 24. Award to Beneficiaries. — The rights |
and responsibilities of the beneficiaries shall commence from. °
their receipt of a duly registered emancipation patent or
certificate of land ownership award and their actual physical 4
possession of the awarded land. Such award shall be completed
in not more than one hundred eighty (180) days from the date’
of registration of the title in the name of the Republic of the
Philippines: Provided, That the emancipation patents, the
certificates of land ownership award, and other titles
issued under any agrarian reform program shall be
indefeasible and imprescriptible after one (1) year from
its registration with the Office of the Registry of Deeds,
subject to the conditions, limitations and qualifications of this
Act, the property registration decree, and other pertinent laws.
The emancipation patents or the certificates of land ownership
award being titles brought under the operation of the torrens
system, are conferred with the same indefeasibility and security:
afforded to ali titles under the said system, as provided for by
Presidential Decree No. 1529, as amended by Republic Act No.
6732.”
Cancellation of EPs
Emancipation Patents may be cancelled on the follo
grounds:
(a) Abandonment of the land;
. (b) Neglect or misuse of land;
(c) Failure to pay three (3) annual amortization;
7Sec. 22, Comprehensive Agrarian Reform Law.
8Sec. 26, ibid.
CHAPTER 2 155
(d) Misuse or diversion of financial and support services;?
(e) Sale, transfer or conveyance of the right to use the
lund; and
(f) Illegal conversion of the land."
jadiction over cancellation of EPs
4 j All cases involving the cancellation of registered emancipation
nls are within the exclusive and original jurisdiction of the
srelury of the Department of Agrarian Reform.”
ant-beneficiary cannot sell or transfer ownership of the land
| 'lhe tenant-beneficiary cannot sell or transfer ownership of the
Ad icquired under the Tenant Emancipation Law, except to the
Svernment or by hereditary succession. Presidential Decree No. 27
Mrennly provides that:
“Title to land acquired pursuant to this Decree or the Land
Reform Program of the Government shall not be transferable
| wxcept by hereditary succession or to the Government in
| uccordance with the provisions of this Decree, the Code of
| Agrarian Reforms and other existing laws and regulations.”
3
| tenant-farmer will pay the Land Bank
d
— he farmer-beneficiary or his heirs will pay the Land Bank
..! total costs of the land plus interest at the rate of six percent
¢ }) per annum for twenty (20) years in twenty (20) equal annual
4 wrlizations. The Emancipation Patent will be issued to the
Winer-beneficiary after full payment of the amortizations. Section
fof lixecutive Order No. 228 provides that:
“SECTION 6. The total costs of the land including
interest at the rate of six percent (6%) per annum with a two
i percent (2%) rebate for amortizations paid on time, shall be paid
by the farmer-beneficiary or his heirs to the Land Bank over a
poriod of up to twenty (20) years in twenty (20) equal annual
umortizations. Lands already valued and financed by the Land
"Sec. 37, ibid.
"Sec. 73, ibid.
"Sec. 73, ibid.
“Sec. 24, ibid.
 156 AGRARIAN LAW AN: > SOCIAL LEGISLATION THE TENANCY.
CHAPTERRe 2 TION LAW 157

Bank are likewise extended a 20-year period of payment of
twenty (20) equal annual amortizations. However, the farmer:
beneficiary if he so elects, may pay in full before the twentieth |
year or may request the Land Bank to structure a repayment}
period of less than twenty (20) years if the amount to be financed 4
and the corresponding annual obligations are well within the
farmer’s capacity to meet. Ownership of lands acquired by the3
farmer-beneficiary may be transferred after full payment off
amortizations.” /
Bank bonds over a 10-year period, with 1/10 of the face value
maturing every year until the 10th year; and
(c) Other modes of payment as may be prescribed or
approved by the Presidential Agrarian Reform Council.”
lease rentals paid to the landowner by the farmer beneficiary
pr October 21, 1972 is considered as advance payment for the

Failure on the part of the farmer-beneficiary to pay thréf tention right of landowner
annual amortizations shall cause the Land Bank to foreclos i Under Presidential Decree No. 27, the landowner is entitled to
mortgage." fe(uin an area of not more than seven (7) hectares, if he is cultivating
The tenant-farmer, or any of his compulsory heirs may li f ef will cultivate it. Thus:
foreclosure within a period of two (2) years from its registratfoy
paying the Land Bank all unpaid amortizations on the land j “In all cases, the landowner may retain an area of not
interest thereon of six percent (6%) per annum." more than seven (7) hectares if such landowner is cultivating
4
such area or will now cultivate it.”
If the tenant-farmer or any of his compulsory heirs does!
take steps to lift the foreclosure within the 2-year period, owner Personal cultivation by the landowner is not required -
of the land will be transferred to the Land Bank. Thereafter,! Miliivation can be done indirectly through labor administration.”
Land Bank, not later than three (3) months after its acquisition of
land, shall sell the foreclosed land to any interested landless farg . letention right under Predidential Decree No. 27 vis-a-vis retention
duly certified to as a bonafide landless farmer by the Departn Might under the CARL
of Agrarian Reform of the barangay or the two closest barangi If the landowner has already exercised his right of retention
where the land is situated.* 4 under Presidential Decree No. 27, he can no longer exercise the
Frelontion right under Comprehensive Agrarian Reform Law.
Payment of just compensation to landowner ae
g ‘However, he can keep the 7-hectare retention limit granted under
The just compensation is payable to the landowner throt Prosidential Decree No. 27.”
any of the following modes, at the option of the landowner: If the landowner chooses to retain five (5) hectares under
(a) Direct payment to the landowner by the fa a Kumprehensive Agrarian Reform Law, the seven (7) hectares
beneficiaries, in cash or in kind, on terms to be mutually agr proviously retained by him under Presidential Decree No. 27 shall
upon by the beneficiaries and landowners and subject to: he immediately placed under the coverage of the Comprehensive
approval of the Department of Agrarian Reform; - ‘Agrarian Reform Law.”
(b) Payment by the Land Bank with 10% payabld
cash immediately and the balance payable in the form of Lg

Sec. 8, E.O. No. 228.

'8Sec. 8, E.O. No. 228. Sec. 2, ibid.
Sec. 10, ibid. Sec. 2 (b), DAR Administrative Order No. 05-00.
Ibid. Sec. 6, Comprehensive Agrarian Reform Law, as amended.
Sec. 11, ibid. 1Sec, 3, DAR Administrative Ordor No. 05-00.
158 AGRARIAN LAW AND SOCIAL LEGISLATION

Jurisdiction over retention or exemption issues

Issues pertaining to retention rights of the landowner and
exclusion or exemption from agrarian reform coverage are cogniz@
by the Secretary of the Department of Agrarian Reform because tf CHAPTER 3
pertain to administrative implementation of agrarian law.” THE CODE OF AGRARIAN REFORMS

REPUBLIC ACT NO. 3844

i Amended by Presidential Decree Nos. 251, 444, 1039, and 1817,
Republic Act Nos. 6389, 6557, 7907, and 9700]

tory of the Code of Agrarian Reforms

f= 'I'he Code of Agrarian Reforms was initially denominated as
Agricultural Land Reform Code. Republic Act No. 6389 renamed
fan the Code of Agrarian Reforms.
t ‘lhe Agricultural Land Reform Code was an administration
il submitted by President Diosdado Macapagal for enactment by
Ae fih Congress of the Philippines. It was signed into law on Au-
ai 8, 1963.

lective of the Code of Agrarian Reforms

The main objective of the Code of Agrarian Reforms is to create
fystem of owner-cultivatorship and economic family-size farm as
fanlh of Philippine agriculture.

de of Agrarian Reforms vis-a-vis Comprehensive Agrarian

form Law
; ‘The Comprehensive Agrarian Reform Law did not repeal
te Code of Agrarian Reforms. The Code of Agrarian Reforms
Mpplements the Comprehensive Agrarian Reform Law.+

‘Sec. 75, R.A. No. 6657.

Sta. Ana v. Carpo, 572 SCRA 463; Magno v. Francisco, 616 SCRA 402. 159
160 AGRARIAN LAW AND SOCIAL LEGISLATION
The salient features of the Code of Agrarian Reforms
The salient features of the Code of Agrarian Reforms arf
follows:
(a) It abolished the share tenancy aystem and repli
it with agricultural leasehold;
(b) Itestablished a bill of rights for agricultural wor! cd
(c) It established the Department of Agrarian Refé
as the machinery for the acquisition and distributiog
agricultural land; and
, q
(d) It established the Land Bank as the financial arg
the agrarian reform program.
The Code of Agrarian Reforms abolished share tenancy
Share tenancy is a situation where two persons agree on aj
undertaking for agricultural production wherein one party furnigl
the land and the other his labor, with either or both, contribuf
any one or several of the items of production, the tenant cultivay G
the land personally with the aid of labor available from membéi
his immediate farm household, and the produce thereof to be di f
between the landholder and the tenant.? ay
In an agricultural leasehold, the farmer cultivates the ]
belonging to, or possessed by, another with the latter’s consent ff
price certain in money or in produce or both.
The Code of Agrarian Reforms abolished share tenanciy|
share tenancy arrangements were automatically converted to lef
hold. 4
Extent of application of the leasehold principles under the Cod
Agrarian Reforms
With the enactment of the Comprehensive Agrarian Ref
Law which compulsorily acquired lands for distribution to fara
beneficiaries, leasehold relationship can exist under the folloy
situations:
(a) In case the area retained by the landownef,
tenanted;
Sec. 166 (25), Code of Agrarian Reforms, as amended.
3Sec. 4, Code of Agrarian Reforms, as amended.
CHAPTER 3 161
THE CODE OF AGRARIAN REFORMS
(b) In case the farmer-beneficiary leases the land
awarded to him to another person;
(c) In case the farmer-beneficiary leases the land
awarded to him back to the former owner of the land; or
; (d) In case the land awarded to a farmer’s cooperative
or association is leased to agricultural corporations.
: Under the present set-up, therefore, the agrarian reform
| benoficiaries can become lessors of agricultural land. However, the
E lvnxchold principles under the Code of Agrarian Reforms will apply
F only to situati here the| the land , to wit:
nly fo situations where the lessor is the landowner, fo wi
(a) farmers whose tenancy relations were automatically
converted to leasehold by virtue of the Code of Agrarian
Reforms; and
(b) tenanted lands that were retained by the landowner,
which were automatically converted to leasehold by virtue of
the Comprehensive Agrarian Reform Law;
if the lessor is the farmer-beneficiary under the Comprehensive
f Ayrurian Reform Law, the leasehold relationship will be governed
Phy the Lease Contract and by the Comprehensive Agrarian Reform
Law.
‘Porm of lease contract
a. . .
Considering that the conversion to leasehold was by operation
F0f luw, no particular form is required to establish the leasehold
Pelution. The lease agreement can be oral or written.‘ The lessor
E Need not be the owner of the land — he can be a usufructuary or a
Eleyul possessor such as civil law lessee.*
Should the parties agree to reduce their agreement in writing,
the ugricultural leasehold contract shall be:
(a) drawn in quadruplicate in a language or dialect
known to the agricultural lessee;
(b) signed or thumb-marked both by the agricultural
lessee personally and by the agricultural lessor before two
witnesses, to be chosen by each party;
‘See. 5, ibid.
"Sec. 6, ibid.
 162 AGRARIAN LAW AND SOCIAL LEGISLATION
(c) acknowledged before the municipal court of thd
municipality where the land is situated; and
(d) registered with the Municipal Treasurer.
If the agricultural lessee does not know how to read, thg
contents of the document shall be read and explained to him by hig
witness.®
The Municipal Treasurer is the custodian of agricultural le
contracts. The said contracts are to be kept and recorded in th
Registry of Agricultural Leasehold Contracts.’ : NOTE: The fair rental value for work animal or animals
Terms and conditions of the lease contract
The agricultural lessor and the agricultural lessee are free tq
enter into any kind of term, condition or stipulation in a leaseholq
contract, as long as they are not contrary to law, morals or publi
policy.
The following stipulations in an agricultural leasehold contra
are considered contrary to law, morals or public policy: 4 (d) Stipulation requiring the agricultural lessee to make
(a) Stipulation requiring the agricultural lessee to pay
excessive rental;
NOTE: « The rental for riceland and lands devoted to
other crops shall not be more than the equivalent of 25% of the
average normal harvest.
¢ If there have been no normal harvests, then rental
shall be the estimated normal harvest during the three (3)
agricultural years immediately preceding the date the leasehold
was established after deducting the amount used for seeds
and the cost of harvesting, threshing, loading, hauling and
processing, whichever are applicable.
¢ Ifthe land has been cultivated for a period of less than
three (3) years, the initial rental shall be based on the average
normal harvest. If there have been no normal harvests, then the
rental shall be based:
(i) on the estimated normal harvest during the
preceding years when the land was actually cultivated; or
®Sec. 17, Code of Agrarian Reforms, as amended.
Sec. 18, ibid.
Sec. 15, ibid.
CHAPTER 3 163
THE CODE OF AGRARIAN REFORMS
(ii) on the harvest of the first year in the case of
' newly cultivated lands, if that harvest is normal harvests.
. The final consideration shall be based on the average
normal harvest during these three (3) preceding agricultural
years.°®
(b) Stipulation requiring the agricultural lessee to pay an
mount in excess of the fair rental value for the use of the lessor’s
f (vr any other person’s) work animals or farm implements;
and farm implements used to produce the crop shall not exceed
5% of the gross harvest for the work animal or animals and 5%
for implements.”
(c) Stipulation requiring the agricultural lessee to rent
work animals or to hire farm implements from the agricultural
j
lessor or a third person;
use of any store or services operated by the agricultural lessor
or a third person;
(e) Stipulation requiring the agricultural lessee to
render any service other than his duties and obligations as
lessee, with or without compensation; or
(f) Stipulation requiring the agricultural lessee to
answer for any fine, deductions and/or assessments."
(g) Stipulation requiring the agricultural lessee to
accept a loan or to make payment therefor in kind.”
Mode of payment of rental
The rental may be paid by the agricultural lessee in money or
in produce, or both. If the rental is to be paid in produce, it should
bo paid immediately after threshing or processing. If payment to
hoe paid in money, it should be paid within a reasonable time from
threshing or processing."
Sec. 34, ibid.
'0Sec. 166 (6), ibid.
See. 15, ibid.
Ibid.
38Sec. 33, ibid.
 164 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 3 165
THE CODE OF AGRARIAN REFORMS

Term of the lease peath or physical incapacity of the lessee does not terminate the
Maschold relation
The term of the lease is indefinite, i.e., until the lease is t4
minated for cause. The reason is because agricultural lesseq If the lessee dies or becomes incapacitated, the leasehold
farmers are entitled to security of tenure." 4 Helutions is not extinguished. The lessor must choose the successor
from among the following, if they are willing to personally cultivate
Expiration of lease contract does not terminate the leasehd Mi landholding:
relation (a) the surviving spouse;
Agricultural leasehold relationship is not an ordinary contrg (b) the eldest direct descendant by consanguinity; or
tual relation. Thus, the mere fact that the agreed lease period h
(c) the next eldest descendant or descendants in the
expired will not result in the termination of the leasehold relati¢j
order of their age.
: 3 Sas

ship. The reason is because agricultural lessees are entitled to seq]

rity of tenure. Section 10 of the Code of Agrarian Reforms providg : If none of the above exists, or if the above persons are not
Willing to cultivate the land, the leasehold relations is extinguished.
“SECTION 10. Agricultural Leasehold Relation Not F Muction 9 of the Code of Agrarian Reforms, as amended, provides:
=

Extinguished by Expiration of Period, etc. — The agricultural

leasehold relation under this Code shall not be extinguished by “SECTION 9. Agricultural Leasehold Relation Not Extin-
TE

mere expiration of the term or period in a leasehold contract nor
by the sale, alienation or transfer of the legal possession of the
landholding. In case the agricultural lessor sells, alienates or
transfers the legal possession of the landholding, the purchaser
or transferee thereof shall be subrogated to the rights and
substituted to the obligations of the agricultural lessor.”
Neither will the expiration of the lease contract authorize tk
landowner to increase the rentals, unless the landowner introduc
capital improvements to increase its productivity, in which case, t§
rental may be increased proportionately to the consequent increaf
in production due to said improvements." 3 agricultural lessor fails to exercise his choice within the periods
Transfer of ownership of the land does not terminate the leasehag
relation
ri | If the landowner-lessor sells or transfers ownership of t
land, the leasehold relationship is not extinguished. The buyer ¢
transferee becomes the lessor.’* ;
; The agricultural leasehold established under Code of Agrarian
“Sec. 7, ibid.
16Secs. 16 and 34, ibid.
16Sec. 10, ibid.
guished by Death or Incapacity of the Parties. — In case of death
or permanent incapacity of the agricultural lessee to work his
landholding, the leasehold shall continue between the agricul-
tural lessor and the person who can cultivate the landholding
personally, chosen by the agricultural lessor within one month
from such death or permanent incapacity, from among the fol-
lowing: (a) the surviving spouse; (b) the eldest direct descendant
by consanguinity; or (c) the next eldest descendant or descen-
dants in the order of their age: Provided, That in case the death
or permanent incapacity of the agricultural lessee occurs during
the agricultural year, such choice shall be exercised at the end of
that agricultural year: Provided, further, That in the event the
herein provided, the priority shall be in accordance with the or-
der herein established.
In case of death or permanent incapacity of the agricul-
tural lessor, the leasehold shall bind his legal heirs.”
E When the agricultural leasehold is extinguished
Noforms is extinguished by:
(a) Abandonment of the landholding without the
knowledge of the agricultural lessor;
(b) Voluntary surrender of the landholding by the
agricultural lessee; or
166 AGRARIAN LAW AND SOCIAL LEGISLATION
(c) Absence of the persons under Section nine to sucd
to the lessee, in the event of death or permanent incapacit¥
the lessee.”
Abandonment of the Landholding
To constitute abandonment, two (2) essential elements mf
concur, namely: 1 Diepossession
(a) There must be intent to abandon; and
(b) There must be actual act of abandonment,
lessee must actually stop occupying and working on the la
for a substantial period of time.
Voluntary Surrender of the Landholding
To constitute a ground for extinguishment of the lease:
(a) The surrender of the landholding must be volunta
on the part of the farmer-lessee, i.e., the decision to relinquif
the leasehold relations must not be influenced by any comp
ling factor from the landowner; and
(b) The farmer lessee must serve three
advance notice.
Termination of leasehold by agricultural lessee
The agricultural lessee may terminate the leasehold for any}
the following causes:
(a) Cruel, inhumane or offensive, treatment of the ai
ricultural lessee or any member of his immediate farm houg
hold by the agricultural lessor; ‘ reasonably deteriorated through the fault or negligence of the
(b) Non-compliance on the part of the agricultural lesa
with any of his obligations under the Code of Agrarian Reforyy
or under the lease contact; q when it falls due.
(c) Compulsion ofthe agricultural lessee or any membf
of his immediate farm household by the agricultural lessor’
render any service not in any way connected with farm wor!
or even without compulsion if no compensation is paid;
Sec. 8, Code of Agrarian Reforms, as amended.
CHAPTER 3 167
THE CODE OF AGRARIAN REFORMS
(d) Commission of a crime by the agricultural lessor
or his representative against the agricultural lessee or any
member of his immediate farm household; or
(e) Voluntary surrender due to circumstances more
advantageous to him and his family."
_ The lessee may be dispossessed of the landholding on the
i.e., f Pllowing grounds:
(a) The land has been declared by the appropriate gov-
ernment agency to be suited for residential, commercial, indus-
trial or some other urban purposes (Under this situation, the
agricultural lessee shall be entitled to disturbance compensa-
tion equivalent to five times the average of the gross harvests
on his landholding during the last five preceding calendar
years);
(b) Failure of the agricultural lessee to substantially
comply with any of the terms and conditions of the lease contract
q
or any of the provisions of the Code of Agrarian Reforms;
(3) mon j
(c) The agricultural lessee planted crops or used the
landholding for a purpose other than what had been previously
agreed upon;
(d) The agricultural lessee failed to adopt proven farm
practices as determined under paragraph 3, Section 29 of the
a Code of Agrarian Reforms;
(e) The land or other substantial permanent improve-
ment thereon is substantially damaged or destroyed or has un-
agricultural lessee;
(f) The agricultural lessee does not pay the lease rental
(g) Thelessee employed asub-lessee on his landholding.”
The dispossession on the above-mentioned grounds is not auto-
E mutic. The landowner-lessor should file the corresponding petition
18Sec. 28, Code of Agrarian Reforms, as amended.
Sec. 36, ibid.
 168 AGRARIAN LAW AND SOCIAL LEGISLATION
with the DAR Adjudication Board and prove the existence of
grounds for dispossession.”
Obligations of the agricultural lessor
The agricultural lessor is obliged to:
(a) Keep the agricultural lessee in peaceful possessi ‘
and cultivation of his landholding; and "
(b) Keep intact such permanent useful improvement
ui existing on the landholding at the start of the leasehd
relation.”
These obligations are “intended to protect the interest of
i
tefl agricultural lessee against harassment by the agricultural lessd
We |
Moreover, permanent useful improvements are generally consider
I" '
as an important part of the consideration of the leasehold contraj
14 and to remove or destroy them would be a substantial violatig
thereof.”
Obligations of the agricultural lessee
The agricultural lessee is obliged to:
“ot (1) Cultivate and take care of the farm, growing crop
and other improvements on the landholding as a good father ¢
a family and perform all the work therein in accordance wif
proven farm practices; 4 hay but certainly he should be made accountable for depositing
(2) Inform the agricultural lessor within a reasonal 2
time of any trespass committed by third persons upon the fa: of
without prejudice to his direct action against the trespasser:4
(3) Take reasonable care of the work animals and farg
implements delivered to him by the agricultural lessor and 8
ti fh
that they are not used for purposes other than those intended
(4) Keep his farm and growing crops attended to durixf
the work season. In case of unjustified abandonment or negleg
of his farm, any or all of his expected produce may, upon ord@
of the Court, be forfeited in favor of the agricultural lessor :
the extent of the damage caused thereby;
Secs. 36 and 37, ibid.
Sec. 30, ibid.
2Montemayor, Labor, Agrarian and Social Legislation, vol. 3, p. 284, 2nd ed, §
CHAPTER 3 169
THE CODE OF AGRARIAN REFORMS
(5) Notify the agricultural lessor at least three days
i
before the date of harvesting or, whenever applicable, of
threshing; and
(6) Pay the lease rental to the agricultural lessor when
it falls due.”
Destroying any improvement on the landholding is a violation
Fo the agricultural lessee’s obligation to take care of the farm, crops
nd other improvements on the landholding with the diligence of a
"
1d father of a family. As held in the case of Guevarra v. Santos,
LR. No. L-19716, November 23, 1966:
t¥
“There is ample evidence showing that Herminigildo
Guevarra and Apolonio Javinia caused the death of twenty eight
(28) and six (6) coconut trees, respectively, in their holdings. In
the case of Guevarra, twenty-eight (8) trees were destroyed when
hay was heaped at the base of the coconut trees and burned, and
in the case of Apolonio Javinia, he failed to exercise caution in
plowing his holding to prevent serious damage to the coconut
trees. As lessee-tenants defendants Herminigildo Guevarra and
Apolonio Javinia are obliged to exercise the diligence of a good
father of a family to preserve the improvements existing in their
holdings. Herminigildo Guevarra while denying that he actually
burned the hay heaped at the base of twenty eight (28) trees,
admitted that at the time the hay was burned he was away from
his holding. He may not have had any hand in the burning of the
hay at the base of the trees, an act which would not be done by
a reasonably careful father of a family. It does not require great
intelligence to perceive that hay is highly and unpredictably
inflammable and if heaped at the base of young coconut tress
could cause total destruction of the trees.
On the part of Apolonio Javinia, knowing that young
coconut trees were growing in his holding, he plowed too closely
to the six (6) tress causing their death. As a farmer of long
standing he should have known that by plowing too close to
the base of the trees his plow would inevitably cut the trees’
roots. He, therefore, failed to exercise sufficient caution in his
plowing.”
4
*3Sec. 26, supra.
 170 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 3 171
THE CODE OF AGRARIAN REFORMS

Rights of the agricultural lessor

The following are the rights of an agricultural lessor:
(a) To inspect and observe the extent of compliance
the terms and conditions of the lease contract;
(b) To propose a change in the use of the landhold
to other agricultural purposes, or in the kind of crops
planted;
(a) the cost and expenses incurred in the cultivation,
planting or harvesting and other expenses incidental to the
improvement of his crop; and
4
(b) for one-half of the necessary and useful improve-
ments made by him on the landholding which are tangible and
have not yet lost their utility at the time of surrender and/or
abandonment of the landholding.”

(c) To require the .

agricultural lessee to adopt in ny ’ Aight of pre-emption
farm proven farm practices necessary to the conservag
of the land, improvement of its fertility and increase
The agricultural lessee has the preferential right to buy the
of
productivity; and 4 Band actually cultivated by him under reasonable terms and condi-
ons.
7 (d) To mortgage expected rentals.
| | The agricultural lessor can exercise the aforementioned ri 7
1 Therefore, if the agricultural lessor decides to sell the land-
iY! fholding, he should give notice to:
as long as it does not interfere with the lessee’s peaceful posses
: of the landholding. 4 (a) the Department of Agrarian Reform; and
(b) all the lessees affected.
Rights of agricultural lessee
If the agricultural lessee agrees with the terms and conditions
The following are the rights of an agricultural lessee:
‘of the sale, he must give written notice to the agricultural lessor
i land (a) To have possession and peaceful enjoyment of 4 fof his intention to exercise his right of pre-emption, and thereafter
and; 5 Ender payment of, or present a guarantee certificate from the Land
(b) To manage and work on the land in a manner Hank to the agricultural lessor. If the lessor refuses to accept such
method of cultivation and harvest which conform to prow Flender or presentment, he may consign it with the court.
farm practices; Any dispute as to the reasonableness of the terms and
(c) To mechanize all or any phase of his farm work; Fwnditions may be brought by the lessee or by the Department
‘
fof Agrarian Reform to the proper court. Section 11 of the Code of
f (d) To deal with millers and processors and attends Agrarian Reforms, as amended, provides:
the issuance of quedans and warehouse receipts for the prody
due him.»
“SECTION 11. Lessee’s Right of Pre-Emption. — In
(e) Tohave a homelot within the land that he is leasin case the agricultural lessor decides to sell the landholding, the
agricultural lessee shall have the preferential right to buy the
same under reasonable terms and conditions: Provided, That
Right of lessee to be indemnified for his labor
the entire landholding offered for sale must be pre-empted
If the agricultural lessee surrenders, abandons or is val , by the Department of Agrarian Reform upon petition of the
ejected from his landholding, he is entitled to be indemnified for: q lessee or any of them: Provided, further, That where there
are two or more agricultural lessees, each shall be entitled to
said preferential right only to the extent of the area actually
*4Sec. 29, Code of Agrarian Reforms, as amended.
Sec. 28, ibid.
Sec. 24, ibid.
21S ec. 25. ibid.
 172 AGRARIAN LAW AND SOCIAL LEGISLATION
cultivated by him. The right of pre-emption under this Section
may be exercised within one hundred eighty days from notice
in writing, which shall be served by the owner on all lessees
affected and the Department of Agrarian Reform.
If the agricultural lessee agrees with the terms and
conditions of the sale, he must give notice in writing to the
agricultural lessor of his intention to exercise his right of pre-
emption within the balance of one hundred eighty day’s period
still available to him, but in any case not less than thirty days.
He must either tender payment of, or present a certificate
from the Land Bank that it shall make payment pursuant to
section eighty of this Code on, the price of the landholding to the
agricultural lessor. If the latter refuses to accept such tender or
r presentment, he may consign it with the court.
i")
Any dispute as to the reasonableness of the terms and
conditions may be brought by the lessee or by the Department
it of Agrarian Reform to the proper Court of Agrarian Relations
which shall decide the same within sixty days from the date of
the filing thereof: Provided, That upon finality of the decision
of the Court of Agrarian Relations, the Land Bank shall pay to
the agricultural lessor the price fixed by the court within one
hundred twenty days: Provided, further, That in case the Land
Bank fails to'_pay within that period, the principal shall earn an
interest equivalent to the prime bank rate existing at the time.
Upon the filing of the corresponding petition or request
with the department or corresponding case in court by the
agricultural lessee or lessees, the said period of one hundred
and eighty days shall cease to run.
Any petition or request for pre-emption shall be resolved
within sixty days from the filing thereof; otherwise, the said
period shall start to run again.”
The Register of Deeds will not register or issue a Transf
Certificate of Title without a sworn statement from the vend@
iq!
(andowner) that he has given the required notice to the lesa
or that the land is not covered by an agricultural lease.” This
provided for in Section 13 of the Code of Agrarian Reforms, whic
reads as follows: ; within sixty days from the filing thereof; otherwise, the said
, “SECTION 13. Affidavit Required in Sale of Land Subject
to Right of Pre-emption. — No deed of sale of agricultural land
under cultivation by an agricultural lessee or lessees shall be
8Sec. 30, Code of Agrarian Reforms, as amended.
CHAPTER 3 173
THE CODE OF AGRARIAN REFORMS
recorded in the Registry of Property unless accompanied by
an affidavit of the vendor that he has given the written notice
required in Section eleven of this Chapter or that the land is not
worked by an agricultural lessee.”
E Right of redemption
If the land was sold to a third person without the knowledge
ol the agricultural lessee, the latter shall have the right to redeem
-g F (ho same at a reasonable price and consideration to the extent of
tho area actually cultivated by him, by filing a petition or request
F (or redemption with the Department of Agrarian Reform within one
F hundred eighty (180) days from knowledge of the sale.
: The redemption price shall be the reasonable price of the land
tl. the time of the sale. The Department of Agrarian Reform shall
E Initiate, while the Land Bank shall finance, said redemption. Section
1% of the Code of Agrarian Reforms as amended provides:
“SECTION 12. Lessee’s Right of Redemption. — In case
the landholding is sold to a third person without the knowledge of
the agricultural lessee, the latter shall have the right to redeem
the same at a reasonable price and consideration: Provided,
That where there are two or more agricultural lessees, each
shall be entitled to said right of redemption only to the extent of
the area actually cultivated by him. The right of the redemption
under this Section may be exercised within one hundred eighty
days from notice in writing which shall be served by the vendee
on all lessees affected and the Department of Agrarian Reform
upon the registration of the sale, and shall have priority over
any other right of legal redemption. The redemption price shall
be the reasonable price of the land at the time of the sale.
Upon the filing of the corresponding petition or request
with the department or corresponding case in court by the
agricultural lessee or lessees, the said period of one hundred
and eighty days shall cease to run.
Any petition or request for redemption shall be resolved
period shall start to run again.
The Department of Agrarian Reform shall initiate, while
the Land Bank shall finance, said redemption as in the case of
pre-emption.”
174 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 3 175
THE CODE OF AGRARIAN REFORMS

Rights of agricultural workers Aots which the agricultural lessee is forbidden to do

Agricultural workers are entitled to the same rights and opp ¢ The agricultural lessee is forbidden to do the following acts:
tunities in life as industrial workers, hence, they are entitled to landholdings belonging to a
(a) To work additional
following rights: . different agricultural lessor; and
(a) Right to self-organization; ‘To employ a sub-lessee on his landholding.»
(b)
(b) Right to engage in concerted activities;
The purpose of the prohibition is to prevent the agricultural
(c) Right to minimum wage; Eleunce from dissipating his labor and efforts in various landholdings
F wl. the expense of the first agricultural lessor. Agricultural leasehold .
(d) Right to work for not more than eight hours;
lw personal in character in the sense that the agricultural lessee
(e) Right to compensation for personal injuries, dei Must personally work and cultivate the landholding.”
or illness; and |
Enforceability of loans obtained by an agricultural lessee
(f) Right to security of tenure.”
To be enforceable, loans obtained by an agricultural lessee
Acts which the agricultural lessor is forbidden to do F whould be:
(a) written in a language or dialect known to the
The agricultural lessor is forbidden to do the following acts: q
agricultural lessee; and
(a) To dispossess the agricultural lessee of his lang
holding without just cause; (b) signed or thumb-marked by the agricultural lessee
]
or by his agent.®
(b) To require the agricultural lessee to assume, dire
or indirectly, the payment of the taxes or part thereof levied §
F Properties of the lessee that are exempt from liens or execution
the government on the landholding;
The following properties of the agricultural lessees cannot be
(c) Torequire the agricultural lessee to assume, dire
the subject of lien or execution:
or indirectly, any part of the rent, “canon” or other considerati dj
which the agricultural lessor is under obligation to pay to thi q (a) 25% of the entire produce of the land under culti-
persons for the use of the land; : vation; and

(b) Work animals and farm implements, except upon a

"
(d) To deal with millers or processors without writtel
authorization of the lessee in cases where the crop has to judgment for its price or upon a judgment of foreclosure of a
sold in processed form before payment of the rental; or ; mortgage thereon.
(e) To discourage, directly or indirectly, the formatiog The exemption cannot be waived for the reason that it is
maintenance or growth of unions or organizations of agricul : intended to provide sustenance for the lessee and his family from
tural lessees in his landholding, or to initiate, dominate, aff F one harvest to the next. As held by the Supreme Court in Maniego v.
sist or interfere in the formation or administration of any suck F (ustelo, G.R. No. L-9855, April 29, 1957:
union or organization.”

31Sec, 27, ibid. ;

“Montemayor, Labor, Agrarian and Social Legislation, vol. 3, p. 278, 2nd ed.
Sec. 39, Code of Agrarian Reforms, as amended. %3Sec. 20, supra.
Sec. 31, ibid. %4Sec, 21, Code of Agrarian Reforms, as amended.
176 AGRARIAN LAW AND SOCIAL LEGISLATION
“Being designed to provide sustenance for the tenant...
and his family from one harvest to the next, a waiver of the
exemption could amount to a waiver of the tenant’s right to
live. Any such renunciation would therefore be against public
policy, and hence null and void even without specific statutory
provision. The case comes under the rule of Art. 6 of the New
Civil Code, x x x
The Tenancy Act is a remedial legislation i
to better the lot of the sharecropper by ving him a mona
equitable participation in the produce of the land which he
cultivates. Being a remedial statute it should be construed soas_
to further its purpose in accordance with the general intent of _ ‘
the lawmaker. Adopting the construction placed upon it by the
petitioner would open the door to evasions and render the law
useless” (Sibulo v. Altar, 83 Phil., 513, 46 Off. Gaz., 5502).
The Sheriffs levy on the exempt portion being illegal.
the sale thereof was likewise unlawful and unenforceable. The
petitioner could not plead ignorance of the inclusion of the -
exempted portion in the levy and sale, he being the landlord on
whose land the palay was harvested.”
Prescription of action
The prescriptive period for filing an action to enforce the right
and obligations under the Code. of Agrarian Reforms is three (§
years reckoned from the time the cause of action accrued.*
The Department of Agrarian Reform
agrarian reform program. The Code of Agrarian Reforms re-nam¢
the Land Authority as the Department of Agrarian Reform. As
implementing arm ofthe agrarian reform program, the Departmeg
of Agrarian Reform is tasked with the following functions:
_ (@) Implement laws, programs and policies for the ai
auisition and distribution of all agricultural lands as provid
y laws;
‘(b) Resettle landless farmers and farm workers in go
ernment-owned agricultural estates which shall be distributed
to them as provided by law; :
Sec, 38, ibid.
CHAPTER 3 177
THE CODE OF AGRARIAN REFORMS
(c) Recommend and provide incentives for voluntary
sharing of lands by owners of agricultural lands,
(d) Acquire, determine the value, subdivide into family-
size farms, develop and distribute to qualified tillers, actual
occupants and displaced urban poor, private agricultural lands
regardless of area and crops planted;
(e) Administer and dispose of, under a settlement
scheme, all portions of the public domain declared as alienable
and disposable lands for speedy distribution to and development
by deserving and qualified persons who do not own any land
and under such terms and conditions as the Department may
prescribe, giving priority to qualified and deserving farmers in
the province where such lands are located;
(f) Provide free legal assistance to farmers covered
by agrarian reform and expedite the resolution of agrarian
conflicts and land tenure problems either through conciliatory
or adversary proceedings;
(g) Provide creative, responsive and effective informa-
tion, education and communication programs and projects
both for the tenant beneficiaries, landowners, the government
and private sectors and the general public, thereby generat-
ing a broad spectrum of support and understanding of the new
agrarian reform program;
(h) Strengthen agrarian reform beneficiaries organiza-
tions to a degree of national viability that would enable them
to share in the shaping of government policies and institution-
alize farmers’ participation in agrarian reform policy formula-
tion, program implementation and evaluation;
(i) Promote the organization and development of
cooperatives of agrarian reform beneficiaries and register the
same;
(j) Implement all agrarian reform laws and for this
purpose issue subpoena, subpoena duces tecum, and writs of
execution of its orders, and decisions and other legal processes
to ensure complianc e from all parties concerned for successful
and expeditio us program implementation,
(k) Undertake land surveys on lands covered by agrar-
ian reform, and issue patents to farmers covered by agrarian
reform, both on private and public lands;
178 AGRARIAN LAW AND SOCIAL LEGISLATION
; () Develop, implement and undertake alternative i
innovative land development schemes and land tenure systel
such as, but not limited to land consolidation, land formil
cooperative farming and agro-industrial estates; | shall be fully guaranteed by the Philippine Government;
(m) Approve or disapprove conversion of agricult i
lands tonon-agricultural uses such as residential and indust@
conversions in accordance with the existing provisions of laf
(n) Undertake land use management studies;
(0) Compensate the landowners covered by
reform;
(p) Integrate and synchronize program implementatf
i {
of the Land Bank of the Philippines and other relevant civilf
and military government and private entities involved
mandated to support the agrarian reform program thro ‘
Inter-Agency Committees and Agrarian Reform Coordinatd
Councils; and
(q) Perform such other functions as may be provided|
. law.
The Land Bank
The Land Bank which was created by the Code of Agra
Reforms is the financial arm of the agrari
: the following powers: grarian reform program -I¢
It
vested with
(a) To prescribe, repeal and alter its own by-laws)
determine its operating policies, and to issue such rules af
regulations as may be necessary;
(b) To adopt, alter and use a corporate seal;
(c) To hold, purchase, acquire and own real and pf
sonal property, introduce necessary improvements thereon:
enhance and develop their social and economic values, and!
sell, mortgage or otherwise dispose of the same;
~
(d) To sue and be sued, make contracts, negotig|
and ‘secure loans from both local and foreign sources. Befol
undertaking any such credit operation, the Bank, through tf
Secretary of Finance, shall request the opinion, in writin
Sec. 3, Title XI, Administrative Code of 1987.
CHAPTER 3 179
THE CODE OF AGRARIAN REFORMS
of the Monetary Board on the monetary implications of the
contemplated action. All loans from foreign sources shall be
subject to approval by the President of the Philippines and
(e) To grant short, medium and long term loans and
advances against security of real estate and/or other acceptable
assets for the establishment, development or expansion of
agricultural, industrial, home building or home financing
projects and other productive enterprises;
agra J
(f) ‘To grant loans to farmers’ cooperatives/associations
to facilitate production, marketing of crops and acquisition of
essential commodities;
(g) To finance and/or guarantee the acquisition, under
Presidential Decree No. 85 dated December 25, 1972, of farm
lots transferred to tenant-farmers pursuant to Presidential
Decree No. 27 dated October 21, 1972;
(h) To underwrite, hold, own, purchase, acquire, sell,
mortgage, dispose or otherwise invest or reinvest in stocks,
bonds, debentures, securities and other evidence of indebted-
ness of other corporations and of the government or its instru-
mentalities which are issued for or in connection with any proj-
ect or enterprise;
(i) The provision of any law to the contrary notwith-
standing, to guarantee acceptance(s), credits, loans, transac-
tions or obligations of any person, co-partnership, association
or corporation in favor of any financing or banking institution,
whether foreign or domestic: Provided, That the proceeds of
such acceptances, credits, loans, transactions or obligations
are utilized or earmarked for the development and/or expan-
sion of agriculture and industry;
(j) To borrow from, or rediscount notes, bills of ex-
change and other commercial papers with, the Central Bank.
The rate of interest to be charged and the conditions on such
obligations or borrowings shall be subject to the rules and reg-
ulations of the Monetary Board,
(k) To act as trustee, or administer any trust or hold
property in trust in accordance with the provisions of law
governing trust corporations; and
180 AGRARIAN LAW AND SOCIAL
LEGISLATION

a act as an official govern

subdivisions ment depository with
resin oposite of the govern
ment, its branckf
mentalities, and of go
ornr -con
-COr trolled corporations whi ich dep
paidity floor and/or reserv ositsits sh
shall al be sub
l ied ject) CHAPTER 4
e requirements as ay De
Y the Monetary Board upon other e
commercial banks; mpe 7 DOMESTIC WORKERS ACT
hank (m) . For ihe ao naiiet [BATAS KASAMBAHAY]
hening of the capital base
, of d
ational marketin; b
and fisheries cooperative S$ to REPUBLIC ACT NO. 10361
attract massiv
sivee capi
capittal
al fon i
from savings deposits of the
cooperative members nation
(n) To exercises the general
powers i in ¢j
Corporation Law and the Gen
eral Banking‘Act, aa cona
insofar as they ar e not inco i i n )
i . : Applicability of the Law
Decree.’ nsistent or incompatible with
The Domestic Workers Act applies only to domestic workers
f working within the Philippines.’

Meaning of Domestic Worker

Domestic worker or “Kasambahay” is a person engaged to work
| (wr a household within an employment relationship.
Examples are: general househelp, nursemaid, cook, gardener,
F ur laundry person.
To be considered as domestic worker, one should be hired
F xpecifically to perform household work. In the absence of specific
f sngagement, one cannot be considered as a domestic worker.
Persons who perform domestic work occasionally and not on
F jn occupational basis are not considered as domestic workers. Thus,
- children who are under foster family arrangement and are provided
access to education and given an allowance incidental to education,
F ie., “baon,”, transportation, school Pp projects and school activities, are
not considered domestic workers.”

Children or relatives of the domestic worker who live under

the employer's roof and share the same accommodations provided
for the domestic worker cannot be considered as domestic workers if

18ec. 3, Domestic Workers Act.

*Sec. 4 (d), ibid.
87.
Sec. 75, Code of.Agrarian Reforms,
as amended.
181
 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 4 183
DOMESTIC WORKERS ACT (BATAS KASAMBAHAY)

they were not engaged as such and are not required to perform
substantial household work.
APEX MINING CO. V. NLRC
196 SCRA 251
FACTS: SC was engaged by Apex Mining to perform ‘
laundry service at its staffhouse. While she was attending to
her assigned task,
she accidentally slipped and hit her back on
a stone. As a result of the accident, she was not able to continue _j
with her work. She was then permitted to go on leave for 4
medication. Thereafter, she was not allowed to return to work.
SC then filed a complaint for illegal dismissal against Apex
Mining, The main defense interposed by Apex Mining is that SC
was not a regular employee but a domestic worker.
Imum age for employment of domestic workers
The minimum age for employment of domestic workers is
yun (15) years old. It is unlawful to employ any person below
won (15) years of age as a domestic worker.’
Mring of domestic workers
Domestic workers can be hired directly or through a private
‘ ployment agency. If a private employment agency recruits
pinostic workers, it should require the domestic worker to submit
» following documents:
4
: certificate issued by a local
_ (a) Medical or a health
4 government health officer;

HELD: SC is not a domestic worker but a regular (b) Barangay and police clearance;
employee of Apex Mining. While it is true that the nature of - 7 (c) National Bureau of Investigation (NBI) clearance;
work performed by SC as laundrywoman in the staffhouse is
and
similar to the work of a domestic worker, still she could not be
classified as a domestic worker because she was not working for (d) Duly authenticated birth certificate or, if not avail-
a family but for a corporation. The mere fact that SC worked able, any other document showing the age of the domestic
within the premises of Apex Mining, as in its staffhouses for its 4
worker such as voter’s identification card, baptismal record or
guests or even for its officers and employees is an indication that
passport.
SC is a regular employee and not a mere domestic worker.
: Employers who directly hire the domestic worker may also
BARCENAS V. NLRC quire the submission of the above-mentioned documents.
187 SCRA 498 _ The cost of the foregoing documents shall be borne by the
FACTS: B was hired by the Manila Buddhist Temple as ykpective employer or agency, as the case may be.*
secretary and interpreter. B’s position required her to receive
and assist Chinese visitors to the temple, act as tourist guide
Recruitment of domestic workers by private employment agencies
for foreign Chinese visitors, attend to the callers of the Head
Monk as well as to the food for the temple visitors, run errands id 3 Employment agencies i that recruiti domesticic wor: ‘kers must
for the Head Monk such as paying Meralco, PLDT, MWSS bills, Febtain a license and authority to recruit from the Regional Office of
and act as liaison in some government offices. After the death ahe DOLE having jurisdiction over the place where the recruitment
of the Head Monk, B’s monthly allowance was discontinued and
she was forcibly evicted from her quarters in the temple. In a |
Fhctivities will be undertaken.’ |
complaint for illegal dismissal filed by B, the Manila Buddhist Employment agencies can engage in recruitment activities
Temple claimed that B was not its employee but a domestic ionly through their representatives who are:
worker who confined herself to the personal needs of the Head
Monk, and therefore her position was coterminous with that of (a) duly authorized to recruit; and
her master.
HELD: B is not a domestic worker but a regular employee
‘Sec. 16, Domestic Workers Act.
of the Temple. The work of B cannot be categorized as mere
4Sec. 12, ibid.
domestic work but were essential and important to the operation
tee. 15, Rule III, Rules Governing Private Recruitment and Placement Agency
and religious functions of the temple. q for Local Employment.
 184 : AGRARIAN LAW AND SO CHAPTER 4 185
CIAL LEGISLATION DOMESTIC WORKERS ACT (BATAS KASAMBAHAY)

(b) registered with the Regional Office of the DOL
A duly notarized recruitment contract should be exec
between the employment agency and the recruit.
; Thereafter, the employment agency should submit to the De
Regional Office where recruitment was undertaken (copy furn :
the DOLE Regional Office of destination):
(ec) Provide pre-employment orientation briefing to
the domestic worker and the employer about their rights and
responsibilities under the Domestic Workers Act;
(ad) Keep copies ofemployment contracts and agreements
pertaining to recruited domestic workers which shall be
made available during inspections or whenever required by
4 the Department of Labor and Employment (DOLE) or local
government officials;

|
(a) the names of the recruits;
(b) addresses; (e) Assist domestic workers with respect to complaints

3
or grievances against their employers; and
(c) birth
a certificates; (f) Cooperate with government agencies in rescue
(d) medical certificates; and operations involving abused or exploited domestic workers.’
(e) recruitment contract.
The employment agency should provide the recruit 3 porultment and Finder’s Fees
4
a a stamped
my envelope (which the recruit will send to his pai 4 Regardless of whether the domestic worker was hired through
containing the following: _private employment agency or a third party, no share in the
(a) name and address of recruit; and Mruitment or finder’s fees shall be charged against the domestic
oe orkor by the said private employment agency or third party."
(b) name, address, telephone number of his employ@ ; :
j Mployment Contract
Liabili . .
iyhe iability of private employment agencies Whether the domestic worker was hired directly or through
Private employment agencies are jointly and severally lig ) employment agency, the employer and the domestic .worker
with the employer for all the wages, and other: benefits du us. execute an employment contract before the commencement of
domestic worker.® : ‘ Ae worvice. The contract must be written in a language or dialect
Milerstood by both the domestic worker and the employer. The
Responsibility of private employment agencies _ pmostic worker should be given a copy of the employment contract."
The responsibilities of private employment agencies are §
following: ; sic contents of the employment contract
The contract of domestic work should contain the following
(a) Ensure that domestic workers are not charged] a pulations:
levied any recruitment or placement fees;
(b) Ensure that the employment agreement betwd (a) Duties and responsibilities of the domestic worker;
the domestic worker and the employer stipulates the ter (b) Period of employment;
and conditions of employment and all the benefits prescri ;
by the Domestic Workers Act; (c) Compensation;

Sec. 18, Rule III, Rules Governing Private Recruitment and Pl: :
for Local Employment. "Sec. 36, Domestic Workers Act.
sna Fiacement Age
Sec. 20, ibid. "Sec. 13, ibid.
®Sec. 36, Domestic Workers Act. "See. 11, ibid.
 186 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 4 187
DOMESTIC WORKERS ACT (BATAS KASAMBAHAY)

(d) Authorized deductions; ; NOTE: Medical attendance is limited to medical treatment

for ailments contracted by the househelper while in the service
(e) Hours of work and proportionate additional 'g of the employer. It does not include hospitalization.
ment; an

(f) Rest days and allowable leaves; The employer cannot withdraw or hold in abeyance the
(g) Board, lodging:and medical attention; Movision of these basic necessities as punishment or disciplinary
:
Pilon to the domestic worker."
(h) Agreements on deployment expenses, if any;
(i) Loan agreement; Daily Rest Period
Gj) Termination of employment; and Domestic workers are entitled to an aggregate daily rest period
(k) Any other lawful condition agreed upon by’ f eight (8) hours per day.”
parties.
Se

5
Ifthe domestic worker was hired through a private emplo mi Weekly Rest Period
agency, the agency should keep a copy of the employment contr Domestic workers are entitled to a weekly rest period of at
which shall be made available for verification and inspection by}
Ee

ani, twenty-four (24) consecutive hours.

DOLE.”
The employer and the domestic worker shall agree in writing
Registration of domestic workers In tho schedule of the weekly rest day of the domestic worker. The
fal day chosen by the domestic worker on religious grounds shall
Employers are required to register their domestic worker
@ roxpected.
the barangay where the employer’s residence is located."
:
: The domestic worker and the employer may validly agree on
Terms and conditions of employment of domestic workers — a ie following:
Health and Safety (a) Offset a day of absence with a particular rest day;
: The employer shall safeguard the health and safety of (b) Waive a particular rest day in return for an equiva-
domestic worker, with due consideration of the peculiar naturg lent daily rate of pay; ’ :
domestic work.“
(c) Accumulate rest days not exceeding five (5) days; or
Free Board, Lodging and Medical Attendance (d) Other similar arrangements.”
The employer shall provide for the basic necessities of q
domestic worker to include: Appropriate compensation for Assignment to Non-Household
ork
(a) at least three (3) adequate meals a day; .
a Sa cay; .. Domestic workers cannot be assigned to . work in a commercial,
(b) humane sleeping arrangements; aaduxtrial or agricultural enterprise at a wage rate lower than
. () appropriate rest and assistance in case of illnesil ; at provided for agricultural or nonagricultural workers.
injuries sustained during service without loss of benefits.

Zamora v. Sy, 52 0.G. 1518.

Sec. 3, ibid. "Sec. 6, supra.
Sec. 17, ibid. "Sec. 20, ibid.
Sec. 19, ibid. "Sec. 21, Domestic Workers Act.
 188 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 4 189
DOMESTIC WORKERS ACT (BATAS KASAMBAHAY)

Domestic workers assi i . ‘ :

paid the applicable minimum wage.” such establishments sh@ } Pay Slip
‘'he employer shall at all times provide the domestic worker
Extent of Duty Ah 1 copy of the pay slip containing the amount paid in cash every
y dluy, indicating all deductions made, if any. The copies of the pay
The employer may allow a d omestici worker to t 3
iy whull be kept by the employer for a period of three (8) years.
perform a task for another household, but any liability thar wi

shall a by the domestic worker on account o f such arranger Thirteenth Month Pay
e by the original employer.
\omestic workers are entitled to 13th month pay as provided
The domestic worker who temporaril b hy the 13th month pay law.™
{
household shall be paid an additional compensation
st not less f
the existing minimum wage rate of a domestic worker. Leave Benefits
The o 3
employer to charge any amount from the househ
old wh 1
service of the domestic worker was temporarily perfor Domestic workers who have rendered at least one (1) year of
med » j
. . fvico shall be entitled to an annual service incentive leave of five
Minimum Wage of Domestic Workers ) days with pay. Unused portion of said annual leave is neither
tmulative nor convertible to cash.”
we me P2,500.00/month ~— in the National Capital Reg
iz
Social Security, PhilHealth and Pag-Ibig Fund
(b) P2,000.00/month — in'chartere d cities and § Domestic workers who have rendered at least one (1) month
class municipalities; and aervice shall be covered by the Social Security System (SSS),
(c)
P1,500.00/month — in other municipalities. Philippine Health Insurance Corporation (PhilHealth), and
je Home Development Mutual Fund (Pag-IBIG). The premium
The Regional Tripartite and P roductivity
ivi Wage tributions shall be paid as follows:
aJ
(RTPWBs) may from time to time review, determine,
and adjeat l (a) For domestic workers who receive a monthly wage
minimum wage rates of domestic workers.”
of less than P5,000.00 — the employer's contribution and the
Payment of Wages domestic worker’s contribution shall be borne solely by the
employer;
Wages of domestic workers sh ould be paid:
id: (b) For domestic workers who receive a monthly wage of
1. in cash; P5,000.00 and above — the domestic worker and the employer
shall shoulder their respective premium contributions.”
2. directly to the domestic worker; and

3. at least once a month. Rlahts and privileges of domestic workers

me the employer cannot pay the wages of a domestic worker} Right to Humane Treatment
‘ans of promissory notes, vouchers, coupons, tokens, tickets, ¢
4 The employer or any member of the household shall not
or any object other than cash.” ,
Puhjoct a domestic worker to any kind of abuse, physical violence

Sec. 22, ibid.

“4Sec, 26, Domestic Workers Act.
Sec. 23, ibid.
“Sec. 25, ibid.
Sec. 24, ibid.
“Sec. 27, ibid.
Sec. 25, ibid.
WiSec, 28, ibid.
190 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 4 191
DOMESTIC WORKERS ACT (BATAS KASAMBAHAY)

harassment or any act tending to degrade the dignity of a doryer gations of domestic workers
worker.”’ ’
Domestic workers are obliged to:
NOTE: Any abused or exploited domestic worker shall bal (a) render satisfactory service at all times;
immediately rescued by a municipal or city social welfare office |
or a social welfare officer from the Department of Social Welfare’ (b) observe the terms and conditions of the employment
and Development (DSWD) in coordination with the concerned’ contract; :
barangay officials. The DSWD and the DILG shall develop aj
standard operating procedure for the rescue and rehabilitation’ (c) refrain from publicly disclosing any communication
of abused domestic workers, and in coordination with the DOLE, or information pertaining to the employer or members of the
for possible subsequent job placement.” \ e household during and after employment.

Right to Privacy NOTE: Information that may be divulged by the domestic

’ worker on the matter are privileged in character and therefore,
The employer shall-respect the privacy of the domestic worl i ’ inadmissible in evidence except when the suit involves the
all times. The right to privacy extends to all forms of communiag «mployer or any member of the household in a crime against
and personal effects.” porsons, property, personal liberty and security, and chastity.“

Access to Outside Communication aw ng mga kasambahay

The employer shall grant the domestic worker access to out
communication during free time.
However, in case of emerg
access to communication shall be granted even during work #
Should the domestic worker make use of the employer’s tele a
or other communication facilities, the costs shall be borne
domestic worker, unless such charges are waived by the empl O8
Right to Education and Training
The employer shall afford the domestic worker the opportul i
to finish basic education and may allow access to alternative lea s
systems and, as far as practicable, higher education or technical
vocational training.
The employer shall adjust the work schedule of the do
worker to allow such access to education or training wi
hampering the services required by the employer.
January 18 (the date of approval of the law) has been designated
the “Araw ng mga Kasambahay.”*
‘ hibited Activities
by Prohibition Against Deposits for Loss or Damage
* 'The employer cannot oblige the domestic worker to make
wits to answer for loss or damage to tools, materials, furniture
\ § equipment in the household.*
+ Prohibition on Debt Bondage
‘The employer cannot oblige the ‘domestic worker to render
wie as security for or in payment for a debt, where the length
id jniure of service is not clearly defined or when the value of the
Byicw is not reasonably applied in the payment of the debt.”

“Hoc, 7, ibid.
27Sec. 5, ibid. Moc, 34, ibid.
Sec. 31, ibid. “Nuc, 8, ibid.
Sec. 7, ibid. "Soc, 89, ibid.
3°Sec. 8, ibid. “Soc, 14, ibid.
51Sec. 9, ibid. “oc, 15, ibid.
 192 AGRARIAN LAW AND SOCIAL LEGISLATION
Prohibition on Interference in the Disposal of Wages
The employer cannot interfere with the freedom of any di
worker to dispose of the latter’s wages. Thus, the domestic
cannot be obliged to purchase merchandise, commodities or §
properties from the employer or from any other person, or othef
make use of any store or services of such employer or an
person. :
Prohibition Against Withholding of Wages
The employer cannot, directly or indirectly, to withhol }
wages of the domestic worker. Likewise, the employer cannoti 1
OS
the domestic worker to give up any part of the wages by force, sta
intimidation, threat or by any other means whatsoever.”
When the employment relation can be terminated
If there is a just cause — the domestic worker or the emp
oo
can terminate the employment relations any time.
If there is no just cause — the domestic worker or the emph
can terminate the employment relations: d
(a) At the end of the stipulated period; or
(b) Ifno stipulated period — by giving 5 days adyj
notice.
Effect of termination without notice or before the stipulated p a
If the stipulated period or the 5-day advance notice
observed, the following are the consequences:
On the part of the domestic worker
(a) He forfeits any unpaid salary equivalent to 15
and
termination is done within six (6) months from hiring.
38Sec. 27, Domestic Workers Act.
Sec, 28, ibid.
“Sec, 32, ibid.
CHAPTER 4 193
DOMESTIC WORKERS ACT (BATAS KASAMBAHAY)
On the part of the employer
He is liable for indemnity in an amount equivalent to 15 days
w4
pay."
The Just causes for termination of employment by the domestic
FWorker
The domestic worker may validly terminate the employment
Pelutionship at any time for any of the following just causes:
(a) Verbal or emotional abuse by the employer or any
member of the household;
(b) Inhumane treatment including physical abuse by
the employer or any member of the household;
(c) Commission of a crime or offense against the domes-
tic worker by the employer or any member of the household;
(d) Violation by the employer of the terms and conditions
ofthe employment contract and other standards set forth under
the law;
(e) Ifhe is suffering from a disease prejudicial to the
. health of the domestic worker, the employer, or member/s of
the household; and
i: (f) Other causes analogous to the foregoing.”
The just causes for termination of employment by the employer
The employer can terminate the services of the domestic
F worker for any of the following just causes:
(a) Misconduct or willful disobedience to lawful order in
connection with the work;
4 (b) Gross or habitual neglect or inefficiency;
(c) Fraud or willful breach of the trust;
(d) Commission of a crime or offense by the domestic
worker against the person of the employer or any immediate
member of the employer’s family;
Fe eter
"Sec. 32, ibid.
“Sec. 33, ibid.
 194 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 4 195
DOMESTIC WORKERS ACT (BATAS KASAMBAHAY)

(e) Violation by the domestic worker of the terms ‘ (e) Interfering with the freedom of the domestic worker
conditions of the employment contract and other standards, to dispose of his wages, or. forcing, compelling or obliging the
forth under the law; F domestic worker to purchase merchandise, commodities or
other properties from the employer or from any other person,
(f) If the domestic worker is suffering from a dised
or otherwise make use of any store or services of such employer
prejudicial to his health, the health of the employer, or mem i or any other person;
of the household; and 4
. (f) Withholding the wages of the domestic worker or
(g) Other causes analogous to the foregoing.* inducing the domestic worker to give up any part of his wages
by force, stealth, intimidation, threat or by any other means
1
Certificate of Employment whatsoever.
Upon the severance of the employment relationship,
employer shall issue the domestic worker within five (5) days fx fyrlminal sanction
request a certificate of employment indicating the nature, durat] j The aforementioned criminal acts will subject the offender to a
of the service and work performance.“ 4 Hing of not less than Ten thousand pesos (P10,000.00) but not more
. Ahan Forty thousand pesos (P40,000.00).#
Criminal acts ¥
SSS

The Domestic Workers Act declares the following acts |

7S

criminal offenses:
(a) Employing a domestic worker who is below 15 ye :
old; 4
(b) Charging by the original employer any amount fr
the household where the service of his domestic worker
temporarily performed;
(ec) Requiring the domestic worker to make deposit F
answer for losses or damage to tools, materials, furniture ag
equipment in the household;*
(d) Placing the domestic worker under debt bondag
i.e., requiring the domestic worker to render service as securf
or payment for a debt where the length and nature of servi
is not clearly defined or when the value of the service is fj
reasonably applied in the payment of the debt;* 3

Sec. 34, ibid.

“Sec. 35, ibid.
Sec. 16, ibid.
48Sec. 23, ibid. Sec. 27, ibid.
47Sec. 14, ibid. "Sec. 28, ibid.
4#Sec. 4 (a) and 15, ibid. "Sec. 40, ibid.
 CHAPTER 5 197
NO ACT OF 1995
THE MIGRANT WORKERS AND OVERSEAS FILIPI

(c) Has concluded a bilateral agreement with the Phil-

of overseas
ippine government on the protection of the rights
Filipino workers.’
CHAPTER 5 to vessels
; With regard to Filipino seafarers, their deployment
s locate d offsho re or
THE MIGRANT WORKERS AND OVERSEAS ivigating the foreign seas or to installation
owner s/emp loyer s are
FILIPINOS ACT OF 1995 n high seas will be allowed only when the
that protec t the
!wmpliant with international laws and standards
tlyhts of migrant workers.
REPUBLIC ACT NO. 8042
ational
[as amended by R.A. 9422 and R.A. 10022] With regard to companies and contractors with intern
s therea t will be allowe d if
| pporations, deployment of Filipino worker
in the
Wi ions embod ied
F thoy are compliant with standards and condit
im #mployment contracts prescribed by the POEA.
Migrant Worker In the absence of clear showing that any of the aforementioned
A migrant worker is an overseas Filipino worker, i.e., a pe J fyunrantees exist in the country of destination of the migrant
who is to be engaged or has been engaged in a remunerated acti¥ ; workers, the POEA will not issue a deployment permit.
in a country of which he is not a citizen, or on board a vessel navig
iing e foreign seas, other than a government ship used for militj i : Liability of the POEA Governing Board, Government Officials and
i :
on-commercial purposes, or on an installation located offsh Employees
a :
or on high seas. voted
, 4 The members of the POEA Governing Board who actually
workers
A person is deemed to have been “engaged in a remunerd| -|n favor of an order allowing the deployment of migrant
suffer the
activity” if he has been promised or assured employment overseil E.without any of the aforementioned guarantees shall
ication
sponalties of removal or dismissal from service with disqualif
Deployment of Migrant Workers jlo hold appointive public office for five (5) years.‘
allowing
Migrant workers can be deployed only in countries where { ’ Government officials or employees ,responsible for
contra ventio n of the
rights of Filipino workers are protected. This may be indicated iff an deployment of migrant workers in direct
shall also be
receiving country: i E prohibition imposed by the POEA Governing Board
inoled the same penalties.
(a)
. Has
: existing labor and social 1 aws protecting
ing
workers; { j workers
rights of migrant - Compulsory Insurance Coverage for agency-hired migrant
Isa signatory t tif i
(b)
. ory to or a ratifier of multilat f
tions, declarations, or resolutions relating to the tied P Recruitment or manning agencies are obliged to provide each
at no cost to
P 104 EInigrant worker they deploy a compulsory insurance
workers, including migrant workers; or ho worker.*

—$<—<———————

‘Sec. 2 (jj), Omnibus Rules and Regulations Sec, 3 (a), R.A. No. 8042, as amended.
I: i i
ers and Overseas Filipinos Act of 1995. * SSec. 4, ibid.
ns Tmnplementing the Migrant We
‘Sec. 4, ibid.
‘Sec. 4, ibid.
196 "Sec, 37-A, ibid.
198 AGRARIAN LAW AND SOCIAL LEGISLATION
ance premium, the license of the recruitment or manning age!
will be cancelled and all its directors, partners, proprietors, offiq
and employees shall be perpetually disqualified from engaging
bilities.’
The insurance company must be:
« duly registered with the Insurance Commission;
« in existence and operational for at least five (5) yea i
* with a net worth of at least P500,000,000.00
determined by the Insurance Commission; and
¢ with a current certificate of authority.*
The recruitment/manning agency has the right to choose §
insurance provider. The migrant worker should be given an auth
ticated copy of the insurance policy. The certificate of insurance
erage should be submitted to the POEA as a requirement for|
issuance of an Overseas Employment Certificate. Insurance poll
issued by foreign insurance companies to seafarers shall be accef
by the POEA if the minimum coverage are complied with.
Migrant workers recruited by the POEA on a governmenté
government arrangement shall be covered by a foreign employ@
guarantee fund established by the POEA. The foreign employ
guarantee fund shall answer for the workers’ monetary claim arid
from breach of contractual obligations. Migrant workers who §
classified as rehires, name hires, or direct hires may request tl
foreign employers to pay for the cost of insurance coverage or op!
pay the premium themselves.”
Disqualification
Insurance companies who have directors, partners, offi og
employees or agents with relatives, within the fourth civil deg
of consanguinity or affinity, who work or have interest in any of
government agencies involved in the overseas employment progr
are disqualified from providing this workers’ insurance coveraged
Sec. 87-A, ibid.
8Sec. 37-A, ibid.
*Sec. 37-A, ibid.
Sec. 37-A, ibid..
Sec. 37-A, ibid.
CHAPTER 5 199
THE MIGRANT WORKERS AND OVERSEAS FILIPINO ACT OF 1995
iGoverage of the Insurance
The insurance policy which should be effective for the duration
of the migrant worker’s employment contract and shall cover:
(a) US$15,000.00 for accidental death, payable to the
migrant worker’s beneficiaries;
(b) US$10,000.00 for natural death, payable to the
migrant worker’s beneficiaries;
(c) US$7,500.00 for permanent total disability, payable
to the migrant worker;
(d) US$100.00 per month for subsistence allowance for
a maximum of six (6) months if the migrant worker is involved
in a case or litigation for the protection of his rights in the
receiving country;
(e) Repatriation cost of the worker when employment is
terminated without any valid cause, including the transport of
his or her personal belongings;
(f) Money claims arising from employer's liability
which may be awarded or given to the worker in a judgment or
settlement of his or her case in the National Labor Relations
Commission;*
"The following disabilities are deemed permanent total:
* complete loss of sight of both eyes;
* loss of two (2)-limbs at or above the ankles or wrists;
* permanent complete paralysis of two (2) limbs;
* brain injury resulting to incurable imbecility or insanity.
"The concerned labor attaché or, in his absence, the embassy or consular office
E thall issue a certification which states the name of the case, the names of the parties
F ini the nature of the cause of action of the migrant worker.
‘In case of death, the insurance provider shall:
(a) arrange and pay for the repatriation or return of the worker’s re-
mains;
(b) render assistance necessary in the transport, including, but not
limited to, locating a local and licensed funeral home, mortuary or direct: dispo-
sition facility to prepare the body for transport, completing all documentation,
obtaining legal clearances, procuring consular services, providing death certifi-
cates, purchasing the minimally necessary casket or air transport container,
as well as transporting the remains including retrieval from site of death and
delivery to the receiving funeral home [Sec. 37-A, R.A. No. 8042, as amended].
In case of repatriation, a certification which states the reason for the termina-
Won of the migrant worker’s employment and the need for his or her repatriation
thull be issued by the Philippine foreign post or the Philippine Overseas Labor Office
- (VOLO) located in the receiving country.
‘The insurance coverage for money claims shall be equivalent to at least three
; (H) months for every year of the migrant worker’s employment contract (Sec. 37-A,
NA. No. 8042, as amended).
200 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 5 201
NO ACT OF 1995
THE MIGRANT WORKERS AND OVERSEAS FILIPI

ort of the
(g) Cost of transportation for compassionate visit ‘ Likewise, the repatriation of remains and transp
costs attendant
one (1) family member (or requested individual) to the maj f porsonal belongings of a deceased worker and all
the recruitment
airport closest to the place of hospitalization of the workeyj [thereto shall be borne by the principal and/or
case the migrant worker is hospitalized or confined for at le a Ayency.
seven (7) consecutive days;'* 1 is due
However, in cases where the termination of employment
emplo yer or agency
(h) Cost of medical evacuation, when proximate aff solely to the fault of the worker, the principal/
former and/or his
adequate medical facility is not available to the migral will not be responsible for the repatriation of the
worker, as determined by the insurance company’s physi holongings.”
or consulting physician; and
(i) Cost of medical repatriation, when medically nee ; | Emergency Repatriation
l or man-
sary as determined by the attending physician, and medical Incase of war, epidemic, disasters or calamities, natura
1 OWWA ,? in coord inati on with
cleared for travel by the commercial carrier.” ; nde, and other similar events, the
shall under take the repatr iation
F appropriate international agencies by
Claims arising from accidental death, natural ‘death is subjec t to reimb ursem ent
E uf workers. The cost of repatriation
disablement shall be paid by the insurance company without .
(he responsible principal or agency
contest and without the necessity of proving fault or negligenc
any kind on the part of the insure migrant worker." If the principal or recruitment agency cannot be identified, all
by the OWWA.”
by the Philippi | txts attendant to repatriation shall be borne
The following documents, duly authenticated
foreign posts, shall be sufficient evidence to substantiate the claixy Repatriation of underage migrant workers — mandatory
fall below 18
¢ Death Certificate — In case of natural or acciden’ ‘ If there are migrant workers whose actual age
death; servic shall without
e
F yours old, the responsible officers in the foreign
¢ Police or Accident Report — In case of accidental dea j | olay repatriate said workers.
recruited
The license of the recruitment/manning agency which
¢« Medical Certificate — In case of permanent disabl{ nt worke r shall be automa tically
| ov deployed the underaged migra
ment. with a fine rangin g from P500, 000.00
p revoked and shall be meted out
E 40 P1,000,000.00.
Repatriation of Migrant Workers shall refund
Furthermore, the recruitment or manning agency
t need of notice.
Repatriation of overseas worker and the transport of hf E nll the fees incurred by the underage worker withou
from the date of
personal belongings is the primary responsibility of the recruitme) A | Tho refund should be paid within thirty (30) days
agency. All costs attendant to repatriation shall be borne by q > tho mandatory repatriation.”
charged to the agency concerned and/or its principal. a
WWegal recruitment of migrant workers
ing manner:
Illegal recruitment can be committed in the follow

16It is, however, the responsibility of the family member or requested ind
eee
vidual to meet all visa and travel docu: ment t requirements
i /Sec. 37-A, R.A. No. 804 ———_——_—
Sec. 15, ibid.
“Sec. 37-A, R.A. No. 8042, as amended 21Qverseas Workers Welfare Administration.
Sec. 37-A, ibid. "Sec, 15, supra.
9Sec. 37-A, ibid. Sec. 16, ibid.
 202 AGRARIAN LAW AND SOCIAL LEGISLATION
CHAPTER 5 208
THE MIGRANT WORKERS AND OVERSEAS FILIPINO ACT OF 1995
a
veerne owen a person who is. not licen
.
sed or authorize (a i Engaging in the recruitment of placement of workers
ers, engages in recruitment activities
: or ? in jobs harmful to public health or morality or to the
(b) When a person, whether dignity of the Republic of the Philippines;
authorized to recruit, commi rot he i . licensed,
activities: » commits any of the following prohibl Obstructing or attempting to obstruct inspection by
the Secretary of Labor and Employment or by his duly
¢ Charging or accepting directly or indi authorized representative;
rectly any amoi
ae
greater th an that specifi ied ini the sched
ule of allowag Substituting or altering to the prejudice of the worker,
employment contracts approved and verified by the
Making a worker pay or acknowle
dge any amoy Department of Labor and Employment from the time
Oran ee than th. at actually receii ved by i
greater
him as a log : i of actual signing thereof by the parties up to and
including the period of the expiration of the same
Furnishing or publishing any false without the approval of the Department of Labor and
notice or info: 4 Employment;
tion or do cume
UW nt m relat: ion t to recr uitment or empl¢
For an officer or agent of a recruitment or placement
pl

Misrepresentation in obtaining a licen agency to become an officer or member of the Board

se or authorf
recruit or in the documentation of of any corporation engaged in travel agency or to be
hired workers} 1
engaged directly or indirectly in the management of a
peRepr
proc
oces
essi
si ng workers through a job
j order that perte i travel agency;
Withholding or denying travel documents from
* nonexistent work;
applicant workers before departure for monetary or
* work different from the actual over
seas work; or financial considerations, or for any other reasons, other
* than those authorized under the Labor Code and its
work with a different employer.
implementing rules and regulations;
inducing or attempting to induce a worker alre
employed to quit his employment in order
al Failure to submit reports on the status of employment,
another unless the transfer is desi
to offer placement vacancies, remittance of foreign exchange
a worker
gned to libe fi | earnings, separation from jobs, departures, and such
other matters or information as may be required by the
from oppressive terms and con ditions qd

Secretary of Labor and Employment;

Influencing or attempting to influence
any person Failure to actually deploy a contracted worker without
entity not to employ a work er who h
i valid reason as determined by the Department of Labor
employment through his agency;
as not applied 1
and Employment;
Influencing or attempting to influ
ence any person®
ntity not to employ a worker who has Failure to reimburse expenses incurred by the worker
formed joi
or supported, or has contacted or is
supported y ‘ad in connection with his documentation and processing
union or workers’ organization; for purposes of deployment, in cases where the
7
deployment does not actually take place without the
worker’s fault;
24‘Recruit: ment activi
iviti
ties refer to can Vi assing, enlis
ing, utilizing, hiring, or procuring worke
i 3» |
ting,
rs, ; includin g referrals, contre
contracting, ? transpof
Allowing a non-Filipino citizen to head or manage a
promising, r advertising for employment abroad, ice
whether for profit or not “wee licensed recruitment/manning agency;
 204 AGRARIAN LAW AND SOCIAL LEGISLATION
CHAPTER 5 205
THE MIGRANT WORKERS AND OVERSEAS FILIPINO ACT OF 1995

+ Charging an overseas Filipino worker with interéj Large-Scale Illegal Recruitment

exceeding eight percent (8%) per annum, for a log
which will be used for payment of legal and allowab| Illegal recruitment is deemed in large scale if committed
placement fees and make the migrant work } tixainst three (3) or more persons individually or as a group.””
issue, either personally or through a guarantor ¢
accommodation party, postdated checks in relation ; Economic Sabotage
the said loan; a Illegal recruitment is considered an offense involving economic
+ Obliging the overseas Filipino worker to avail of lo i mbotage when committed by a syndicate or in large scale.”
only from specifically designated institutions, entitig
or persons; a | Who can file the criminal complaint for illegal recruitment
* Refusing to condone or renegotiate a loan incurr The criminal complaint for illegal recruitment can be filed by:
by an overseas Filipino worker after the latter’s ex
ployment contract has been prematurely terminat@ + the Secretary of Labor and Employment or his duly
through no fault of his or her own; authorized representative;
‘
« + the POEA Administrator or his duly authorized
Obliging the an overseas Filipino worker to under#
representative; or
health examinations only from specifically designat(
medical clinics, institutions, entities or persons, excel * any aggrieved person.”
in the case of a seafarer whose medical examina (.
cost is shouldered by the principal/shipowner; 4 Prescriptive period for illegal recruitment of migrant workers
+ Obliging the overseas Filipino worker to under Simple illegal recruitment prescribes in five (5) years.
training, seminar, instruction or schooling of any =
only from specifically designated institutions, entitt§ Large-scale or syndicated illegal recruitment prescribes in
or persons, except for recommendatory traininj t wenty (20) years.»
mandated by principals/shipowners where the lat (
shoulder the cost of such trainings; 5 Penalty for illegal recruitment of migrant workers
+ Engaging any kind of recruitment activity includ ; For simple illegal recruitment:
the processing of pending workers’ applications wh + 12 years and 1 day to 20 years imprisonment, and
the license is suspended; and 3
* a fine of ranging from P1,000,000.00 to P2,000,000.00.
+ Charging the cost of the compulsory insurance to iH
overseas Filipino worker. j For large-scale or syndicated illegal recruitment:
¢ life imprisonment, and .
Syndicated Illegal Recruitment
* a fine ranging from P2,000,000.00 to P5,000,000.00.
Illegal recruitment is deemed committed by a syndicated
carried out by a group of three (3) or more persons conspiring*
confederating with one another.* q
"bid.
Ibid.
8Sec. 6, ibid. Ibid.
6Sec. 6, ibid.
Sec. 12, R.A. No. 8042, as amended.
 206 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 5 207
THE MIGRANT WORKERS AND OVERSEAS FILIPINO ACT OF 1995

The maximum penalty shall be imposed: * constitute a danger to national security and public
¢ if the person
order; or
illegally recruited is less than eightel
(18) years of age, or * will lead to further exploitation of job seekers.*
+ if committed by a non-licensee or non-holder ¢ The closure shall be effected by sealing and padlocking the
authority. + extablishment and posting a notice of such closure in bold letters at
For persons found guilty of any of the prohibited acts: w conspicuous place in the premises of the establishment.*
+ 6 years and 1 day to 12 years imprisonment; and
E Effect of closure order
* a fine ranging from P500,000.00 to P1,000,000.00. 14 A closure order will result in:
Oe

Accessory penalties: (a) the inclusion of all officers and responsible employ-
+ Deportation after service of sentence — if the offend| ees of the entity engaged in illegal recruitment activities in the
————

is an alien; , List of Persons With Derogatory Record; and

ooo —_—

+ Automatic revocation of the license or registration (b) their disqualification from participating in the
the recruitment/manning agency, lending institutioj overseas employment program of the government.*
training school or medical clinic.
t Remedies from a closure order
Jurisdiction of the POEA
The following remedies may be availed of from an order of
The POEA has original and exclusive jurisdiction to hear am F glosure:
decide:
« Motion to Re-Open Establishment;
(a) the administrative aspect of recruitment violatiog
committed by recruitment or manning agencies; and ¢ Motion to Lift Closure Order; and
i
; (b) disciplinary action cases and other special cases t « Appeal.
volving employers, principals, contracting partners and ové
seas workers processed by the POEA.” | Who can file a motion to reopen the establishment
The decision of the POEA Administrator may be appealed | A motion to re-open may be filed only by the following persons:
the Secretary of Labor and Employment within fifteen (15) da
from the receipt of the Decision.* ¢ The owner of the building;
4
¢ The building administrator; or
Power of POEA to order closure of establishment
- Any person or entity legitimately operating within the
The POEA Administrator may order the closure of the est premises closed or padlocked and whose operations or
lishment if he finds (upon preliminary examination) that the acti¥ activities are distinct from the recruitment activities of
ties of a non-licensee: the entity subject of the closure order.”

“Sec. 11, Rule VI, ibid.

51Sec. 7, R.A. No. 8042, as amended. 35Sec. 12, Rule VI, ibid.
Sec. 6, Rule X, Omnibus Rules and Regulations Implementing the Mig 36Sec. 15, Rule VI, ibid.
Workers and Overseas Filipinos Act of 1995, as amended. . 37$ec. 16, Rule VI, Omnibus Rulos and Regulations Implementing the Migrant
Sec. 11, Rule X, ibid. : Workers and Overseas Filipinos Act of 1996, as amended.

208 AGRARIAN LAW AND SOCIAL LEGISLATION
The motion to reopen will be granted if it is proven that:
¢ The office is not the subject of the closure order;
¢ The contract of lease with the owner of the build
in illegal
indirectly;
recruitment activities, whether
- Any other ground that the POEA may consider as
and meritorious.
>— —
Who can file a motion to lift a closure order
- Only the person or entity against whom the closure order
naan’
issued and implemented can file a motion to lift a closure order4
ee
The motion to lift a closure order should be filed with
Licensing and Regulation Office (LRO) within ten (10) calendar dg
from the date of implementation thereof.
The motion should be under oath and should clearly sti
the grounds upon which it is based, with supporting docum
attached. jl
i
iz
A motion to lift which does not conform with these req if
ments shall be denied.“ : employment contract; and
Grounds for lifting of the closure order
The closure order may be lifted on any of the following grow:
(a) The person has proven that it is not involved
illegal recruitment activities, whether directly or indirectly}
(b) Any other analogous ground which the POEA
find valid and meritorious.
; Lifting of a closure order is without prejudice to the filing of
criminal complaint with the appropriate office against the pers
alleged to have conducted illegal recruitment activities.” 4
38Sec. 17, Rule VI, ibid.
Sec. 19, Rule VI, ibid.
“Sec. 18, Rule VI, ibid.
“Sec. 20, Rule VI, ibid.
CHAPTER 5 209
E
F116 MIGRANT WORKERS AND OVERSEAS FILIPINO ACT OF 1995
i
F ‘The order of the POEA Administrator denying the motion to
hclosure order or denying the motion to re-open may be appealed
Bhies Secretary within ten (10) days from service or receipt thereof.”
scriptive period for filing administrative cases
direc Administrative cases involving recruitment violation and dis-
: jnary action should be filed within three (3) years from accrual
vf iw cause if action, otherwise, it will be barred by prescription.“
, BA has no jurisdiction over claims of migrant workers
'The Labor Arbiters of the National Labor Relations Commis-
.
in have the original and exclusive jurisdiction to hear and decide
aiinx of migrant workers arising out of an employer-employee re-
lonship, including claims for actual, moral, exemplary, and other
Wink of damages.
:
pilots for illegally dismissed migrant workers
- A migrant worker who is illegally dismissed is entitled to the
Silowing reliefs:
payment of salaries for the unexpired portion of his
+
+ full reimbursement of his placement fee and the
deductions made with interest of 12% per annum.
NOTE: The clause “or for three (3) months for every
year of the unexpired term, whichever is less” as provided
in Section 10 of the Migrant Workers and Overseas Filipinos Act
was declared unconstitutional in the case of Serrano v. Gallant
Maritime Services, G.R. No. 167614, March 24, 2009.
; cruitment agencies are solidarily liable with the principal
4 Recruitment or manning agencies for overseas employment
Aare jointly and severally liable with the principal or employer for all
“Sec. 21, Rule VI, ibid.
“Sec, 9, Rule X, ibid.
“Sec. 10, R.A. 8042, as amended,
Sec. 10, ibid
 210 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 5 211
‘THE MIGRANT WORKERS AND OVERSEAS FILIPINO ACT OF 1995

claims and liabilities which may arise from the implementa ‘ Afyrmed and intelligent decisions about overseas employment, and
the employment contract. 4 fraud, and exploitation or abuse
un prevent illegal recruitment,
Vilipino migrant workers. Such advisory or information shall be
Exceptions to the solidary liability rule blished in a newspaper of general circulation at least three (3)
The rule regarding the solidary liability of recruitment a: mos in every quarter.
admits of certain exceptions, namely: i
Migrant Workers and Other Overseas Filipinos Resource Center
— (a) When the workers themselves were the ones}
insisted that the recruitment agency to send them back al This is required to be established within the premises of the
\ilippine Embassy in countries where there are large concentra-
June of Filipino migrant workers. The Migrant Workers and Other
they agreed not to hold the agency responsible therefor." Bverseas Filipinos Resource will provide the following services to
(b) When the workers were recruited by the suppl pigrant workers:
: recruitment agency without the latter’s knowledge and | (a) Counseling and legal services;
I
iHN sent.*
(b) Welfare assistance including the procurement of
M medical and hospitalization services;
Services and privileges available to migrant workers
Exemption from Travel Tax and Airport Fee (c) Information, advisory and programs to promote
social integration such as post-arrival orientation, settlement
Migrant workers are exempt from the payment of travel} and community networking services and activities for social
and airport fee upon proper showing of proof of entitlement by, interaction;
POEA.”
(d) Registration of undocumented workers to bring
Exemption from Documentary Stamp Tax them within the purview of the Migrant Workers Act;
The remittances of all overseas Filipino workers are § (e) Human resource development, such as training and
exempt from the payment of documentary stamp tax, upon show skills upgrading;
of proof of entitlement by the overseas Filipino worker’s benefiel
or recipient. : (f) Gender sensitive programs and activities to assist
particular needs of women migrant workers;
Travel Advisory / Information Dissemination (g) Orientation program for returning workers and
All embassies other migrants; and
and consular offices, through the POEFA 1
obliged shall issue travel advisories or disseminate informatio: ‘i (h) Monitoring of daily situations, circumstances, and
labor and employment conditions, migration facilities, adheren df activities affecting migrant workers and other overseas Filipi-
particular countries to international standards on human and wd nos.
ers’ rights which will adequately prepare individuals into malé
The Center is open for twenty-four (24) hours daily including
| Huturdays, Sundays, and holidays.
Ibid.
“"Feagle Construction Corp v. Gayda, 186 SCRA 589.
‘Tlas v. NLRC, 193 SCRA 682.
Sec. 35, R.A. No. 8042, as amended. ———__-—_—
5°R.A. No, 8042, as amended. 518ec, 14, R.A. No. 8042, as umonded.
 212 AGRARIAN LAW AND
SOCIAL LEGISLATION
CHAPTER 5 213
‘THE MIGRANT WORKERS AND OVERSEAS FILIPINO ACT OF 1995

ixo for their local employment, and tap their skills and potentials
national development. For this purpose, the Technical Education
i! Skills Development Authority (TESDA), the Technology
vilihood Resource Center (TLRC), and other government agencies
Wolved in training and livelihood development shall give priority
returnees who had been employed as domestic helpers and
Alurtainers.*
Writing, with the loc
al lan, guage
Labor Attaché shall
coordinate the oper. Legal Assistance
keep the Chief of Mission ;
fecting it. ston informed an Migrant workers and overseas Filipinos in distress are
Wilitled to legal assistance through the Legal Assistant for Migrant
orkers Affairs under the Department of Foreign Affairs. The Legal
wistant for Migrant Workers Affairs is primarily responsible for
0 provision and overall coordination of all legal services to migrant
Workers and overseas Filipinos in distress and can hire private
wyers, domestic or foreign, in order to assist him in the effective
Migrant Workers Lo
an Guarantee Fund Sincharge of the above functions.
The Migrant Worker
s Loan Guarantee
Fund which is ad Sectoral Representation in Congress
Filipino migrant workers are entitled to two (2) sectoral
ypresentatives in the House of Representatives to be appointed by
he President from the ranks of migrant workers. At least one (1)
pl the two (2) sectoral representatives shall come from the women
Congressional Migr Migrant workers sector. All nominees must have at least two (2)
ant Workers Schola years experience as a migrant worker.®’
rship Fund
This is intended for
the benefit of deserv
or their immediate in
descen n dan ts below twenty-oneg migrant work ‘ ‘Migrant Workers Day
who intend to pursue
co tses or training (21) years of al
Science and technolog primarily in the field. The day of signing by the President of the Migrant Workers and
y.»
Overseas Filipinos Act, June 7 has been designated as the Migrant
National Reint 7 Workers Day to be commemorated annually.®
(NRCO) cintegration Center for Overseas Filipino i
Work
This is und inder
e the D. epartment
mien ofwhich is to assist in of Labor and E
the reintegration of
wor, kers into the Phi rete ent, 5
lippine Society, ; ser
ve as 2 pro am
motigi

Sec. 19, ibid.

"Sec. 21, ibid. Sec. 17, ibid.
Sec. 37, ibid, 58Sec. 24, ibid.
57Sec. 34, ibid.
58Sec. 39, ibid.
 CHAPTER 6
THE PATERNITY LEAVE ACT OF 1996

f Sonditions for entitlement of paternity leave

Amale employee can avail of the paternity leave if the following
CHAPTER 6 ‘fonditions are complied with:
THE PATERNITY LEAV The woman who gave birth or suffered miscarriage
E ACT OF 1996 (a)
must be the legal wife;
REPUBLIC ACT No. (b) At the time of the miscarriage or delivery of the
8187

!
child, the male spouse must be:
(i) an employee; and

1|
Meaning of Paternity (ii) cohabiting with his lawful wife.
Leave
_(c) The employee must notify the employer of the
Married male emplo yee b r 4 : pregnancy of his wife, stating the expected date of delivery.
th : . .
his lawful wife so that he could lends childbirth or miscarriag i 3 / . .
i Support to his wife during 4 (d) The paternity leave can be availed of only for the
a ; first four (4) childbirth or miscarriage.*
Coverage of the Law
When to avail of the paternity leave
The Paternit y Leave Act . j
both the public and the Private sector married male
employees : The paternity leave may be enjoyed before, during, or after the -
| delivery by his wife but not later than sixty (60) after the date of said
Duration of paternity leave if delivery.”

avail.
: The duration of paternity
‘ leave j
@ 18 seven (7 ith full
4'
pal F How to avail of the paternity leave
levitinns.ate only the first
for with fourhe (4)is deliveries ys wit h
aa Scarriage) ful pq
spouse whom cohabiting. of As soon as the married male employee learns that his spouse
in pregnant, he should inform his employer about the pregnancy
Full benefits
pay consists i ,
monetary of basic salary, all allowances, and oti i und the expected date of delivery, within a reasonable period of
; time. The employee should file an application for paternity leave’
Not convertible to cash | hy accomplishing the Paternity Notification Form to be provided for
f by the employer and submit the same to the latter, together with a
Paternity y le leave benef
it, if. unused, is not convertible to cash topy of his marriage contract; or where not applicable, any proof of
| marriage

The notification requirement does not apply to miscarriage or

Sec. 1, Revised
Implementin, is Rul
8187 for the Private Sect es and Re eu. lations
or. I mplementing R edhe
A.)
Sec. 2, E aternity
Leave
*Sec. _ 6,6, R.A.
R.A. No, No. 81. 8187; Sec, 3
Act of 1996,
: :
Implementing R.A. “4. N, No. 8187 ;for the Sec. Pri
3, Revised Implementi
nting Rules and Regulatios —_—_—_____—_.
“Sec. 7, R.A. No. 8187; Sec. 3, bid Sector. sulati
Sec. 2, R.A. No. 8187; Sec. 3, ibid.
Sec. 3, ibid.
E 7Sec. 5, Revised Implemonting Rules and Regulations Implementing R.A. No.
214 F #187 for the Private Sector.
8Sec. 4, ibid.
 216 AGRARIAN LAW AND SOCIAL
LEGISLATION
°
Proof of childbirth or miscarriage
h Thee employee
€1 who has a vailed of the paternity
sh a “i fin a reasonable |
period of time, submit a copy
of the :
of miscarriage
iscaz orate ortion,
em duly oud, signed
death orb medical certificate in
ab midwife showing the actual i d ; CHAPTER?
date of childbit ne
abortion, as the case may
be.®
in p THE SOLO manent
, ” Wetrass crore
7
Penal sanctions
i | . Violation of the Paternity —_—_——
Leave Act is punishable
; | by:
| _ fine not exceeding P25,000;
i (b) imprisonment
.
ranging from or30 days to 6 monthel blo AParent
. . solo parent is a person left alone
; : with the responsibility
q parenthood due to the following circumstances:
iy |
(a) Giving birth as a result of rape or crimes against
chastity;
(b) Death of spouse;
(c) Detention or imprisonment of spouse for at least one
(1) year;
(d) Physical or mental incapacity of spouse as certified
by a public medical practitioner;
(e) Legal separation/de facto separation from spouse for
at least one (1) year;
(f) Declaration of nullity or annulment of marriage;
(g) Abandonment of spouse for at least one (1) year;
(h) An unmarried mother/father who preferred to keep
and rear his/her child or children instead of having others care
for them or give them up to a welfare institution;
(i) A foster parent duly licensed by the Department of
Social Welfare and Development or a legal guardian appointed
by the court, who solely provides parental care and support to
a child or children;
G) A family member who assumes the responsibility
of head of family as a result of the death, abandonment,
Sec. 4, ibid. disappearance, or prolonged absence of the parents or solo
“Sec. 5, Paternity Leave Act of 1996.
217
 218 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 7 219
THE SOLO PARENTS’ WELFARE ACT OF 2000

parent, provided, that such abandonment, disappearance, i The solo parent is entitled to the flexible work schedule even
absence lasts for at least one (1) year. i i his/her income is above the poverty threshold set by the National
| Nconomic and Development Authority (NEDA) and assessment of
Benefits available to a solo parent | (he Department of Social Welfare and Development (DSWD).

The Solo Parents Welfare Act accords solo parents the follo Parental leave for solo parents
benefits:
Parental leave is time-off granted to a solo parent to enable
(a) Flexible work schedule; him/her to perform parental duties and responsibilities where
(b) Parental leave of not more than seven (7) days; physical presence is required.’ —

(c) Educational benefits; Solo parent-employees who have rendered service of at least
one (1) year are entitled to parental leave of not more than seven (7)
(d) Housing benefits on liberal terms in low-cost gov oF working days every year.®
ment housing; and
The seven-day parental leave is non-cumulative and not
(e) Medical assistance. E convertible to cash, if unused.
These benefits can be enjoyed as long as the solo pa a
Conditions for Entitlement to Parental Leave
continues to be left alone with the responsibility of parenthood. ‘
The parental leave for solo parents can be availed of if the
Flexible work schedule l(ollowing conditions are complied with:

Flexible work schedule is a system whereby a . solo pa ,
employee is given the right to vary his/her arrival and departure tig
without affecting the core work hours as defined by the employer
The employer is obliged to provide for a flexible workig
schedule for solo parents as long as it does not affect individual s
company productivity. If individual or company productivity will ¥
affected, the employer may request exemption from the Departm r
of Labor and Employment.‘
In the case of employees in the government service, flexilf
working hours will be subject to the discretion of the head of ¢§
agency. In no case shall the weekly working hours be reduced §
the event the agency adopts the flexible working hours sched
format (flexi-time). In the adoption of flexi-time, the core wor!
hours shall be prescribed taking into consideration the needs of
service.*
(a) The solo parent must have rendered at least one (1)
year of service, whether continuous or broken;
(b) The solo parent must give notice to the employer of
the availment thereof within a reasonable time period; and
(ec) The solo parent must present his Solo Parent
Identification Card to the employer.
The solo parent is entitled to parental leave even if his/her
/ Income is above the poverty threshold set by the National Economic
und Development Authority (NEDA) and assessment of the
Department of Social Welfare and Development (DSWD).
Housing benefits
a
Solo parents are entitled to be given allocation in government
tf | low-cost housing projects on liberal terms of payment, under the
q
_ following conditions:

Sec. 3 (a), Solo Parents’ Welfare Act of 2000. Sec. 4, supra.

Sec. 3, ibid. 7Sec. 3 (d), ibid.
3Sec. 3 (e), ibid. Sec. 8, ibid.
4Sec. 6, ibid. ®*Secs. 18 and 20, Rules Implementing the Solo Parents’ Welfare Act of 2000.
'Sec. 16, Rules Implementing the Solo Parents’ Welfare Act of 2000. Sec. 4, supra.
 220 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 7 221
THE SOLO PARENTS’ WELFARE ACT OF 2000

(a) The solo parent applying for housing benefits (v) Original or Certified True Copy of the transcript
meet the qualification criteria for housing assistance undef of record, or the Report Card of the last year the applicant
Urban Development and Housing Act" and other eligiff attended school.“
criteria set by the National Housing Authority; and =!
Only solo parents whose income in the place of domicile falls
(b) The eligible solo parent must file their applig j helow the poverty threshold as set by the National Economic and
for housing unit directly with the concerned National Ho Elevelopment Authority (NEDA) and as assessed by the Department
Authority Project Offices.” q i. {| Social Welfare and Development are eligible for educational
penofits.
Educational benefits
' Medical Assistance
The following are the educational benefits and priv
available to solo parents: Only solo parents w hose income in the Pp. place of domicile falls
thelow the poverty threshold as set by the National Economic and
(1) Scholarship programs for qualified solo. parental Pevelopment Authority (NEDA) and as assessed by the Department
their children in institutions of basic, tertiary and techy fof Social Welfare and Development are eligible for medical
skills education; and :
(2) Non-formal education programs appropriate for i
parents and their children." a

Procedure for Availing Educational Benefits

To avail of the educational benefits under the Solo Paré
Welfare Act, the solo parent must:
(a) Secure an application form from either Departrg
of Education, Commission on Higher Education or Tech a
Education and Skills Development Authority (TES
depending on his need; and
(b) Submit the duly accomplished application a
together with the following documents: +
(i) Solo Parent Identification Card;

(ii) Barangay Clearance;

ii) Birth Certificate;

(iv) Notice of admission from the school; and

R.A. No. 7279.

*Sec. 10, Solo Parents’ Welfare Act of 2000; Sec. 24, Rules Implementing! , ,
“Sec. 22, Rules Implementing the Solo Parents’ Welfare Act of 2000.
Solo Parents’ Welfare Act of 2000. '5Sec. 4, Solo Parents’ Welfare Act of 2000.
Sec. 9, Solo Parents’ Welfare Act of 2000. “Ibid.
 CHAPTER 8 223
MAGNA CARTA OF PERSONS WITH DISABILITY

(e) cost of medical and dental services in all private

hospitals and medical facilities, including diagnostic and
laboratory fees, and professional fees of attending doctors;
CHAPTER 8 [ (f) fare for land, domestic air, and sea travel.‘
MAGNA CARTA OF PERSONS WITH DISABILITY The discount is available only to persons with disability who
fr |'ilipino citizens upon submission of any of the following as proof
F wntitlement:
REPUBLIC ACT NO. 7277
[as amended by Republic Act No. 9442] (1) Identification card issued by the city or munici-
pal mayor or the barangay captain of the place where the
persons with disability resides;
(2) Passport of the persons with disability con-
SSS

Persons with disability cerned; or

Persons with disability refer to those who are suffering § (3) Transportation discount fare Identification
ee

certain limitations to perform an activity in the manner consid Card (ID) issued by the National Council for the Welfare
normal for a human being, as a result of a mental, physical of Disabled Persons (NCWDP).
2

sensory impairment.' | The discount privileges cannot be claimed if the persons

Fo

jlth disability claims a higher discount as may be granted by the

Rights and privileges of persons with disability Immercial establishment and/or under other existing laws or in
20% Discount Pinbination with other discount programs.

Persons with disability are entitled to at least twenty pe Express Lanes

(20%)6 discount onon the the following:
tollowing:
(a) services in hotels, lodging establishments, rea}
rants, and recreation centers.?
(b) admission fees in theaters, cinema houses, cong
halls, circuses, carnivals and other similar places of cult
leisure, and amusement.’
(c) cost of medicines in all drugstores;
(d) cost of medical and dental services in all govern: ri
facilities;
All commercial and government establishments are required
) provide express lanes for persons with disability. In the absence
q Heroof, priority shall be given to persons with disability. |
Right to Barrier-Free Environment
Q This will enable persons with disability to have access in public
nd private buildings and establishments and such other places
Mentioned in Batas Pambansa Big. 344, otherwise known as the
Accessibility Law.”* The pertinent provisions of the Accessibility
4 Aw read as follows:

“SECTION 1. In order to promote the realization of the

rights of disabled persons to participate fully in the social life
and the development of the societies in which they live and the
"Sec. 4 (a), Magna Carta of Persons With Disability, as amended.
*Sec. 32 (a), ibid.
Sec. 32 (b), ibid.
‘Sec. 32, ibid.
"Sec. 32, ibid.
222 "Sec, 25, ibid.
 224
AGRARIAN LAW AND SOCIAL LEGISLATION
: . . as
enjoyment of the opportunities available to other citizens, no
cense or permit for the construction, repair or renovation of pul
lic and private buildings for public use, educational institutiong
airports, sports and recreation centers and complexes, shoppi
centers or establishments, public parking places, workplaceg
public utilities, shall be granted or issued unless the owner &
operator thereof shall install and incorporate in such building
establishment, institution or public utility, such architectu ‘
facilities or structural features as shall reasonably enhance th
mobility of disabled persons such as sidewalks, ramps, railingt
and the like. If feasible, all such existing buildings, institutio 5
establishments, or public utilities may be renovated or alte
to enable the disabled persons to have-access to them: Provided
however, That buildings, institutions, establishments, or publlé
utilities to be constructed or established for which licenses }
permits had already been issued may comply with the requiré®
ments of this law: Provided, further, That in case of government
buildings, streets and highways, the Ministry of Public Worlgf
and Highways shall see to it that the same shall be provid ic
with architectural facilities or structural features for disabled
persons.
In the case of the parking place of any. of the ab
institutions, buildings, or establishments, or public utilities, th i
owner or operator shall reserve sufficient and suitable space fol
the use of disabled persons.
SECTION 2. In case of public conveyance, devices suc!
as the prominent display of posters or stickers shall be usa
to generate public awareness of the rights of the disabled andj
foster understanding of their special needs. Special bus stop@j
shall be designed for disabled persons. Discriminating againat3
disabled persons in the carriage or transportation of passenger
is hereby declared unlawful.
xxx xxx XxX
7
SECTION 4. Any person violating any provision of thi
Act or of the rules and regulations promulgated hereun
shall, upon conviction by a court of competent jurisdiction,
suffer the penalty of imprisonment of not less than one mont
but not more than one year or a fine of P2,000 to P5,000
both, at the discretion of the court: Provided, That in the cas
of corporations, partnerships, cooperatives or associations, th
president, manager or administrator, or the person who hag :
charge of the construction, repair or renovation of the building, 3
space or utilities shall be criminally responsible for any violation’
i i
tho andor rules and regulations promulgated pursuant
CHAPTER 8 225
MAGNA CARTA OF PERSONS WITH DISABILITY
3 0, vernment Recreational or Sports Centers
Free Use of Go P :
Recreational or sports centers owned or operated by the
government shall be used, free of charge, by marginalized persons
{th disability during their social, sports or recreational activities.’
Free Postal Charges
Persons with disability are entitled to free postal charges on
Ne following items:
a) articles and literatures sent by mail within the
Philippines and abroad, like books and periodicals, orthopedic
and other devices, and teaching aids for the exclusive use of the
person with disability; and
b) aids and orthopedic devices for the disabled sent by
abroad by mail for repair.
This privilege, however is available only to marginalized
Filipino citizens with disability who are:
q
(a) Certified to be a person with disability by the
Social Welfare and Development Office of the municipality,
city government unit or representative of the Department of
Social Welfare and Development in the municipality or city
government unit where the person with disability is a resident;
(b) Holders of accreditation certificate issued by the
Postmaster General or representative of the Philippine Postal
Corporation.
It is also required that the envelop or wrapper of the franked
mil must on the left upper corner state the name and complete
4 uldress of the sender, and on the upper right corner the words “Free
[Matter for Disabled Person.” Private or unauthorized use to avoid
epayment of postage is penalized by a fine or imprisonment or both.”
or:
"Sec. 37, ibid.
"Sec. 24, Magna Carta of Persons With Disability, as amended.
: "Marginalized disabled person with disability is one who lack access to reha-
Ebilitution services and opportunities to be able to participate fully in socioeconomic
Egutivilies and who have no means of livelihood or whose income fall below the poverty
3 eUhrenhold (Rule, VI, Rules Implementing the Magna Carta of Persons With Disability).
| E "Rule, VI, Rules Implementing tho Magna Carta of Persons With Disability.
226 AGRARIAN LAW AND SOCIAL LEGISLATION
Right to Equal Opportunity for Employment
Persons with disability have the right to equal opportunity}
suitable employment." To carry out this objective, the law mandg
that 5% of all casual emergency and contractual positions. iif]
Departments of Social Welfare and Development; Departmeng
Health; Department of Education; and other government ageng
offices or corporations engaged in social development should;
reserved for persons with disability.”
Right to Equal Terms and Conditions of Employment
Persons with disability, if they are qualified," are entif
to the same terms and conditions of employment and the sg
compensation, privileges, benefits, fringe benefits, incentive! i
allowances as a qualified able-bodied person. q application of Article 280 of the Labor Code. The fact that the
BERNARDO V. NLRC
310 SCRA 186
FACTS: X and several others who are deaf-mutes were 4
hired on various periods from 1988 to 1993 by FEBTC as Money |
Sorters and Counters through a uniformly worded Employment |
Agreement for Handicapped Workers. Upon expiration of q
their employment contracts, the FEBTC terminated their |
employment. X and the other deaf-mute employees claimed that 4
they cannot be terminated from their employment because they 4
are regular employees of the FEBTC, considering that their task
as Money Sorters and Counters was necessary and desirable to 4
the business of a bank.
On the other hand, FEBTC maintained that X, et al.,
were not regular employees because they were engaged ag. i
special workers pursuant to Article 80 of the Labor Code.
Furthermore, FEBTC claimed that their employment was
Suitable employment refers to jobs or occupations appropriate to the neq
persons with disability and which enhance their skills and provide them with b
opportunities for employment (Sec. 1, Rule I, Rules Implementing the Magna Q
of Persons With Disability).
Sec, 5, Magna Carta of Persons With Disability, as amended.
13Qualified employees with disability refer to those who can perform the eff
tial functions of the employment position they hold or desire to hold, with or witk
reasonable accommodations. As to what functions of a job are essential will deg
" upon the employer’s judgment. If an employer has prepared awritten job deser|
before advertising or interviewing applicants, the job description will be consid
evidence of the essential functions of the job (Sec. 1, Rule I, Rules Implementii
Magna Carta of Persons With Disability).
CHAPTER 8 227
MAGNA CARTA OF PERSONS WITH DISABILITY
merely an accommodation to the request of government officials
and civic-minded citizens. They were told from the start, with
the assistance of government representatives that they could
not become regular employees because there were no plantilla
positions for money sorters and counters whose task used to
be performed by tellers. Further, FEBTC claimed that their
contracts were renewed several times, not because of need, but
merely for humanitarian reasons.
ISSUE: Whether or not X and the other deaf-mute
employees are regular employees.
HELD: X and the other deaf-mute employees are regular
employees of the FEBTC. While their Employment Contracts
indubitably conform with Article 280 of the Labor Code,
succeeding events and the enactment of Republic Act No. 7277
(the Magna Carta for Disabled Persons), however, justify the
Employment Contracts have been renewed and other deaf-mutes
have been hired lead to the conclusion that their tasks were
beneficial and necessary to FEBTC. More importantly, these
facts show that they were qualified to perform the responsibilities
of their positions. In other words, their disability did not render
them unqualified or unfit for the tasks assigned to them. In this
light, the Magna Carta for Disabled Persons mandates that a
qualified disabled employee should be given the same terms
and conditions of employment as a qualified able-bodied person.
The fact that the employees were qualified disabled persons
necessarily removes the Employment Contracts from the ambit
of Article 80 of the Labor Code. Since the Magna Carta accords
them the rights of qualified able-bodied persons, they are thus
covered by Article 280 of the Labor Code. As regular employees,
therefore, X and the other deaf-mute employees are entitled
to security of tenure; that is, their services may be terminated
only for a just or authorized cause. Considering, however, that
the job of money sorting is no longer available because it has
been assigned back to the tellers to whom it originally belonged,
reinstatement cannot be ordered. In lieu thereof, separation pay
is awarded, in addition to back wages.
Right to Sheltered Employment
4
' The Department of Labor and Employment shall provide
_ training for persons with disability so that they can qualify for
F wheltered employment."
“Sec. 2, Rule II, Rules Implementing the Magna Carta of Persons With Dis-
. ability.
 228 AGRARIAN LAW AND SOCIAL LEGISLATION
CHAPTER 8 229
MAGNA CARTA OF PERSONS WITH DISABILITY

Sheltered Employment refers productive work through wé¢

shops with special facilities, income-producing projects or homey
schemes designed to give the person with disability opportuniti
earn a living and acquire a working capacity required in oper
dustry.
Right to Be Hired as Apprentices or Learners
Persons with disability are eligible for apprenticeshigy
learnership, as long as their handicap will not effectively im pi
To be entitled to the educational assistance, the person with
(ixnbility must meet minimum admission requirements set by the
gWopartment of Education, the Commission on Higher Education, or
iw Technical Education and Skills Development Authority.*
4
Right to Health Services
With regard to health services, the National Government is
undated to:

i!
the performance of the job operations which they will handle. 4 (a) Provide an integrated health service for persons
with disability, such as:

ai
Right to Quality Education
Learning institutions are obliged to admit all persons
special needs whether in academic, vocational or technical coug
A and other training programs, except in the following instances: 1
jn a) IEf the learning institutions have already accep
persons with special needs and further acceptance will ren
the teaching personnel and facilities less effective.
b) If the learning institutions do not meet the crit@
set by the Bureau of Special Education and are not include q
ie the financial assistance program.
It is unlawful for any learning institution to deny a pe
admission to any course it offers simply because of handicag
disability.”
Right to Educational Assistance
Persons with disability are entitled to educational assis
so that they can pursue primary, secondary, tertiary, post tertig
as well as vocational or technical education, in both public
private schools.
(i) prevention of disability through immunization,
nutrition, environmental protection and preservation,
and genetic counseling; and early detection of disability
and timely intervention to arrest disabling condition; and
Gi) medical treatment and rehabilitation.»
(b) Institute a national health program for the purpose
of:
(i) prevention of disability, whether occurring pre-
natally or post-natally;
; (ii) recognition and early diagnosis of disability; and
(iti)early rehabilitation of the persons with dis-
ability.
(c) Establish medical rehabilitation centers in govern-
ment provincial hospitals, formulate and implement a program
to enable marginalized persons with disability to avail of free
rehabilitation services in government hospitals.”
Auxiliary Social Services

The educational assistance can be in the form of scholarshj Municipal and city governments are obliged to develop and
grants, financial aids, subsidies and other incentives, includ ‘ mplement programs on auxiliary social services that will respond to
support for books, learning materials, and uniform allowance tos the needs of marginalized persons with disability, which program
extent feasible. Shall be composed of the following:
J
"Sec. 32 (h), Magna Carta of Persons With Disability, as amended; Sec. 6, Rule
‘Sec. 4 (i), Magna Carta of Persons With Disability, as amended.
4 Ru los Implementing R.A. No, 9442.
"Sec, 20, Magna Carta of Porsons With Disability, as amended.
Sec. 7, ibid.
“Sec, 18, ibid.
Sec. 12, ibid.
“Sec, 19, ibid.
230 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 8 231
MAGNA CARTA OF PERSONS WITH DISABILITY

(a) assistance in the acquisition of prosthetic de (b) Orthopedically-impaired — person with amputated
and medical intervention of specialty services; left or right leg; amputated left or right arm; post-polio victims;
paralyzed legs; weak legs but not paralyzed;
(b) provision of specialized training activities desig
to improve functional limitations of persons with disab: (c) Speech and hearing impaired — person unable to
related to communication skills; speak but can partially hear.»
(c) development among persons with disability of a p . Persons with disability who apply for driver’s license must
itive self-image through the provision of counseling, orien{ comply with the following requirements:
tion, and mobility and strengthening daily living capability})
(a) Medical Certificate/Recommendation from a govern-
(d) provision of family care services geared towal ‘ ment accredited physician;
developing the capability of families to respond to the needa]
the disabled members of the family; (b) Written and practical examinations;

(e) provision of substitute family care services a (c) Student permit and driving instruction for 60 days;
the facilities therefor for abandoned, neglected, abused ag Applicants with disability may use a customized vehicle
unattached persons with disability who need custodial care; 3 provided that it meets the standard/specifications set and duly
requested at Land Transportation Office.”’
(f) provision of after care and follow-up services
the continued rehabilitation in a community-based setting
Suffrage
persons with disability who were released from residentf
care or rehabilitation centers; and j A qualified person with disability may register as a voter by
accomplishing the required voter’s affidavit, and such other forms
(g) provision of day care services for disabled children{
through:
pre-school age.”
(i) Any relative within the fourth civil degree of consan-
Television stations are encouraged to provide a sign-languag
guinity or affinity; or
inset or subtitles in at least one (1) newscast program a day ag
special programs covering events of national significance.* Gi) Any member of the board of election inspectors.”
Telephone companies are encouraged to install speel During the elections, a person with disability shall be allowed
telephone devices or units for the hearing-impaired and ensure thf to be assisted by a person of his choice from among the following:
they are commercially available to enable them to communica{
(i) A relative, by affinity or consanguinity, within the
through the telephone system.* ;
fourth civil degree;
Mobility (ii) Any person of his confidence, whether or not
belonging to the same household; or
The following persons with disability can be allowed to drig
motor vehicle:* j (iii) Any member of the board of election inspectors.”
(a) Partially blind — person with poor visual acuity aq
to partial loss of vision/sight; 4
Sec. 1, C, Rule, VII, Rules Implementing the Magna Carta of Persons With
Disability.
Sec. 21, Magna Carta of Persons With Disability, as amended. 27Sec. 1, B, Rule, VII, Rules Implementing the Magna Carta of Persons With
Sec. 22, ibid. Disability.
Sec. 23, ibid. 8Sec. 1,1.1, Rule, VIII, ibid.
Sec. 26, ibid. Sec. 1,1.2, Rule, VIII, ibid.
232 AGRARIAN LAW AND SOCIAL LEGISLATION
CHAPTER 8 233
MAGNA CARTA OF PERSONS WITH DISABILITY
Freedom of Expression
Persons with disability have the right to participate (d) Providing a lower compensation, salary, wage or
processions, rallies, parades, demonstrations, public meetings, aw other forms of remuneration and fringe benefits to a qualified
assemblages or other forms of mass or concerned action held; employee with disability as compared to an able-bodied worker
public.” performing the same type and amount of work,
(e) Favoring an able-bodied employee over a qualified
Self-Organization employee with disability with respect to promotion, training
Persons with disability have the right to form organizations. q opportunities, study and scholarship grants, solely on account
associations that promote their welfare and advance or safeguat of the latter’s disability;
their interests." (f) Re-assigning or transferring an employee with
disability to a job or position he cannot perform by reason of
Discrimination against persons with disability, prohibited his disability;
Discrimination in Employment (g) Dismissing or terminating the services of an
Discrimination against a qualified person with disability wit employee with disability by reason of his disability;
regard to job application procedures; the hiring, promotion, or dig (h) Failing to select or administer in the most effective
manner employment tests which accurately reflect or measure
er terms and conditions of employment is prohibited. the skills, aptitude or positive traits of the applicant or
The following constitute acts of discrimination with respect t employee with disability rather than the impaired sensory,
employment: ‘i manual or speaking capabilities of such applicant or employee,
iz if any; and ,
(a) Limiting, segregating or classifying a disabled jd
applicant in such manner that adversely affects his work og (i) Excluding employees with disability from member-
portunities; ship in labor unions or similar organizations.”

(b) Using qualification standards, employment tests @ Discrimination in the Use of Public Accommodations and
other selection criteria that rule out or tend to rule out a pers¢
Services
with disability, unless such standards, tests or other selectig,
criteria are shown to be job-related for the position in quest The following constitute acts of discrimination in the use of
and are consistent with business necessity; public accommodations and services:*
(c) Utilizing standards, criteria or methods of adminit
tration that: 32Sec, 1, Rule, II, Rules Implementing the Magna Carta of Persons With
Disability.
(i) have the effect of discrimination on the basis @ : %3Public accommodations and services include the following:
disability; or 7 a) aninn, hotel, motel, or other place of lodging, except for an establishment
located within a building that contains not more than five (5) rooms for rent or hire
(ii) perpetuate the discrimination of others who a i ind that is actually occupied by the proprietor of such establishment as the residence
subject to common administrative control. of such proprietor;
b) arestaurant, bar, or other establishment serving food or drink;
c) a motion picture, theater, concert hall, stadium, or other place of exhibi-
(ion or entertainment;
d) an auditorium, convention center, lecture hall, or other place of public
Sec. 30, Magna Carta of Persons With Disability, as amended.
yuthering;
51Sec. 31, ibid.
e) abakery, grocery store, hardware store, shopping center, or other sales or
rental establishment;
 234 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 8 235
MAGNA CARTA OF PERSONS WITH DISABILITY

(a) denying a passenger with disability to enter the E Ridicule of persons with disability, prohibited
terminal, station or depot premises;
: Public ridicule is the act of making fun or contemptuous
(b) denying a passenger with disability
to purchas@ imitating or making mockery of persons with disability whether in
travel tickets, prepare waybills, secure
boarding passes, claim: writing, or in words, or in action due to their impairment.
tags for baggages and other transactions
which an able-bodied}
Passenger may do; The following acts constitute public ridicule:
(c) failure to provide accessibility featu (a) Making fun of a person on account of histher
res such ag
ramps, signages and stickers inside the
terminal, station of disability even through jokes in a manner that is degrae ng
depot; resulting to the embarrassment of the person with disabi ity in
front of two or more persons;
(d) failure to designate seats in the wait
ing area for§
(b) Making mockery of a person with disability whether
passengers with disability, if there are seats available; in oral or in writing;
(e) denying a passenger with disability to
use the toilet/?
ure to make such facilit 1€S (c) Im itating
Ang a person with disability in public gath
acc es sib 1 e a4
erings, stage shows, carnivals, television shows, Proadeast
— media and other forms of entertainments that are offensive 0
f) .abank, barber shop,
beauty shop, travel service. , funeral
parlor, gas stas 4 the rights and dignity of persons with disability or any other
tion, office of a lawyer, pharmacy, insur
ance office, professional office of a healt similar acts;
provider, hospital or other service estab h care:
lishment;
8) x
aterminal, depot, or other station used
) amuseum, gallery, library or other
for specified public transportation; 3 No individual, group or community shall execute any of these
i) a park, zoo, amusement park, or other
place of public display or collection; acts of ridicule against persons with disability in any time an A ae
place of recreation;
p anursery, elementary, secondary, undergraduat E which could intimidate or result in loss of self-esteem of the latter.
e, or post-graduate pri-g
vate school, or other place of education;
k) agymnasium, health spa, bowling alley,
1) other place of exercise or recreation (Sec.
golf course; or Villification of persons with disability, prohibited
35, Magna Carta of Persons3
With Disability). Vilification is the act of:
*Sec. 36, Magna Carta of Persons With
Disability; Sec. 3, Rule IX, Rules Im.
plementing R.A. No. 7277. (a) Uttering slanderous and abusive statements against
a) aninn, hotel, motel, or other place
located within a building that contains
of lodging, except for an establishm
ent a a person with disability, such as but not limited to:
not more than fi ve (5) rooms for rent or
and that is actually occupied by the propri hire a
of such proprietor;
etor of such establishment as the residence
!:
(i) calling a person by his disability in public which
b) a restaurant, bar, or other establishment serving food or : results to humiliation;
drink; a (ii) using the disability of a person as an exam le
tion or entertain Picture, “heater, concert hall, stadium, or other Place of exhibi- 1 p
in a manner that is embarrassing and humiliating to the
d) an auditorium, convention center, lectur
gathering;
e hall, or other place of public |
dignity of persons with disability.
e) abakery, grocery store, hardware store, j
shopping center, or other sales ori 4 contempt, or
rental establishment; (b) Inciting in public, hatred, serious
:
travel service. , funeral parlor, gas sta-. 44 severe ridicule of persons with disability.
f) a bank, barber shop, beauty shop,
tion, office of a lawyer, pharmacy, insur
ance office, professional office of a health
provider, hospital or other service estab care
lishment;
g) aterminal, depot, or other station used
for specified public transportation; 4
h) amuseum, gallery, library or other place
of public display or collection; ium, health spa, bowling alley, golf course; or
i) a park, zoo, amusement park, or other place
of recreation; > other place of exercise or recreation (Sec. 35, Magna Carta of Persons
j) a nursery, elementary, secondary, under
graduate, or post-graduate pri- ith Disability, as amended). ;
vate school, or other place of education;
" sec, 1, Rule V, Rules Implementing R.A. No. 9442.
 236 AGRARIAN LAW AND SOCIAL LEGISLATION
Any individual, group or community is prohibited from vilifyi
any person with disability which could result into loss of self-esteg
of the latter.
Tax incentives for benefactors
Persons caring for and living with a person with disability ¢ j
entitled to the following tax incentives: }
(a) Single persons shall be considered as head 3
family and shall be entitled to one basic personal exemptié
equivalent to Twenty-five thousand pesos (P25,000), or
allowed thereafter under the National Internal Revenue Coq
(b) Married persons who have a child or children wif
Ht disability dependent on him for support, are entitled to
i] additional exemption of Eight Thousand pesos (P8,000) A
i qualified dependent (not exceeding four).
NOTE: A married individual is not entitled to the above
additional exemption if he/she takes care of a person with
disability who is not his/her child, unless he/she legally adopts
the same.
(c) Single or legally separated persons with child or chj
dren with disability dependent on him for support, are entitll
to an additional exemption of Eight Thousand pesos (P8,00{
per qualified dependent (not exceeding four).
NOTE: A solo parent is not entitled to the additional
exemption if he/she takes care of a person with disability who is
not his/her child, unless he/she legally adopts the same.
(d) Grandparents not legally separated or a widot
widower/solo parent are entitled to a basic personal exemptiq
of Thirty-two thousand pesos (P32,000) [the personal exempt
granted to a married individual].
(e) Grandparents legally separated or a solo parent,
entitled to the basic personal exemption accorded to a heg
of the family in the amount of Twenty-five thousand pesd
(P25,000).
Sec. 8, Rule V, Rules Implementing R.A. No. 9442.
CHAPTER 8 237
MAGNA CARTA OF PERSONS WITH DISABILITY
Individuals or nongovernmental institutions establishing
: homes, residential communities or retirement villages solely to suit
; (iw needs and requirements of persons with disability are entitled
(a) Realty tax holiday for the first five years of operation;
and
(b) Priority in the building and/or maintenance of
provincial or municipal roads leading to the aforesaid home,
residential community or retirement village. The city and
municipal government concerned where the homes, residential
communities or retirement villages is located shall issue the
implementing guidelines for the availment of this incentives.”
Establishments granting the 20% discount are entitled to
. tnx deductions based on the net cost of the goods sold or services
F tndered under the following conditions:
(a) the cost of the discount should be claimed as
deduction from gross income for the same taxable year that the
discount is granted;
(b) the total amount of the claimed tax deduction net of
value-added tax if applicable, should be included in their gross
sales receipts for tax purposes and shall be subject to proper
documentation and to the provisions of the National Internal
Revenue Code, as amended.* —
4
Donations, bequests, subsidies or financial aids made to
organizations of persons with disability or to government agencies
, #ngaged in the rehabilitation of persons with disability are exempt
: from the donor’s tax, and shall be allowed as deductions from the
F (onor’s gross income for purposes of computing the taxable income
| subject to the provisions of Section 29 (h) of the Code.
Donations from foreign countries are also exempt from taxes
; and duties on importation subject to the provisions of Section 105
of the Tariff and Customs Code of the Philippines, as amended,
f Soction 103 of the NIRC, as amended and other relevant laws and
_ International agreements.”
:
|
5s7Sec. 6.12, ibid.
38Sec. 6.12, ibid.
Sec, 42, Magna Carta of Persons With Disability, as amended.
 238 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 8 239
MAGNA CARTA OF PERSONS WITH DISABILITY

Local manufacturing or technical aids and appliances (a) For the first violation — fine ranging from P50,000.00
use by persons with disability are considered as a preferred ¢ to P100,000.00, or imprisonment ranging from six (6) months
of investment and, as such, shall enjoy the rights, privileges aff to two (2) years, or both at the discretion of the court; and
incentives as provided in said Code such as, but not limited, to t¥
following: (b) For subsequent violation — a fine ranging from
P100,000.00 to P200,000.00 or imprisonment ranging from two
(a) repatriation of investments; (2) years to six (6) years, or both at the discretion of the court.
(b) remittance of earnings; (c) For abuse of the privileges — imprisonment of not
(c) remittance of payments on foreign contracts; less than six (6) months or a fine ranging from P5,000.00 to
P50,000.00, or both, at the discretion of the court.
(d) freedom from expropriations;
(d) Ifthe violator is an alien or a foreigner, he shall be
(e) freedom from requisition of investment; deported immediately after service of sentence without further
eer

(f) income tax holiday; deportation proceedings.”

Wm

(g) additional deduction for labor expense; 3

(h) tax and duty exemption on imported capi
pacer

equipment;
(i) tax credit on domestic capital equipment;
G) exemption from contractor’s tax;
(k) simplification of customs procedures;
Q) unrestricted use of consigned equipment;
(m) employment of foreign nationals;
(n) tax credit for taxes and duties on raw materials; -
(0) access to bonded manufacturing/traded warehot a
system; a
itd

(p) exemption from taxes and duties on imported sp r

parts; and |

(q) exemption from wharfage dues and any export t

duty, impost and fee.

Penal sanctions

Violation of the Magna Carta for Persons With Disabillf

entails the following penalties:

———_____
“Sec. 46, Magna Carta of Persons With Disability, as amended by R.A. No.
Sec. 42 (c), ibid. 0442.
 CHAPTER 9 241
THE SPECIAL PROTECTION OF CHILDREN AGAINST ABUSE,
EXPLOITATION AND DISCRIMINATION ACT

or discrimination due to physical or mental disability or condi-

tion.?

CHAPTER 9 Amployment of Children

THE SPECIAL PROTECTION OF CHILDREN General Rule: Children below fifteen (15) years old cannot be
AGAINST ABUSE, EXPLOITATION AND nployed, permitted or suffered to work in any public or private
pulablishment.?
DISCRIMINATION ACT
Exceptions: Children below fifteen (15) years of age may be
[wmployed under the following circumstances:
REPUBLIC ACT NO. 7610
[as amended by Republic Act Nos. 7658 and 9231] (a) When a child works directly under his parents or
legal guardian, subject to the following conditions:
(i) Only members of his family are employed
thereat; .
Purpose of the Law (ii) The employment does not endanger the child’s
Republic Act No. 7610 was enacted to provide special py life, safety, health, and morals, or impair his normal
tection to children from all forms of abuse, neglect, cruelti development;
exploitation, discrimination, and other conditions prejudicial { (iii) The parent or legal guardian provides the child
their development, including child labor and worst forms of chi with the prescribed primary or secondary education; and
labor. It supplies the inadequacies of existing laws treating crim|
(iv) A work permit is first obtained from the
committed against children, namely, the Revised Penal Code, ag
Department of Labor and Employment.
the Child and Youth Welfare Code.
(b) When the employment of the child is essential in
The law, however, should not be taken to mean that waywa q
public entertainment or information such as cinema, theater,
youths should be cuddled. The deviant conduct of the youth shou] radio, television or other forms of media, subject to the following
be corrected rather than take the cudgels for them. The law sho conditions:
be applied only and strictly to actual child abusers, lest [thle [Cou¥
regress[es] to a culture of juvenile delinquency and errant behaviog (i) Anemployment contract, duly approved by the
Department of Labor and Employment, must be executed
Meaning of children by the parents or legal guardian of the child;

The term “children” refers to persons who are:
(a) below eighteen (18) years of age; or
(b) over (18) years of age, but unable to fully take ca ‘
or protect themselves from abuse, neglect, cruelty, exploitatil
(ii) The employer must ensure the protection,
health, safety, morals, and normal development of the
child;
Gii) The employer must institute measures to
prevent the child’s exploitation or discrimination;

1Amanquiton v. People, 596 SCRA 366.

2Sec. 3, (a), Special Protection of Children Against Abuse, Exploitation and
f \scrimination Act, as amended.
240 3Sec. 12, ibid.
 242 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 9 243
PECIAL PROTECTION OF CHILDREN AGAINST ABUSE,
THES EXPLOITATION AND DISCRIMINATION ACT
(iv) The employer must formulate and imple (e) Depriving the child of access to formal, non-formal
ni
a continuing program for training and skills acquisi or alternative learning systems of education.’
fj
of the child, subject to the approval and supervisiorit
competent authorities; and ala lours of Work of Working Children
(v) A work permit must be obtained from the Y 15 YEARS OLD — Not more than four (4) hours/
BELOW
partment of Labor and Employment.‘ ie day
— Not more than twenty (20)
NOTE: 1. Work permit is not necessary for spot
extras hoprs/week
or those being cast outright on the day of the filmin
g .
or taping. Instead, the employer shall file a notice with — No work between 8:00 P.M.
the
Se

Regional Office where the work is to be performed

that it will _ and 6:00 A.M.
undertake activities involving child work. The notice
shall be 4
in the form prescribed by the Department and shall
state the’ 15-18 YEARS OLD — Not more than eight (8) hours/
Mammen

approximate number of child workers to be employed, day

the date,
place and time the work is to be performed, and an under
taking
that the employment shall be in conformity with Republ
ic Act
— Not more than forty (40) hours/
No. 9231 and these Rules.* week
a

2. The work permit is valid for a maximum period

of 3 — No work between 10:00 P.M.
one (1) year.® and 6:00 A.M.

Suspension or cancellation of the work permit

rohibited child employment
The Regional Director of the Department of Labor
: Children cannot be employed in any of the following:
Employment may cancel the work permit of the child
on the follo
grounds: (a) Asa model in any advertisement which directly or
indirectly promote:
(a) Fraud or misrepresentation in the application { (i) alcoholic beverages or intoxicating drinks;
work permit;
(b) Violation of the terms and conditions of the (ii) tobacco and its by-products;
child
employment contract; Gii) gambling;
f
(c) Failure to institute measures to ensure the pro ‘ (iv) violence; or
tion, health, safety, morals, and normal developmen
t of ¢f (v) pornography.
child;
4
(d) Failure to formulate and implement a program (b) In worst forms of labor, particularly:
(4
the education, training and skills acquisition of the child;
or | (i) Slavery or acts similar to slavery, such as sale
and trafficking of children, debt bondage and serfdom,
forced labor, or for use in armed conflict;

‘Sec. 12, Special Protection of Children Against Abuse, Exploit ————————————

; — i
crimination Act, as amended.
ation and D ‘ Sec. 22, ibid.
‘Ben A, ‘Special Protection of Children Against Abuse, Exploitation and Dis
Sec. 13, Rules and Regulations Implementing R.A.
No. 9231. . grimination Act, as amended.
Sec. 12, ibid.
9Sec, 6, Rules Implementing t.A. No. 9231.
 244 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 9 245
THE SPECIAL PROTECTION OF CHILDREN AGAINST ABUSE,
EXPLOITATION AND DISCRIMINATION ACT
(ii) Prostitution, pornographic performances landling of child’s income or property
production of pornography;
The income of the working child belongs to him alone. It shall
(iii) Tegal or illicit activities, including the p used primarily for his support, education or skills acquisition and
tion and trafficking of dangerous drugs and volatile’ wndarily to the collective needs of the family to the extent of 20%
stances prohibited under existing laws; | {the income.
(iv) Jobs which degrade or demean the in’ f The income of the working child as well as any property
worth and dignity of a child as a human being; \juired through the work of the child shall be administered by both
Jaronts.
(v) Jobs which are highly stressful psychologie é
or which expose the child to physical, emotional or se In the absence or incapacity of either of the parents, the other
abuse; tront shall administer the same.

i) Jobs which r In case both parents are absent or incapacitated, the income
water (vi)
or at “Jobs which are performed underground, un
dangerou s heights;
Mil property of the child shall be administered by the following:

(vii) Jobs (a) The surviving grandparent. In case several grand-

which involve the use of danger parents survive, the one designated by the court taking into
machinery, equipment and tools such as power-driver
account all relevant considerations, especially the choice of the
explosive power-actuated tools; or
child over seven (7) years of age, unless the grandparent cho-
i (viii) Jobs which expose the child to phys sen is unfit;
‘ danger such as, but not limited to the dangerous fe (b) The oldest brother or sister, over 21 years of age,
of balancing, physical strength or contortion, or wif unless unfit or disqualified; and
requires the manual transport of heavy loads; :
(c) The child’s actual custodian over 21 years of age,
(ix) Jobs which expose the child to hazardous wa unless unfit or disqualified.»
if ing conditions, elements, substances, co-agents or ff
Hi cesses involving ionizing, radiation, fire, flammable af If the child earns at least P200,000.00 a year, the administrator
i stances, noxious components and the like, or to extre} ln required to set up at least thirty percent (30%) of the earnings as
| ‘wtrust fund, to be accounted for twice a year. Full control over the
temperatures, noise levels, or vibrations; j
| E\rust fund should be turned over to the child upon reaching the age
(x) Jobs performed under particularly diffid of majority, i.e., 18 years old.
conditions; q If the child earns less than P200,000.00 a year, at least 30% of
h (xi) Jobs which expose the child to biological ag . tho income should be deposited in a savings account.*
‘ such as bacteria, fungi, viruses, protozoans, nemato :
and other parasites; or EChild abuse — a criminal offense
(xii) Jobs which involve the manufacture or hi ; To ensure that children are protected, child abuse and other
ling of explosives and other pyrotechnic products.” Ekcts of child exploitation are declared as criminal offenses. Such
driminal offenses can refer to:

——__
‘Sec. 12-B, ibid.; Sec. 17, Rules and Regulations Implementing R.A. No. 9231.
j Sec. 12-C, Special Protection of Children Against Abuse, Exploitation and
Sec. 12-D, Special Protection of Children Against Abuse, Exploitation Dixcrimination Act, as amended.
Discrimination Act, as amended.
Sec. 18, Rules and Regulations Implementing R.A. No. 9231.
 246 AGRARIAN LAW AND SOCIAL LEGISLATION
CHAPTER 9 247
THE SPECIAL PROTECTION OF CHILDREN AGAINST ABUSE,
(a) EXPLOITATION AND DISCRIMINATION ACT
a) Child prostituti :
prostitution or sexual abuse; (iii): Taking advantage of influence or relationship
(b) Attempt to commit child prostitution; to procure a child as prostitute;
(c) Child trafficking; (iv) Forcing a child to become a prostitute; or

(d) Attempt to commit child trafficking; (v) Giving monetary consideration, goods or other
pecuniary benefit to a child with intent to engage such
(e) Obscene publication and indecent shows; , child in prostitution.
(f) Cruelty, physical abuse, neglect, psychological ‘ (b) Persons who engage in sexual intercourse or lascivi-
emotional maltreatment;
. q ous conduct with a child prostitute.
(g) Any act by deeds or words which debases, deg
or demeans the intrinsic worth and dignity of a child NOTE: 1. Lascivious conduct is the intentional touch-
q ing, either directly or through clothing, of the genitalia, anus,
25

human being;
i groin, breast, inner thigh, or buttocks, or the introduction of any
a

(bh) Unreasonable deprivation of his ba 5; " object into the genitalia, anus or mouth of any person, whether
survival, such as food and shelter; or Sie needa of the same or opposite sex, with an intent to abuse, humili-
ate, harass, degrade, or arouse or gratify the sexual desire of
. (i) Failure to immediately give medical treatment ' 4 any person, bestiality, masturbation, lascivious exhibition
7

injured child resulting in serious impairment of his growth of the genitals or pubic area of a person."
§
development or in his permanent incapacity or death.“ 2. | When the victim is under twelve (12) years of age,
mei

the perpetrator shall be prosecuted for rape under Article 335,

Child prostitution or sexual abuse
Child prostitution and sexual abuse exist when a child, whetf
male or female, indulges in sexual intercourse or lascivious condi
(a)
for money or any other consideration; or
or grow.
(b) due to coercion or influence of of any adult, synd qé
Criminal liability for child prostitution and other sexual
ab
is imposed upon the following:
(a) ; Persons who promote, facilitate,
prostitution through any of the following acts:
(i)
Acting as a procurer of a child prostitute;
(ii) Inducing a person to be a client of a
prostitute by means of written or oral advertisementg
. other similar means;
paragraph 3, and Article 336 of the Revised Penal Code, for rape
or lascivious conduct, as the case may be.
(c) Persons who derive profit or advantage from child
prostitution, whether as manager or owner of the establishment
where the prostitution takes place, or of the sauna, disco, bar,
resort, place of entertainment or establishment serving as a
cover or which engages in prostitution in addition to the activity
for which the license has been issued to said establishment.
The penalty for the aforementioned criminal acts is reclusion
ymporal in its medium period to reclusion perpetua. The penalty for
or induce Agcivious conduct when the victim is under twelve (12) years of age
reclusion temporal in its medium period.”
Attempt to commit child prostitution
: Mere attempt to commit child prostitution is punishable under
hie law. Attempt to commit child prostitution is committed in the
Bllowing manner:

“Sec.
Discrimi 3 (b), ‘Sec, 2 (h), Rules and Regulations Implementing R.A. No. 7610; People v. Ch-
nation Ant Special Protection
oe seein of Chilildren Against
i itati
Abuse, Exploita tion Fingh, 646 SCRA 573.
Sec. 5, ibid. "Sec, 5, Special Protection of Children Against Abuse, Exploitation and Dis-
mination Act, as amended.
 CHAPTER 9 249
248 AGRARIAN LAW AND SOCIAL LEGISLATION THE SPECIAL PROTECTION OF CHILDREN AGAINST ABUSE,
EXPLOITATION AND DISCRIMINATION ACT

(d) When a doctor, hospital or clinic official or employee,

(a) when any person who, not being a relative of a nurse, midwife, local civil registrar or any other person
is found alone with the said child inside the room or cubi simulates birth for the purpose of child trafficking; or
a house, an inn, hotel, motel, pension house, apartelle or @
(e) When a person engages in the act of finding children
similar establishments, vessel, vehicle or any other hidd@
among low-income families, hospitals, clinics, nurseries, day-
secluded area under circumstances which would leg
care centers, or other child-caring institutions who can be
reasonable person to believe that the child is abow
offered for the purpose of child trafficking.
be exploited in prostitution and other sexual abused
The penalty for attempt to commit child trafficking is two
(b) when any person is receiving services from a chif i
) degrees lower than that prescribed for the consummated child
a sauna parlor or bath, massage clinic, health club andi
prallicking.»
similar establishments.
The penalty for attempt to commit child prostitution is tyg Bbscene publications and indecent shows
degrees lower than that of the consummated child prostitutiong4
: hf What is punishable here is the act of hiring, employing, using,
SRE

Persuading, inducing or coercing a child to:

Child Trafficking "‘
(a) perform in obscene exhibitions, indecent shows,
There is child trafficking when a person engages in tradin zi
whether live or in video;
dealing children including, but not limited to, the act of buying}
————_—

selling of a child for money, or for any other consideration, or ba (b) act as model in obscene publications or pornographic
The penalty for child trafficking is reclusion tempord materials; or
reclusion perpetua. The penalty shall be imposed in its maxi (c) sell or distribute obscene publications or porno-
period when the victim is under twelve (12) years of age.” ' graphic materials.
The penalty for these acts is prision mayor in its medium
Attempt to commit child trafficking
period. If the child used as a performer, subject or seller/distributor
f Just like child prostitution, attempt to commit child traffidll Hi below twelve (12) years of age, the penalty is prision mayor in its
i is punishable. Attempt to commit child trafficking is committe Wwximum period.
i the following manner: J
i Criminal liability extends to any ascendant, guardian, or
(a) When a child travels alone to a foreign count: person entrusted in any capacity with the care of a child who causes
t ullows the child to be employed or to participate in an obscene
=a

(i) without valid reason therefor; and

luy, scene, act, movie or show.
i (ii) without clearance from the Departmenifl
fl
Social Welfare and Development or written permit: f ‘Other acts of child abuse
the child’s parents or legal guardian.
Aside from child prostitution, sexual abuse, and child traffick-
(b) When a pregnant mother executes an affiday \ng, also punishable are other acts of child abuse, such as:
consent for adoption of her child for a consideration; 4
(a) Keeping in his company a minor, twelve (12) years
oe (c) When a person, agency, establishment or child- or under or who is ten (10) years or more his junior in any
institution recruits women or couples to bear children for €
purpose of child trafficking; 3
Sec. 8, Special Protection of Children Against Abuse, Exploitation and Dis-
trimination Act, as amended.
Sec. 6, ibid. Sec, 9, ibid.
19Sec. 7, ibid.
 250 AGRARIAN LAW AND SOCIAL LEGISLATION
CHAPTER 9 251
THE SPECIAL PROTECTION OF CHILDREN AGAINST ABUSE,
EXPLOITATION AND DISCRIMINATION ACT
public or private place, hotel, motel, beer joint, discot¥
(i) Concealment or abandonment of the child with
cabaret, pension house, sauna or massage parlor, beach §
intent to make the child lose his civil status;
other tourist resort or similar places.
(ii) Abandonment of the child which deprives him
NOTE: 1. The penalty for this is prision mayor in ij of the love, care, and protection he needs;
maximum period and a fine of not less than Fifty thousany
(iii) Selling the child to another person;
pesos (P50,000).

2. The owner, manager or one entrusted with

operation of such public or private place, including residentig]
places, who allows a person to take along with him a minor
such places is also criminally liable.”
3. This provision does not apply to a person who is
lated to the child within the fourth degree of consanguinity
of
affinity or any bond recognized by law, local custom. and tradi
=< 2a
(iv) Neglecting the child by not giving him the
education which the family’s station in life and financial
conditions permit;
(v) Failing or refusing to enroll the child in an
educational institution without justifiable ground;
(vi) Allowing the child to be absent from school for

tion or acts in the performance of a social, moral or legal dut; more than 20 school days without justifiable reason;
(vii) Inflicting cruel and unusual punishment upon
(b) Inducing, delivering or offering a minor to ang the child or deliberately subjecting the child to indignation
prohibited to keep or have in his company a minor;
=
ase

q and excessive chastisement that embarrass or humiliate

*

him;
; NOTE: 1. The penalty for this is prision mayor in its]
medium period and a fine of not less than Forty thousand pesoai (viii) Causing or encouraging the child to lead an
(P40,000). immoral or dissolute life;
ai}
2. If the perpetrator is an ascendant, stepparent. (ix) Permitting the child to possess, handle or carry
i or guardian of the minor, the penalty is prision mayor in itg:;
a deadly weapon, regardless of its ownership; and
maximum period, a fine of not less than Fifty thousand pesos]
if (P50,000), and the loss of parental authority over the minor. (x) Allowing or requiring the child to drive without
la a license or with a license which the parent knows to have
if
(c) Forcing a street child or any other child to; been illegally procured.”
(i) Beg or use begging as a means of living; NOTE: The penalty for this is prision mayor in its
(ii) Act as conduit or middlemen in drug trafid minimum period.
or pushing; or
Banctions for erring establishments
(iii) Conduct any illegal activities.
Establishments which promote or facilitate child prostitution
NOTE: The penalty for this is prision correccional in ite J und other sexual abuse, child trafficking, obscene publications and
medium period to reclusion perpetua. indecent shows, and other acts of abuse shall be subjected to the
‘
; (ollowing sanctions:
. (d) Commission by any parent or guardian of the
covered by Article 59 of Presidential Decree No. 603, to wif (a) immediate closure;

Sec. 10, Special Protection of Children Against Abuse, Exploitation and Dis-
Sec. 10 (c), ibid.
¢rimination Act, as amended.
 252 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 9 253
THE SPECIAL PROTECTION OF CHILDREN AGAINST ABUSE,
EXPLOITATION AND DISCRIMINATION ACT

(b) cancellation of their authority or license to off Jrauant to Executive Order No. 56, series of 1986. Custody pro-
and, pilings shall be in accordance with the provisions of Presidential
(c) prosecution of the owner or manager.”

Jurisdiction
Original jurisdiction over all cases involving o} ‘
punishable under Republic Act No. 7610, as amended, is vested
the family courts.
In cities or provinces where there are no family court§
regional trial courts and the municipal trial courts shall 3
concurrent jurisdiction depending on the penalties prescrib@
the offense charged.”
Ee
It is unlawful for any editor, publisher, reporter or columnist in
a. of printed materials, announcer or producer in case of television
¥ (/ radio broadcasting, producer and director of the film in case of the
vie industry, to cause undue and sensationalized publicity
any case of violation of Republic tN eK which results in the
Moral degradation and suffering of the offended party.*
q

ptection of children in situations of armed conflict

Who may file a complaint The Policy of the State

2a

Complaints on cases of unlawful acts committed ag Children are declared as Zones of Peace. Therefore:
children may be filed by the following: :
oT

(a) Children shall not be the object of attack and shall

(a) Offended party; be entitled to special respect. They entitled to protection from
any form of threat, assault, torture or other cruel, inhumane or
(b) Parents or guardians;
degrading treatment;
(c) Ascendant or collateral relative within the "
degree of consanguinity; (b) Children shall not be recruited to become members
nth
hal :
of the Armed Forces of the Philippines or its civilian units or
(d) Officer, social worker, or representative of a licai other armed groups, nor be allowed to take part in the fighting,
if child-caring institution; or used as guides, couriers, or spies;
tal
(e) Officer or social worker of the Department of S¢
til (c) Children are entitled to unhampered delivery of
tal Welfare and Development; basic social services such as education, primary health and
(f) Barangay chairman of the place where the viol a emergency relief services;
occurred, where the child is residing or employed; or i (d) Persons who provide services to children, including
(g) At least three (3) concerned, responsible citiff those involved in fact-finding missions, must be assured of
where the violation occurred. 4 safety and protection;
(e) Public infrastructure such as schools, hospitals and
Protective custody of the child rural health units shall not be utilized for military purposes
The child-victim shall be immediately placed under the prof such as command posts, barracks, detachments, and supply
tive custody of the Department of Social Welfare and Developrg depots; and

*4Sec. 11, ibid. 27Sec. 28, Special Protection of Children Against Abuse, Exploitation and Dis-
Sec. 26-A, ibid. E mimination Act, as amended.
6Sec. 27, ibid. 28Sec. 29, ibid.
 254 AGRARIAN LA’ W AND SOCIAL LEGISLATION
CHAPTER 9 255
THE SPECIAL PROTECTION OF CHILDREN AGAINST ABUSE,
EXPLOITATION AND DISCRIMINATION ACT
(f) All appropriate steps shall be taken
the reunion of ili . to faci + Ifafter hearing the evidence in the proper proceeding the court
conflict, of families temporarily separated due to Blwould find that the aforesaid child committed the acts charged
yuinst him, the court shall determine the imposable penalty,
Evacuation of Children During A 10 wluding any civil liability chargeable against him.
ing Armed Conflict
fie However, instead of pronouncing judgment of conviction, the
Wirt shall suspend all further proceedings and shall commit such
ity organizations sha iild to the custody or care of the Department of Social Welfare
t nd Development or to any training institution operated by the
be taken to ensures Government, or duly-licensed agencies or any other responsible
; Person, until he has had reached eighteen (18) years of age or, for a
Ahorter period as the court may deem proper, after considering the
ports and recommendations of the Department of Social Welfare

; The child shall

fepresentative of the
or any duly-licensed
be subject to visitation and supervision by a
Department of Social Welfare and Development
agency or such other officer as the court may
F dunignate subject to such conditions as it may prescribe.
Rights of children arrest : The aforesaid child whose sentence is suspended can appeal
ed for reasons related to
armed contif : (rom the order of the court in the same manner as appeals in criminal
Children arrested for reason
Atk
ik s related to armed conflict chives.”
i
eli . > y

Guide o SPY are entitled to the folloy § Children in conflict with the law
(a) Separate detention fro Children in conflict with the law refers to a person under 18
7: are accommodated m adults ex wh
families as family units: ; Fyoars old who is alleged as, accused of, adjudged, or recognized as,
cept 3‘
(b) Immediate free legal assistance; shaving committed an offense under Philippine laws.*

(c) Immediate notice of s h Rights of a Child in Conflict With the Law

guardian of the child; and i
we anest ip the paren 7 Children in conflict with the law are entitled to the following
-tlghts:
twenty-f
Yy-lour (24) hours to the custody of the Departmeg G .
Social Welfare and Dev elo : (a) Right against torture, cruel, inhuman or degrading,
pment or any res i
the community as determ
ined by the courte
mem : ve (b) Right
Rlekteagainst
stnatypunishment with death penalty or life
imprisonment;
Sec. 22, ibid.
Sec. 23, ibid.
*Sec. 24, Special Protecti
criminatio n Act, a5 annexe on of Children Against Abuse, Exploitation and
: 32Sec. 25, ibid.
: 33Sec. 4 (e), Juvenile Justice and Welfare Act of 2006.
256 AGRARIAN LAW AND SOCIAL LEGISLATION
CHAPTER 9 257
THE SPECIAL PROTECTION OF CHILDREN AGAINST ABUSE,
EXPLOITATION AND DISCRIMINATION ACT
(c) Right against unlawful or arbitrary deprivati ;
liberty; (o) Other rights as provided for under existing laws,
rules and regulations.®
(d) Right against detention together with adult
ers. : Minimum age of criminal responsibility
(e) Right to prompt access to legal and other appropy} 4! Fifteen (15) years old — exempted from criminal liabil-
assistance; ‘4 and below ity. However, the child will be
(f) Right to bail and recognizance, in appropriate ¢cal subjected to an intervention
program.
(g) Right to testify as a witness in his own behalf utda
the rule on examination of a child witness; Above 15 years but below — exempted from criminal li-
18 years old ability if he acted without dis-
(h)_ Right to privacy at all stages of the proceedings, cernment. But the child will
Gi) Right to diversion if he is qualified and volun a be subjected to an intervention
avails of the same; : program. es
— if the child acted with discern-
NOTE: Diversion refers to an alternative child-appropriate -.; ment, the child is no longer
process of determining the responsibility and treatment of a 4 exempt from criminal liability,
child in conflict with the law on the basis if his social, cultural, 4 and he will be subjected to the
economic, psychological or educational background without % appropriate proceedings.**
resorting to formal court proceedings.* 4
NOTE: 1. Intervention refers to a series of activities
Gj) Right to be imposed a judgment proportionate taj which are designed to address the issues that caused the child
gravity of the offense where his best interest, the rights of! to commit an offense. It may take the form of an individualized
victim and the needs of society are all taken into considera treatment program which may include counseling, skills
by the court, under the principle of restorative justice; 7 training, education, and other activities that will enhance his
psychological, emotional and psycho-social well-being.”
(k) Right to have restrictions on his personal libi
limited to the minimum, and where discretion is given by le 2. The exemption is limited to criminal liability and not
to the civil liability.”
the judge to determine whether to impose fine or imprisonmé
the imposition of fines being preferred as the more appropri fi
penalty; 4 Determination of age
() Right to automatic suspension of sentence; ; Children in conflict with the law enjoy the presumption of
general; minority. He is entitled to enjoy all the rights of a child in conflict
with the law until he is proven to be eighteen (18) years old or older.
(m) Right to probation as an alternative to imprisonm ‘
if qualified under the Probation Law; 3 The age of a child may be determined from the child’s birth
| cortificate, baptismal certificate or any other pertinent documents.
(n) Right tobe free from liability for perjury, concealm ‘
or misrepresentation; and q
Sec. 5, ibid.
Sec. 6, ibid.
34Sec. 4 (i), Juvenile Justice and Welfare Act of 2006.
Sec.
%8Gec.
4 6. (1), ibid.
ibid
ec. 6, ibid.
 258 : AGRARIAN LAW AND SOCIAL LEGIS
LATION
CHAPTER 9 259
THE SPECIAL PROTECTION OF CHILDREN AGAINST ABUSE,
EXPLOITATION AND DISCRIMINATION ACT
In the absence of these documents, age may
be based on informa’ .
from the child himself, testimonies of other Procedure for taking the child in conflict with the law into custody
persons, the physi
appearance of the child and other relevant
evidence. In case of dof When a child in conflict with the law is taken into custody, the
as to the age of the child, it shall be resolved
in his favor. | law enforcement officer is obliged to do the following:
In all proceedings, law enforcement officers,
if
prosecutors, jud ij (a) Explain to the child in simple language and in a
and other government officials concerned
shall exert all effo dialect that he can understand the reason why he is being placed
determining the age of the child in conflict
with the law. under custody and the offense that he allegedly committed;
Petition for Determination of Age (b) Inform the child of his constitutional rights in a
language or dialect understood by him;
Prior to the filing’ of information with
the appropriate co! i
any person contesting the age of the child (c) Properly identify himself and present proper identi-
in conflict with the lf fication to the child;
The petition shall be decided case within
twenty-four (24) he (d) Refrain from using vulgar or profane words and from
from receipt of the appropriate pleadings
of all interested partieg sexually harassing or abusing, or making sexual advances on
‘Se ae

the child in conflict with the law; (

Motion for Determination of Age
(e) Avoid displaying or using any firearm, apon,
If the case against the child in conflict with
the law has alreg handcuffs or another instruments of force or restraint, unless
been filed in court, a motion to determine
the age of the child may absolutely necessary and only after all other methods of control
filed in the same court where the case is pendi
ng. Pending heari: 7 have been exhausted and have failed;
the said motion, proceedings on the main
case shall be suspend :
(f) Refrain from subjecting the child to greater restraint
Children not criminally liable for certain than is necessary for his apprehension;
offenses
Children below eighteen (18) years of (g) Avoid violence or unnecessary force;
age are exempt -
. prosecution for the crime of:
(h) Determine the age of the child through his birth
Coa (a) vagrancy and prostitution under certificate, baptismal certificate or any other pertinent
the Revised P ‘
‘ode; documents. In the absence of these documents, age may be
(b) mendicancy under Presidential Decre based on information from the child himself, testimonies of
e No. 1563; é other persons, the physical appearance of the child and other
(c) sniffing of rugby under Presidential relevant evidence. In case of doubt as to the age of the child, it
Decree No. 164
Said children will just undergo appropriate counseling
shall be resolved in his favor [Sec. 7.];
treatment program.” @
(i) Immediately (but not later than eight [8] hours after
apprehension), turn over custody of the child to the Social
Welfare and Development Office or other accredited NGOs, and
notify the child’s parents:or guardians and Public Attorneys’
_——___ Office of the child’s apprehension;
Sec. 7, ibid.
Sec. 7, ibid. (j) Take the child immediately to the proper medical
“Sec. 7, ibid. and health officer for a thorough physical and mental exami-
“Sec. 58, ibid.
nation;
260 AGRARIAN LAW AND SOCIAL LEGISLATION
(k) Ensure that should detention of the child, if ne¥
sary, is secure and separate from that of the opposite sex @
adult offenders;
(1) Record the following in the initial investigation:
Gi) Whether handcuffs or other instruments,
restraint were used, and if so, the reason for such;
(ii) That the parents or guardian of a child,
Department of Social Welfare and Development, and {
Public Attorney’s Office have been duly informed of ¢
apprehension and the details thereof; and
Gii) That measures to determine the age of 4
child have been exhausted and the precise details of {
physical and medical examination or the failure to subg
a child to such examination;
(m) Ensure that all statements signed by the ¢
during investigation are witnessed by the child’s parentsd
guardian, social worker, or legal counsel in attendance y
shall affix his/her signature to the said statement.“
NOTE: The statement of the child should be taken in the
presence of the following:
(a) child’s counsel of choice or in the absence thereof, a
lawyer from the Public Attorney’s Office;
(b) | the child’s parents, guardian, or nearest relative, as
the case may be; and
(c) _ the local social welfare and development officer.
In the absence of the child’s parents, guardian, or nearest
relative, and the local social welfare and development officer,
the investigation shall be conducted in the presence of a
representative of an NGO, religious group, or member of the
BCPC.“
A child in conflict with the law shall only be searched by a] ‘
enforcement officer of the same gender and shall not be locked up}
a detention cell.“
Sec. 21, Juvenile Justice and Welfare Act of 2006.
4Sec. 22, ibid.
Sec. 21, ibid.
CHAPTER 9 261
THE SPECIAL PROTECTION OF CHILDREN AGAINST ABUSE,
EXPLOITATION AND DISCRIMINATION ACT
Treatment of children below the age of criminal responsibility
If it has been determined that the child taken into custody is
("teen (15) years old or below, the authority which will have initial
vontact with the child is duty-bound to:
(a) immediately release the child to the custody of his/
her parents or guardian, or in the absence thereof, the child’s
nearest relative.
@
(b) give notice to the local social welfare and develop-
ment officer who will determine the appropriate programs in
consultation with the child and to the person having custody
over the child.
If the parents, guardians or nearest relatives cannot be located,
or if they refuse to take custody, the child may be released to any of
F the following:
(a) a duly registered nongovernmental or religious or-
ganization;
(b) a barangay official or a member of the ‘Barangay
Council for the Protection of Children;
(c) alocal social welfare and development officer; or
(d) the Department of Social Welfare and Development,
when and where appropriate.
Petition for involuntary commitment
If the Local Social Welfare and Development Office finds that
the child has been abandoned, neglected or abused by his parents,
or in the event that the parents will not comply with the prevention
program, the proper petition for involuntary commitment shall be
; (led by the Department of Social Welfare and Development or the
| Local Social Welfare and Development Office pursuant to the Child
| and Youth Welfare Code.“
| Detention pending trial
Children detained pending trial may be released on bail or
recognizance. In all other cases and whenever possible, detention
- ponding trial may be replaced by alternative measures, such as
: “Sec. 20, ibid.
 262 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 9 263
THE SPECIAL PROTECTION OF CHILDREN AGAINST ABUSE,
EXPLOITATION AND DISCRIMINATION ACT

close supervision, intensive care or placement with a family or tif
educational setting or home. Institutionalization or detention of
child pending trial shall be used only as a measure of last resort @
for the shortest possible period of time. a | Under the supervision and guidance of the local social welfare
Whenever detention is necessary, a child should be detained
youth detention homes established by local governments in the @
or municipality where the child resides. 4
In the absence of a youth detention home, the child in con
with the law may be committed to the care of the Department
Social Welfare and Development or a local rehabilitation cent
recognized by the government in the province, city or municipal!
within the jurisdiction of the court. The center or agency concerti
—S
If the community-based rehabilitation is availed of by a child
| In conflict with the law, he shall be released to parents, guardians,
relatives or any other responsible person in the community.
tind development officer, and in coordination with his/her parents/
f Kuardian, the child in conflict with the law shall participate in
- community-based programs, which shall include, but not limited to:
(a) Competency and life skills development;
(b) Socio-cultural and recreational activities;
(c) Community volunteer projects;
(d) Leadership training;

shall be responsible for the child’s appearance to court whene¥ ti (e) Social services;
required.”
Se

(f) Homelife services;

Automatic suspension of sentence (g) Health services;
ee

Once the child who is under eighteen (18) years of age at tf (h) Spiritual enrichment; and
time of the commission of the offense is found guilty of the offe!
(i) Community and family welfare services.
charged, the court shall determine and ascertain any civil liabilf
which may have resulted from the offense committed. In accordance therewith, the family of the child in conflict with
the law shall endeavor to actively participate in the cémmunity-
However, instead of pronouncing the judgment of convictiaf hased rehabilitation.
the court shall place the child in conflict with the law und
suspended sentence, without need of application. The suspension§ Based on the progress of the youth in the community, a final
St So

sentence shall still be applied even if the child has reached eighteg report will be forwarded by the local social welfare and development
years (18) of age or more at the time of the pronouncement of h | officer to the court for final disposition of the case.
ie Se

her guilt. If the community-based programs are provided as diversion

Upon suspension of sentence and after considering the vario measures under Chapter II, Title V, the programs enumerated
weer

circumstances of the child, the court shall impose the appropriag nbove shall be made available to the child in conflict with the law.”
i.

disposition measures as provided in the Supreme Court Rule ¢

Execution of judgment
2

Juveniles in Conflict with the Law. ;

“:

Children in conflict with the law, whose sentences are suf If the child in conflict with the law has reached eighteen
pended may, upon order of the court, undergo any or a combinatioj , (18) years of age while under suspended sentence, the court shall
determine whether:
of disposition measures best suited to the rehabilitation and welfai
of the child as provided in the Supreme Court Rule on Juveniles {§ (a) to discharge the child;
Conflict with the Law. J
(b) to order execution of sentence; or

“Sec, 36, Juvenile Justice and Welfare Act of 2006.

48Sec. 38, ibid. Sec. 52, Juvenile Justice and Welfare Act of 2006.
 264 AGRARIAN LAW AND SOCIAL LEGISLATION

(c) to extend the suspended sentence for a cert

specified period or until the child reaches the maximum ag
twenty-one (21) years.
If the court finds that the objective of the disposition meastf CHAPTER 10
imposed upon the child in conflict with the law have not bt
fulfilled, or if the child in conflict with the law has willfully fa! THE MAGNA CARTA OF WOMEN
to comply with the conditions of his/her disposition or rehabilita¥
program, the child in conflict with the law shall be brought beff REPUBLIC ACT NO. 9710
the court for execution of judgment. q
A child in conflict with the law may, in lieu of confinem
in a regular penal institution, be made to serve his/her sent | Objective of the Law
in an agricultural camp and other training facilities that may]
The Magna Carta of Women emphasizes the rights of women
established, maintained, supervised and controlled by the BuCcq
in coordination with the DSWD." F and institutionalizes the substantive equality of men and women.
- lhe essence of the law is not only to provide equal opportunities
for women but also their empowerment. Thus, the Magna Carta of
Women mandates the State to:
=

(1) Abolish the unequal structures and practices that

perpetrate discrimination and inequality to women, such as
the repeal of discriminatory provisions of existing laws;

" 1Some laws considered to contain discriminatory provisionspene women

are:
(a) the provisions of the Family Code on:
(i) giving preference to the father’s consent to the marriage of children
between the ages of 18 and 21 (Art. 14);
(ii) giving preference to the husband’s decision, in case of disagreement
with the wife, on the administration and enjoyment of community and conjugal
properties (Arts. 96 and 124);
(iii) giving preference to the husband’s decision, in case of disagreement
with the wife, over the persons of their common children (Aré. 211);
(iv) giving preference to the husband’s decision, in case of disagreement
with the wife, on the exercise of legal guardianship over the property of un-
emancipated common child (Art. 225);
(v) the requirement for repeated physical abuse and grossly abusive
conduct to constitute a ground for legal separation (Art. 55, No. 1);
(b) the provisions of the Revised Penal Code on:
Gi) adultery and concubinage (Arts. 333 and 334);
(ii) the definition of vagrants and prostitution (Art. 202);
(iii) premature marriages (Art. 351); and
(iv) on death inflicted under exceptional circumstances (Art. 247);
(c) the provisions of Section 3 (jj), Rule 131 of the Rules of Court, on disput-
nble presumptions;
(d) the Code of Muslim Personal Laws; and
5Sec. 40, ibid.
51Sec. 51, ibid.
265

266 AGRARIAN LAW AND SOCIAL LEGISLATION
(2) Revise gender stereotypes and images in educa’ fe
materials and curricula.’ a girl-children in the Madaris, schools of living culture and
(3) Eliminate discrimination of women in the milifj
police, and other similar services,? including revision or a
tion of policies and practices that restrict women from a\
ing of both combat and non-combat training, or from takin
functions other than administrative tasks, such as engagit 4
combat, security-related, or field operations.‘
(4) Protect the rights of Moro and indigenous womeg
practice, promote, and preserve their own culture, traditif
and institutions which are not discriminatory to women,'
(5) Increase the number of women participatin
discussions and decision-making in the peace process, incl a
membership in peace panels; *
(6) Ensure the development and inclusion of wom@
welfare and concerns in the peace agenda and wome€
participation in the planning, implementation, monito!
and evaluation of rehabilitation and rebuilding of confilg
affected areas;’
(7) Give special consideration for the specific needa
women in conflict-affected communities;
(8) Adopt measures to:
(a) protect girl-children from all forms of abuj
and exploitation;
(b) eliminate all forms of discrimination agai J
girl-children in education, health and nutrition, and s|
development;
(e) R.A. No. 8353, on removal of criminal liability of rapist when victim mg
ries him (Sec. 15, Rules and Regulations Implementing the Magna Carta of Womet
Sec. 13, R.A. No. 9710.
‘Similar services include the Bureau of Fire Protection (BFP), Bureau of J
Management and Penology (BJMP), National Bureau of Investigation (NBI), Philif
pine Drug Enforcement Agency (PDEA), other agencies with law enforcement
tions, and private security agencies (Sec. 7 [W], Rules and Regulations Implement
R.A. No. 9710).
4Sec. 15, Magna Carta of Women.
5Sec. 28, ibid.
Sec. 29 (a), ibid.
"Sec. 29 (b), Magna Carta of Women.
8Sec. 29 (c), ibid.
CHAPTER 10 267
THE MAGNA CARTA OF WOMEN
(c) ensure equal access of Moro and indigenous
traditions, and the regular schools;
(d) develop gender-sensitive curriculum and books
in the Madaris and schools of living culture and traditions;
and
(e) ensure the sensitivity of regular schools to
particular Moro and indigenous practices, such as fasting
in the month of Ramadan, choice of clothing (including
the wearing of hijab), and availability of halal food.
The rights of women
In general, all women are entitled to enjoy all the rights under
4 the Constitution, including those rights recognized under interna-
(lonal instruments duly signed and ratified by the Philippines.”
Equal Rights in All Matters Relating to Marriage and Family
F Relations
Women are entitled to enjoy equal rights pertaining to mar-
- tlage and family relations, specifically:
(a) right to enter into and leave marriages or common
law relationships referred to under the Family Code, without
prejudice to personal or religious beliefs;
(b) right to freely choose a spouse and to enter into
; marriage only with their free and full consent. The betrothal
and the marriage of a child shall have no legal effect;
(c) right to decide jointly with their partners on the
number and spacing of their children;
(d) right to enjoy the same personal rights as their
spouses or their common law spouses;
3 (e) right to freely choose a profession or occupation;
(f) right to enjoy same rights as their spouses or their
common law spouses with respect to ownership, acquisition,
management, administration, enjoyment, and disposition of
property;
*Sec. 32, ibid.
Sec. 8, ibid.
 268 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 10 269
THE MAGNA CARTA OF WOMEN

(g) right to enjoy the same rights to properties, w! (vi) local government units should provide tem-
titled or not, and inheritance, whether formal or custom porary shelters to women and children in situations of
and armed conflict.
(h) right to enjoy equal rights with men in acquig (c) government personnel involved in the protection
changing, or retaining their nationality. Neither marty and defense of women against gender-based violence should
to an alien nor change of nationality by the husband duj regularly undergo mandatory training on gender and human
marriage can automatically change the nationality of the ¥ rights, particularly on the cycle and continuum of violence,
much less force upon her the nationality of the husbandf counseling and trauma healing;
render her stateless." q
(d) barangays should establish a Violence Against
Right to Be Protected From All Forms of Violence soir senaitive be manned by a person trained in handling

NY All government agencies are mandated to give priority 04

defense and protection of women against gender-based offenj u Right to be Protected in Ti mes of of Disasters, Calamities, and
: : ern 8 Disa.
To attain this objective, the law mandates the pursuance of | (ther Crisis Situations
nm | following measures:
ie! (a) 50%ofth li . f : Women are entitled to protection and security in times of di-
m © of the personnel in the police force, legal se anster, calamities and other crisis situations, especially in all phases
forensics and medico-legal services, and social services sha ; al relief, recovery, rehabilitation, and reconstruction. Responses to
t be women, so that women who are victims of gender-relf] (lisaster situations should include psychological support, livelihood
violence can properly be assisted; | support, education, and comprehensive health services.”
_ (b) In situations of emergency, armed conflict, .
militarization: Right to Participation and Equitable Representation in All
E Spheres of Society
G) women should not be required to take part,
¢ armed hostilities; F Women have the right to participate in the formulation,
: : F |mplementation and evaluation of policies, plans, and programs for
he arti (ii) women should be given the opportunity to - national and local development. To accomplish this objective, the
Ky participate in the planning and management of reli tate i dated to:
'' operations; 7 | Btate is mandated to:

! Gii) relief supplies should include the spe i (a) Ensure that 50% of 3rd level positions in the govern-
r requirements of pregnant women, lactating mothe] ment are held by women;
M sick people, senior citizens, persons with disabilities, (b) Ensure that 40% of membership in all regional,
children; provincial, city, municipal, and barangay development councils

(iv) utmost priority should be given to cases inv are composed of women;
ing pregnant, lactating women, women with depend@ (c) Ensure that women are represented in international,
children, and women with disabilities who are detairil national, and local special and decision-making bodies;
. for reasons related to armed conflict;
(v) civilian casualties should not be considered @
. ——_____
colla 28ec, 9, Magna Carta of Women; Sec. 12, Rules and Regulations Implementing
teral damage;
the Magna Carta of Women.
189ec. 10, Magna Carta of Women; Sec. 13, Rules and Regulations Implement-
Sec. 19, Magna Carta of Women. ing the Magna Carta of Women.
 270 AGRARIAN LAW AND SOCIAL LEGISLATION
(d) Ensure that women are given the opportunity
represent the government at the international level and
participate in the work of international organizations; ;
(e) Provide incentives to political parties with wome
agenda; and
(f) Encourage women leadership in the private sec 4
Right Against Dismissal or Expulsion From School Due}
Pregnancy Out of Wedlock
Expulsion or non-readmission of unmarried women teac
or faculty members due to pregnancy is outlawed. Neither g
educational institutions transfer, or force unmarried teachers ;
faculty members to go on leave, simply because they got pregnay
Similarly, educational institutions cannot refuse admissie ‘
expel, suspend or impose any disciplinary action against unmarrf
female students who get pregnant during their term in school.
Pregnant students, teachers, faculty members, and otl¥
school personnel should be accorded with a special leave of abserj
from school, upon advice of the attending physician."
Right to Health
This right entitles a woman to have access to the followlg
services:
(a) Pre-natal and post-natal services to address p ‘
nancy and infant health and nutrition;
(b) Promotion of breastfeeding;
(c) Ethical, legal, safe, and effective methods of fami
planning;
(d) Youth sex education and health services;
(e) Prevention and management of reproductive traf
infections, including sexually transmitted diseases, HIV, ag
AIDS;
“Sec. 11, Magna Carta of Women.
Sec. 13 (c), Magna Carta of Women; Sec. 16, Rules and Regulations Impl ;
menting the Magna Carta of Women.
CHAPTER 10 271
THE MAGNA CARTA OF WOMEN
(f) Prevention and management of reproductive tract
cancers like breast and cervical cancers, and other gynecologi-
cal conditions and disorders;
(g) Prevention of abortion and management of pregnan-
cy-related complications;
(h) . Comprehensive health services for victims of vio-
lence against women and children, such as psychosocial, thera-
peutic, medical, and legal interventions and assistance towards
4 healing, recovery, and empowerment;
(i) Prevention and management of infertility and sexual
dysfunction pursuant to ethical norms and medical standards;
(j) Care of the elderly women beyond their child-bearing
years; and
(k) Management, treatment, and intervention of mental
health problems of women."
Right to Special Leave Benefits
Women employees who have undergone surgery caused by
wynecological disorders are entitled to a special leave benefit of two
(2) months with full pay based on her gross monthly compensation,
4c., including mandatory allowances fixed by the regional wage
a
hoards.”
The special leave benefit for women is not cumulative and not
convertible to cash.
To be entitled to this special leave, the female employee:
(a) Must have undergone surgery due to gynecological
, disorder such as, dilatation and curettage and those involving
female reproductive organs, like vagina, cervix, uterus, fallo-
pian tubes, ovaries, breast, adnexa and pelvic floor, as certified
by a competent physician, including hysterectomy, ovariecto-
my, and mastectomy, as certified by a competent physician.”
6Sec. 17, Magna Carta of Women.
Sec. 18, Magna Carta of Women; Sec. 7 (L), Rules and Regulations Imple-
f monting the Magna Carta of Women.
Sec. 21, Rules and Regulations Implementing the Magna Carta of Women.
i ‘Department Order No. 112-11,
 272 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 10 278
THE MAGNA CARTA OF WOMEN

appropriate
(b) Must have rendered at least six (6) months § (b) breastfeeding or lactation stations with
tinuous aggregate employment service for the last twelv facilities;
}
months prior to surgery;
4 (c) nursing/lactation breaks;
(c) Must file an application for special leave with .
(d) health education;
nsible
(e) counseling on breastfeeding, seminars on respo
parenthood and family planning;
Right Against Discriminatory (f) non-sexist child-rearing;
and Derogatory Portrayd|
Media and Film
4 (g) shared parenting and family responsibility;
To realize this right, all media organizations and corpor (h) annual family day;
a if
are required to:
j flexible work arrangements; and
(i)
(a) integrate into their human resource develop: 3
components regular training on gender equality and geng (j) anti-sexual harassment initiatives.”
based discrimination;
(b) Right to Resources for Food Production
create and use gender equality guidelines in all}
pects of management, training, production, information, This right entails the following:
semination, communication, and programming; and and
a (a) Equal status for women in the titling of the land
(c) convene a gender equality committee that will § issuance of stewardship contracts or patents.
mote gender mainstreaming as a framework and
affirmag the conjugal
action as a strategy, and monitor and evaluate the impleri
i NOTE: Where the properties form part of
tation of gender equality guidelines.” hip ip of gainsi or absolute communi ity of property,
the Certificate of
Pames of both spouses should be entered in .
Title preceded by the word “spous es.
Right to Decent Work
i
parties are not legally marrieied,d, the names of 0 bot
Decent work involves opportunities for work that are the
fi entere d in the Certif icate of Title with the
ductive and fairly remunerative as family living wage, axtios should be
the workplace, and social protection for families,
securi he conjunctive word “and” between their names.
better prosp@
for personal development and social integration, freedom i ries of the
to express their concerns, organize, participate in the
for peof Equal treatment to women -beneficia
of a woman
decisions ti
affect their lives, and equality of opportunity and treatm agrarien reform program, wherein the vested right
n's re a fon
women and men.”
ent for] agrarian reform beneficiary is defined bya woma
contribution to
ship to tillage, i.e., her direct and indirect
To enable women to balance their family obligations development of the land;
and we
responsibilities, employers in both public and privat
e sectors Equal rights
i in the enjoyment, use, an
to women in and
obliged to provide support services at the workplace, within
suchas: 3 of land, water, and other natural resources
management
guaranteed;
(a) day care and child minding centers; their communities or ancestral domains shall be

Sec. 21, Rules and Regulations Implementing the Magna

Carta of Women, Magna Carta of Women.
Sec, 25, A, 3, a, Rules Implemen ting the8 Implem
1Sec. 15, Magna Carta of Women. 1 a, Rules and Regula tion: enting the Magna Carta of
A *Sec, 23, B,
Sec. 22 (a), Magna Carta of Women.
Women.
 274 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 10 275
THE MAGNA CARTA OF WOMEN

(d) Equal access to the use a nd i; Right to Livelihood, Credit, Capital, and Technology
and aquatic resources; management offg "
This right entails the following:
(e)
; Equal status for women in the issua
i nce of stew?
on or Jease agreements and other fishery rights (a) Equal access to formal sources of credit and capital;
that m@
ed
resources, for the use and management of coastal and agg (b) Equal share to the produce of farms and aquatic
resources; and
(f) Equal
qual treatment to women’
men's organizi ations ag;€ (c) Employment opportunities, skills and entrepreneur-
other marginalized fishers organizations in the
issuang ship development for returning women migrant workers.*
stewardship or lease agreements or other fishery
rights fol
use and management of such coastal and aquatic
resow Right to Education and Training
may include providin;
coastal resources; i
S Support to women-engt This right entails the following:
(g) Equalrightstomembershipi
ip in farmers’ organizat# / (a) Skills training for women migrant workers before
to ensure wider access to and control of the means
of produdf taking on a foreign job, and possible retraining upon return to
(h)
J Recogn
¢ ition of the cust omary rights
i of women tg the country, if they so desire;
jana, including access to and control of the fruits
and beng (b) Gender-sensitive trainings and seminars, and
rcumstances where private own ip i i “
as ancestral domain claims; ership is not possible (c) Equal opportunities in scholarships based on merit
(i) Access at all times to info and fitness, especially to those interested in research and
j
claiming rights to the land;
: : *
rm development aimed towards women-friendly farm technology.”
atten and assistang
t i :

G) ; ae
Non-discrimination on ini the deputization 4
wardens of { Right to Information

(k) Women-frie All government agencies, instrumentalities, and local govern-

fr ndl: y desigi n for agric
i ulture technolé ]
based on accessibility and viability in consu _mont units are obliged to develop and make available information,
ltation : wlucation and communication materials on their specific programs,
women’s organizations;
| gervices and funding outlays on women’s empowerment and gender
(1) Access to small farmer-b d F equality. These information shall be translated in major Filipino di-
production and distribution; Tased and controlled s¢ | alocts and disseminated to the public, especially in remote or rural
ao (m) Recognition » protection i and encou: ragement 4* aroas.”
qi indigenous practices of women in seed storage
andcaltivatid
sl Right to Housing
This right mandates the State to develop housing programs for
F women that are:
entrepreneurial activities which will add
fh localized, simple, secure and accessible;
and marketing ventures; and value to product (a)
(0) Economic opportunities to o indige
indi nous wom (b) with potable water and electricity;
ticularly access to market for their produce.
™
Sec. 23, ibid.
21Sec, 24, Magna Carta of Women.
Sec. 20, Magna Carta of Women.
28Sec, 29, Rules and Regulations Implementing the Magna Carta of Women.
 276 AGRAR
_ TAN LAW AND SOCIAL LEGISLATION CHAPTER 10 277
(c)
THE MAGNA CARTA OF WOMEN
wa
with ,viable employ
ment opportunitie
(d) affordable amortization,»
s; and lahts of “Women in Especially Difficult Circumstances”
mr “Women in Especially Difficult Circumstances” refers to vic-
BodinRight to Rep 1« and survivors of sexual and physical abuse, illegal recruit-
re.
sentation and Part
.
»
icipation in Policy
-Mj ' pnt, prostitution, trafficking, armed conflict, women in detention,
/

. c to partici . ; 4 Sotims and survivors of rape and incest, and such other related cir-
making bodies in the regi Pate in policy-making or de imatances which have incapacitated them functionally.
» or international lev
To fully realize e thisthis + elgi This right mandates local government units to deliver the
.
li withth women’s org tiene 2
concerned agen pllowing necessary services and interventions to WEDC under their
; cies, in cooper e
building and leadership n rnatig ited to impleme spective jurisdictions:
'4 nt cape bi
women leaders to effect formati on programs to enable
participate in decision ads (a) Temporary and protective custody;
i making in agencies, like
| (b) Medical and dental services;
! . Agrari : :
' bOM) o peerarian Reform Coon dint Council (PA , (c) Psychological evaluation;

wy? OF Darangay Agrarian Reform Committee (Barc (d) Counseling;

a
(e) Psychiatric evaluation;

ment (c)ComeNa (f) Legal services:

t tion
an ale Fisher
eriies and Aquatic
ponte Resources Mi (g) Productivity skills capability building;
MC) and its region
al and local count
. " (h) Livelihood assistance;
(d)
National Commissi
on on Ind igenous Peoples (NC j (i) Job placement;
(e) Presidential
for m embership. in its Commissi (j) Financial assistance; and
Board of Commis, Urban
T'S; Poor (PCY
() Local Housing Boards (LHBs (k) Transportation assistance.”
), whenever applica Af
(g) National Anti
Sectoral Councils; and Right of Women Senior Citizens to Protection
“Poverty Commission (NAPC) Bal
Women senior citizens are entitled to be protected from
resource manageme
nt bod
Or j
neglect, abandonment, domestic violence, abuse, exploitation, and
gement and stewar qa.
dship. ses discrimination. Towards this end, the State shall ensure special
: nsure t! i ‘ protective mechanisms and support services against violence, sexual
at least thirty: percent (30 %) wome:
hat its sectoral councils
i shall hay abuse, exploitation, and discrimination of older women.*
Yr equalit, iy concerns incorporatedm inmembe
theirrshi
sectoral aod hay2i
ndaa,3

Sec. + 21, 4 , su; Supra.

nee 28, ibid.
ec. 27, Rules and Re, 5 ——_—__—-
, . the Magna Carta of Women,
gulatlations Implementing 8Secs. 30 and 31, Magna Carta of Women.
n. 38Sec. 33, ibid. \
 278 AGRARIAN LAW AND SOCIAL LEGISLATION
CHAPTER 10 279
THE MAGNA CARTA OF WOMEN
Sanctions
a Aggravating Circumstance
Public and private entities and individual
s found to have q
mitted discrimination against women are subject to the Violence is perpetrated by agents of the State induding, but
sanctiq wt limited to, extrajudicial kallings, CoA oe eee vating
If the Commission on Human Rights finds that internal displacements, s e consi
a departrg Bor't
agency, or instrumentality of government, es depend ing on the severity of
government-owned ; airs corresponding penalti
-controlled corporation, or local governme
nt unit has violatedf Alw offenses.”
provision of the Magna Carta of Wome
n and its implemeng
rules and regulations, the sanctions under
administrative law i
service, or other appropriate laws shall be
recommend to the
Service Commission and/or the Department
of the Interior #
Local Government. The person directly respo
nsible for the viol@
as well as the head of the agency or local
chief executive shg i
held liable.
: 4
If the violation is committed by a private
entity or individ
the person directly responsible for the violation
shall be liable toi
damages.
1

preclude the offended party from pursuing

the remedies avail@
under existing laws especially those laws
protecting women
children, such as the:
:
(a) Women in Development and Nation Building
Act
(b) Special Protection of Children Against Child
Ak f
Exploitation and Discrimination Act;
;
(c) Anti-Sexual Harassment Act of 1995;
(d) Anti-Rape Law of 1997; 2
(e) Rape Victim Assistance and Protection Act of
19 of
(f) Anti-Trafficking in Persons Act of 2003;
and
(g) Anti-Violence Against Women and Their Chil
Act of 2004. *’ E .

“Sec. 35, Magna Carta of Women.

R.A. No. 7192.
56R.A. No. 7610.
R.A, No. 7877.
38R.A. No. 8353.
59R.A. No. 8505.
R.A. No. 9208.
OR.A. No. 9262. ——$—<——
“2Sec, 41, Magna Carta of . Women.
 CHAPTER 11 281
ANTI-VIOLENCE AGAINST WOMEN AND THEIR
CHILDREN ACT OF 2004

Dating relationship neither refers to casual acquaintance nor

Ww ordinary socialization in a business or social context. It refers toa
situation where the parties:
CHAPTER 11 (a) live as husband and wife without the benefit of
ANTI-VIOLENCE AGAINST WOMEN AND THEIR marriage; or

CHILDREN ACT OF 2004 4 (b) are romantically involved over time and on a con-
i tinuing basis.!
REPUBLIC ACT NO. 9262 4
Physical violence
Physical violence is the infliction of bodily harm. It could be
Violence against women and their children |n the form of battery, assault, coercion, harassment, arbitrary
(loprivation of liberty.
Violence against women and their children refers to physlj
sexual, psychological, or economic abuse committed by a perso Battery refers to an act of inflicting physical harm upon the
‘woman or her child resulting to physical and psychological or
(a) against a woman: emotional distress.?
(i) who is his wife or former wife; or
Sexual violence
(ii) with whom he has or had a sexual or da
relationship; or Sexual violence can be in the form of:

(iii) with whom he has a common child. (a) rape, sexual harassment, acts of lasciviousness;
(b) treating the woman/child as a sex object;
who is:(b) against her child, whether er legiti
legitimate illegitime
or illegitimy
(c) making demeaning and sexually suggestive remarks;
(i) below 18 years old; or (d) physically attacking the sexual parts of the body;
i | j
(ii) above 18 years old but are (e) forcing woman/child to watch obscene publications
care of himself. neapable of tal and indecent shows;
Violence against women and their children is not confine f (f) forcing the woman/child to do indecent acts or make
physical violence. It includes sexual violence, psychological viole! films thereof,
or economic abuse. The victim need not necessarily be the wif¢!
former wife — she could be any woman whom the offender had: (g) forcing the wife and mistress/lover to live in the
conjugal home or sleep together in the same room with the
(a) sexual relationship; or abuser;
(b) dating relationship. (h) acts causing or attempting to cause the victim to
Sexual relationship can exist even if there was only a sing engage in any sexual activity by force, threat of force, physical
Sexual
sexual act
act,reregardless of whether it resulted in or other harm or threat of physical or other harm or coercion;
i the bearing
i on :

1Sec. 3, Anti-Violence Against Women and Their Children Act of 2004.

280 Sec. 3, ibid.
 282 AGRARIAN LAW AND SOCIAL LEGISLATION 283
CHAPTER 11
ANTI-VIOLENCE AGAINST WOMEN AND THEIR
CHILDREN ACT OF 2004
(i) prostituting the woman/child.* cases wherein the other spouse/partner objects on valid, serious
and moral grounds as defined in Article 73 of the Family Code;
Psychological violence
(c) deprivation or threat of deprivation of financial
Psychological violence refers to acts or omissions causi resources, including the right to the use and enjoyment of the
likely to cause mental or emotional suffering of the victim such.
conjugal, community or property owned in common,
(a) intimidation; (d) destroying household property;
(b) harassment; (e) controlling the victim’s own money or properties or
(c) damage to property; solely controlling the conjugal money or properties.‘
(d)__ public ridicule or humiliation;
(c) repeated verbal abuse: Remedies of victims of violence against women and their children

(f) marital infidelity; : The remedies available to victims of violence against women
: und their children are as follows:
(g) causing or allowing the victim to witness i
physical, sexual or psychological abuse of a member of ¢ (a) Criminal action;
family to which the victim belongs; j (b) Criminal action with reservation of a separate civil
(h) causing or allowing the victim to witness pornogray action; or
in any form;
{ (c) Civil action for damages;
causing or allowi te . 3
(i)
injury to pets: g owing the victim to witness abusl (d) Protection order without claiming damages.‘

G) unwanted deprivation of the right to custody andj The crime of violence against women and their children
visitation of common children; or
The crime of violence against women and their children is
(k) . stalking. committed through any of the following acts:

NOTE: Stalking is the act of following the woman or her child (a) Causing physical harm to the woman or her child;’
or putting the woman or her child under surveill
fens i ance without
i

Economic abuse
5Ibid.
Economic abuse refers to acts that are intended to make ®Sec. 6, A.M. No. 04-10-11-SC, Rule on Violence Against Women and Their
woman financially dependent, such as: Children.
j "These acts if constituting saenret oa or consummated parricide or
(a) withdrawal of financial support; murder or homicide shall be punished in agcordance with the provisions of the Re-
vised Penal Code.
(b) preventing the woman from engaging in any legit If the acts resulted in mutilation, it shall be punishable in accordance with the
mate profession, occupation, business or activity, except i Rovised Penal Code;
If the acts constitute serious physical injuries the penalty is prision mayor;
Tf the acts constitute less serious physical injuries the penalty is prision cor-
reecional;
*Sec. 3, Anti-Violence Against Women and Their Children Act of 2004, If the acts constitute slight physical injuries the penalty is arresto mayor (Sec.
‘Sec. 3, ibid.
6} Ja], Anti-Violence Against Women and Their Children Act of 2004).
 284 AGRARIAN LAW AND SOCIAL LEGISLATION
CHAPTER 11 285
ANTI-VIOLENCE AGAINST WOMEN AND THEIR
CHILDREN ACT OF 2004
(b) Th reatening
i 3
cal harm;! to cause the woman or her child pf (v) Preventing the woman from engaging in any
legitimate profession, occupation, business or activity;

(vi) Controlling the money or properties of the

woman or her child, or solely controlling the conjugal or
common money, or properties;

1 (g) Inflicting or threatening to inflict physical harm on

(e) Co i . f oneself for the purpose of controlling her actions or decisions;
wom
her child: mpelling or attempting to compel the
(h) Causing or attempting to cause the woman or her
hi (i) to engage in conduct which the wome af child to engage in any sexual activity which does not constitute
child has the right to desist from; or any: rape, by force or threat of force, physical harm, or through
intimidation directed against the woman or her child or her/
; (ii) to desist from cond: uct wh i his immediate family;
child has the right to engage in. p nf
‘eh ne wome
(i) Engaging in purposeful, knowing, or reckless con-
int ()
imidat
of mov emeion
nt othe
Restricting or attempting to restrict the freed{
of the woma n or her chil
duct, personally or through another, that alarms or causes
i d by force, threat; substantial emotional or psychological distress to the woman
or her child, such as:
(i) Threat t i .. i (i) Stalking or following the woman or her child in
woman or her 0 deprive or actually depriving §
child of custody or access to her/ public or private places;
his fam§
Gi) Threat to depri
prive or actually depriving *¢ (ii) Peering in the window or lingering outside the
or her child : gf
woman residence of the woman or her child;
her family; Ud of financial support legally due he G
(iii) Entering or remaining in the dwelling or on the
Gii)i Deliberately provididi
in property of the woman or her child against her/his will;
insufficient financial support; ” i
the woman's chy (iv) Destroying the property and personal belong-
(iv) Threat to deprive or act ings or inflicting harm to animals or pets of the woman or
woman or her child of a legal right; nay her child; and
depriving ’
(v) Engaging in any form of harassment or
violence;
*The prescriptive
Against Women and Theirperiod for these acts is 20 years (Sec. 24 Anti-Violed
Children Act of 2004).
(j) Causing mental or emotional anguish, public ridicule
These acts are punishable by
impri; or humiliation to the woman or her child, such as repeated
prescribed penalty for the
consummated cri
lower than arresto mayor (S
dren Act of 2004). i- Vi
por Gee. 6 lah, Anti UThe penalty for this is prision correccional (Sec. 6 [c], ibid). The prescriptive
The prescriptive period for th :
Women and Their Children Act of 2004 _ is 20 years (Sec. 24, Anti-Violence Agaitf
_ | puriod is 20 years (Sec. 24, R.A. No. =e
'2The penalty for this is arresto major (Sec. 6 [d], ibid).
*The penalty for this is “| The prescriptive period is 20 years (Sec. 24, ibid).
and Their Children Act of. 2004), esto mayor (Sec. 6 [b], Anti-Violence Against Wo The penalty for this is prision mayor (Sec. 6 [e], ibid).
one prescriptive period for The prescriptive period is 10 years (Sec. 24, ibid).
these acts is 20 years (Sec. 24, ibid)
Th e Penalty for this is arre “The penalty for this is prision mayor (Sec. 6 [f], Anti-Violence Against Women
sto mayor (Sec. 6 [6], ibid)
€ prescriptive period for these ue und Their Children Act of 2004).
acts is 20 years ( Sec. 24 ibid).
The prescriptive period ia 10 yours (Sec. 24, ibid.)
 286 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 11 287
ANTI-VIOLENCE AGAINST WOMEN AND THEIR
CHILDREN ACT OF 2004

verbal and emotional abuse, and denial of financial supped igitizen

custody of minor children or denial of access to th
child/children.»
Aggravating circumstances
The penalty shall be the maximum period of the preset
penalty if the foregoing acts were committed: ;:
(a) while the woman or child is pregnant; or ‘=
(b) in the presence of her child.s
Prohibited defense
Being under the influence of alcohol, any illicit drug, ot
other mind-altering substance is not a defense cases invo
violence against women and their children.” ud
Battered woman syndrome is a defense for the woman
“Battered Woman Syndrome’ refers to a scientifically def
pattern ofpsychological and behavioral symptoms found in worg
living in battering relationships as a result of cumulative abused
1) having personal
eth knowledge of the circumstances involving
nj 1 commission of the crime.”
eeewen
Pxemption from liability
Any person, private individual or police authority or barangay
Foliicial who, acting in accordance with law, responds or intervenes
without using violence or restraint greater than necessary to
pnsure the safety of the victim, is not liable for any criminal, civil or
administrative liability resulting therefrom.”
No compromise on crimes involving violence against women and
F (heir children
Compromise on any act constituting the crime of violence
against women and their children is not allowed.”
Venue of criminal action
The Regional Trial Court designated as a Family Court has
original and exclusive jurisdiction over cases of violence against
women and their children.

Women who are suffering from battered woman syndrol
do not incur any criminal and civil liability, notwithstanding f
absence of any of the elements for justifying circumstances of #@
defense under the Revised Penal Code. d
However, a woman is not disqualified from having custod
her children simply because she is suffering from battered wom
syndrome. In no case shall custody of minor children be given;
the offender of a woman who is suffering from Battered Wor
Syndrome.”
Public crime
Violence against women and their children is a public offe: ‘
Therefore, it may be prosecuted upon the filing of a complaint by ag
If there is no Family Court in the place where the offense was
tommitted, the case shall be filed in the Regional Trial Court where
E the crime or any of its elements was committed.*
| Protection Order
Victims of violence against women and their children can
apply for protection order to prevent further acts of violence against
' them, minimize disruption in their daily lives, and facilitate the
opportunity and ability to independently regain control over their
lives.25
The protection orders that may be in the form of:
(a) Barangay protection order (BPO);

“The penalty for this is prision mayor (Sec. 6 [f], ibid.) ToT
me prescriptive period is 10 years (Sec. 24, ibid.) Sec. 25, ibid. ~\
‘ec. 6, ibid. 2Sec. 34, R.A. No. 9262. \
Sec. 27, ibid. Sec. 23, A.M. No. 04-10-11-SC, Rule on Violence Against Women and Their
8Sec. 3(©), ibid. Children. :
Sec. 26, ibid. *Sec. 7, Anti-Violence Against Women and Their Children Act of 2004.
20Sec. 28, ibid. 5Sec. 8, ibid.
 288 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 11 289
ANTI-VIOLENCE AGAINST WOMEN AND THEIR
CHILDREN ACT OF 2004
(b) Temporary protection order (TPO); or (d) description of the reliefs requested by petitioner;
(c) Permanent protection order (PPO).* (e) request for counsel and reasons for such;

Who can file petition for protection order? (f) request for waiver of application fees until hearing;
and
A petition for protection order may be filed by any of
following persons: (g) an attestation that there is no pending application
for a protection order in another court.
(a) offended party;
The petition for protection order may be filed as an independent
(b) parents or guardians of the offended party; action or as an incidental relief in the civil or criminal case.
(c) ascendants, descendants or collateral relatives" ‘ If the applicant is not the victim, the application must be
in the 4th degree of consanguinity or affinity; fccompanied by an affidavit of the applicant attesting to:
(d) officers or social workers of the Department of Se (a) the circumstances of the abuse suffered by the
Welfare and Development or social workers of local governg victim; and
units;
(b) the circumstances of consent given by the victim for
(e) police officers, preferably those in charge of wor the filing of the application. When disclosure of the address of
and children’s desks; ‘ the victim will pose danger to her life, it shall be so stated in
(f) Punong Barangay or Barangay Kagawad; the application. In such a case, the applicant shall attest that
the victim is residing in the municipality or city over which
(g) lawyer, counselor, therapist or healthcare pro ; court has territorial jurisdiction, and shall provide a mailing
A of the petitioner; : address for purposes of service processing.
1
(h) at least two (2) concerned responsible citizens of An application for protection order filed with a court shall be
city or municipality where the violence against women twnsidered an application for both a TPO and PPO.
fi their children occurred and who has personal knowledge of
ii offense committed.” Barangay officials, and court personnel are obliged to assist
j
Applicants in the preparation of the petition for protection order.
ni
i How to obtain a protection order? Barangay Protection Order (BPO)
H To obtain a protection order, a written petition for a proted
iH order signed and verified under oath by the petitioner must be ; The application for a BPO should be filed with the barangay
i! using the standard protection order application form which sh | where the applicant resides. The place of residence may include
contain, among others, the following information: f (ho place where the victim-survivor temporarily resides or where
she sought refuge/sanctuary to escape from and avoid continuing
(a) names and addresses of petitioner and respondeg violence from the respondent.”
(b) description of relationships between petitioner { d The Punong Barangay should issue the BPO on the date of
respondent; 4 filing of the application, after an ex parte determination of the basis
(c) astatement of the circumstances of the abuse; . of the application.

*8Ibid.
8Sec. 11, ibid.
"Sec. 9, Anti-Violence Against Women and Their Children Act of 2004. Sec. 15, Rujes and Rogulations Implementing R.A. No. 9262.
 290 AGRARIAN LAW AND SOCIAL LEGISLATION
CHAPTER 11 291
ANTI-VIOLENCE AGAINST WOMEN AND THEIR.
CHILDREN ACT OF 2004
If the Punong Barangay is not available, the application f@ If the Punong Barangay or Kagawad or barangay official
BPO shall be acted upon by any available Barangay Kagawad,
rofuses to file a complaint for a violation of a BPO, the victim-
which case, the BPO must contain an attestation by the Barangag
survivor/applicant can file such complaint, without prejudice to the
Kagawad that the Punong Barangay was unavailable at the time fd
uppropriate administrative, civil, or criminal action against the
the issuance of the BPO.
hurangay official concerned.
Immediately after the issuance of an ex parte BPO, the Puno
Violation of a BPO is punishable by imprisonment of thirty (30)
Barangay or Barangay Kagawad shall personally serve a copy of th
same on the respondent, or direct any barangay official to effect if _ days without prejudice to any other criminal or civil action that the
personal service.” offended party may file for any of the acts committed.
j
The BPO
A judgment of violation of a BPO may be appealed according to
is effective for fifteen (15) days. It is enforceab }
within the barangay that issued the BPO. the Rules of Court. During trial and upon judgment, the trial court
q where the petition is filed may motu proprio issue a protection order
Within twenty-four (24) hours after the issuance of the BPG F us it deems necessary without need of an application.”
the Punong Barangay, or in his absence or inability, any availabl
Barangay Kagawad shall assist the applicant in filing an applicatio§ Judicial Protection Order
for a TPO or PPO with the nearest court in the place of residence ¢
the victim-survivor.*: The offended party can also ask for a judicial protection order
d
hy filing a verified petition with the Family Court of the place where
BPOs Must Be Recorded in a VAWC® Logbook the offended party resides.

All BPOs must be recorded in a logbook specifically for cang
of violence against women and their children. The logbook {
confidential and must be kept from the public especially the medi
A quarterly report of all BPOs must be submitted to the local offi
of the Department of the Interior and Local Government (DILG@
The DILG shall submit a summary report of the BPOs issued to ie
Secretariat of the Inter-Agency Council on Violence Against Womej
and Their Children. s the filing a petition for protection order with the courts. Neither will
Remedy for Violation of a Barangay Protection Order
If the BPO is violated, the Punong Barangay or Kagawad w
issued the BPO must file a complaint for directly with any Municip
Trial Court, Metropolitan Trial Court, or Municipal Circuit Trig
Court that has territorial jurisdiction over the barangay that issue
the BPO.
If there is no existing Family Court, the petition can be filed
| with the regional trial court, metropolitan trial court, municipal
E trial court in cities, municipal trial court or municipal circuit trial
court with territorial jurisdiction over the place of residence of the
offended party.*
The mere fact that there is a pending application for BPO or
that the petitioner was already able to obtain a BPO, does not bar
i preclude the court from granting the petition for protection order.*
No docket fees and other fees shall be charged for petitions for
f protection order if the offended party is:
(a) an indigent; or
(b) in imminent danger or threat of danger.
“

8Sec. 16, Rules and Regulations Implementing R.A. No. 9262.

The Punong Barangay shall also furnish a copy of all BPOs to the Philippi
ng ‘Sec. 9, A.M. No. 04-10-11-SC, Rule on Violence Against Women and Their
National Police-Women and Children Protection Desks (PNP-WCPD) who
has jurise Children. '
diction in the city or municipality and shall be entered in a logbook for that
purposgg %5Sec. 8, Anti-Violence Against Women and Their Children Act of 2004.
“Sec. 14, Anti-Violence Against Women and Their Children Act of 2004,
%6Sec. 138, A.M. No. 04-10-11-SC, Rule on Violence Against Women and Their
®2Violence Against Women and Their Children.
Children.
292 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 11 293
ANTI-VIOLENCE AGAINST WOMEN AND THEIR
CHILDREN ACT OF 2004

Issuance of Temporary Protection Order (TPO) If the petitioner fails to personally appear during the preli-
If the court is satisfied from the verified allegations of ti minary conference, the petition shall be dismissed, unless the
petition that there is reasonable ground to believe that an immineg counsel or a duly authorized representative of the petitioner appears
danger of violence against women and their children exists or } in court and gives a justifiable reason for the non-appearance of the
about to recur, the court may issue a TPO ex parte. The TPO¥ petitioner. However, if the petition is filed by a person other than
effective for thirty (30) days from service on the person sought: the offended party, it shall not be dismissed if the offended party is
be enjoined.” Al present and does not agree to its dismissal.
The respondent may file an opposition to the petition p@ On the other hand, if the respondent appears without counsel,
sonally verified by him, accompanied by the affidavits of h the court shall not reschedule or postpone the conference but shall
witnesses, but he cannot file the following pleadings or motions: appoint a lawyer for the respondent and immediately proceed with
the preliminary conference.
(a) Counterclaim, cross-claim, or third-party complaiti
(b) Motion to dismiss the petition, except on the grouyj If the respondent has filed his opposition but fails to appear
of lack of jurisdiction over the subject matter or over despite proper notice, the petitioner shall be allowed to present
parties; evidence ex parte. The court shall then render judgment on the basis
of the pleadings and evidence on record.”
(c) Motion for extension of time to file oppositiog
affidavit, and other pleadings;
Hearing of the Petition
(d) Dilatory motion for postponement;
If the court finds it necessary to conduct a hearing, the Revised
(e) Motion for a bill of particulars; Rule on Summary Procedure shall apply as far as practicable.”
(f) Third-party complaint;
The testimony of an adult female victim of violence may be
(g) Reply; taken by live-link television, if it appears that she would suffer
(h) Motion to declare the respondent in default; trauma if she were to testify in the presence of the offender or
perpetrator. Likewise, the testimony of an eyewitness-child may be
(i) Intervention;
taken by live-link television if warranted by circumstances.“
(j) Memorandum;
History of respondent’s abusive conduct may be admitted in
(k) Petition for certiorari, mandamus or prohibiti® evidence even if the same was not directed against the victim, as
against any interlocutory order issued by the court; long as it is relevant.”
(1) Motion for new trial, or for reconsideration off The court hearing a petition for a protection order cannot order
protection order, or for reopening of trial; and : or in any way unduly influence the petitioner to compromise or
(m) Petition for relief from judgment. abandon any of the reliefs sought in the petition for protection.“

Preliminary Conference
A mandatory preliminary conference shall be conducted duriny
which, the propriety of issuing a protection order will be determined 8Sec. 23, ibid.
Sec. 23, ibid.
41Sec. 28, ibid.
37Sec. 15, ibid. 4 Sec. 26, ibid.
58Secs. 20 and 22, A:M. No. 04-10-11-SC, Rule on Violence Against Women ang Sec. 33, Anti-Violence Against Women and Their Children Act of 2004; Sec.
Their Children. gi
27, A.M. No. 04-10-11-SC, Rule on Violonco Against Women and Their Children.
294 AGRARIAN LAW AND SOCIAL LEGISLATION
Issuance of a Permanent Protection Order (PPO)
If the court finds the petition meritorious, the court will rend
a judgment“ granting permanent protection against acts of violet
and other necessary reliefs.
The judgment ordering permanent protection is immediate]
executory.*
Reliefs that may be granted under a Protection Order
The following reliefs may be granted under the protectiq
order: “8
(a) Directive prohibiting the respondent from comm!
ting or threatening to commit any act of violence, whether p
sonally or through another; e order an appropriate percentage of the income or salary of
(b) Directive prohibiting the respondent from harassin j
annoying, telephoning, contacting or otherwise communicatify
with the petitioner, directly or indirectly; / in the remittance of support to the woman and/or her child
(ec) Directive removing or excluding of the responder
from the residence of the petitioner, regardless of ownershiff
of the residence, either temporarily or permanently whe
no property rights are violated. If respondent must remoyg
personal effects from the residence, the court shall direct,
law enforcement agent to accompany the respondent to th
residence, remain there until respondent has gathered hf
things and escort respondent from the residence;
(d) Directive for the respondent to stay away f
petitioner and any designated family or household member,
a distance specified by the court, and to stay away from | hg
residence, school, place of employment, or any specified plaq
frequented by the petitioner and any designated family 61
household member; a medical expenses, childcare expenses and loss of income;
aN‘
“The judgment shall be rendered within thirty (30) days from the terminatld
of the hearing on the merits. If no hearing has been conducted, the court shall decid
the petition within ten (10) days from the termination of the preliminary confereng
(Sec, 29, A.M. No. 04-10-11-SC, Rule on Violence Against Women and Their Children)a
4Sec. 30, A.M. No. 04-10-11-SC, Rule on Violence Against Women and Thi
Children.
4°Sec. 30, ibid.
CHAPTER 11 295
ANTI-VIOLENCE AGAINST WOMEN AND THEIR
CHILDREN ACT OF 2004
(e) Directive for the petitioner to possess and use the
automobile and other essential personal effects, regardless of
ownership, with order for the appropriate law enforcement
officer to accompany the petitioner to the residence of the
parties to ensure that the petitioner is safely restored to the
possession of the automobile and other essential personal
a effects, or to supervise the petitioner’s or respondent’s removal
of personal belongings;
(f) Directive granting temporary or permanent custody
of children to the petitioner;
(g) Directive for the respondent to provide support
to the woman and her child if entitled to legal support.
Notwithstanding other laws to the contrary, the court shall
the respondent to be withheld regularly by the respondent’s
employer for the same to be automatically remitted directly
to the woman. Failure to remit and/or withhold or any delay
without justifiable cause shall render the respondent or his
employer liable for indirect contempt of court;
(h) Directive prohibiting the respondent from any using
or possessing any firearm or deadly weapon and ordering him
to surrender the same to the court for appropriate disposition,
including revocation of license and disqualification to apply
for any license to use or possess a firearm. If the offender is
a a law enforcement agent, the court shall order the offender
to surrender his firearm and shall direct the appropriate
authority to investigate on the offender and take appropriate
action on the matter;
(i) Restitution for actual damages caused by the violence
inflicted, including, but not limited to, property damage,
G) Directive for the Department of Social Welfare and
Development or any appropriate agency to provide petitioner
temporary shelter and other social services that the petitioner
may need; and
(k) Provision of such other forms of relief as the court
deems necessary to protect and provide for the safety of the
petitioner and any designated family or household member,
 296 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 11
ANTI-VIOLENCE AGAINST WOMEN AND THEIR
CHILDREN ACT OF 2004
provided petitioner and any designated family or household Violation of protection orders is punishable with a fine ranging
member consents to such relief. | from Five Thousand Pesos (P5,000.00) to Fifty Thousand Pesos
Any of the foregoing reliefs can be granted even in the absened (P50,000.00) and/or imprisonment of six (6) months.”
of a decree of legal separation or annulment or declaration 6f
absolute nullity of marriage.” ; Confidentiality of Proceedings
Lapse of time between the act of violence and the filing of the All records of cases pertaining to violence against women and
petition is not a sufficient ground for the court to deny the issuance their children are confidential. Whoever publishes or causes to be
of a protection order, unless barred by prescription. ] published, in any format, the name, address, telephone number,
school, business address, employer, or other identifying information
Acquittal of the respondent in the criminal case is not a groun@ of a victim or an immediate family member, without the latter’s
to deny the issuance of a protection order, unless it is clearly shows consent, shall be liable for contempt of court and shall suffer the
that the acts imputed against the respondent were not actuallg
penalty of one (1) year imprisonment and a fine of not more than
committed.” Five Hundred Thousand pesos (P500,000.00).#

Appeal Custody of children

The aggrieved party may appeal the judgment by filing a notieg The woman victim of violence is entitled to the custody and
of appeal with the court that rendered the final order or judgmen§ support of her children. The mere fact that the victim is suffering
within fifteen (15) days from notice. The appeal shall not stay thé from battered woman syndrome does not disqualify her from having
enforcement of the final order or judgment.” ; custody of her children. In no case shall custody of minor children be
given to the perpetrator of a woman who is suffering from Battered
Bond to Keep the Peace Woman Syndrome.
The Court may order the person against whom a protectiorf Children below seven (7) years old or older with mental or
order is issued to present two (2) sufficient sureties who shalf physical disabilities shall automatically be given to the mother, with
undertake that such person will not commit the violence sought di right to support, unless the court finds compelling reasons to order
be prevented. otherwise.*
Failure to post the bond as required, shall result in detention fo!
Leave for victims of violence against women and their children
a period ranging from thirty (30) days to six (6) months, dependin
on the nature of the act committed. : Victims of violence against women and their children are
entitled to take a paid leave of absence up to ten (10) days in addition
Enforceability of protection orders to other paid leaves under the Labor Code and Civil Service Rules
and Regulations, extendible when the necessity arises as specified
_ All TPOs and PPOs are or de anywhere in the Philips in the protection order.
pines.
The leave is non-cumulative and not convertible to cash if
unused.
"Sec. 8, Anti-Violence Against Women and Their Children Act of 2004. i
“Sec. 23, A.M. No. 04-10-11-SC, Rule on Violence Against Women and Their
Children. ‘
Sec. 16, Anti-Violence Against Women and Their Children Act of 2004. 4 82Sec. 12, ibid.
Sec. 31, A.M. No. 04-10-11-SC, Rule on Violence Against Women and Their 4
58Sec. 44, ibid.
Children. : 4 54Sec. 28, ibid.
518ec. 23, Anti-Violence Against Women and Their Children Act of 2004. 56Sec, 43, ibid.
298 AGRARIAN LAW AND SOCIAL LEGISLATION
Conditions for Entitlement to Leave for Victims of Violer|
Against Women and Their Children
To be entitled to the leave for victims of violence against wo nt
and their children, the following conditions must be complied wit
(a) The employee must present a certification from
Punong Barangay/ Kagawad, prosecutor or the Clerk of Cou
as the case may be, that a case for violence against women afm
their children is pending; “
(b) . The availment of the ten day-leave shall cover omj
the days when she has to attend to medical and legal concern
56Sec. 42, Rules and Regulations Implementing R.A. No. 9262.
4
CHAPTER 12
t}
ANTI-TRAFFICKING OF PERSONS ACT OF 2003
REPUBLIC ACT NO. 9208
Meaning of Trafficking in Persons
“Trafficking in Persons” refers to the recruitment, transporta-
tion, transfer, harboring, or receipt of persons, within or across na-
tional borders, for the purpose of exploitation, such as prostitution,
forced labor, slavery, servitude, or the removal/sale of organs, with
or without the consent of the victim.
The law penalizes the following:
(a) acts of trafficking in persons;
(b) acts that promote trafficking in persons; and
(c) use of trafficked persons.
Trafficked persons are victims. As such, they are not liable for
crimes directly related to the acts of trafficking.’
Acts of Trafficking in Persons
The following are considered acts of trafficking in persons
which are subject to criminal sanctions:
(a) Recruiting, transporting, transferring, harboring,
providing, or receiving a person by any means (including those
done under the pretext of domestic or overseas employment,
training or apprenticeship), for the purpose of prostitution,
pornography, sexual exploitation, forced labor, slavery, invo-
luntary servitude or debt bondage;
1Sec. 43, Rules and Regulations Implementing R.A. No. 9208.
299
 300 AGRARIAN LAW AND SOCIAL LEGISLATION
(b) Introducing or matching for money, profit, or mat
rial, economic or other consideration, any person or any Fi
pino woman to a foreign national for marriage and ultimatel
for the purpose of acquiring, buying, offering, selling or tradiff
her to engage in prostitution, pornography, sexual
tion, forced labor, slavery, involuntary servitude or debt boné
age; 4 (c) Advertising, publishing, printing, broadcasting, dis-
(c) Offering or contracting marriage, real or simulated
for the purpose of acquiring, buying, offering, selling, or trai
ing them to engage in prostitution, pornography, sexual expl
tation, forced labor or slavery, involuntary servitude or del
bondage;
; (d) Organizing tours and travel plans consisting of toug
ism packages or activities for the purpose of utilizing and &
fering persons for prostitution, pornography or sexual exploit
tion;
; (e) Maintaining or hiring a person to engage in pros’ af]
tution or pornography; 4 (e) Facilitating or assisting in the exit from and entry
(f) Adopting or facilitating the adoption of persons fol
the purpose of prostitution, pornography, sexual exploitation
forced labor, slavery, involuntary servitude or debt bondage: 3
; (g) Recruiting, hiring, adopting, transporting or abduct
ing a person, by means of threat or use of force, fraud, decelé
violence, coercion, or intimidation for the purpose of removal of
sale of organs of said person; and
(h) Recruiting, transporting or adopting a child to e] :
gage in armed activities in the Philippines or abroad.2
q
Acts that promote Trafficking in Persons
The following acts which promote or facilitate trafficking
persons are also subject to criminal sanctions:
(a) Knowingly leasing, subleasing, using or allowing
the use of any house, building or establishment for the purpos@
of promoting trafficking in persons;
3
*Sec. 4, Anti-Trafficking of Persons Act of 2003.
The penalty for this is 20 years imprisonment and a fine ranging
P1,000,000.00 to P2,000,000.00 (Sec. 10, [a], R.A. No. 9208).
CHAPTER 12 301
ANTI-TRAFFICKING OF PERSONS ACT OF 2003
(b) Producing, printing, issuing or distributing unissued,
tampered or fake counseling certificates, registration stickers
or certificates of any government agency as proof of compliance
with government regulatory and pre-departure requirements
exploiti for the purpose of promoting trafficking in persons;
tributing, or causing the advertisement, publication, printing,
broadcasting or distribution of any brochure, flyer, or propa-
ganda material that promotes trafficking in persons, including
the use of information technology and the internet to promote
trafficking in persons;
‘
(d) Assisting in the conduct of misrepresentation or
fraud for purposes of facilitating the acquisition of clearances
and necessary exit documents from government agencies
that are mandated to provide pre-departure registration and
4 services for departing persons for the purpose of promoting
trafficking in persons;
to the country at international and local airports, territorial
boundaries and seaports of persons who are in possession of
unissued, tampered or fraudulent travel documents for the
purpose of promoting trafficking in persons;
(f) Confiscating, concealing, or destroying the passport,
travel documents, personal documents or belongings of
trafficked persons in furtherance of trafficking or to prevent
them from leaving the country or seeking redress from the
government or appropriate agencies; and
(g) Knowingly benefitting from or making use of, the
labor or services of a person held to a condition of involuntary
servitude, forced labor, or slavery.®
{g
Qualified Trafficking in Persons
The following are considered as qualified trafficking in persons
which will subject the offender to a heavier penalty:
(a) When the trafficked person is a child;
3 8Sec. 5, Anti-Trafficking of Persons Act of 2003.
from 3 The penalty for this is 16 yoars imprisonment and a fine ranging from
P500,000.00 to P1,000,000.00 (See. 10, /b/, I2.A. No. 9208).
 302 AGRARIAN LAW AND SOCIAL LEGISLATION
CHAPTER 12 303
ANTI-TRAFFICKING OF PERSONS ACT OF 2003

(b) When the adoption is effected through

Republia 4 (b) Second and subsequent offenses — Imprisonment
No. 8043, otherwise known as the “Inter-C
ountry Adoption # of one (1) year and a fine of One hundred thousand pesos
of 1995” and said adoption is for the purp
ose of prostitu (P100,000.00).§
pornography, sexual exploitation, forced labor, sla
involuntary servitude or debt bondage; .
Venue of criminal action

Criminal action arising from violation of the Anti-Trafficking

in Persons Act should be filed in the place where:
employee; (a) the offense was committed;
(d) When the crime is committed by a syndicate (b) any of its elements occurred; or
large scale;
- / (c) the trafficked person actually resides at the time of
NOTE: Trafficking is deemed committed by the commission of the offense.
a crite if
carried out by a group of three (3) or more The court where the criminal action is first filed shall acquire
persons conspiring or
confederating with one another.
jurisdiction to the exclusion of other courts.*
Trafficking is deemed committed in large
scale if commit-
ted against three (3) or more persons, individual Who may file a complaint?
ly or as a group.

(e) When the trafficked person is recruited Complaints for violations of the Anti-Trafficking Act may be
to eng ; filed by the following:
in prostitution with any member of the
military or l@
enforcement agencies; (a) Any person who has personal knowledge of the
1° commission of the offense;
(f) When the offender is a member of the military 3

law enforcement agencies; and

¢
(b) The trafficked person or the offended party;
:
(g) When by reason or on occasion of the act (c) Parents or legal guardians;
of traffickig
in persons, the offended party dies, becom
es insane suffel (d) Spouse;
mutilation or is afflicted with Human Immu
nodeficiency View
(HIV) or the Acquired Immune Deficiency (e) Siblings; or
Syndrome (AIDS)
(f) Children.’
Use of Trafficked Persons

Any person who buys or engages the Immunity from criminal prosecution
services of traffic! (
persons for prostitution shall be penalized as
follows: “4 Any person who has personal knowledge in the commission of
(a) First offense — six (6) months of comm any of the offenses penalized under the Anti-Trafficking in Persons
unity servi .
as may be determined by the court and a Act and who voluntarily gives material information relative thereto
fine of Fifty thousa’
pesos (P50,000.00); and and willingly testifies against the offender shall be exempt from
" prosecution for the offense with reference to which his information
and testimony were given, subject to the following conditions:

ie 6, Anti Trafficking of Persons Act of 2003.

e penalty for this is life imprisonment and a fi ; 5Sec. 11, Anti-Trafficking of Persons Act of 2003.
to P5,000,000.00 (Sec. 10, [b], R.A. No. 9208). i Ei 8Ibid.
ne ranging from 72,000,000 | Sec. 37, Rules and Regulutions Implementing R.A. No. 9208.
 304 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 12 305
ANTI-TRAFFICKING OF PERSONS ACT OF 2003

ary
(a) The information and testimony are necessary for i tlosed-door investigation, prosecution or trial, whenever necess
ring a
conviction of the accused; and 4 to ensure a fair and impartial proceeding, and after conside
(b) Such information and testimony are not yet in tht tircumstances for the best interest of the parties.
possession of the State.* The name and personal circumstances of the trafficked person
gs
ur of the accused, or any other information tending to estabti
s or informa tion shall not be
Institution of Criminal and Civil Actions | (heir identities and such circumstance
(lisclosed to the public.
Pursuant to the Revised Rules on Criminal Procedure, when}
any
criminal action is instituted, the civil action arising from the offengl In case of closed-door hearing or trial, it is unlawful for
king in
charged is deemed instituted with the criminal action, unless thj person to cause the publication of any case involving traffic
offended party waives the civil action, reserves the right to institut persons in print, broadcast, movie or information technology.
it separately, or institutes the civil action prior to the r
‘ Violation of this confidentiality will subject the offende
action.® and a fine of not less than
to a penalty of 6 years imprisonment
When the trafficked person institutes a separate civil action P500,000.00 but not more than P1,000,000.00.
for the recovery of civil damages, he/she shall be exempt from thj
payment of filing fees.

Prescriptive period
As a general rule, trafficking cases prescribe in ten (10) ven“
However, trafficking cases committed by a syndicate or’ sargl
scale prescribe in twenty (20) years. a
The prescriptive period commences to run from the da@
on which the trafficked person is delivered or released from th
conditions of bondage and shall be interrupted by the filing of t C
complaint or information and shall commence to run again whe
such proceedings terminate without the accused being convicted of
acquitted or are unjustifiably stopped for any reason not imputabl@
to the accused." 4
Confidentiality of proceedings Jj
Law enforcement officers, Prosecutors, judges, court personn ij
and medical practitioners, as well as parties to the case, are oblige
to recognize the right to privacy of the trafficked person and ¢ a
accused. Towards this end, law enforcement officers, prosecuto!
and judges to whom the complaint has been referred may order

8Sec. 45, ibid.

%Sec. 39, ibid.
Sec. 40, ibid.
"Sec. 12, ibid. 2ec. 7, Anti-Trafficking of Persons Act of 2003.
 CHAPTER 13
THE ANTI-SEXUAL HARASSMENT ACT OF 1995

Where can sexual harassment be committed?

Sexual harassment can be committed in:
CHAPTER 13 | (i) awork-related environment; or
THE ANT I-SEXUAL HARASSMENT ACT OF 1 99}"y (ii) an education or training environment.

How is sexual harassment committed in a work-related environ-

ment?
In a work-related or employment environment, sexual harass-
Meaning of sexual harassmen tment is committed when:
t
sexnel nel harassment is the act (a) sexual favor is made as a condition for:
of demanding
=e

avor, by a person having auth

ority or moral ascendane ‘ (i) hiring, re-employment, or continued employment
another, regardless of
or not. of whether the demand of an employee; or
or request is acc@
(ii) granting favorable terms, conditions, or privi-
Sexual harassment i
woman by reason1 ofsexual ‘dersire a man taking advantag
about— it is about power being i leges;
‘: (b) When sexual advances:
Foamates from the fact that 5
the superior can remove the subo
rdig (i) impair the employee’s rights or privileges under
workplace if the latter would existing labor laws; or
refuse his amorous adva ;
The gravamen of the offense (ii) result in an intimidating, hostile, or offensive
of sexual haras mi i e;
violation of sexuality but the.
abuse of power by the superior
_
s
‘ environment for the employee.
nevese °vy then
When refusal to grant the sexual favor results in
T
:

the ambit of sexual harass

.

(c)
:

be artiey wnat ment, it is 4

e ema nd, request or requirement limiting, segregat ing, or classifying the employee which in
discerned for sexual
ny ” a rategorical oral or
written statement any way would discrimi nate, deprive, or diminish employment
, itm
equal certitude, , from the acts of opportunities or otherwis e adversely affect said employee.*
a ven preiaaren that the dem th periior,
and, request or requireme
as nt bey i
on for cont
inued emplo: yment or for TO: How is sexual harassment committed in an education or training
pooh that the respondent S i — ‘f
acts result increating an atin environment?
stile or offensive environment :
for the employee mtimida 7 In an education or training environment, sexual harassment is
committed when:
(a) the sexual favor is made as a condition for:
ig ;
me 3, Anti-Sexual Harassment (i) giving of a passing grade;
Act of 1995
* woralde v. Court of Appeals,
-
337 SCRA
ippine Aeolus Automotive v.
371. (ii) granting of honors and scholarships; or
NLRC, 33 1 SCRA
omingo v. Rayala, 546 SCRA
90, , “sr (iii) payment of benefits, privileges or considerations.

306 noe
5Sec, 3 (a), Anti-Sexual Harassment Act of 1995.
 308 AGRARIAN LAW AND SOCIAL LEGISLATION
CHAPTER 13
THE ANTI-SEXUAL HARASSMENT ACT OF 1995
308
(b) ¢t he sexual advances result
in an intimidating 4 4
(b) Promulgate rules and regulations prescribing:
nt for the trainee or apprenticed
(i) the guidelines on . proper decorum in the work-
Who can be victi im Ss of sexual harassmen . : :
t? place, educational or training institutions.
In a work-related envi ronme nt, sexual (ii) the procedure for the investigation of sexual
mitted against an: harassment can be og
h arassment cases,

(a) e . (iii) the administrative sanctions therefor.

mployee; or
(b) applicant for employment. The rules and regulations must be jointly approved by the duly
inees.*
In an education or training environment | dusignated representatives of employees or students/tra
can be committed agains » Sexual harasg ad
t a person:
Composition of the Committee on Decorum and Investigation
(a) whois
er the care, custod: oe
offender; or tnd , ¥ or supervisic For Employers — The committee on decorum and investigation
from:
| shall be composed of at least one (1) representative
r. whose edu cati
offende(b) ss ng is: entrusted to
ation or traini @
:
(a) management;

Who may be liable for sexual harassment? (b) rank-and-file employees

(c) supervisory employees; and
The following per
‘sons May be liable for sexual (d) union, if any.
. ; har assment} 4
employer ,
For Educational or Training Institutions — The committee
(a)
ployer; yer, manager, supervisor, or agent of the °ef ;
(1)
on decorum and investigation shall be composed of at least one
(b) teach: er, ins
i tructor, professor, coach,
representative from:
or trainor:
d
,
(c) .
any person was has author (a) the administration,
a ity.
Scendancy over another in a work or t: aonce
environment; and raining or r or cat
edu monié (b) trainors, teachers, instructors, professors or coaches;
and
(d) an person who directs, indu
wi (c) students or trainees.
another to¢ommit any act of g exual harassment

cbligations of employer or head of educat Liability of the employer, educational or training institutions

tonal or training institu Employers, educational or training institutions are solidarily

on
: ’ liable for damages arising from the acts of sexual harassment
Employers and the heads ofeducati
are obliged to: ional or training institutiogg committed in the employment, education or training environment
that
if they do not take immediate action on any sexual harassment
Creat,
(a) the offende d party.”
committee on has been reported to them by
on sex8
handle cases Sate decorum
ual harassment;
and investigati
estigation ¥:

a ,
"Sec. 3 (b), ibid. 8Sec. 4, Anti-Sexual Harassment Act of 1995.
"Sec. 3, ibid. Sec. 4, ibid.
Sec. 5, ibid.
 310 AGRARIAN LAW
: ANI) SOCIAL LEGISLATI 311
ON CHAPTER 13
THE AN'TI-SEXUAL HARASSMENT ACT OF 1995
Penalties
a corner
are: Th : wa. a pillow and was told to rest. ONA then left and chose
e penalties for violation of the Anti- to sleep.
Sexual Harassmen in the balcony of the house in the farm
At around midnight, ONA was awakened when NIERRAS
(a) To
imprisonment ranging
from 1 month to 6mon lay down beside her and crept underneath her blanket.
that NIERR AS was half-na ked with his
(b) her surprise, she saw
fine ranging from P10,00 AS
0.00 to P20,000.00; or ’ pants already unzipped. ONA tried to run away but NIERR
It was only when
(ec)nt both such fine and
the co pulled her and ordered her to go back to sleep.
ii mpriso nment at the discretial stopped
ONA screamed “Ayoko, Ayoko, Ayoko” that NIERRAS
g
grabbin and pulling her.
Prescriptive period ISSUE: Is NIERRAS guilty of sexual harassment?
Action arising from the HELD: NIERRAS is not guilty of sexual harassment be-
violation of the provision same
Sexualal Harassment Act prescribes s of this. ( cause ONA and NIERRAS were not employed with the
in three (3) years. 2 hence, it cannot be said that NIERR AS used his posi-
agency,
r, NIERR AS is
iNustrative Cases tion to procure sexual favors from ONA. Howeve
guilty of grave misconduct.

CIVIL SERVICE CO MMI FLORALDE V. COURT OF APPEALS

SSION V. RRAS
545 SCRA 316 837 SCRA 371
ME
sys: FACTS: eXOLGA ONA was a Se FACTS: YOLANDA FLORALDE, NIDA VELASCO,
praities Administration (LUWA), whi le PETER NIE and NORMITA ALAMBRA, all rank-and-file employees of
the
g Gene Man
ral agerof Metr Cari
o Wat
gara er De oeit Agricultural Training Institute filed sexual harassm ent charges
rict,
On July 17, , 1994 , ONA against PAULINO RESMA, the OIC.
go to Leyte to assist in i
the format, oofth tte idee Wate YOLANDA FLORALDE declared that at around 4:00 p.m.
her
at the anteroom of the Director’s Office, RESMA approached
and asked her: “Ano yan, pagkata pos ako’y pinalapi t sa kanyang
aya
kinaroroonan x x x nanatili akong nakatayo ngunit maya-m
at dinakm a ang puwit ko ng
ay bigla na lang siyang tumayo
She further declared that this was not the only
papisilpisil.”
would
incident that RESMA sexually harassed her. RESMA
bust, and wheneve r they
also pinch her at her side close to her
would make motion as though he
met at the corridors, RESMA
L .
n Calubian, they first deposited would embrace her.
for the wien of Teas’ their personal b elongings
cousin where he said they
would stay NIDA VELASCO declared that in 1990, RESMA made
. Therea
NIERRAS asked a ten the farm where her first advances toward her. According to VELASCO, “habang
eeants to! a drinkin € spre
ten
ant (oo eeeeed to binubuksan ko po and pinto ng refrigerator sa Orosa Hall, bigla
x nae wed and seery,
e. At around 10:00 p. po nya ako niyakap at hinawakan sa maselang parte ng aking
nya
pack
4 to
reminded NIERRAS that
they eee di[b]dib at bigla po akong hinalikan sa bibig. Binantaan po
ako na kapag nagsumbong ako ay hindi niya irerenew ang aking
ousin’s house to reti
etire for the n: i
going back, NIERRAS gav i ast further
e hera sleeping mat.
bieniuete
et an
ad appointment dahil casual lang po ako.” VELASCO
often commen t that “mamul a-
testified that RESMA would
mula ang iyong pag-aar i at fresh na fresh ka pa” and she would
See
Sec. 87, Ant
beei-Sexual Harassment was
Act of 1995. answer “lolo ka na nga eh, gago ka pa.” At one time, she
she felt someon e touch her
watching a volleyball game when
312 AGRARIAN LAW AND SOCIAL
LEGISLATION CHAPTER 13 313
THE ANTI-SEXUAL HARASSMENT ACT OF 1995

buttocks, and when sh e look

ed back, it was RESMA, who told i Z, as early as the first year of her
her “nakakagigil ka.” +
j 1 UA, sleoady manifested a special liking for her,
NORMELITA ALHAMB RA so i ch 0 that she was receiving special treatment from n
around 7:00 a.m. RESMA s udde
declared that in 1990 at | invite her for a date which she would
nly embraced her. ALHAMBRA Cl uA ould oftentimes
further declared that: “tuw 4 so often sefuse On many occasions, CHUA would make sexnal
sa loob ng CR biglang sumusu
lpot si Mr. Resma at dinada adv. es — touching her hands, putting his arms aroun. per
ang puwit ko at sinasabin, & gust kma shoulders, running his fingers on her arms and telling her
ing-gusto nya ang malalaking
puwit.” ALHAMBRA also decl looked beautiful.
ared that at one time, “nakasuo
ako ng long sleeve na red at t @
white maong pants galing The special treatment and sexual advances continued
CR bigla akong binaggga ni Mr. ako sa
Resma at dinakma ang aking i employment for four ( 4) years but { s :
dibdib.” 4
aerated his firtations, until finally, she noticed that his
HELD: RESMA is guilty of sexu attitude towards her changed. He made her un erstan anat
al harassment,
if she would not give in to his sexual advances e we id cause
her termination from :service. .ove made good mie threa Her
VILLARAMA V, NLRC a ; :
hich was equipped with te ephone
236 SCRA 283 wad containing her personal belongings, was transferred without
FACTS: X was the Materials he knowledge to a place with neither telephone nor ints m,
Manager of Golden Donuts
Ine, Y was her clerk typist who foe which reason, an argument ensued when she con! ron
was only five (5) months in
service. One day, X invite d Y the CHUA, resulting in her being charged with gross disrespect.
and the other female employee
of the Materials Department s
to a dinner, but the other fema ISSUE: Was there sexual harassment on the part of
employees were not able to le
join the group. After taking
their CHUA?
dinner, Y thought that X
would bring her home. But
of taking her home, X brought instead : xual harassment because the sexual
Y to a motel. Because of thig
shocking experience, Y tendered di ee CHUA resulted in a hostile or offensive working
her resignation the following
week. The events and inci dent environin t for CORTEZ. The NLRC’s ruling that the al eset
s that led to her resignation
narrated by Y in her resignat were sexual harassment is hardly believable because it took her ar
ion letter. This prompted
the most f (4) ears to expose CHUA’s sexual harassment is not
investigation wherein X was
to submit an explanati on. required vorre t st iol speaking, there is no time period within w! ict
Failing to submit a satisfac
explanation, Golden Don uts Inc. tory on cunloyee ie expected to complain about sexual harassment *
terminated the services of X. ing upon the needs,
ISSUE: Was the dismissal valid
and justified? stances. 1 a ee Othe cenctionall threshold of the
HELD: The dismissal is valid erie Not many women, especially in this country, are
employee, X is bound by a more
and justified. As managerial made of scuff that can endure the agony and trauma of a public,
exacting work ethics. He failed even corporate, scandal.
to live up to this ‘higher stan
dard of responsibility when
succumbed to his moral perversi he
ty. When such moral perversi
is perpetrated against his subo ty
rdinate, he provided a justifia
ground for his dismissal for lack ble
of trust and confidence. It is.th
right, nay, the duty of every e
employer to protect its employee
from over sexed superiors. s

PHILIPPINE AEOLUS AUTOMO

TIVE V. NLRC
331 SCRA 237
FACTS: WILLIAM CHUA
was the Plant Manager of
Philippine Aeolus Automotive.
ROSALINDA CORTEZ was its
company nurse.
 CHAPTER 14 315
THE SENIOR CITIZENS ACT

[This applies to all private hospitals, medi-

cal facilities, outpatient clinics and home health
care services.]
CHAPTER 14 professional fees of health workers;
THE SENIOR CITIZENS ACT [This applies to health workers which pro-
vide home health care services as endorsed by
REPUBLIC ACT NO. 7432 private hospitals or employed through home
health care employment agencies.]
[as amended by R.A. 9257 and 9994]
medical and dental services, diagnostic and
laboratory fees;
[This applies to all private hospitals, clin-
Senior Citizen
ics, and home health care services. The medical
and dental services referred to are eyeglasses,
Senior citizen refers to a resident citizen of the Philippines d hearing aids, dentures, prosthetics, artificial
least sixty (60) years old. It includes Filipinos with “dual citizens bone replacements like steel, walkers, crutches,
status, provided they have at least six (6) months residency in wheelchairs whether manual or electric-pow-
Philippines.? ered, canes/quad canes, geriatric diapers, and
other essential medical supplies, accessories and
Privileges of Senior Citizens equipment,‘ oral examination, cleaning, perma-
nent and temporary filling; extractions and gum
Senior citizens are entitled to the following privileges: treatments; restoration, replacement or repo-
sitioning of teeth; or alteration of the alveolar
(1) 20% discount and exemption from the value-add /
or periodontium process of the maxilla and the
tax (VAT) for their exclusive use and enjoyment: of the followig
mandible that are necessary for the diagnosis or
goods and services: treatment of an illness or injury.]
* purchase of medicines; actual fare for land transportation travel;
[This applies to both prescription and nog [This covers public utility buses, utility
prescription drugs, whether generic or branded jeepneys, taxis, Asian utility vehicles, shuttle
including vitamins and mineral supplement services and public railways, including Light
medically prescribed by the senior citizen’s phy Rail Transit, Mass Rail Transit, and Philippine
sician.] National Railways.]
* professional fees of attending physician; actual fare for air and sea transportation;
[This applies only to advanced booking for
domestic air transport services and sea shipping
Sec. 1. R.A. No. 7234 as amended.
*Sec. 5.1, Art. V, Rule III Implementing Rules And Regulations of R.A, Ne vessels.]
9994,
3! : :
‘The phrase “exclusive use and enjoyment” means “for personal consumption :
only (Sec 3 [d], Art. 7, Implementing Rules and Regulations of R.A. No. 9994).
4Sec. 1 (b), Art. 7, ibid.
8Sec. 2, (d) R.A. No. 7234, as amonded; and Sec. 3 (g), Art. 7, Implementing
314 Rules and Regulations of R.A. No. 9994.
316 AGRARIAN LAW AND SOCIAL LEGISLATION
utilization of services in hotels, restaurants
recreation centers;
[The term “hotel” includes beach, moun ‘
resorts,* and lodging establishments. In ho
or lodging establishments, the discount is app
cable fox room
accommodation and other atg
nities, such as hotel-based parlors and barb
shops, restaurants, massage parlor, spa, sa a
bath, aromatherapy rooms, workout
swimming pools, jacuzzis, ktv bars, internet4
cilities, food, drinks and other services offered
[In restaurants the discount~applies
fast food or fine dining.* It covers food, drinf
dessert, and other consumable items,’ take-oufj
drive-thru orders,” and delivery orders. But
discount does not apply to pre-contracted Pp t
packages or bulk orders and children’s meg
which are primarily prepared and intentional
marketed for children.]#
[In recreational centers, the discount cov@
rental of sports facilities or equipment, includlg
golfcart rentals and green fees, or venues
ballroom dancing, yoga, badminton
bowling lanes,
table or lawn tennis, work@
gyms, martial arts facilities]
[Non-profit, stock golf and country cl ‘
which are not open to the general public, r-
are not mandated to give the 20% senior
zens discount. However, if restaurants and
establishments inside these country clubs
independent concessionaires and the foods sof
are not consumable items under club memb¢
Sec. 3 (a), Art. 7, Implementing Rules And Regulations of R.A. No. 9994,
"Sec. 3 (a), Art. 7, ibid.
Sec. 5.8, Rule III, Art. 5, ibid.
Sec. 3 (b), Art. 7, ibid.
Sec. 3 (f), Art. 7, ibid.
Sec. 3 (d), Ar. 7, ibid.
CHAPTER 14 317
THE SENIOR CITIZENS ACT
@§ ship dues, they are obliged to grant the 20% se-
’ nior citizens’ discount.|}?
« funeral and burial services;
[The discount accrues to the beneficiary
or any person who shouldered the funeral and
burial expenses of the deceased senior citizen.
Funeral and burial expenses cover the cost of
casket, urn, embalming, cremation, pick-up
from the hospital morgue, transport of the body
to intended burial site and other related services
such as wake cost. The discount does not cover
| obituary publication and purchase of the memo-
rial lot.]."
« admission fees charged by theaters, cinema
houses and concert halls, circuses, carnivals,
and other similar places of culture, leisure and
amusement.
(2) exemption from the payment of individual income
taxes.
[This applies only to senior citizens who are minimum
§ wage earners."*]
court
(3) 5% discount on the monthly utilization of water and
electricity supplied by public utilities;
4
(This is available only on a per household basis regard-
less of the number of senior citizens residing therein. The dis-
count will be granted if the following conditions are met:
(i) the meters-must be registered in the name of the
senior citizen residing therein;
(ii) the monthly consumption must not exceed one
hundred (100) kilowatt hours of electricity and thirty (30)
cubic meters of water."*]
‘
2Sec. 4, Art. 7, ibid.
18Sec. 6, Art. 7, ibid.
“Sec. 1, Art. 11, ibid.
Sec. 1, Art. 12, ibid.
 318 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 14 319
THE SENIOR CITIZENS ACT

(4) free medical and dental services in all Benior Citizen Discount and VAT Exemption applies also to credit
governm@
facilities, subject to the guidelines to be issue
d by the DOH! card payments
coordination with the PhilHealth;
i The 20% discount and VAT exemption also apply to purchases ,
(5) exemption from training |
fees for socio-econorg of goods and services paid through credit cards."
programs;
(6) educational assistance for post secondary, tertial Conditions for availment of the senior citizens’ privileges
post tertiary, vocational and ‘echnical education, as well
short-term courses for retooling in both publi In the availment of the senior citizens’ privileges, the senior
c and privg citizen must submit proof of his entitlement through any of the fol-
schools through provision of scholarships,
grants, finandf lowing:
aids, subsidies, including support for books,
learning mater{ Z
and uniform allowance, to the extent feasib (a) Senior citizen’s identification card issued by the
le, if the se’
citizen meets the minimum admission requi Office of the Senior Citizen Affairs;
rements; ~~. 3
(7) to the extent practicable and feasible, (b) Philippine passport of the senior citizen; and
the conti nt
ance of the same benefits and privileges given
by the Gove i" (c) Other documents showing the age and Filipino
ment Service Insurance System (GSIS),
the Social Secu i citizenship,” such as driver’s license, voter’s ID, SSS/GSIS ID,
System (SSS) and the Pag-Ibig, as the case
may be, as are @ PRC card, postal ID.
joyed by those in actual service;
’
(8) special discounts in special programs for senior cif No double discounts

** Subject to the guidg If goods and services are on promotional discount, the senior
citizen can choose between the promotional discount or the 20%
discount under the Senior Citizens Act, whichever is higher an
(9) express lanes in all commercial and governme ;
more favorable.
establishments or in the absence thereof,
priority shall
given to them; and If the senior citizen is also a person with disability (PWD)
ontitled to the 20% discount under the Magna Carta of Persons we
(10) death benefit assistance of a minimum of Two thog Disability Act, the senior citizen may choose on whether to avail o
sand pesos (Php2,000.00) to be given to the
nearest survivigs 1 his Senior Citizen Card or his PWD card.”
relative of a deceased senior citizen which
amount shall
subject to adjustments due to inflation in accor . .
dance with The senior citizen’s discount can be claimed as
guidelines to be issued by the DSWD.” tax deduction
The discounts granted by establishments to senior citizens may
he claimed as deductions from the gross income for the same taxable
year that the discount is granted, provided, that the total amount o
Basic Necessities refer to rice,corn, bread, fresh, dried and canned fish
other marine products, fresh pork, beef and anj
poultry, meat, fresh eggs, fresh and pri
cessed milk, fresh vegetables, root crops, coffee,
sugar, cooking oil, salt, laundry soa 18Art. 8, Implementing Rules And Regulations of R.A. No. 9994.
detergents, and drugs classified as essential by the
DOH and other commodities a This identification card is valid nationwide.
maybe classified by the Department of Trade and
Industry (DTI) and the Departmen] Sec. 4, R.A. No. 7234 as amended. ;
of Agriculture (DA) according to R.A. No. 7581
or the Price Act [Sec. 5.22, Art. V, Ru ngen 5.5, Art. V, Rule III Implementing Rules And Regulations of R.A. No.
III, Implementing Rules and Regulations of
R.A. No. 9994]. 3 9994,
"Sec. 4, R.A. No. 7234 as amended.
2Art. 9, ibid.
 320 AGRARIAN LAW AND SOCIAL LEGISLATION
the claimed tax deduction net of VAT, if applicable, shall be incl ‘
in their gross sales receipts for tax purposes and shall be subjedi
proper documentation and to the provisions of the National. Interg
Revenue Code (NIRC), as amended.”
Additional privileges for indigent senior citizens
Aside from the foregoing benefits, Mdigent senior citizens
entitled to the following privileges:
(a) free vaccination from the Department of He if
against the influenza virus and pneumococcal disease for ing
gent senior citizens;
(b)
monthly stipend from the government in the aio i
of Five Hundred Pesos (Php500.00) to augment their def
subsistence and other medical needs, subject to a review eva]
two (2) years by Congress, in consultation with the Departm qj
of Social Welfare and Development; q
(c) Philhealth coverage;
[The Local Government Unit where the indigent se if
citizen resides shall allocate the necessary funds to ensure th
enrollment of their indigent senior citizens, in accordance wit
the pertinent laws and regulations. | “ the Senior Citizens Center Act, with recreational, educational, health and social pro-
(d) Death benefit assistance from the government
the amount of at least Two Thousand Pesos (Php2,000,
to be given to the nearest surviving relative” who took caf
of the deceased indigent senior citizen until his death, or
his absence, the benefactor or the licensed foster family of t8
deceased indigent senior citizen, which amount shall be subje
to adjustments every two years due to inflation, in accordangl
with the guidelines to be issued by the Department of Soef ¢
Art. 10, Implementing Rules And Regulations of R.A. No. 9994.
*4Sec. 4, R.A. 7234 as amended.
Sec. 5 (h) (1), ibid.
Sec. 5 (h) (2), ibid.
"Nearest surviving relative refers to the legal spouse who survives the
ceased senior citizen: Provided, That where no spouse survives the decedent, thi
shall be limited to relatives in the following order of degree of kinship: children, pam
ents, siblings, grandparents, grandchildren, uncles and aunts [Sec. 2. (P R.A,
7234, as amended by R.A. Nos. 9257 and 9994].
CHAPTER 14 321
THE SENIOR CITIZENS ACT
Welfare and Development and Department of Interior and
Local Government.”
Discount for DSWD-Accredited senior citizens center
DSWD-accredited senior citizens centers,” residential care
institutions,” or group homes" that are government-run or orga-
@ nized and operated by non-stock, non-profit domestic corporations,
primarily for the purpose of promoting the well-being of abandoned,
neglected, unattached or homeless senior citizens, are entitled to
50% discount on all electricity, water, telephone consumption.
4 To be entitled to the discount, the senior citizens centers, resi-
dential care, or group homes must have been in operation for at
least six (6) months and must have a separate meter for said utili-
ties/services.”
®Sec. 4, Art. 20, Implementing Rules and Regulations of R.A. No. 9994.
Senior Citizens Center refers to the place established by R.A. No. 7876 or
grams and facilities designed for the full enjoyment and benefit of the senior citizens
in the city or municipality accredited by the DSWD. It can be any available structure,
a spacious room in a private or public building, a room attached to a community
center, a barangay hall or chapel (Sec. 5.16, Art. V, Rule III, Implementing Rules and
Regulations of R.A. No. 9994].
Residential Care Institution refers to facility which provides twenty-four (24)
hour residential care services operated primarily for the purpose of promoting the
well-being of abandoned, neglected, unattached or homeless senior citizens. The facil-
ity may be run by government or non-stock non-profit organization and is accredited
by the DSWD to serve a minimum of 10 clients. [Sec. 5.20, Art. V, Rule III, Imple-
menting Rules and Regulations of R.A. No. 9994].
*Group Homes refer to a community-based alternative living arrangement to
institutional care. It can be a transit home for a definite period for neglected older
persons while the necessary services of locating relatives and care management is
ongoing. It envisions responding to the needs of the senior citizens who have been
abandoned, have no families to return to or to whose family reunification is not suit-
able, and are assessed to be needing group living experience. The program enables a
minimum of 6 and a maximum of 10 clients discharged from a residential care facility
to live together and manage their group living activities with minimal supervision
from the agency social worker [Sec. 5.18, Art. V, Rule III, Implementing Rules and
Regulations of R.A. No. 9994].
Sec. 5, (d), R.A. No. 7234 as amonded; Sec. 2, Art. 12, Implementing Rulos
and Regulations of R.A. No. 9994,
322 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 14 323
THE SENIOR CITIZENS ACT

Incentives for Foster Care* (1) Refusal to honor the senior citizen card
Individual or non-governmental institutions, homes, residenti This can be committed in the following manner:
communities or retirement villages* caring solely for senior citizerij
are entitled to the following incentives: al ; (a) Pegging a maximum amount of food purchase sub-
ject to 20% discount and the VAT exemption or posting of no- |
(a) realty tax holiday for the first five (5) years startity tice to that effect; |
from the first year of operation; and
; (b) Refusal to grant the 20% discount and VAT exemp-
(b) priority in the construction or maintenance tion on take-out/take-home/drive-thru orders it appearing that
provincial or municipal roads leading to the aforesaid ho the purchase is for the exclusive use and enjoyment of senior
residential community or retirement village. citizens;
(c) Refusal to grant a discount for credit card payments;
Additional tax deduction for private entities tha
(d) Refusal to grant a 20% discount and VAT exemption
citizens
on delivery orders it appearing that the purchase is for the
Private entities that will employ senior citizens are e exclusive use and enjoyment of senior citizens;2"
to an additional deduction from their gross income, equivalent q (e) Making a distinction between branded and generic
fifteen percent (15%) of the total amount paid as salaries and wag@ drugs and medicines in giving the 20% discount;
to senior citizens, subject to the following conditions: ;
(f) Posting notices that availment of the 20% discount
(a) the employment shall continue for a period of ‘ is limited to cash purchases only;
least six (6) months; and (g) Limiting discountable drug and medicine purchases
(b) the annual income of the senior citizen does ng to certain days of the week only; and
exceed the latest poverty threshold as determined by tim (h) Restricting the purchase time for senior citizens to
National Statistical Coordination Board (NSCB) of the Nation a particular hour each day only; i.e., refusing to grant senior
Economic and Development Authority (NEDA) for that year§ citizen discounts after a certain hour.*
d
= Penalties: For the first violation — imprisonment
Criminal Offenses and Penalties ‘
ranging from 2 years
The following are considered as criminal offenses under i to 6 years; and
Senior Citizens Act:
— fine of P50,000.00 to
P100,000.00;
38Foster Care refers to a social work intervention which provides for a planhg
substitute or alternative family care by a licensed foster family to a neglected, abs ;
For subsequent — imprisonment ranging
doned, unattached and poor older person [Sec. 5.19, Art. 5, Rule III, Implement violation from 2 years to 6
Rules and Regulations of R.A. No. 9994]. 3 years; and
“Retirement village refers to an independent-living facility, often with oti
tinuing-care amenities. It; refers to a residential community offering separate’ — fine of P100,000.00
autonomous houses for residents. It is a retirement habitat with a multi-residen to P200,000.00.»
housing facility that is planned, designed and geared towards people who no long
work and are restricted to a certain age. It has particular conveniences catering
the wishes and desires of retirees, which may include services such as clubhous@
swimming pools, arts and crafts, boating, walking trails, golf courses, active adi
retail and on-site medical services [Sec. 5.17, Art. 5, Rule III, Implementing Rules afl
Regulations of R.A. No. 91994]. a Art. 23, Implementing Rules and Regulations of R.A. No. 9994.
35Sec. 5 (g), R.A. No. 7234 as amended. Sec. 3, Art. 22, Rule VII, ibid.
36Sec. 5 (a), ibid. 38Sec. 10, R.A. No. 7432, as amonded,
 324 AGRARIAN LAW AND SOCIAL LEGISLATION
CHAPTER 14 325
THE SENIOR CITIZENS ACT

(2) Abuse of senior citizen privileges

(b) Registered voter of the concerned city or municipality;
This can be committed by the following:
(c) Able to read and write;
(a) Senior citizen, his representative or a person whd
misuses the privileges by: (d) Physically and mentally capable of performing the
' tasks of OSCA Head;
(i) using several purchase booklets;
(ii) availing of the discount to (e) Bona fide member of a duly registered senior citi-
y medicines,
drugs, medical accessories and supplies not for the use zens organization which has a track record of at least three
of
the senior citizen; consecutive years;
i
(iii) unauthorized use of the identification card of (f) Good moral character; and
the senior citizen.”
q (g) Atleast a high school graduate.”
(b} Medical practitioner who gives prescription to other
persons in the name of the senior citizen or who
gives omag
lous prescription.“ Functions of the OSCA
4
= Penalties The OSCA exercises the following functions:
— imprisonment for 6 months; and
— fine of P50,000.00 to P100,000.00. (a) To plan, implement and monitor yearly work
programs in pursuance of the objectives of the Senior Citizens
The Office for Senior Citizens Affairs Act;

All cities and municipalities are obliged to have an Office (b) To draw up a list of available and required services
foyf which can be provided by the senior citizens;
Senior Citizens Affairs (OSCA) to be headed by a senior
citizen why
shall be appointed by the mayor for a term of three (3) (c) To maintain and regularly update on a quarterly
years withouf
reappointment but without prejudice to an extension basis the list of senior citizens and to issue national individual
if exigency
so requires. Said appointee shall be chosen from a list
of three (8} identification cards, free of charge, which shall be valid
nominees as recommended by a general assembly of senior
citizeng anywhere in the country;
organization in the city or municipality.
i
The head of the OSCA shall not be removed or replac (d) To serve as a general information and liaison center
ed excepf for senior citizens;
for reasons of death, permanent disability, or ineffective
performana [
of his duties to the detriment of fellow senior citizens. (e) To monitor compliance of the provisions of the
:
Senior Citizens Act particularly the grant of special discounts
Qualifications of the OSCA Head and privileges to senior citizens;
The following are the qualifications of the OSCA Head: (f) To report to the mayor, any individual, establish-
(a) Filipino citizen and resident of the municipality ments, business entity, institution or agency found violating
OF any provision of the Senior Citizens Act; and
city for at least one (1) year;
:
(g) To assist the senior citizens in filing complaints or
charges against any individual, establishment, business entity,
“Sec. 1, Art. 22, Rule VII, Implementing Rules and institution, or agency refusing to comply with the privileges
Regulations of R.A. N 61
9994,
“Sec. 2, Art. 22, Rule VII, ibid.
“Sec. 10, R.A. No. 7432, as amended.
Sec. 1, Art. 21, supra.
326 AGRARIAN LAW AND SOCIAL LEGISLATION

under this Act before the Department of Justice (DOJ), the

Provincial Prosecutor’s Office, the regional or the municipal
trial court, the municipal trial court in cities, or the municipal
circuit trial court.“ 4 CHAPTER 15
THE HOME DEVELOPMENT MUTUAL FUND
oN LAW OF 1980

PRESIDENTIAL DECREE NO. 1752

[as amended by Republic Act No. 7742]

The Forerunner of the Present Home Development Mutual Fund

The Home Development Mutual Fund was created by Presi-
dential Decree No. 1530, promulgated on June 11, 1978. The said
fund, one for government employees and another for private employ-
ees, is composed of contributions by the employees and counterpart
contributions by their employers.
Presidential Decree No. 1752, enacted on December 13, 1980,
amended Presidential Decree No. 1530 to make the Home Develop-
ment Mutual Fund a body corporate and make its coverage manda-
tory upon all employers covered by the Social Security System and
Government Service Insurance System.!

Objective of the Law

The objective of the Home Development Mutual Fund Law is to
motivate the employed and other earning groups to better plan and
provide for their housing needs by membership in an integrated,
nationwide savings system for the said purposes, with contributory
support of the employers in the spirit of social justice and pursuit of
national development.’

‘China Banking Corporation v. Home Development Mutual Fund, 307 SCRA

443, 450.
Sec. 2, P.D. No. 1752, as amended.

“Sec. 6, R.A. No. 7432, as amended. 327

328 AGRARIAN LAW AND SOCIAL LEGISLATION
CHAPTER 15 329
THE HOME DEVELOPMENT MUTUAL FUND LAW OF 1980

The Home Development Mutual Fund

(e) To set up its own accounting and computer systems,
The Home Development Mutual Fund is a provident savings! conduct continuing actuarial and statistical studies and
system for employees in the private and public sectors supported by: valuations to determine the financial viability of the Fund
matching contributions of their respective employers, with housing; and its projects, require reports, compilations and analysis of
as primary investment. statistical and economic data, as well as make such other studies
and surveys as may be needed for the proper administration
The system is also available to self-employed and other working!
and development of the Fund;
groups.® q
The Fund is private in character, owned wholly by themembers: 3 (f) To have the power of succession; to sue and be sued;
administered in trust and applied exclusively for their benefit. Ally to adopt and use a corporate seal;
personal and employer contributions shall be fully cre ; (g) To enter into and carry out contracts of every
kind and description with any person, firm or association or
employment. They earn dividends to be paid to the employee) corporation, domestic or foreign;
estate or beneficiaries upon termination of membership.‘
(h) To borrow funds from any source, private or govern-
ment, foreign or domestic;
Corporate Entity
The Home Development Mutual Fund is a corporate entity.* 4 Gi) To invest, own, or participate in equity in any
such, it is vested with the following corporate powers: establishment, firm or entity; to form, organize, invest in or
establish and maintain a subsidiary or subsidiaries in relation
(a) To make policies and guidelines, as well as adopt, to any of its purposes;
amend and rescind such rules and regulations as may hb
necessary to carry out the provisions and purposes of the la G) To exercise such powers and perform such acts as
may be necessary, useful, incidental or auxiliary to carry out
(b) To submit annually to the President of the Philip the provisions of the law.*
pines not later than March 15, a public report covering its ad
tivities in the implementation of the Home Development Mus Coverage
tual Fund Law, as well as the state of the Fund during thé
preceding year, including information and recommendation Coverage of the Home Development Mutual Fund is mandatory
for the development and improvement of the Fund, which re upon all employers and employees covered by the Social Security
port should be made available to the members; System and the Government Service Insurance System, and their
respective employers.’
(c) Toinvest its fund, directly or indirectly, in accordane
with the provisions of the Home Development Mutual FundZ Fund Contributions
Law; <
For Employees: 1% — for employees earning not
(d) To acquire, utilize, or dispose of, in any manne more than P1,500.00 per month;
recognized by law, real or personal properties to carry out th
purposes of the law; 2% — for employees earning more
than P1,500.00 per month.

8Sec. 3, ibid.
4Sec. 84, ibid. *Sec. 10, P.D. No. 1752, as amended.
5Sec. 8, ibid. Sec. 4, ibid.
 330 AGRARIAN LAW AND SOCIAL LEGISLATION
CHAPTER 15 331
THE HOME DEVELOPMENT MUTUAL FUND LAW OF 1980

For Employers: 2% of the monthly compensation’ Housing features

all covered employees.#
A member of good standing may apply for a housing loan,
The contributions to the Home Development Mutua under such terms as may be authorized by the Board of Trustees,
l Fund ahi
be remitted through the Social Security taking into account ability to pay.“
Syste m and Governmé@!
Service Insurance System.
q
Non-payment shall subject the employer Waiver and suspension of coverage from the Home Development
to penalty of 3% Mutual Fund
month of the amounts payable from the
date the contributions fm
due until paid.
4 Employers or employee group who, at the time of the
effectivity of the Home Development Mutual Fund Law, have
Meaning of monthly compensation their own provident or employee housing plans, may register with
; Monthly compensation means the basic mont the Fund, for annual certification of waiver and suspension from
hly sales} lus 09 coverage or for full or partial integration with the Fund.
of living allowance (COLA). The maximum mont
hly compensation é
be used in computing employee and emplo The establishment of a separate provident or housing plan
yer’s contributions shal
not be more than Five thousand pesos (P5,0 after the effectivity of the Home Development Mutual Fund Law
00.00).°
Term of membership is not a ground for waiver of coverage in the Fund.“
An employer need not have both a superior retirement/
Membership in the Home Development Mutua
l Fund sh ‘i provident plan and a superior employee housing plan in order to be
be for a period of twenty (20) years, unless,
earlier terminated hy entitled to a certificate of waiver and suspension of coverage from
reason of retirement, disability, insanity,
death, departure fro the Home Development Mutual Fund.
the country or other causes as may be provi
ded for by the Board @
Trustees.
a
CHINA BANKING CORPORATION V. HOME
Suspension of contribution DEVELOPMENT MUTUAL FUND
307 SCRA 443, 450-459
The obligation to make contributions is susp
ended when th * “xxx Section 19 of P.D. No. 1752 provides for waiver or
employee resigns, is laid-off or suspended from
employment.” suspension from coverage or participation in the fund, thus:

Withdrawal of contributions ‘SEC. 19. Existing Provident /Housing Plans —

An employer and/or employee group who, at the time
this Decree becomes effective have their own provident
total accumulated value of their contributi and/or employee housing plans, may register with the
ons to the Fund after th
10th or 15th year of continuous membership. Fund, for any of the following purposes:
i
This option can be exercised only once and (a) For annual certification of waiver or
shall not prejudice | suspension from coverage or participation in the Fund,
the member’s continuing membership in the
Fund. which shall be granted on the basis of verification that
the waiver or suspension does not contravene any
effective collective bargaining agreement and that the
Sec. 5, ibid.
features of the plan or plans are superior to the Fund
Sec. 22, P.D. No. 1752, as amended.
or continue to be so; or
Sec. 5, ibid.
Sec. 6, ibid.
Sec. 6, ibid.
Sec. 6, ibid. 4Sec. 9, ibid.
Sec. 19, ibid.
332 AGRARIAN LAW AND SOCIAL LEGISLATION
(b) For integration with the Fund, either fully
or partially.
The establishment of a separate provident and/
or housing plan after the effectivity of this Decree
shall not be a ground for waiver of coverage in the
Fund; nor shall such coverage bar any employer—
and/or employee group from establishing separate
provident and/or housing plans.’
XXX XXX XXX
“The controversy lies in the legal signification of the words
‘and/or.’
“In the instant case, the legal meaning of the words ‘ahd/
or’ should be taken in its ordinary signification, i.e., ‘either. an
or’, e.g., butter and/or eggs means butter and eggs or butter or
eggs.
‘The term ‘and/or’ means that effect shall be
given to both the conjunctive ‘and’ and the disjunc-
tive ‘or’; or that one word or the other may be taken
accordingly as one or the other will best effectuate the
purpose intended by the legislature as gathered from
the whole statute. The term is used to avoid a con-
struction which by the use of the disjunctive ‘or’ alone
will exclude the combination of several alternatives
or by the use of the conjunctive ‘and’ will exclude the
efficacy of any one of the alternatives standing alone.’
“It is accordingly ordinarily held that the intention of the
legislature in using the term ‘and/or’ is that the word ‘and’ and
the word ‘or’ are to be used interchangeably.
“It seems to [the Court] clear from the language of the
enabling law that Section 19 of P.D. No. 1752, intended that an
employer with a provident plan or an employee housing plan
superior to that of the fund may obtain exemption from coverage.
If the law had intended that the employee should have both a
superior provident plan and a housing in order to qualify for
exemption, it would have used the words ‘and’ instead of ‘and/
or.’ Notably, paragraph (a) of Section 19 requires for annual
certification of waiver or suspension, that the features of the
plan or plans are superior to the fund or continue to be so. The
law obviously contemplates that the existence of either plan
is considered as sufficient basis for the grant of an exemption;
needless to state, the concurrence of both plans is more than
sufficient. To require the existence of both plans would radically
impose a more stringent condition for waiver which was not
CHAPTER 15 333
THE HOME DEVELOPMENT MUTUAL FUND LAW OF 1980
clearly envisioned by the basic law. By removing the disjunctive
word ‘or’ in the implementing rules the respondent Board has
exceeded its authority.
XXX jXXX
- £=XXX
“While it may be conceded that the requirement of
the concurrence of both plans to qualify for exemption would
strengthen the Home Development Mutual Fund and make it
more effective both as a savings generation and a house building
program, the basic law should prevail as the embodiment of the
legislative purpose, and the rules and regulations issued to
implement said law cannot go beyond its terms and provisions.
“(The [Court] accordingly find[s] merit in petitioner's
contention that Section 1, Rule VII of the Rules and Regulations
Implementing R.A. 7742, and HMDF Circular No. 124-B and
the Revised Guidelines and Procedure for Filing Application for
Waiver or Suspension of Fund Coverage under P.D. 1752, as
amended by R.A. 7742, should be declared invalid insofar as they
require that an employer must have both a superior retirement/
provident plan and a superior employee housing plan in order to
be entitled to a certificate of waiver and suspension of coverage
from the HMDF.”
ROMULO, MABANTA, BUENAVENTURA, SAYOC & DE
LOS ANGELES V. HDMF
333 SCRA 777
“It is without doubt that the HDMF Board has rule-making
power as provided in Section 5 of R.A. 7742 and Section 13 of
P.D. 1752. However, it is well-settled that rules and regulations,
which are the product of a delegated power to create new and
additional legal provisions that have the effect of law, should
be within the scope of the authority granted by the legislature
to the administrative agency. It is required that the regulation
be germane to the objects and purposes of the law, and be
not in contradiction to, but in conformity with, the standards
prescribed by law.
“In the present case, when the Board of Trustees of the
HDMF required in Section 1, Rule VII of the 1995 Amendments
to the Rules and Regulations Implementing R.A. No. 7742 that
employers should have both provident /retirement and housing
benefits for all its employees in order to qualify for exemption
from the Fund, it effectively amended Section 19 of P.D. No. 1752.
And when the Board subsequently abolished that exemption
through the 1996 Amendments, it repealed Section 19 of P.D.
No. 1752. Such amendment and subsequent repeal of Section
334 AGRARIAN LAW AND SOCIAL LEGISLATION
19 are invalid, as they are not within the delegated power of
the Board. The HDMF cannot, in the exercise of its rule-making
power, issue a regulation not consistent with the law it seeks
to apply. Indeed, administrative issuances must not override,
supplant or modify the law, but must remain consistent with
the law they intend to carry out. Only Congress can repeal or
amend the law. aN
“While it may be conceded that the requirement of having
both plans to qualify for an exemption, as well as the abolition of
the exemption, would enhance the interest of the working group
and further strengthen the Home Development Mutual Fund
in its pursuit of promoting public welfare through e social
services as mandated by the Constitution, [thle [Court]
the opinion that the basic law should prevail. A department ze
may not be permitted to outrun the authority conferred by the
statute.”
Substitute retirement plan
Private employers have the option to treat the coverage by t) ‘i
Fund as a retirement plan for the employee concerned within th
purview of the Labor Code of the Philippines.
Penal provisions
Refusal or failure register its employees, collect and remif
employee contributions as well as employer counterparts, or t :
correct amount due, will subject the employer to:
(a) fine of not less, but not more than twice the amoun
involved; or
(b) imprisonment of not more than six (6) years; or
(c) both such fine and imprisonment, in the discretiony
of the Court.”
16Sec. 21, P.D. No. 1752, as amended.
Sec. 23, ibid.
CHAPTER 16
THE NATIONAL HEALTH INSURANCE ACT OF 1995
REPUBLIC ACT NO. 7875
[as amended by Republic Act No. 9241]
of
The rationale behind the enactment of the National Health Insur-
ance Act
The National Health Insurance Act was enacted to implement
Section 11, Article XIII of the 1987 Constitution of the Republic of
the Philippines which mandates the State to adopt an integrated
and comprehensive approach to health development and to make
essential goods, health and other social services available to all
the people at affordable cost, with priority for the needs of the
underprivileged, sick, elderly, disabled, women, and children, and
provide free medical care to paupers.'
The National Health Insurance Program
This is a social insurance program intended to answer for
utilization or purchase of health services by covered beneficiaries.
Consisted initially of Programs I? and II? of the Medicare,‘ the
National Health Insurance Program will be expanded progressively
to constitute one universal health insurance program for the entire
population.
Being a social insurance, the Health Insurance Program it is
prohibited from:
1Sec. 2 (b), R.A. No. 7871, as amended.
?Program I covers members of the SSS and GSIS including their legal
dependents.
5Program II, refers to those not covered under Program I.
‘Program I covers members of the SSS and GSIS including their legal depen-
dents.
336
 336 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 16
THE NATIONAL HEALTH INSURANCE ACT OF 1995

(a) providing direct health care;
(b) owning or investing in health care facilities;
an i (c) buying and dispensing drugs and pharmaceuticals; |[
(d) employing physicians and other professionals for the]
purpose of directly rendering care.®
Coverage of the National Health Insurance Program
All citizens of the Philippines are covered e National;
Health Insurance Program. Coverage is compulsory. Therefore,
all citizens of the Philippines are required to enroll in the Natio i membership by enrolling as an individually paying member within
Health Insurance Program.’ =.
7 However, the compulsory coverage in certain provinces and:
cities cannot be effected until the Philippine Health Corporati
is able to ensure that members in such localities have reasonabl
access to adequate and acceptable health care services.®
Enrollment of beneficiaries
; To be entitled to the benefits, the beneficiary? must be enroll
with the National Health Insurance Program in accordance with the
following policies: : Enrollment Requirements
II of Medicare, including indigent members, should be enrolled
in the Program; and
(d) Persons eligible for benefits as members of other
government initiated health insurance programs, community-
based health care organizations, cooperatives, or private non-
profit health insurance plans should be enrolled in the Program
7 upon accreditation by the Philippine Health Insurance Corpo-
ration. vk
Individually-paying members should enroll for membership
through the offices of the Philippine Health Insurance Corporation.”
A member who is separated from employment may continue his
three (3) months after separation, otherwise, the benefit entitlement
will be suspended.”
Indigents not enrolled in the National Health Insurance
Program shall have priority in the use and availment of the services
and facilities of government hospitals, health care personnel, and
other health organizations. Such government health care providers
shall ensure that said indigents shall subsequently be enrolled in
the Program.”

(a) Persons currently eligible for benefits under Medi To register with the National Health Insurance Program, the
care Program I, including SSS and GSIS members, retirees appropriate PhilHealth membership registration form together with
pensioners and their dependents, are automatically enrolled any of the following documents must be submitted:
the Program; (a) Birth Certificate;
(b) Persons eligible for benefits as members of locg J (b) Baptismal Certificate;
health insurance plans established by the Philippine Health
Insurance Corporation are also deemed enrolled in th (c) GSIS/SSS Member’s ID;
Program; (d) Passport;
(c) Persons eligible for benefits under health insurance q (e) Any other valid ID/document acceptable to the Phil-
plans established by local governments as part of the Program4 ippine Health Insurance Corporation.”

'Sec. 5, R.A. 7871, as amended. 10Se¢, 30, Revised Rules and Regulations Implementing the National Health
"Sec. 6, ibid. Insurance Act of 1995.
Sec. 2 (1), ibid. USec. 31, ibid. :
Sec. 6, ibid. 12Sec, 7, R.A. No. 7871, as amended.
®’Beneficiary is the person entitled to health care benefits under the Nati onal 44 8Sec, 9, Rule II Revised Rules and Regulations Implementing the National
Health Insurance Act (Sec. 4 [a], R.A. No. 7871, as amended). Health Insurance Act of 1995,
338 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 16 339
THE NATIONAL HEALTH INSURANCE ACT OF 1995

Membership in the National Health Insurance Program sh * Certificate from the Department of Social Welfare
take effect upon payment of the required premium contribution," and Development (DSWD) or Barangay Captain attesting to
the fact of the re‘'ationship of the dependents to the supposed
Declaration of dependents members.
Registrants who are declaring dependents should « Any other valid ID or document acceptable to the
submit
following supporting documents, whichever is applicable: \. Philippine Health Insurance Corporation.*

¢ Fordependent spouse — Marriage Contract

. For dependent — Marriage Contract
legitimate children Birth/Baptismal Certiff
cate
. For illegitimate — Birth/Baptismal
children cate
. For dependent adopted — Adoption papers or cow
children resolution/decision
¢ For dependent parents — Birth/Baptismal certi
cate of registrant
* For dependent — contributions as determined by the Philippine Health Insur-
Marriage Contract of
stepchildren
parent and stepfath
stepmother and Birth#
Certificate of the depen
dent stepchildren
* Duly notarized joint affidavit of two (2) disinterested:
persons and other relevant information (date of birth, ete,
attesting to the fact of the relationship of the dependents to
the supposed members. 4 shall not exceed the minimum contributions set for employed
Health insurance ID card
and Upon enrollment, the Philippine Health Insurance Corpora-
tion through its local office shall issue a health insurance ID which
shall be used for purposes of identification, eligibility verification,
Certi ‘ and utilization recording.”
e i
Premium contributions
Members of the National Health Insurance Program are obliged
to pay the premiums in accordance with the following guidelines:
(a) Employees and their employers shall pay monthly
ance Corporation, the amount of which shall not exceed 3% of
the monthly salaries;
(b) Self-employed members shall pay their contributions
4 based primarily on household earnings and assets but their
total contributions for one year shall not exceed 3% of their
estimated actual net income for the preceding year;
(c) Contributions made in behalf of indigent members
members.”

“Sec. 12, ibid.

4 16Sec, 10, Rule II Revised Rules and Regulations Implementing the National
The legal dependents of a member are:
4 Health Insurance Act of 1995.
(®) the legitimate spouse who is not amember; ‘ 3 Mec. 8, R.A. No. 7871, as amended.
(b) the unmarriedi and unemployed legitimate, , legiti
legitimated, illegitle.4
i 18The premium contribution of employed members shall be paid on a monthly
7
mate, acknowledged children as appearing in the birth certificate; legally basis and should be remitted by the employer on or before the tenth (10th) calendar
ade 3
opted or stepchildren below twenty-one (21) years of age; day following the month for which the payment is due and applicable. The member’s
3
/ (c) children who are twenty-one (21) years old or above but suffering 4 contribution shall be deducted and withheld automatically by the employer from the
from congenital disability, either physical or mental, or any disability acquired former’s salary, wage or earnings.
2
that renders them totally dependent on the member of our support; For government agencies, it shall be mandatory and compulsory for the em-
a
; (d) the parents who are sixty (60) years old or above whose monthly : ployers to include the payment of contributions in their annual appropriations (Sec.
income is below an amount to be determined by the Corporation in accordance 20, Revised Rules and Regulations Implementing the National Health Insurance Act
=
with the guiding principles set forth in Article I of the National Health Insure of 1995).
ance Act (Sec. 4 [f], R.A. No. 7871, as amended). Sec, 28, R.A. No. 7871, as amended.
 340 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 16 341
THE NATIONAL HEALTH INSURANCE ACT OF 1995

Failure or refusal of the employer to deduct or remit the Premium contributions for indigent members
employees’ and employer’s premium contribution is not a ground
denial of a properly filed claim. In such a case, the Philippine Heal Premium contributions for indigent members shall be subsi-
Insurance Corporation shall be entitled to reimbursement of claimg, dized partially by the local government unit where the member re-
paid from the erring or negligent employer, without prejudice to the sides. The Philippine Health Insurance Corporation shall provide
criminal prosecution and other liabilities.” counterpart financing equal to the local government’s subsidy for
—. ;
indigents.
Premium contributions of individually-paying members In the case of 4th, 5th and 6th class municipalities, the National
The premium contribution of individually-paying membe: Government shall provide up to 90% of the subsidy for indigents
(including self-employed members of the SSS) shall be at a minim until such time that they shall have been upgraded to 1st, 2nd or
of P75.00 per month and can be paid quarterly, se i-annually, 3rd class municipalities. The share of the local governments shall be
annually. progressively increased until such time that its share becomes equal
to that of the National Government.”
Overseas Filipino Workers (OFWs) enrolled with the NHI!
shall pay an annual contribution in an amount to bé¢ set by theg Benefits under the National Health Insurance Program
Corporation." 3
The benefits under the National Health Insurance Program
Persons not obliged to pay premium contributions are as follows:
The following need not pay the monthly premium contribus! (a) Inpatient hospital care:
tions: 2
1. room and board;
(a) Retirees and pensioners of the SSS and GSIS prior! 2. services of health care professionals;
to the effectivity of the National Health Insurance Act; a 8. diagnostic, laboratory, and other medical exa-
(b) Members who reach the age of retirement aul mination services;
provided for by law and have paid at least one hundred twenty 4
4. use of surgical or medical equipment and faci-
(120) monthly contributions; and 3 lities;
(c) Enrolled indigents. 5. prescription drugs and biologicals;
Members who have reached the retirement age provided for? 6. inpatient education packages.
by law and have paid at least 120 monthly premium contributions4
shall register with the Philippine Health Insurance Corporation ag (b) Outpatient care:
a non-paying member. : 1. services of health care professionals;

The age of retirement referred to is sixty (60) years old with the a 2. diagnostic, laboratory, and other medical exa-
exception of those covered by special laws. mination services;
;
3. personal preventive services; and
4. prescription drugs and biological.
*°Sec. 20, Revised Rules and Regulations Implementing the National Health =
Insurance Act of 1995. (c) Emergency and transfer services; and
Sec. 34, ibid.
Sec. 12, R.A. No. 7871, as amended.
*Sec. 36, Revised Rules and Regulations Implementing the National Health
Insurance Act of 1995. Sec, 29, R.A. No. 7871, as amended.
 342 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 16 343
THE NATIONAL HEALTH INSURANCE ACT OF 1995

(d) Such other health care services that the Philipp 7 (a) He must have paid premium contributions for at
Health Insurance Corporation shall determine to be appropriat@ least three (3) months within the 6-month period prior to the
and cost-effective.” ' first day of his or his dependents’ availment.
Health services not covered by the National Health Insuran (b) He must show that he contributes thereto with
Program —. sufficient regularity, as shown in their health insurance ID
card;
The National Health Insurance Program does not coved
expenses for the following services: (c) He must not be currently subject to the penal
sanctions under the law.”
(a) non-prescription drugs and devices;
The series of confinements/procedures for the same illness
(b) alcohol abuse or dependency treatment;
at intervals not exceeding ninety (90) calendar days within the
(c) cosmetic surgery; calendar year shall be considered as a single period of confinement.
(d) optometric services; Hence, the member shall only be entitled for the remainder of the
(e) fifth and subsequent normal obstetrical deliverieg benefit ceilings set by the Philippine Health Insurance Corporation
for that period for drugs and medicines, x-rays, laboratories, and
(f) cost-ineffective procedures, which shall be defin others.”
by the Philippine Health Insurance Corporation.”
Members/dependents can avail of benefits while they are out-
(g) outpatient psychotherapy and counseling for men’
side the country as long as they meet the conditions for entitlement
disorders;
and the following requirements are submitted:
(h) home and rehabilitation services.”
(a) Official receipt of payment or statement of account
Conditions for entitlement to the benefits from the health care institution where the member/dependent
was confined; and
To be entitled to the benefits under the National Heal ,
Insurance Act, the member/dependent should meet the following (b) Certification of the attending physician as to the
conditions: 5 final diagnosis, period of confinement and services rendered.
(a) He must suffer illness or injury which requi The benefits to be granted shall be paid in the equivalent local
treatment as in-patient or out-patient in an accredited heal rate based on the tertiary hospital category.”
care institution;”
Health care providers
*6Sec. 10, R.A. No. 7871, as amended. The Philippine Health Insurance Cor
ration also provides outpatient services to its members such as chemotherapy, rad Health care provider refers to:
tion therapy, dialysis, cataract extraction and minor surgical procedures perforn
in an operating room complex of an accredited facility. For the purposes of this Rul (a) a duly licensed health care institution devoted
the operating room fee shall cover services availed of in the operating room, @! primarily to the maintenance and operation of facilities for
gency room, delivery room, dialysis, and chemotherapy and radiation rooms (See, health promotion, prevention, diagnosis, treatment, and care
fone Rules and Regulations Implementing the National Health Insurance Act
of individuals suffering from illness, disease, injury, disability
*6Eixcept when the Philippine Health Insurance Corporation, after actuarial#
studies, recommends their inclusion subject to the approval of the Board. a
"Sec, 11, R.A. No. 7871, as amended.
30Sec. 12, R.A. No. 7871, as amended.
*8Sec. 45, Revised Rules and Regulations Implementing the National Health
31Sec. 48, Revised Rules and Regulations Implementing the National Health
Insurance Act of 1995.
Insurance Act of 1995.
Sec. 46, ibid.
32Sec. 49, ibid.
 344 AGRARIAN LAW AND SOCIAL
LEGISLATION CHAPTER 16 345
THE NATIONAL HEALTH INSURANCE ACT OF 1995

or deformity, drug addictio n

or in need of obstetrical or othe (a) Its managing health care professional has had
medical and nursing care; r
a working experience in another accredited health care
(b) a health care professional, institution for at least three (3) years;
medicine, nurse, midwife, dent who is any doctor 9
ist, or other health care prac (b) It operates as a tertiary facility or its equivalent; or
titioner duly licensed to practice
in the Philippines;
(c) a health maintenance organi It operates i a local governmen t unit where
in the
offers, or arranges for covera zation which provides accredited health care provider cannot adequately or fully
ge of designated health serv service its population.”
needed by plan members for ice,
a fixed prepaid premium; or
j The 3-year operation requirement is reckoned from me
(d) a community-based heal
th care organization ofind effectivity date of the initial business permit issued by f office
digenous members of the com
munity organized for the purp of the local chief
i executive
ive in
i the case of pririvate hospi : ,
of improving the health status osgae
of that commu: ity through pre s certified
i by the local chief execu tive or the Departmen
tn
ventive, promotive and curative
health services) f ‘National Defense (DND), in case of government and military
Health care providers should hospitals respectively.
be accredited
To participate in the N ational Payment of claims
Health Insurance Program,
health care provider mu st be thi
accredited by the Philippine
Insurance Corporation. Health Payment of a health care provider shall be made through any
of the following mechanisms:
To qualify for accreditation,
the health care provider mua (a) Fee for service;
have operated for at least thre #
e (3) years.
Health care providers which have (b) Capitation of health care professionals, institutions
no t operated for at least thre or networks of the same, including health mamtenance
(3) years may apply and qualify g
for accre ditation if it compli
all the other accreditation req es with organizations, medical cooperatives, and other legally forme
uirements® and any of the fol
conditions: lowing health service groups;®
(ec) Such other mechanisms as may hereafter be deter-
“This refers to hos pitals, out-
mined by the Philippine Health Insurance Corporation.
patient clinics, infirmaries,
saries, rehabilitation ce: nters nurseries, dispansl
and such other simila r name
s by which they may Health care institutions cannot charge processing fees from
designated.
Sec. 4 (0), R.A. No. 7871, as the member when claiming reimbursement from the Corporation.
amended.
Sec. 31, ibid.
The minimum
Direct payment to the member is not allowed except in the
accreditation requirements for
follows: health care providers are a following cases:
(a) human resource, t and physical structure
equipmen (a) Ifthe member or dependent was confined abroad;
with the standards of the rele
vant facili ity, as determined
in conformi ty
of Health; by the Departmen bs
(b) acceptance of formal prog
ram of quality assurance and
review; utilizatio
~~ 87§e¢, 32, RA . 7871, as amended. ; ;
(c) acceptance of the payment
section; mech anisms specified in the followin Sen 60 Revised Rules and Regulations Implementing the National Health
g 2
1995.
(d)’ adoption of referral protocol
s and health reso ; asa Capitation is a payment mechanism where a fixed rate, wate ber person
rangements; urces sharing ar 4
(e) recognition of the rights of
family, household, or group, is negotiated with a health care provider (Sec. 4, R.A.
patients; and
(f) acceptance of information system
fer of information (Sec. 33, R.A. re quirements and regular Ne om 51, Revised Rules and Regulations Implementing the National Health
No. 7871, as a: mended). trang
Insurance Act of 1995.
 346 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 16 347
THE NATIONAL HEALTH INSURANCE ACT OF 1995

(b) If drugs, medicines and other medical supplies we (c) in emergency cases.”
bought and used by the member within the confinement
period
with supporting official receipts;
The Philippine Health Insurance Corporation
(c) Ifmember advanced the pa yment because of faililure
The Philippine Health Insurance Corporation is a tax-exempt
to submit the required documents;
™ government corporation attached to the Department of Health for
(d) Ifthe member paid professional fees directly. policy coordination and guidance.” Basically, it administers the
National Health Insurance Program.“
Grounds for denial or reduction of claims The Philippine Health Insurance Corporation is vested not
The Philippine Health Insurance Corporation only with administrative powers but also quasi-judicial powers, to
may deny wit:
reduce a claim under the following circumstances:
(a) to conduct investigations for the determination of
(a) over-utilization and under-utilization $f services; | a question, controversy, complaint, or unresolved grievance
(b) unnecessary diagnostic and thera euti j brought to its attention, and render decisions, orders, or reso-
and intervention; ° © Procedure lutions thereon;
(c) irrational medication and prescriptions; (b) to summon the parties to a controversy, issue sub-
poenas requiring the attendance and testimony of witnesses or
(d) fraud; the production of documents and other materials necessary to
(e) gross, unjustified deviations from currently accepte a just determination of the case under investigation;
standards of practice and/or treatment protocols; (c) to suspend temporarily, revoke permanently, or
(f) inappropriate referral practices; restore the accreditation of a health care provider“ or the right
to benefits of a member“ and/or impose fines after due notice
(g) use of fake, adulterated or misbranded pharmacey and hearing.
ticals, or unregistered drugs; or
Decisions of the Philippine Health Insurance Corporation are
(h) use of drugs other than those recognized in immediately be executory, even pending appeal, when the public
th
latest PNDF and those for which exemptions were grante interest so requires.
d b}
the Board.
When the claim is reduced or denied, the amount thus reduce
d 3
or denied cannot be charged, directly or indirectly, to
the beneficiary @
involved.

Compensability of confinement for less than 24 hours

Hospital confinement of less than twenty-four (24)
hours are 418ec, 52, Revised Rules and Regulations Implementing the National Health
not compensable, except in the following instances:
Insurance Act of 1995.
(a) when the patient died; Sec, 14, R.A. No. 7871, as amended.
8Sec. 16, ibid.
(b) when the patient is transferred to another health “Suspension of accreditation of a health care provider shall not exceed twenty-
four (24) months.
care institution; or 46Suspension of the rights of members shall not exceed six (6) months.
46Sec, 17, R.A. No. 7871, as amended.
 CHAPTER 17 . 849
THE SOCIAL SECURITY ACT OF 1997

throughout the Philippines and provide meaningful protection to

members and their beneficiaries against the hazards of disability,
sickness, maternity, old age and death, and other contingencies
CHAPTER 17
resulting in loss of income or financial burden.
THE SOCIAL SECURITY ACT OF 1997
Validity of the Social Security Law
REPUBLIC ACT NO. 1161 The enactment of the Social Security Law is a legitimate
(As amended by Republic Act Nos. 1792, 2658, 3839, exercise of police power. It is in full accord with the constitutional
4482, 4857
Presidenti al Decree Nos. 24, 177, 347, 735, provisions on the “promotion of social justice to insure the well-being
1202, 1636
Executive Order Nos. 28 , 102, Republic and economic security of all the people.”
Act Nos. 7322 and 8282) :

Construction of the Social Security Law

Development of the Law The provisions of the Social Security Law are to be liberally
construed in favor of those seeking its benefits.‘

Security Act of 1954 was approved on

July 18, 1954 Social Security Law is not a law on succession
implemented until September 1, 1957.
amendments throughout the years, The Social Security System is not a law of succession. It is not
the heirs of the employee but the designated beneficiaries who are
The first amendatory act was Republic
Act No. 1792 whie 1 to receive the social security benefits. It is only when the beneficiary
deleted the provisions on unemployment.
benefits. Thereafter, is the estate, or when there is no designated beneficiary or if the
Republic Act No. 2658 was enacted wherein the
coverage of the Social designation of beneficiary is void, that the Social Security System is
Security System was broadened, the benefits
increased and the required to pay the employee’s heirs.‘
enjoyment thereof liberalized. Three (3)
years thereaft
er, Republig
Act No. 3839 was promulgated wher
ein the retirement benefitg: Social Security Law is not part of the taxation system
were increased and the minimum age
requirement for coverage we
removed. On June 19, 1965, Republic The Social Security Law is not part of the taxation system
Act No. 44 z
wherein the reimbursable amount of sickn because it is not intended for raising revenues but for the promotion
ess benefits advanced a ;
employers was incre ased. Thereafter, several other of the general welfare.*
laws increasi;
the amount of social security benefits
were promulgated. namely
Republic Act No. 4857, Presidential The funds of the Social Security System are private funds
Decree Nos. 24, 177 347 738.
1202, 1636, Executive Order Nos. 28, 102, Republic Act Nos.
and 8282, the latter having been appr 7329. The funds contributed to the Social Security System are not
oved on May 1, 1997. ; public funds. The funds belong to the members and are merely
Rationale behind the enactment of the held in trust by the Government. Thus, the inclusion of religious
Social Security Law
The Social Security Law was enacted
pursuant to the poli
of the State to establish, develop and Sec. 2, Social Security Act of 1997, as amended; Roman Catholic Archbishop of
promote a sound and viebl Manila v. SSC, 1 SCRA 10; CMS Estate v. SSS, 182 SCRA 108.
tax-exempt social security system suita
ble to the needs of the people ?Roman Catholic Archbishop of Manila v. SSC, 1 SCRA 10.
*Franklin Baker Co. of the Philippines v. SSS, 7 SCRA 836, 840.
348 “Tecson v. SSS, 3 SCRA 735, 738; SSS v. Davac, 17 SCRA 863.
5Cons Estate v. SSS, 182 SCRA 108.
 eS

350 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 17 351

THE SOCIAL SECURITY ACT OF 1997

organizations under the coverage of the Social Security Law does Effective date of coverage
not violate the constitutional prohibition against the application of.
public funds for the use, benefit or support of any priest who may be: (a) For employers — on the first day of his operation
employed by the church.* (b) For employees — on the first day of his employment
(c) For the self-employed — upon his registration with
Coverage of the SSS Law oN f the SSS“
It used to be that, the coverage of the Social Security Law is
predicated on the existence of an employer-employee relationship,',: Voluntary coverage
This is no longer true because the policy now is to encourage even,
the self-employed to become SSS members.* The following may be covered by the SSS on a voluntary basis:
(a) Spouses who devote full time to managing the house-
Compulsory coverage hold and family affairs; and
‘Coverage in the SSS is compulsory upon: (b) Filipinos recruited for overseas employment by
foreign-based employers."
; (a) All employers engaged in business in the Philips:
pines, including religious, charitable or non-profit institutions;?.
When a person has secured an SSS number does it mean that he
(b) All employees not over sixty (60) years of ageo is already an SSS member?
(c) Domestic helpers receiving P1,000.00/month;" , No. Securing an SSS number does not automatically make a
(d) Aliens employed in the Philippines; person an SSS member. He will be considered a member only when
he has been reported for SSS coverage and has paid at least one
(e) Self-employed persons, including, but not limited: month contribution.
the following:
(i) Self-employed professionals; Can a member withdraw his membership with the SSS?
(ii) Partners and single proprietors of businesses; No. When a person registers for SSS membership, he becomes a
(iii) Actors, actresses, directors, scriptwriters, an member for life. Therefore, during such time that the member failed
news correspondents; to remit contributions, the benefits and loan privileges provided
by the SSS can still be availed as long as the member meets the
(iv) Professional athletes, coaches, trainers, an® qualifying conditions for entitlement thereto.
jockeys; and
(v) Individual farmers and fishermen." Employees not covered by the SSS Law
The Social Security Law does not cover the following:
®Roman Catholic Archbishop of Manila v. SSS, 1 SCRA 10.
"Roman Catholic Archbishop of Manila v. SSC, 1 SCRA 10; LUSTEVECO
(a) Purely casual employees;
vy
SSS, 16 SCRA 6. (b) Employees serving on an alien vessel, when such
Corporal v. NLRC 341 SCRA 658, 667.
*Sec. 8 (c), Social Security Act of 1997, as amended; Roman Catholic Archbishop vessel is outside of the Philippines;
of Manila v. SSC, 1 SCRA 10.
18ec. 9, (a) Social Security Act of 1997, as amended.
"Sec. 9-A, ibid. :
“Philippine Blooming Mills v. SSS, 17 SCRA 1077, 1080. Sec. 10, ibid.
Sec. 9-A, Social Security Act of 1997 » as amended. Sec. 9, ibid.
352 AGRARIAN LAW AND SOCIAL LEGISLATION
(c) Employees of the Philippine government or any of
its instrumentalities and agencies;
(d) Employees of foreign government, international
organization, and their wholly-owned instrumentality;
(e) Temporary employees, if excluded by regulation of 2
the SSC.
In the absence of a regulation exempting temporary employeeg’
from coverage, temporary employees are covered because there is no
way of telling whether or not the said employees belong to a group
or class designated by regulation of the Social Security Commission
as exempt.”
Obligations of employer under the Social Security Law
Employers have two (2) distinct obligations under the Socia
Security Law, namely: 5 law.
(a) To make a timely report of its employees
coverage; and
(b) To make timely remittance of premiums.”
Effect of non-reporting or non-remittance
Ifthe employer fails to report the employee for SSS coverage one
fails to remit the premium contributions, such failure or refusal, by4
express provision of Section 22 (b) of the Social Security Act, shall;
not prejudice the right of the covered employee to social securi
benefits. In short, the employee would still be entitled to the socia
security benefits.
Therefore, if an employee dies, becomes disabled, gets sick 0 q
reaches the retirement age without him being reported for coverage |
or without the premium contributions being remitted, the SSS
still pay the employee the corresponding benefits, but the SSS will
hold the employer liable for damages equivalent to the benefitg:
the employee or his heirs are entitled to receive.» Moreover, the
employer will be held criminally liable for such violation.
Sec. 8 (j), ibid.
MLUSTEVECO v. SSS, 16 SCRA 6.
18Sec. 24 (a), Social Security Act of 1997, as amended.
Sec. 22 (a), ibid.
*°Machuca Tile Co. v. SSS, 830 SCRA 256.
CHAPTER 17
THE SOCIAL SECURITY ACT OF 1997
Effect of failure to make timely remittance of contributions
Failure to make a timely remittance of the premium contribu-
: tions will hold the employer liable to 3% monthly penalty from the
date the contribution falls due until paid. The 3% prescribed pen-
alty for failure to remit premium contributions is intended to ensure
that the employer complies with its obligation to remit premium
contributions.” Furthermore, the employer will be held criminally
liable for such violation.
Good faith is not a defense
The penalty for failure to remit premium contributions is
punitive in character, hence, good faith is not a defense. From the
moment the remittance of premiums due is delayed, the penalty
immediately attaches to the delayed premium payments by force of
fot Bo
Demand is not a condition precedent for remittance of premium
contributions
The employer is duty-bound to remit the contributions without
need of any demand from the employee. It is the legal obligation of
every employer to remit within the first seven (7) days of the month
the contributions of the employee and-the employer to the SSS failing
in which invites the imposition of a penalty of three percent (3%).
With this mandate of the law, demand on the part of the employee
before the employer remits these contributions to the SSS is not a
condition precedent for such remittance. The Social Security System
can collect such contributions in the same manner as taxes are made
collectible under the National Internal Revenue Code.
: Contributions of the self-employed
The self-employed pays both the employer’s and employee’s
contributions. The monthly earnings declared by the self-employed
member at the time of his registration shall be the basis of his
monthly salary credit, unless he makes another declaration of his
*1Sec. 22, Social Security Act of 1997, as amended.
Santiago v. Court of Appeals, 138 SCRA 34.
United Christian Missionary Society v. SSS, 30 SCRA 982.
*4Lantaco v. Llamas, 108 SCRA 602.
 354 AGRARIAN LAW AND SOCIAL LEGISLATION
CHAPTER 17 355
THE SOCIAL SECURITY ACT OF 1997

monthly earnings, in which case, such latest declaration becomes

the new basis of his monthly salary credit.” (d) Retirement benefits;
(e) Death benefits;
Policy on the primacy of regular employment over self-employment
(f) Funeral benefit.
If one is both an employee covered by the SSS @ntha self
employed person, he shall pay the contributions under both status Maternity Leave Benefit
and coverage. However, when the combined contributions paid to the
j e The maternity leave benefit
SSS as a regular employee andasa self-employed member exceed the is available to a female SSS
© member who:
maximum contributions based on the highest monthly salary credit
prevailing at the time of simultaneous coverage, theexcess shall be (a)
gives birth or suffers miscarriage/abortion; and
refunded accordingly to the member. The excess contributions to be
refunded shall come from the self-employed contributions.” (b) has paid at least three (3) monthly contributions
in
the 12-month period immediately preceding the semest
er of
her childbirth, abortion or miscarriage.
Effect of interruption of business or professional incom
The maternity leave benefit is equivalent to 100% of
Ifthe self-employed member does not earn income in any given the
average daily salary credit.»
month, he is not required to pay contributions for that month. He
may, however, be allowed to continue paying contributions under The duration of maternity leave is:
the same rules and regulations applicable to separated employee. (a) sixty (60) days for normal delivery; or
member. Retroactive payment of contributions is not allowed.”
(b) seventy-eight (78) days in case of caesarian delivery.
Effect of separation from employment Procedure for availment of the maternity leave benefit:
When an employee under compulsory coverage is separated : 4 (a) The employee should notify her employer of her
from employment, the obligation of the employer and the employee pregnancy and the probable date of her childbirth which
notice
to pay contributions arising from that employment ceases at the end : : : shall be transmitted to the SSS;
of the month of separation.
(b) The employer shall advance the payment within
thirty (30) days from the filing of the maternity leave applica
The Social Security Benefits -
tion; and
The benefits under the Social Security Act are as follows: (c) The SSS shall reimburse the employer the amount
(a) Maternity leave benefit; paid upon receipt of satisfactory proof of such payment
and
legality thereof;
(b) Sickness benefit;
(c) Permanent disability benefits; %Sec. 12-B, ibid.
33Sec. 13, ibid.
Sec. 13-B, ibid.
5Sec. 19-A, Social Security Act of 1997, as amended. ‘Sec. 14-A, Social Security Act of 1997, as amended.
Circular No. 37-P, May 16, 2007. Average daily salary credit is the result obtained by dividing
the sum of the
*7Sec. 11-A, Social Security Act of 1997, as amended. six (6) highest monthly salary credits in the twelve-month
period immediately pre-
8Sec. 11, ibid. ceding the semester of contingency by one hundred eighty
(180) (Sec. 8 [n], Social
Sec. 14-A, ibid. Security Act of 1997, as amended).
Sec. 14, ibid. Monthly salary credit is the compensation base for contributions
and benufits
31Sec. 13-A, ibid. as indicated in the schedule in Section Kighteen of the Social
Security Act (Sec. & lal,
Social Security Act of 1997, as amended).
356 AGRARIAN LAW AND SOCIAL LEGISLATION
The maternity leave benefit can be availed of only for the first
four (4) deliveries or miscarriage. It cannot be availed of simultane-
ously with sickness benefit.
Sickness Benefit”
Sickness benefit is not payment or reimbursement for hospital-
ization, medical treatment or medicine. Rather they are daily cash
allowances to help carry through the employee and his family dur-
ing his confinement. It is a stipend to enable the employee and his
family to provide themselves with the bare necessities for subsis-
tence when he is not receiving his wage or salary.”
The sickness benefit is equivalent to 90% of the average daily
salary credit payable for each day of compensable confine ent or
fraction thereof. The compensable confinement begins on the first
day of sickness.
The sickness benefit is available to an SSS member who:
(a) has paid at least three (3) monthly contributions in
the 12-month period immediately preceding the semester of
sickness;
(b) was confined for more than three (3) days
hospital or elsewhere with the approval of the SSS; and
(c) has exhausted the company sick leave with pay, if
any.
The daily sickness benefit cannot be paid longer than 120 days
in one calendar year. It cannot be paid for more than two hundred
forty (240) days on account of the same confinement. Unused portion
of the 120 cannot be carried forward to the subsequent year.
Procedure for availment of sickness benefit by employees:
(a) The employee should notify his employer of the fact
of his sickness or injury within five (5) calendar days after the
start of his confinement.
NOTE: If the notice of sickness or injury was filed after
five (5) days, the confinement shall be deemed to have started
not earlier than the fifth day immediately preceding the date of
notification.
37§8ec. 14, Social Security Act of 1997, as amended.
3888S Circular No. 41, July 20, 1963.
CHAPTER 17 357
THE SOCIAL SECURITY ACT OF 1997
If the SSS member is unemployed or self-employed, he
shall directly notify the SSS of his confinement within five (5)
calendar days after the start thereof.
Notice is not necessary if the employee was confined is in
a hospital or if the employee became sick or was injured while
working or within the premises of the employer.
(b) The employer shall advance the sickness allowances
and pay the employee every regular payday;
(c) The SSS shall reimburse the amount paid by the
employer upon satisfactory proof of payment and legality
thereof.
NOTE: If the notification to the SSS was made by
the employer after five (5) calendar days from receipt of the
notification from the employee, the employer shall be reimbursed
only for each day of confinement starting from the tenth calendar
day immediately preceding the date of notification to the SSS:
The SSS shall reimburse the employer only for confine-
ment within the one-year period immediately preceding the
date of the claim for reimbursement, except confinement in
a hospital in which case the claim for benefit or reimbursement
in a must be filed within one (1) year from the last day of confine-
ment.
If the employee has given the required notification but the
employer failed to notify the SSS of the confinement or to file the
claim for reimbursement within the prescribed period, resulting
in the reduction of the benefit or denial of the claim, the employer
cannot recover the daily allowance he advanced to the employee.
The claim of reimbursement shall be adjudicated by the SSS
within two (2) months from receipt thereof. If the employer does not
receive the reimbursement within one (1) month from the prescribed
2-month period for adjudication, the reimbursement shall thereafter
earn simple interest of one percent (1%) per month until paid.
Permanent Total Disability Benefits”
Permanent total disability does not mean a state of absolute
helplessness. It means disablement to do the same or similar kind
*°Sec. 13-A, Social Security Act of 1997, as amended.
358 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 17
THE SOCIAL SECURITY ACT OF 1997

of work that the SSS member was trained for and accustomed to If a member who has received the lump sum benefit is
‘perform because of: re-employed or has resumed self-employment he shall again be
subject to compulsory coverage and shall be considered a new
(a) Complete loss of sight of both eyes; member.
(b) Loss of two limbs at or above the ankle orwriats;
Effect of death of a permanently and totally disabled pensioner:
(c) Permanent complete paralysis of two limbs;
(a) Ifthe permanently and totally disabled pensioner
(d) Brain injury resulting in incurable imbecility or dies, the primary beneficiaries as of the date of the disability
insanity; and shall be entitled to receive his monthly pension;
(e) Such cases as determined and approved by the SSS. (b) If permanently and totally disabled pensioner has
The permanent total disability benefits are as follows: no primary beneficiaries and he dies within sixty (60) months“
from the start of his monthly pension, the secondary beneficia-
(a) Monthly pension” — available if the SSS ember ries shall be entitled to a lump sum benefit.
has paid at least thirty-six (36) monthly contributions prior to
the semester of disability;
NOTE: The lump sum benefit is equivalent to the total
monthly pensions corresponding to the balance of the five-year
NOTE: The monthly pension and dependent’s pension guaranteed period excluding the dependents’ pension.
shall be suspended:
1. upon the re-employment or resumption of self- Permanent Partial Disability Benefits”
employment;
Permanent partial disability is a situation where the employee
2. upon recovery of the disabled member from his is unable to continue with his former work because of complete and
permanent total disability; or permanent loss of use of the following anatomical part of his body:
8. by failure to undergo examination at least once a
year upon notice by the SSS. ¢ One thumb *One little finger +One foot +Hearing of one ear
¢One index finger +One big toe *Oneleg Hearing of both ears
(b) Lump sum benefit — available if the SSS member’s
contribution is less than thirty-six (86) monthly contributions. ¢One middle finger »One hand *Oneear Sight of one eye
*One ring finger ¢One arm *Both ears
NOTE: The lump sum benefit is equivalent to the monthly
pension times the number of monthly contributions paid to the The permanent partial disability benefits are as follows:
SSS or twelve (12) times the monthly pension, whichever is
higher. (a) Percentage of the lump sum benefit — available
ifthe permanent partial disability occurs before thirty-six (36)
monthly contributions have been paid prior to the semester of
“The monthly pension under the Social Security Act is the highest of the fol-
disability;
lowing amounts:
(a) The sum of the following: (b) Monthly pension — available if the permanent
Gi) Three hundred pesos (P300.00), plus partial disability occurs after thirty-six (36) contributions,
(ii) Twenty percent (20%) of the average monthly salary credit, plus
(iii) Two percent (2%) of the average monthly salary credit for each cred- payable in accordance with the following schedule:
ited year of service in excess of ten (10) years; or .
(b) Forty percent (40%) of the average monthly salary credit; or
(c) One thousand pesos (P1,000.00) (Sec. 12, Social Security Act of 1997, as “Equivalent to five years.
amended). Sec. 13-A, Social Security Act of 1997, us amended.
 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 17 361
THE SOCIAL SECURITY ACT OF 1997

Complete and Permanent
Loss of the Use of
Loss of One little finger
Loss of One ring finger
Loss of One middle finger
Loss of One big toe
Loss of One index finger
Loss of One thumb
Loss of One ear
Loss of Hearing of one ear
Loss of Both ears
Loss of Sight of one eye
Loss of One foot
Loss of One hand
Loss of One leg
Loss of One arm
Loss of Hearing of both ears
NOTE: The monthly pension benefit for permanent partial
disability will be given in lump sum if it is payable in less than
12 months.
Number of Months The retirement benefits are as follows:
(a) Monthly pension for as long as he lives — avail-
3 months able if the member has paid at least one hundred twenty (120)
monthly contributions“ prior to the semester of his retirement;
5 months
6 months \. NOTE: The monthly pension of a member who retires
6 months after the age of 60 is the higher of either:
8 months « the monthly pension computed at the earliest time he
could have retired had he been separated from employment or
10 months ceased to be self-employed plus all adjustments thereto; or
10 montis ¢ the monthly pension computed at the time when he
10 months \ actually retires.
20 months NOTE: The member has the option to receive his first
eighteen (18) monthly pensions in lump sum discounted at a
25 months . preferential rate of interest to be determined by the SSS.
31 months The monthly pension shall be suspended upon the re-
39 months employment or resumption of self-employment of a retired
member who is less than sixty-five (65) years old.
46 months
50 months “(b) Lump sum benefit equal to the total contributions
50 months paid by him and on his behalf — if the member who retired at the
age of sixty (60) years old has not paid at least one hundred twenty
(120) monthly contributions prior to the semester of his retirement.
Effect if the retired member dies:

The partial disability pension ceases upon retirement (a) Ifthe retired SSS member dies, his primary benefi-
or
death. ciaries as of the date of his retirement shall be entitled to re-
ceive the monthly pension.
Retirement Benefits“ (b) Ifhe has no primary beneficiaries and he dies within
The retirement benefit under the Social Security Act can be sixty (60) months* from the start of his monthly pension, his
availed of by the SSS member if he has: secondary beneficiaries shall be entitled to a lump sum benefit
equivalent to the total monthly pensions corresponding to
(a) reached the age of 60 years or the compulsory the balance of the five-year guaranteed period, excluding the
retirement age of 65 years; and
dependents’ pension.
(b) already retired from service or ceased to be self-
employed..

“Equivalent to 10 years.
Sec. 12-B, Social Security Act of 1997, as amended.
Equivalent to 5 years.
362 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 17 363
THE SOCIAL SECURITY ACT OF 1997

Death Benefits to the benefits under the Social Security Law, even if the covered
member failed to change the designation of beneficiaries after his
The death benefits of a member of the SSS consist of a lump
sum amount computed as follows: marriage because the benefits under the Social Security Law are
vested only upon death of the member.

: Sy ei
(a) Thirty-six (36) times the monthly pension. if
the member has paid at least thirty-six (36) monthly contribu- Brothers and sisters may not be designated as beneficiaries
tions“ prior to the semester of death; except in default, not only of surviving spouse and children, but also
of ‘legitimate parents of the covered employee.”
(b) Monthly pension times the number of monthly
contributions paid or twelve (12) times the monthly
The Secondary Beneficiaries
pension, whichever is higher — if the member has not paid
the thirty-six (36) monthly contributions. The secondary beneficiaries under the Social Security Act are:

Funeral Benefits®
(a) the dependent parents; or
(b) any other person designated by the member as his
This is granted to help defray the cost of funeral expenses of a
member who dies, including death of a permanently totally disabled secondary beneficiary.
member or retiree.
The dependents
The funeral benefit is Twelve Thousand Pesos (P12,000.00)
payable in cash or in kind. The dependents of an SSS member are the following:
(a) The legal spouse entitled by law to receive support
The Primary Beneficiaries from the member;
The primary beneficiaries under the Social Security Act are: (b) The legitimate, legitimated, legally adopted, and
(a) the dependent spouse, until he or she remarries; and illegitimate child who:
(b) the dependent legitimate, legitimated or legally (i) is unmarried; and
adopted, and illegitimate children.
(ii) has not reached twenty-one (21) years of age;
The existence of both legitimate/legitimated/legally adopted or
and illegitimate children entitles the illegitimate children to fifty
percent (50%) of the share of the legitimate/legitimated/legally (iii) if over twenty-one (21) years of age, he is con-
adopted children. genitally incapacitated or while still a minor has been
permanently incapacitated and incapable of self-support,
In the absence of legitimate/legitimated/legally adopted chil- physically or mentally;
dren, the illegitimate children will be entitled to one hundred per-
cent (100%) of the benefits.” (c) The parent who is receiving regular support from
the member.”
If an SSS member while still unmarried, designates his
brothers and sisters as beneficiaries, his children would be entitled

*Sec. 13, Social Security Act of 1997, as amended.

‘Equivalent to three (3) years. 5°Merced v. Vda. de Merced, 19 SCRA 423.
#Sec. 13-B, Social Security Act of 1997, as amended. *1Sec. 8 (k), Social Security Act of 1997, as amended.
4#Sec. 8 (k), ibid. 52Sec. 8 (e), ibid.
364 AGRARIAN LAW AND SOCIAL LEGISLATION
The dependents’ pension®
This is granted to dependents in case of death, permanent total
disability or retirement of an SSS member.
The dependents’ pension is equivalent to ten percent (10%) of
the monthly pension or Two hundred fifty pesos (P250.00), which
er is higher, payable to each dependent child conceived on or before
the date of contingency but not exceeding five (5) beginning with the
youngest and without substitution.
Where there are legitimate and illegitimate children, the
former shall be preferred.
The Social Security System (SSS)
The SSS is the implementing arm of the Social Security Act.
It is a corporate body directed and controlled by the Social Security
Commission.
The SSS exercises the following powers and duties:
(a) To submit annually not later than April 30, a public
report to the President of the Philippines covering its activities
in the administration and enforcement of the Social Security
Act during the preceding year including information and
recommendations on broad policies for the development and
perfection of the program of the SSS;
(b) To require the actuary to submit a valuation report
on the SSS benefit program every four (4) years, or more fre-
quently as may be necessary, and to undertake the necessary
actuarial studies and calculations concerning increases in ben-
efits and the financial stability of the SSS and to provide for
feasible increases in benefits every four (4) years, including the
addition of new ones under such rules and regulations as the
Commission may adopt subject to approval by the President;
(c) To establish offices of the SSS to cover as many pro-
vinces, cities and congressional districts, whenever and wher-
ever it may be expedient, necessary and feasible, and to inspect
or cause to be inspected periodically such offices;
58Sec. 12-A, ibid.
CHAPTER 17 365
THE SOCIAL SECURITY ACT OF 1997
(d) To enter into agreements or contracts for such
service and aid, as may be needed for the proper, efficient and
stable administration of the SSS;
(e) To adopt from time to time a budget of expenditures
including salaries of personnel, against all funds available to
the SSS under the Social Security Act;
(f) To set up its accounting system and provide the
necessary personnel therefor;
(g) To require reports, compilations and analyses of
statistical and economic data and to make investigations as
may be needed for the proper administration and development
of the SSS;
(h) To acquire and dispose of property, real or personal,
which may be necessary or expedient for the attainment of the
purposes of the Social Security Act;
(i) To acquire, receive, or hold, by way of purchase,
expropriation or otherwise, public or private property for the
purpose of undertaking housing projects preferably for the
benefit of low-income members and for the maintenance of
hospitals and institutions for the sick, aged and disabled, as
well as schools for the members and their immediate families;
G) To sue and be sued in court; and
(k) To perform such other acts as it may deem appropri-
ate for proper enforcement of the Social Security Act.
Social Security System may sue and be sued
The Social Security System is a juridical entity with a person-
ality separate and distinct from the Government. The System’s own
organic act specifically provides that it can sue and be sued in Court.
These words “sue and be sued” embrace all civil process incident to
a legal action. The law itself has given the private citizen a remedy
for the enforcement and protection of his rights. A private citizen,
therefore, may bring a suit against it for varied objectives, such as in
this case, to obtain compensation in damages arising from contract
and even for tort.
'4Sec. 4, Social Security Act of 1997, as amended.
56SSS v. Court of Appeals, 120 SCRA 707.
366 AGRARIAN LAW AND SOCIAL LEGISLATION
The Social Security Commission (SSC)
‘The Social Security Commission is composed of the following:
(a) Secretary of Labor and Employment or his duly
designated undersecretary; \ (a)
(b) SSS President; and
(c) Seven (7) members to be appointed by the President
of the Philippines, to wit:
(i) three (3), representing the workers’ group, at
least one (1) of whom shall be a woman;
(ii) three (3), representing the employers’ group, at
least one of whom shall be a woman; and
(iii) one (1), representing the general public who
should have adequate knowledge and experience regard-
ing social security.
The six (6) members representing workers and employers shall
be chosen from among the nominees of workers’ and employers’
organizations, respectively.
The Chairman of the SSC shall be designated by the President
from among its members.
The term of the appointive members shall be three (3) years.
They shall continue to hold office until their successors shall have
been appointed and duly qualified. All vacancies, prior to the
expiration of the term, shall be filled for the unexpired term only.
The SSC is co-equal in rank with the Regional Trial Courts.
Therefore, the Regional Trial Court cannot issue writs of Injunction,
Certiorari and Prohibition against the SSC.*
The SSC performs administrative as well as quasi-judicial
functions. It may sue and be sued in the Regional Trial Courts only
on matters connected with its administrative functions, but not on
matters connected with its quasi-judicial functions. For this reason,
Section 5(c) of said Act, explicitly provides in connection with
“decisions” of the Social Security Commission or the determinations
thereof in the exercise of said functions, that the same “may be
56Poblete Construction v. SSC, 10 SCRA 1; Philamlife v. SSC, 20 SCRA 162.
CHAPTER 17 367
THE SOCIAL SECURITY ACT OF 1997
reviewed both upon the law and the facts by the Court of Appeals”
or by the Supreme Court if the decision involves questions of law.”
The administrative functions are as follows:
Toadopt, amend and rescind, subject to the approval
of the President of the Philippines, such rules and regulations
as may be necessary to carry out the provisions and purposes
of the Social Security Act.
(b) To establish a provident fund for its members which
will consist of voluntary contributions of employers and/or
employees, self-employed and voluntary members and their
earnings, for payment of benefits to such members or their
beneficiaries, subject to such rules and regulations as it may
promulgate and approved by the President of the Philippines;
(c) Tomaintain a Provident Fund from the contributions
made by both the SSS and its officials and employees and their
earnings, for the payment of benefits under such terms and
conditions as it may prescribe;
(d) To approve restructuring proposals for the payment
of due but unremitted contributions and unpaid loan amortiza-
tions under such terms and conditions as it may prescribe;
(e) To authorize cooperatives registered with the Coop-
erative Development Authority or associations registered with
the appropriate government agency to act as collecting agents
of the SSS with respect to their members;
(f) To compromise or release, in whole or in part, any
interest, penalty or any civil liability to SSS in connection with
the investments authorized under Section 26 hereof, under
such terms and conditions as it may prescribe and approved by
the President of the Philippines; and
(g) Toapprove, confirm, pass upon or review any and all
actions of the SSS in the proper and necessary exercise of its
powers and duties hereinafter enumerated.*
57Philamlife v. SSC, 20 SCRA 162.
58Sec. 4, Social Security Act of 1997, as amended.
368 AGRARIAN LAW AND SOCIAL LEGISLATION

Quasi-judicial functions of the SSC

The SSC has jurisdiction over disputes arising under the
Social Security Act with respect to coverage, entitlement of benefits,
collection and settlement of contributions and penalties the ,or CHAPTER 18
any other matter related thereto.* \ THE GOVERNMENT SERVICE INSURANCE SYSTEM
In the exercise of its quasi-judicial functions, the SSC can ACT OF 1997
order motu proprio the remittance of unpaid premium contributions
discovered in the course of the proceedings before it. The hearings
PRESIDENTIAL DECREE NO. 1146
before the Commission are administrative and are. not ‘strictly
* [as amended by Republic Act No. 8291]
governed by the technical rules of procedure that are applied to
judicial trials.”
However, the SSC has no authority to condone penalties for
late payment. Being a mere trustee of the funds of the SSS which Coverage of the Government Service Insurance System (GSIS)
actually belong to the members, the SSC cannot legally perform any
acts affecting the same, including condonation of penalties, that The GSIS covers government employees, irrespective of em-
would diminish the property rights of the owners and beneficiaries ployment status, who are employed with:
of such funds without an express or specific authority therefor.“
(a) the national government, its political subdivisions,
The SSC has jurisdiction over claim for damages. Section 5(a) branches, agencies or instrumentalities;
of the Social Security Act provides that the “filing, determination
(b) government-owned or controlled corporations;
and settlement of claim shall be governed by the rules and regula-
tions promulgated by the Commission; and the rules and regula- (c) government financial institutions with original
tions thus promulgated state that the effectivity of membership in charters;
the System, as well as the final determination and settlement of
claims shall be vested in the Commission. The term ‘claims’ is broad (d) constitutional commissions; and
enough to include a claim for ‘damages’ under Section 24.” (e) the judiciary.

Appeal from decisions of the SSC Compulsory membership

Decisions of the SSC are appealable to the Court of Appeals Membership with the GSIS is compulsory upon:
under Rule 43 of the Rules of Court by filing a verified petition for
review within fifteen (15) days from notice of judgment. Judicial (a) All government personnel who are receiving fixed
review thereof shall be permitted only after any party claiming monthly compensation and have not reached the mandatory
to be aggrieved thereby has exhausted his remedies before the retirement age of 65 years, whether elective or appointive;
Commission. (b) Elective officials who will be more than 65 years old
at the end of his term (including the period of his re-election
without interruption);
59Sec. 5 (a), Social Security Act of 1997, as amended, Sec. 1, Rule III, Rules of
Pleading, Practice and Procedure of the SSC.
°Oromega Lumber Co. v. SSC, L-14833 April 28, 1962; Jalotlot v. Marinduque
Iron Mines, 14 SCRA 187.
Sec. 3, GSIS Act of 1997.
“United Christian Missionary Society v. SSC, 30 SCRA 982.
®Poblete Construction v. Asian, 20 SCRA 1143.
Sec. 5 (b), Social Security Act of 1997, as amended. 369
370 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 18 371
THE GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997

(c) ‘
Officials appointed by the President of the Republic ranks, who . are required
i ;
by lew to romei ree ar monthl:
ere Y
of the Philippines who remain in office after reaching the age contributions for life insurance policies to the
of 65; answer for their life insurance benefits;
(d) Contractual or casual employees who receive ‘Bred (b) Active or Inactive
monthly compensation and render the required number o Active member — refers to a member of the GSIS, whether
‘Working hours for the month.’ regular or special, who is still in the government service and
together with the government agency to which he belongs, is
Employees not subject to compulsory coverage of the GSIS required to pay the monthly contribution.
The following employees are excluded from compulsory cover- Inactive member — a member who is separated from the
age of the GSIS: service either by resignation, retirement, disability, dismissal
or, who is deemed retired from
(a) Uniformed personnel of the Armed Forces of\the i
prom the services ne asthment
n
Philippines, Philippine National Police, Bureau of Fire € se °
Protection, and Bureau of Jail Management and Penology;
“(b B as o. : h . : Effective date of GSIS membership
receiving fixed monthly compensation; Officials who are not : GSIS membership takes effect on the date of assumption to
, {c) office by virtue of the original appointment or election.*
Contractual Employees who are not receiving fixed

- monthly compensation; and Separation from the service does not terminate GSIS membership
(d) Employees who do not have monthly regular hours
of work and are not receiving fixed monthly compensation.® ~ A GSIS member who is separated from the service continues
to be a member, and therefore, entitled to whatever benefits he has
Classes of GSIS membership Lg : qualified to in the event of any compensable contingency.*

GSIS membership is classified as follows: : The GSIS benefits .

(a) Regular or Special = Members of the GSIS are entitled to the following benefits:
Regular Members — those employed by the government (a) Separation benefits;’
of the Republic of the Philippines, national or local, legislative
(b) Unemployment or involuntary separation benefits;*
. bodies, government-owned and controlled corporations (GOCC) -
with. original charters, government financial institutions (c) Permanent total disability benefits;
(GFIs), except uniformed personnel of the Armed Forces of
(d) Permanent partial disability benefits;
the Philippines, the Philippine National Police, Bureau of
Jail Management and Penology (BJMP) and Bureau of Fire (e) Temporary total disability benefit;"
Protection (BFP), who are required by law to remit regular
monthly contributions to the GSIS; 4Sec. 2, Rule II, Revised Implementing Rules of the GSIS Act of 1997.
. “gs oe ®5Sec. 5, ibid.
Special Members — the constitutional commissioners, 6Sec, 4, GSIS Act of 1997.
members of the judiciary, including those with equivalent "Sec. 11, ibid.
®Sec. 12, ibid.
Sec. 16, ibid.
*Sec. 3, Rule II, Revised Implementing Rules of the GSIS Act of 1997. Sec. 17, GSIS Act of 1997.
3Sec. 2, ibid. "Sec. 18, ibid.
 372 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 18 373
THE GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997

(f) Retirement Benefits; (a) 2 months — if contributions have been made for 1
(g) Survivorship benefits; year but less than 3 years;
(h) Funeral benefit; (b) 3 months — if contributions have been made for 3
(i) Life insurance benefit.» years but less than 6 years;
oN
(c) 4 months — if contributions have been made for 6
Separation benefits years but less than 9 years;
The separation benefit consists of the following: (ad) 5 months — if contributions have been made for 9
years but less than 11 years;
(a) For members who resign or are separated from the
service after rendering service for at least 3 years but less than (e) 6 months — if contributions have been made for 11
15 years: years but less than 15 years;
Cash payment equivalent to 100% of the average monthly
compensation” for each year of service he paid contributions, Conditions for Entitlement to Unemployment Benefit
but not less than P12,000.00 payable upon reaching the age of GSIS members are entitled to the unemployment benefits if
60 years or upon separation, whichever comes later. the following conditions are met:
(b) For members who resign or are separated from the (a) he was a permanent employee at time of separation;
service after rendering at least 15 years of service and is below
60 years old at the time of resignation or separation: (b) his separation was involuntary due to the abolition
of his office; and
Cash payment equivalent to 18 times his basic monthly
pension payable at the time of resignation or separation, plus (c) he has been paying the required premium contribu-
an old-age pension benefit equal to the basic monthly pension tions for at least 1 year prior to separation.
payable monthly for life upon reaching the age of 60 years.”
Permanent Total Disability Benefits
Unemployment or involuntary separation benefits Permanent total disability means disability caused by injury or
This is available to permanent employees involuntarily sepa- disease resulting in complete, irreversible and permanent incapacity
rated from the service due to the abolition of office. to work or to engage in any gainful occupation.”

The unemployment benefit is in the form of monthly cash The following disabilities shall be deemed total and permanent:
payments equivalent to 50% of the average monthly compensation (a) complete loss of sight for both eyes;
payable for the following duration:
(b) loss of two limbs at or above the ankle or wrists;
(c) permanent complete paralysis of two limbs; and
Sec. 18, ibid.
'8Sec. 20, ibid. (d) brain injury resulting in incurable imbecility or
“Sec. 23, ibid.
Sec. 24, ibid.
insanity;
‘Average monthly compensation is the quotient arrived at after dividing
the aggregate compensation received by the member during his last thirty-six (36)
months of service preceding his separation/retirement/disability/death by thirty-six
(36), or by the number of months he received such compensation if he has less than 18Sec, 22, Revised Implementing Rules and Regulations of the GSIS Act of
thirty-six (36) months of service (Sec. 2 [1], GSIS Act of 1997).
1997.
Sec. 11, supra. 198Sec 23.2,1 Revised Implementing Rules of the GSIS Act of 1997.
 874 AGRARIAN LAW AND SOCIAL LEGISLATION CHAPTER 18 375
THE GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997

(e) such other cases as may be determined and approved NOTE: A member cannot simultaneously enjoy the
by the GSIS.* monthly income benefit for permanent disability and the old-
age retirement.”
The permanent total disability benefits for GSISTm mbers are
as follows: A member is not entitled to the benefit if the permanent
total disability
isabili i
was caused by hisi grave misconduc t, no toriousu
(a) Ifthe permanent total disability was suffered while negligence, habitual intoxication, or willful intention to kill
in the service himself or another.”

Lifetime monthly income benefit equal to the basic

monthly pension” plus cash payment equivalent to 18 times Permanent Partial Disability Benefits
his basic monthly pension, provided that a totalof at least 180 The disability is permanent and partial when the GSIS
monthly contributions has been paid; member is incapacitated to work for a limited period of time because
(b) If the permanent total disability was suffered after of complete and permanent loss of any of the following body parts:
separation from service :
« any finger ° one leg
Lifetime monthly income benefit equal to the basic
* any toe * one or both ears
monthly pension effective from the date of disability, provided
that the member has paid: *onearm ~° hearing of one or both ears
*onehand = sight of one eye
(i) 86 monthly contributions within the 5-year
period immediately preceding his disability, or * one foot + other cases as may be determined by the GSIS”
Gi) 180 monthly contributions, prior to his disabili- The permanent partial disability benefits consist in cash
ty.2 payment in accordance with a schedule of disabilities prescribed by
the GSIS.”
(c) Ifthe member has not paid the required minimum
contributions and the permanent total disability was suffered A GSIS member is entitled to permanent partial disability
after separation from service benefit:
His separation benefit equivalent to 100% of his average (a) if he was in the service at the time of disability; or
monthly compensation for each year of service (but not less (b) if separated from the service, he has paid at least
than P12,000) shall be paid in advance, provided that he has 36 months contributions within the 5-year period immediately
rendered at least three (3) years of service at the time of his preceding his disability; or has paid a total of at least 180
permanent total disability. months contributions prior to the disability; provided, that the
following conditions are met:
20Sec 23.2,1 ibid. 1. heis gainfully employed prior to the commence-
21The basic monthly pension is equal to: ment of disability resulting in loss of income as evidenced
(a) thirty-seven and one-half percent (37.5%) of the revalued average month- by any incontrove rtible proof thereof;
ly compensation; plus
(b) two and one-half percent (2.5%) of said revalued average monthly com-
pensation for each year of service in excess of fifteen (15) years: Provided, That the
basic monthly pension shall not exceed ninety percent (90%) of the average monthly
Sec. 16, ibid.
compensation (Sec. 9, GSIS Act of 1997). ;
Sec. 15, ibid.
28ec. 16, GSIS Act of 1997,
21Sec. 17, ibid; Sec. 23.2.2, Revised Implementing Rules and Regulations of the
3Sec. 16, GSIS Act of 1997.
GSIS Act of 1997.
Sec. 16, ibid.
28Sec. 17, ibid.
 376 AGRARIAN LAW AND SOCIAL LEGISLATION
CHAPTER 18 377
THE GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997

2. he is not a registered member of any social (b) The GSIS member must have exhausted all his sick
insurance institution; and
leave credits.”
3. he is not receiving any other pensien either
from GSIS or another local or foreign institution or NOTE: A GSIS member cannot enjoy the temporary total
organization.” disability benefit and sick leave pay simultaneously.®
A member is not entitled to the benefit if the permanent
NOTE: A member is not entitled to the benefit if the per- partial disability was caused by his grave misconduct, notorious
manent partial disability was caused by his grave misconduct, negligence, habitual intoxication, or willful intention to kill
notorious negligence, habitual intoxication, or willful intention himself or another.
to kill himself or another.»

Suspension of disability benefits

Temporary Total Disability Benefits
Unless the member has reached the minimum retirement age,
The disability is temporary and total when the GSIS member
disability benefits shall be suspended when he:
is momentarily incapacitated to work or engage in any gainful
occupation as a result of impairment of physical or mental faculties (a) is reemployed or
which can be rehabilitated or restored to their normal functions.
(b) recovers from disability as determined by the GSIS;
The temporary total disability benefit of GSIS members is: or
75% of the current daily compensation for each day of disability (c) fails to present himself for medical examination
for a period not exceeding 120 days in one calendar year, when required by the GSIS.*

NOTE: If the disability requires more extensive treatment Forfeiture of disability benefits
beyond 120 days, the payment of the temporary total disability
benefit may be extended by the GSIS for a period not exceeding The disability benefits will be automatically forfeited if the
240 days. GSIS member refuses or fails:
(a) to have himself medically treated by a physician
AGSIS member is entitled to temporary total disability benefit when required by the GSIS;
under the following conditions:
(b) to take the prescribed medications;
(a) The GSIS member must be in the service at the time
of his disability or, if separated, he has: (c) to have himself confined in a hospital, when such
confinement is required by the GSIS; or
(i) rendered at least three (3) years of service; and
(d) to avail himself of rehabilitation facilities as may be
(ii) paid at least six (6) monthly contributions in
the 12-month period immediately preceding his disability. duly recommended by the GSIS; or

*Sec. 23.4.2, Revised Implementing Rules and Regulations of the GSIS

Act of Sec. 18, GSIS Act of 1997.
1997,
33Sec. 18, ibid. .
Sec. 15, GSIS Act of 1997.
%4Sec. 23.2.4, Revised Implementing Rules and Regulations of the GSIS Act of
31Sec, 23.2.3, Revised Implementing Rules and Regulations of the GSIS
Act of 1997.
1997.
%6Sec. 16, GSIS Act of 1997.
 378 AGRARIAN LAW AND SOCIAL LEGISLATION
CHAPTER 18 379
THE GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997

(e) to observe such precautionary or preventive mea-

(b) If the deceased member opted for immediate pen-
sures as prescribed by a physician to prevent the aggrav
ation sion, his legal heirs shall be entitled to the cash payment ben-
or continuance of his disability.*
efit equivalent to 18 months of basic monthly pension, plus ac-
crued pension up to the date of death of the retiree.
Retirement Benefits
~(\
(c) If the deceased member failed to indicate any
To be entitled to the retirement benefits, the GSIS membe retirement option, the retirement benefit shall be computed as
r
must meet the following conditions: if he opted for immediate pension.”
(a) he has rendered at least fifteen (15) years of service;
Survivorship Benefits
(b) he is at least sixty (60) years of age at thetime of
retirement; and If the GSIS member dies, the primary beneficiaries“ are en-
titled to the following survivorship benefits, whichever is applicable:
(c) he is not receiving a monthly pension benefit from
permanent total disability.2” (a) Survivorship pension, under the following condi-
tions:
A retiring GSIS member has the following options:
(i) The deceased was in the service at the time of
(a) 5-year lump sum equivalent to 60 months of basic
his death; or
monthly pension.* After the lapse of the 5-year period,
old-age
pension benefit equal to the basic monthly pension payabl (ii) if separated from the service,
e for
life; or
* has at least three (3) years of service at
(b) Cash payment benefit equivalent to 18 times of the the time of his death and has paid thirty-six (36)
basic monthly pension plus monthly pension for life; monthly contributions within the five-year period
immediately preceding his death; or
Effect of Death of the GSIS Member While the Retir
ement
Claims Are Being Processed * has paid a total of at least one hundred
eighty (180) monthly contributions prior to his
(a) Ifthe deceased member opted for 5-year lump sum
death;
benefit, his legal heirs shall be entitled to 5-year lump
sum
benefit equivalent to 60 months basic monthly pension. (b) Survivorship pension plus a cash payment equiva-
But the
survivorship pension shall be granted only after the end lent to one hundred percent (100%) of average monthly com-
of the
5-year guaranteed period; pensation for every year of service, under the following condi-
tions:
(i) the deceased was in the service at the time of
Sec. 23.4.6, Revised Implementing Rules and Regulat his death; and
ions of the GSIS Act of
1997.
5"Sec. 13-A, GSIS Act of 1997. (ii) must have rendered at least three (3) years of
*°The basic monthly pension is equal to:
service.
(a) thirty-seven and one-half percent (37.5%) of the
revalued average month-
ly compensation; plus (c) Cash payment equivalent to one hundred percent
(b) two and one-half percent (2.5%) of said revalued
pensation for each year of service in excess of fifteen (15)
average monthly com- (100%) of his average monthly compensation for each year
years: Provided, That the
basic monthly pension shall not exceed ninety percent
(90%) of the average monthly
compensation (Sec. 9, GSIS Act of 1997).
Sec. 20.2, Revised Implementing Rules and Regulations Sec. 20.5, ibid. ;
of the GSIS Act of “1The primary beneficiaries are the legal dependent spouse until he/she remar-
1997.
ries and the dependent children (Sec. 2 [g], GSIS Act of 1997).

.
 380 AGRARIAN LAW AND SOCIAL LEGISLATION
CHAPTER 18 381
THE GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997

of service he paid contributions, but not less

than Twelve Gi) has at least three (3) years of service.
thousand pesos (P12,000.00), under the following
conditions:
In the absence of secondary beneficiaries, the benefits shall be
(i) the deceased has rendered at least three (3)
paid to his legal heirs.“
years of service prior to his death;
(ii) but does not qualify for survivorship pensi Funeral Benefits
on
mentioned above.”
Funeral benefit is intended to help defray the expenses inci-
The survivorship pension shall be paid to: dent to the burial and funeral of the deceased member, pensioner or
(a) the dependent spouse — if she is the only survivor,t retiree. It is payable to any qualified individual, in accordance with
o > the following order of priority:
be enjoyed for life or until he/she remarries;
(b) the dependent childrens — if they are the (a) Legitimate spouse;
only
survivors, to be enjoyed for as long as they are (b) Legitimate child who spent for the funeral services;
qualified, plus
the dependent children’s pension; or
,
(c) the dependent spouse and the dependent childr (c) Any other person who can show incontrovertible
en,
if they are survivors — the dependent spouse proof that he shouldered the funeral expenses of the deceased.
shall receive the
basic survivorship pension for life or until he/she
remarries, The funeral benefit is:
while the dependent children shall receive
the dependent
children’s pension equivalent to 10% of the (a) The prevailing amount approved by the Board of
basic monthly
pension for every dependent child not excee Trustees at the time of death of the member or pensioner;
ding five (5),
counted from the youngest and without substituti
on.* (b) 10,000.00 — For uniformed members of the Philip-
If there are no primary beneficiaries, the survivorsh pine National Police, Bureau of Jail Management and Peno-
ip benefits
shall be paid to the secondary beneficiaries“ in the logy, and Bureau of Fire Protection.”
following amount:
(a) Cash payment equivalent to 100% of the averag
e
monthly compensation for each year of service Life Insurance Benefit
he paid contri-
butions, but not less than Twelve thousand pesos
(P12,000), if The GSIS life insurance is compulsory and available to all em-
the GSIS member:
ployees, except for Members of the Armed Forces of the Philippines
(i) was in the service at the time of his death; and the Philippine National Police.
and

Prescriptive period for filing claims

“Sec. 21, GSIS Act of 1997.
“The dependent children are the unmarried the legitimate, legitimated, or
Claims for GSIS benefits except for life insurance and retire-
legally adopted child including the illegitimate child,
the age of majority, or over the age of majority
not gainfully employed, not over ment must be filed within 4 years from the date of contingency.
but incapacitated and incapable of Claims filed after 4 years will be barred by prescription."
self-support due to a mental or physical defect acquire
d prior to age of majority (Sec.
2 [fl, GSIS Act of 1997).
“The dependent children’s pension is 10% of
the basic monthly pension for
every dependent child not exceeding five (5), counted
from the youngest and without ‘Sec. 21, GSIS Act of 1997.
substitution.
“Sec. 21, GSIS Act of 1997. “Sec. 25.1, Revised Implementing Rules and Regulations of the GSIS Act of
“Secondary beneficiaries are the dependent parents 1997.
and, subject to the re- Sec. 25.2, ibid.
strictions on dependent children, the legitimate
descendants (Sec. 2 [h], GSIS Act of 50Sec. 24, GSIS Act of 1997.
1997).
Sec. 28, ibid. ; ,