Agra and Social Legislation Finals

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Atty Capanas 2014 Finals

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    Pointers in Agrarian Reform and other social legislation:

    I.

    SS ACT OF 1997

    1. JURISDICTION; DACION EN PAGO IMPLEMENTATION (SSSV ATLANTIC GULF)

    SSS VS ATLANTIC GOLF

    -atlantic filed a complaint for specific performance and

    damages against SSS before RTC of Batangas City

    -from the averment in the complaint, private respondents

    are seeking to implement the deed of assignment which

    they had drafted and submitted to SSS sometime in July

    2001, pursuant to SSSs letter addressed to AG&P dated 23

    April 2001 approving AG&P and SEMIRARAs delinquencies

    through dacion en pago, which as of 31 March 2001,

    amount to P29,261,902.45.

    When the deed of assignment was submitted sss did not

    sign it because there was a conflict as to the amount of

    delinquencies. Mao na adto sila sa court to compel sss to

    sign the dacion en pago. Sss filed a motion to dismiss on

    the ground lack of jurisdiction. Citing section 5, RTC

    dismissed.

    -ca reversed RTC decision and held that the subject of

    complaint(kuwang and slide)

    ISSUE: which body has the jurisdiction to entertain the

    controversy arising from the non-implementation of a

    dacion en pago agreed upon by the parties as a means of

    settlement of private respondents liabilities?

    SC; from the allegations of respondents complaint, it

    readily appears that there is no longer dispute with

    respect to respondents accountability to SSS. Respondent,

    had in fact admitted their delinquency and offered to

    settle them by way of dacion en pago subsequently

    approved by the SSS in Resolution no. 270s-2001.

    - The controversy lies in the non-implementation of the

    approved and agreed dacion en pago on the part of the

    SSS. As such, respondents filed a suit to obtain its

    enforcement which is, doubtless, a suit for specific

    performance and one incapable of pecuniary estimation

    beyond the competence of the Commission.

    Court Review.The decision of the Commission upon any

    disputed matter may be reviewed both upon the law and

    the facts by the Court of Appeals. For the purpose of suchreview, the procedure concerning appeals from the

    Regional Trial Court shall be followed as far as practicable

    and consistent with the purposes of this Act. Appeal from

    a decision of the Commission must be taken within fifteen

    (15) days from notification of such decision. If the decision

    of the Commission involves only questions of law, the

    same shall be reviewed by the Supreme Court. No appeal

    bond shall be required. The case shall be heard in a

    summary manner, and shall take precedence over all

    cases, except that in the Supreme Court, criminal cases

    wherein life imprisonment or death has been imposed by

    the trial court shall take precedence. No appeal shall act as

    a supersedeas or a stay of the order of the Commission

    unless the Commission itself, or the Court of Appeals or

    the Supreme Court, shall so order.

    Notice here that the law uses the word appeal. Appeal

    from the decision of the commission. So whether it is by

    petition for review, verified petition for review or a notice

    of appeal.

    The Old Rule says it is by mere notice of appeal but in the

    recent Rule, it is by verified petition for review.

    Notice of appeal: (1) you only have one piece of paper (2)

    Material date when you receive the copy of the decision

    and (3) you furnish the opposing council correctly, then

    notice of appeal is complied. The problem of the notice of

    appeal is once the notice of appeal is perfected the entire

    records will all be elevated to the higher court, in this case

    the court of appeals. But there will be a problem there.

    why? Because the SSC is a quasi-judicial body, its not the

    same with regular courts.

    But if it is verified petition of review, the entire records will

    remain at the SSC. What we will file at the CA is the

    petition for review which will contain the facts of the case,

    the material dates, the issues, the arguments but you need

    to attach true copies of the relevant documents that you

    cite or you will cite in your petition for review.

    Criminal offenses for violations of the law are within the

    jurisdiction of the regular courts.

    2.

    REP V ASIAPRO - WEEKLY STIPENDS OR EXCESS INSERVICE SURPLUS; E-E

    REPUBLIC VS ASIAPRO CCOPERATION

    -respondent Asiapro, as cooperative is composed of

    owners-members. Its primary objective is to provide

    savings and credit facilities and to develop other livelihood

    services for its owners-members.

    Are members of the cooperative covered compulsorily

    under SSS?

    -In the discharge of the primary objective, respondent

    entered into several service contracts with Stanfilco- a

    division of DOLE Phil Inc. and a company based in

    Bukidnon. The owners-members do not receive

    compensation or wages from the respondent cooperative,Instead, they receive a share in the service surplus which

    the cooperative earns from different areas of trade it

    engages in such as the income derived from the said

    service contracts with stanfilco. The owners-members get

    their income from the service generated by the quality and

    amount of service they rendered which is determined by

    the board of directors of the cooperative.

    -in order to enjoy the benefits under the SS Law of 1997

    the owners-members of the cooperative who were

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    assigned to stanfilco requested the service of the latter to

    register them with petitioner SSS as self-employed and to

    remit their contributions as such.

    -SSS sent a letter to stanfilco that based on the service

    contract it executed with stanfilco, the cooperative is a

    manpower contractor supplying employees for stanfilco

    and for that reason, it is an employer of its owners-

    members working with stanfilco. Thus, respondentcooperative should register itself with SSS as an employer

    and make the corresponding report and remittance of

    prenimum contributions in accordance with SSL.

    WHO SHOULD DETERMINE E-E?

    -since the existence of EE rel. between the respondent

    coop and its owners-members was put in issue and

    considering that the compulsory coverage of the SSS law is

    predicated on the existence of such relationship, it

    behooves the petitioner SSC to determine if there is really

    an EE rel existing between respondent coop and its

    owners-members.

    The same four-fold test, the same elements.

    Independent contracting and labor only employees = not

    covered by SS law.

    -the question on the existence of EE rel. is not within the

    exclusive jurisdiction of NLRC. ART 217 of LC enumerating

    the jurisdiction of the Labor Arbiters and the NLRC

    provides that:

    ART. 217- Jurisdiction of Labor Arbiters and the

    Commission:

    Xxx xxxx xxx

    6. except claims for employees compensation, SS,

    medicare and maternity benefits, all other claims arising

    from EE relations including those of persons in domestic or

    household service including an amount exceeding P5000

    regardless of whether accompanied with a claim for

    reinstatement.

    -although the provision speaks merely of claims for SS, it

    would necessarily include issues on the coverage thereof,

    because claims are undeniably rooted in the coverage by

    the system. Hence, the question on the existence of EE

    relationship for the purpose of determining the coverage

    of SSS is explicitly excluded from the jurisdiction of the

    NLRC and falls with the jurisdiction of SSC which is

    primarily charged with the duty of settling disputes arising

    under SSL of 1997.

    -in determining the existence of an EE relationship, the ff

    elements are considered:

    (4-fold test ni, kamu nlng supply remember labor kay

    kapuy type.. heheh..) The most important. Element is the

    employers control of the employees conduct, not only as

    to the result of the work to be done but also as to the

    means and methods to accomplish.

    Connect this to the case of Co vs People

    SSC cannot determine the relationship in all instances.

    Facts: There was already a ruling from the labor case filed

    from the supposed employee against the supposed

    employer. That there was no EE relationship. The ruling

    was final and executory. Despite that, gikiha gihapon ang

    kadtong supposed employer in the fiscals office for

    violation of the SS law. Nakalusot ang kiha, naabot sa RTC.Ni.file ug motion to quash on the ground of lack of

    jurisdiction. And the court sustained, saying that there is

    no more need to determine the EE relationship because

    that has already been determined by the Labor Courts that

    there was absence of EE relationship. And since SS law

    coverage is predicated on the existence then there should

    be no more criminal case to be filed against the supposed

    employer.

    SC: the mandatory coverage

    Sir: In my opinion, if there is already a final and executory

    ruling of the labor code, SSC does not have to make the

    ruling on the EE relationship. Why? Because that will not

    end the issue and you may have a ruling of the SSC which

    may be different to that of the Labor Courts.

    SC: ALL ELEMENTS ARE PRESENT IN THIS CASE (Asiapro)

    1. expressly provided in the service contract that

    respondent coop has the exclusive jurisdiction in the

    selection and engagement of the owners-members as well

    as team leaders who will be assigned at stanfilco.

    2. The weekly stipends or the so called share in the

    service surplus given by the respondent cooperative to its

    owners-members WERE IN REALITY WAGES, as the same

    were equivalent to an amount not lower than that

    prescribed by the labor laws, rules and regulations

    including the wage order applicable to the area and

    industry or the same shall not be lower than the prevailing

    rates of wages. It cannot be doubted then that those

    stipends or share in the service surplus are indeed wages

    because these are given to the owners-members as

    compensation in RENDERING SERVICES to respondent

    cooperatives client, stanfilco.

    If share jud, if naay makuha naa, if wala, wala. Mura bag

    dividends sa corporation.

    3. Power to investigate cooperative

    4. Control of cooperative

    3. PROJECT EMPLOYEES (CHUA V CA)Coverage of Employees

    a. A private employee who is not over 60 years oldb. A household-helper earning at least P1,000 a month is

    covered starting Sept. 1, 1993.

    A household-helper is any person who renders

    domestic or household services exclusively to a household

    employer such driver, gardener, cook, governess, and

    other similar occupations.

    c. A Filipino seafarer upon the signing of the standard

    contract or employment between the seafarer and the

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    manning agency which, together with the foreign ship

    owner, act as employers.

    d. An employee of a foreign government, international

    organization or their wholly-owned instrumentality based

    in the Philippines, which entered into an administrative

    agreement with the SSS for the coverage of its Filipino

    workers.

    Are laborers continuously assigned to construction

    projects as carpenters, wielders, are compulsory covered?

    Case of CHUA vs CA: there was still an EE-ER relationship,

    so covered. mao na, probationary employees, they are

    covered under SSS. why? Regardless of the nature of the

    employment.

    EFFECTIVITY: first day of employment.

    So advice karon sa mga clients. Naay mo sud, ask if you

    have an SS na. In the same manner in the criminal case for

    example, if your client is sued for the violation of the SS

    law in the fiscals office, once mo bayad ka sa SS, mo exist

    na ang SSS but the question there, what is the effect of

    your payment kung dunay labor case gifile later on?

    Because for me, that may be considered as an admission

    that there existed an EE-ER relationship. That is practical

    why? you try to avoid criminal case.

    The employer is given 30 days from day to employment to

    the report the employer coverage to the SSS.

    4.

    TAXI DRIVER ENGAGED ON BOUNDARY BASISThey (taxi drivers) are EE just like jeepney drivers are EE to

    their operators. Even if they receive "boundary basis"

    compensation there is still an ER-EE relationship. The

    method of fixing compensation is not determinative of an

    EE-ER relationship. As long as the ER exercises the right to

    control (not necessarily actual control), there is EE-ER

    relationship.

    Based on an article I found. Allow me, however to present

    the following comments and observations relative to your

    proposal:

    1. Legal basis for SSS coverage of drivers of public

    transport

    The legal basis for the compulsory SSS coverage of drivers

    of public transport may be derived from SSS Circular No.

    79-T published on 03 April 1970 (Annex A). Said circularprovides the bases of coverage, premium contribution,

    and allowable daily deduction or earnings of jeepney

    drivers of jeepney operators, salient features of which are

    as follows:

    a. Basis of Coverage - Jeepney drivers are employees of

    jeepney operators and, as such are required under the

    Social Security Law to be reported for coverage by their

    employee (Please refer to the Supreme Court ruling in the

    case of the NATIONAL LABOR UNION vs. DINGLASAN, L-

    7945, 23 March 1956).

    b. Basis of Premium Contribution - If the earnings of

    jeepney driver cannot be determined by records, then the

    basis of the premium contribution to the SSS is the

    minimum wage as authorized by Law (Please refer to

    Supreme Court ruling in the case of MALATE TAXICAB 7GARAGE, INC. vs. THE CIR AND NIU (G.R. NO. 1-8718,

    PROM. May 11, 1956, 52 O.G, No. 6,p. 3034)

    BASIS OF COVERAGE -

    The Supreme Court held that jeepney drivers are

    employees of jeepney operators in the case of the

    NATIONAL LABOR UNION vs. DINGLASAN, L-7945, 23

    March 1956. The Court RULED:

    "...The drivers did not invest a single centavo in the

    business and the respondent is the exclusive owner of the

    jeeps. The management of the business is in the

    respondent's hands. For even if the drivers of the jeeps

    take material possession of the jeeps, still the respondent

    as owner thereof and holder of a certificate of public

    convenience is entitled to exercise, as he does and under

    the law he must, supervision over the drivers by seeing to

    it that they follow the route prescribed by the Public

    Service Commission and rules and regulations promulgates

    by its as regards their operation. X X X The only features

    that would make the relationship of lessor and lessee

    between the respondent and the drivers, x x x x are the

    fact that he does not pay them fixed wage but their

    compensation is the excess of the total amount of fares

    earned or collected by them over and above the amount x

    x x which they agreed to pay to the respondent, the owner

    of the jeeps, and the fact that the gasoline burned by the

    jeeps is for the account of the drivers. These two features

    are not, however, sufficient to withdraw the relationship

    between them from the employer-employee, x x x. Not

    having any interest in the business because they did not

    invest anything in the acquisition of the jeeps and did not

    participate in the management thereof, their service as

    drivers of the jeeps being their only contribution o the

    business the relationship of lessor and lessee cannot be

    sustained. In the lease of chattels the lessor loses control

    over the chattel leased although the lessee cannot make

    sure thereof, for he would be responsible for damages to

    the lessor should he do so. In this case, there is a

    supervision and sort of control that owner of the jeeps

    exercise over the drivers.. It is an attempt by ingenious

    scheme to withdraw the the relationship between theowner of the laws enacted to promote industrial peace."

    As such employees, jeepney drivers are therefore covered

    under Sec. 10 of the Social Security Law.

    5. LABOR-ONLY CONTRACTING

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    Ans: You can avail the benefits and be a member under

    SSS law if there exist an employer- employee relationship.

    In labor only contractor, there could exist an employer-

    employee relationship between the contractor- employee

    and the principal. The principal is bound to register the

    contractor employee under the SSS law, and pay its

    contribution. The principal has power of control to the

    contractor employees and not the labor only contractorbecause the latter is only an agent of the principal.

    Independent contractors and principal do not have

    employer- employee relationship because the principal has

    no power to control the means and tools in making the job

    done. The principal is only concerned on the result.

    However, they can be a member of SSS under the category

    of self- employed depending on their wage earned.

    Both do not have substantial capitalization. Under the

    Labor Code, two (2) elements must exist for a finding of

    labor-only contracting:

    (a) the person supplying workers to an employer does not

    have substantial capital or investment in the form of tools,

    equipment, machineries, work premises, among others,

    and

    (b) the workers recruited and placed by such persons are

    performing activities directly related to the principal

    business of such employer.

    TN: naa sa lain notes. Independent contracting and labor

    only employees are not covered by the SS Law.

    6. EMPLOYMENT SERVICES NOT COVERED: PURELY CASUAL(MANSAL V GO-CHECO)

    Very Important: EE Relationship because in SS law there

    are employees that are excluded from coverage, so even if

    they perform services and the receive compensation, they

    are excluded because of the ABSENCE of employer-

    employee relationship.

    (j) Employment - Any service performed by an employee

    for his employer except:

    (1) Employment purely casual and not for the purpose of

    occupation or business of the employer;

    (2) Service performed on or in connection with an alien

    vessel by an employee if he is employed when such vesselis outside the Philippines;

    (3) Service performed in the employ of the Philippine

    Government or instrumentality or agency thereof;

    (4) Service performed in the employ of a foreign

    government or international organization, or their wholly-

    owned instrumentality: Provided, however, That this

    exemption notwithstanding, any foreign government,

    international organization or their wholly-owned

    instrumentality employing workers in the Philippines or

    employing Filipinos outside of the Philippines, may enter

    into an agreement with the Philippine Government for the

    inclusion of such employees in the SSS except those

    already covered by their respective civil service retirement

    systems: Provided, further, That the terms of such

    agreement shall conform with the provisions of this Act oncoverage and amount of payment of contributions and

    benefits: Provided, finally, That the provisions of this Act

    shall be supplementary to any such agreement; and

    (5) Such other services performed by temporary and other

    employees which may be excluded by regulation of the

    Commission. Employees of bona fide independent

    contractors shall not be deemed employees of the

    employer engaging the service of said contractors.

    Employment services excluded. You can find this also on SS

    book.

    - FOCUS on number 1 and number 5.

    - Employees of bonafide independent contractor

    shall not be deemed employees of the employeer

    engaging the service of the said contractors. (For purposes

    of the bar, this will be important.)

    - 1. "purely casual employment" and not for the

    purpose of occupation for business of the employee .

    o The person that is engaged there is actually an

    employee, but is purely casual and not for the purpose of

    occupation or business of the employee.

    case of MANSAL VS. GUCHECO Meaning of number (1).

    The work of the mechanic is purely casual because it is not

    part of the business in the operation of the lumber

    business.

    BAR: I think it was a warehouse or building selling

    merchandise. naguba ang atop because of the storm and

    the carpenter is hired to fix the roof.

    Q: whether the carpenter should be compulsorily covered?

    Answer is # 1. It was purely casual employment

    and the services performed by the carpenter are not for

    the purpose of occupation for business of the employer.

    - But there can be a lot of arguments here. What

    is purely casual, that is not also defined under SS law.

    Agricultural laborer- the finding is also based on the

    presence of the elements of employer employee

    relationship.

    7. DEFINITION OF EMPLOYER

    Coverage of Employers

    a. An employer, or any person who uses the

    services of another person in business, trade, industry or

    any undertaking.

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    b. A social, civil, professional, charitable and other

    non-profit organization which hire the services of

    employees are considered employers.

    c. A foreign government, international organization

    or its wholly-owned instrumentality such as embassy in

    the Philippines, may enter into an administrative

    agreement with the SSS for the coverage of its Filipinoemployees

    8.

    SICKNESS BENEFIT NUMBER OF DAYS THAT CAN BEPAID

    Sickness Benefit

    A daily cash allowance paid for the number of

    days a member is unable to work due to sickness or injury.

    The amount is equivalent to 90% of the members average

    daily salary credit.

    Requirements:

    1. He is unable to work due to sickness or injury

    and confined either in a hospital or at home for at least 4

    days;

    2. He has paid at least 3 months of contributions within

    the 12-month period immediately before the semester of

    sickness/injury

    In computing, exclude the semester of sickness. A

    semester refers to two consecutive quarters ending in the

    quarter of sickness. A quarter refers to three consecutive

    months ending March, June, September or December.

    3. He has used up all company sick leaves with pay; and

    Why? Because if there is a company paying, so why will

    the system pay you? Supposedly, it is the fact that you will

    not receive anything from the company due to your

    inability to work where the system will compensate.

    4. He has notified the employer or SSS, if separated,

    voluntary or self-employed.

    Notify employer within 5 calendar days after

    start of sickness/injury and employer must notify SSS

    within 5 days after receipt of notification. Notice is not

    required if members confinement is in hospital (why?

    Because it can easily be checked) or member got sick while

    working or within company premises. (within the company

    premises = the employer is supposed to know that you got

    sick)

    Note: Requirement 2 is very common to all benefits

    For example (from the guidebook of SSS): SSS member

    gets sick in October 2006 for 20 days.

    a. The semester of sickness would be from July

    2006 to December 2006. two quarters including the

    October 2006

    b. The 12-month period would be from July 2005 to

    June 2006 (where the six highest monthly salary credits

    will be chosen).

    It is during the 12-month period where SSS would have to

    know whether there was payment of at least three months

    contribution.

    MSC = Monthly Salary Credits

    If maglahi2x ug sweldo kay balhin2x ug amo, it is the 6th

    highest MSC that will be chosen.

    In no case shall the daily sickness benefit be paid longer

    than one hundred twenty (120) days in one (1) calendar

    year, nor shall any unused portion of the one hundred

    twenty (120) days of sickness benefit granted under this

    section be carried forward and added to the total number

    of compensable days allowable in the subsequent year.

    Limit as to number of days (above) because in sickness, the

    salary credit will have to be multiplied with the number of

    days that the member gets sick hence the maximum

    (stated above).

    9. MATERNITY LEAVE BENEFIT

    Maternity Benefit

    It is a daily cash allowance granted to female

    member who was unable to work due to childbirth or

    miscarriage.No marriage requirement.

    It is equivalent to 100% of members average

    daily salary credit (wala pa niy deduction ha?) multiplied

    by 60 days for normal delivery or miscarriage, 78 days for

    caesarian section delivery.

    Qualifications for entitlement: (same with sickness)

    1. She has paid at least three monthly contributions

    within the 12-month period immediately preceding the

    semester of her childbirth or miscarriage

    2. She has given the required notification of her

    pregnancy through her employer if employed, or to SSS if

    separated, voluntary or self-employed.

    For example: SSS member gives birth in December 2006.

    a. The semester of contingency would be from July

    2006 to December 2006.

    b. The 12-month period before the semester of

    contingency would be from July 2005 to June 2006.

    Deliveries covered: (Important aspect)

    Only for the first four deliveries or miscarriages

    shall be paid starting May 24, 1997 (effectivity of RA 8282)

    Miscarriages include abortion. SSS website only mentionedabortion, no qualification whether it is intentional or

    unintentional but according to SSS abortion should only

    cover unintentional. Why? According to them, there is a

    criminal responsibility on intentional abortion.

    But is it not that regardless or criminal liability for as long

    as the facts comply with the requirements, in (sirs)

    opinion, it should cover intentional abortion but I have no

    basis for that. Because for me, the purpose of SS law is to

    benefit the employee. What is the purpose of SS law with

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    respect the employer? To oblige the employer because

    remember the employer does not get anything from the SS

    law. Employer has a lot of obligations and responsibilities

    under the SS law.

    Note: Delivery of twins/triplets/quadra/etc. = one delivery

    only

    Notice required:

    As soon as pregnancy is confirmed, member

    must notify immediately employer or SSS, if unemployed,

    etc. and probable date of childbirth at least 60 days from

    date of conception. Employer must in turn notify SSS after

    receipt of notification. Failure to observe the rule may

    result in denial.

    Can a member apply for sickness benefit if she has been

    paid maternity benefit?

    No, because as a rule, no member can be entitled to two

    benefits for the same period.

    10. WHO DETERMINES E-E?11. EFFECT OF FINAL JUDGMENT AT NLRC ON E-E

    WHO SHOULD DETERMINE E-E?

    -since the existence of EE rel. between the respondent

    coop and its owners-members was put in issue and

    considering that the compulsory coverage of the SSS law is

    predicated on the existence of such relationship, it

    behooves the petitioner SSC to determine if there is really

    an EE rel existing between respondent coop and its

    owners-members.

    The same four-fold test, the same elements.

    Independent contracting and labor only employees = not

    covered by SS law.

    -the question on the existence of EE rel. is not within the

    exclusive jurisdiction of NLRC. ART 217 of LC enumerating

    the jurisdiction of the Labor Arbiters and the NLRC

    provides that:

    ART. 217- Jurisdiction of Labor Arbiters and the

    Commission:

    Xxx xxxx xxx

    6. except claims for employees compensation, SS,medicare and maternity benefits, all other claims arising

    from EE relations including those of persons in domestic or

    household service including an amount exceeding P5000

    regardless of whether accompanied with a claim for

    reinstatement.

    -although the provision speaks merely of claims for SS, it

    would necessarily include issues on the coverage thereof,

    because claims are undeniably rooted in the coverage by

    the system. Hence, the question on the existence of EE

    relationship for the purpose of determining the coverage

    of SSS is explicitly excluded from the jurisdiction of the

    NLRC and falls with the jurisdiction of SSC which is

    primarily charged with the duty of settling disputes arising

    under SSL of 1997.

    -in determining the existence of an EE relationship, the ffelements are considered:

    (4-fold test ni, kamu nlng supply remember labor kay

    kapuy type.. heheh..) The most important. Element is the

    employers control of the employees conduct, not only as

    to the result of the work to be done but also as to the

    means and methods to accomplish.

    Connect this to the case of Co vs People

    SSC cannot determine the relationship in all instances.

    Facts: There was already a ruling from the labor case filed

    from the supposed employee against the supposed

    employer. That there was no EE relationship. The ruling

    was final and executory. Despite that, gikiha gihapon ang

    kadtong supposed employer in the fiscals office for

    violation of the SS law. Nakalusot ang kiha, naabot sa RTC.

    Ni.file ug motion to quash on the ground of lack of

    jurisdiction. And the court sustained, saying that there is

    no more need to determine the EE relationship because

    that has already been determined by the Labor Courts that

    there was absence of EE relationship. And since SS law

    coverage is predicated on the existence then there should

    be no more criminal case to be filed against the supposed

    employer.

    SC: the mandatory coverage

    Sir: In my opinion, if there is already a final and executory

    ruling of the labor code, SSC does not have to make the

    ruling on the EE relationship. Why? Because that will not

    end the issue and you may have a ruling of the SSC which

    may be different to that of the Labor Courts.

    SC: ALL ELEMENTS ARE PRESENT IN THIS CASE (Asiapro)

    1. expressly provided in the service contract that

    respondent coop has the exclusive jurisdiction in the

    selection and engagement of the owners-members as well

    as team leaders who will be assigned at stanfilco.

    2. The weekly stipends or the so called share in the

    service surplus given by the respondent cooperative to its

    owners-members WERE IN REALITY WAGES, as the samewere equivalent to an amount not lower than that

    prescribed by the labor laws, rules and regulations

    including the wage order applicable to the area and

    industry or the same shall not be lower than the prevailing

    rates of wages. It cannot be doubted then that those

    stipends or share in the service surplus are indeed wages

    because these are given to the owners-members as

    compensation in RENDERING SERVICES to respondent

    cooperatives client, stanfilco.

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    If share jud, if naay makuha naa, if wala, wala. Mura bag

    dividends sa corporation.

    3. Power to investigate cooperative

    4. Control of cooperative

    12. CONTINGENCIES COVERED; BENEFITS WHERE EMPLOYER

    ADVANCES

    -SS evolved from an age-old search of man for protection

    against poverty, which breeds grave social ills that not only

    threaten his survival but also erode his sense of human

    dignity. It therefore becomes the duty of the state to

    operate a mechanism that would provide such protection

    to its people.

    Poverty in the context of contingency as contemplated in

    the SS law. Contingencies contemplated in SS law which

    the program seeks to address: death, old age, retirement,

    sickness, pregnancy, or disability.

    -the system established a program which relieves financial

    want by restoring income lost through inability to work

    due to death, old age, sickness, pregnancy or disability

    Example, if a covered member of sss dies, he may be left

    by his surviving spouse who may not have any work or any

    source of income; or a covered employee retires.

    -so workers are protected from anxieties arising out of

    contingencies

    -but another phenomenon has aroused a deep anxiety for

    working class- globalization (ie, cost-cutting, productivity

    enhancement, downsizing of personnel, termination of

    jobs.) These may be financial but these are not

    contingencies in the eyes of the ss law. Termination of job

    and unemployment not included in the contingency.

    Employers need to advance:

    1.

    Advance SS and EC sickness benefits once approved by SSS

    2.

    Advance SS maternity benefits due

    3. File for reimbursement for all legally advanced sickness

    and maternity benefits

    13. CLAIMS UNDER LABOR CODE VIS--VIS SSS (ORTEGA VSSC)

    ORTEGA VS SSC

    -Claims under the Labor Code for compensation and under

    the Social Security Law for benefits are not the same as to

    their nature and purpose.

    -On the one hand, the pertinent provisions of the LaborCode govern compensability of work-related disabilities or

    when there is loss of income due to work-connected or

    work-aggravated injury or illness.

    -On the other hand, the benefits under the Social Security

    Law are intended to provide insurance or protection

    against the hazards or risks of disability, sickness, old age

    or death, inter alia, irrespective of whether they arose

    from or in the course of the employment.

    -And unlike under the Social Security Law, a disability is

    total and permanent under the Labor Code if as a result of

    the injury or sickness the employee is unable to perform

    any gainful occupation for a continuous period exceeding

    120 days regardless of whether he loses the use of any of

    his body parts.

    14. COMPULSORY COVERAGE; WHEN EFFECTIVECOMPULSORY COVERAGE (Memorize!) importance of the

    word compulsory NO CHOICE hahahaha

    Even if the household helper requests not to be covered,

    which normally happens, nganu man? maibanan man

    akoang sweldo ayaw lng deducti noh anyway naa btw para

    SS ayaw nlng i-deduct. Assuming imong gi report, wa nimo

    gi-deduct, ang employer manubag sa balaod! Dili ang

    employee and remember wala rabai relationship. Inig kiha

    sa employeer sa employee, aw kapapa ang employer .

    Coverage of Employees

    a. A private employee who is not over 60 years old

    b. A household-helper earning at least P1,000 a month is

    covered starting Sept. 1, 1993.

    A household-helper is any person who renders

    domestic or household services exclusively to a household

    employer such driver, gardener, cook, governess, and

    other similar occupations.

    c. A Filipino seafarer upon the signing of the standard

    contract or employment between the seafarer and the

    manning agency which, together with the foreign ship

    owner, act as employers.

    d. An employee of a foreign government, international

    organization or their wholly-owned instrumentality based

    in the Philippines, which entered into an administrative

    agreement with the SSS for the coverage of its Filipino

    workers.

    Are laborers continuously assigned to construction

    projects as carpenters, wielders, are compulsory covered?

    Case of CHUA vs CA: there was still an EE-ER relationship,

    so covered. mao na, probationary employees, they are

    covered under SSS. why? Regardless of the nature of the

    employment.

    EFFECTIVITY: first day of employment.

    So advice karon sa mga clients. Naay mo sud, ask if youhave an SS na. In the same manner in the criminal case for

    example, if your client is sued for the violation of the SS

    law in the fiscals office, once mo bayad ka sa SS, mo exist

    na ang SSS but the question there, what is the effect of

    your payment kung dunay labor case gifile later on?

    Because for me, that may be considered as an admission

    that there existed an EE-ER relationship. That is practical

    why? you try to avoid criminal case.

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    The employer is given 30 days from day to employment to

    the report the employer coverage to the SSS.

    Compulsory coverage

    1. For an employee on the first day of

    employment

    2. For an employeron the first day the employer

    hires employee/s.*Employer is given 30 days from date of employment to

    report the employee for coverage to SSS.

    3. For self-employed upon payment of first valid

    contribution, in case of initial coverage.

    15. APPEAL FROM SSC; NON-APPLICABILITY OF TECHNICALRULES

    Sec 4. "(c) Court Review. The decision of the Commission

    upon any disputed matter may be reviewed both upon the

    law and the facts by the Court of Appeals. For the purpose

    of such review the procedure concerning appeals from the

    Regional Trial Court shall be followed as far as practicable

    and consistent with the purposes of this Act. Appeal from

    a decision of the Commission must be taken within fifteen

    (15) days from notification of such decision. If the decision

    of the Commission involves only questions of law, the

    same shall be reviewed by the Supreme Court. No appeal

    bond shall be required. The case shall be heard in a

    summary manner, and shall take precedence over all

    cases, except that in the Supreme Court, criminal cases

    wherein life imprisonment or death has been imposed by

    the trial court shall take precedence. No appeal shall act as

    supersedeas or a stay of the order of the Commission

    unless the Commission itself, or the Court of Appeals or

    the Supreme Court, shall so order.

    How appeal is taken?

    By verified petition for review (The Revised Rules of SSC

    [1997]).

    *Note: 1990 Rules of SCC state that it is by notice of

    appeal.

    6. Section 2 Technical rules not binding These rules shall

    be liberally construed to carry out the objectives of the

    Social Security Act of 1997 and to assist the parties in

    obtaining expeditious and inexpensive settlement or

    resolution of any dispute arising under the said Act.

    In any proceeding, which shall be non-litigious in nature,

    the rules of evidence prevailing in the courts of law shallnot be controlling.

    CASE: Signey vs. SSS

    SC: SC will not disturb findings of fact of the SSS which are

    supported by substantial evidence and affirmed by the SSC

    and the Court of Appeals.

    Moreover, petitioner ought to be reminded of the basic

    rule that this court is not a trier of facts.

    It is a well-known rule that in proceedings before

    administrative bodies, technical rules of procedure and

    evidence are not binding. The important consideration is

    that both parties were afforded an opportunity to be

    heard and they availed themselves of it to present their

    respective positions on the matter in dispute.

    It must likewise be noted that under section 2, Rule 1 of

    the SSC Revised Rules of Procedure, the rules of evidence

    prevailing in the courts of law shall not be controlling. In

    the case at bar, the existence of a prior subsisting marriage

    between the deceased and Editha is supported by the

    substantial evidence. Petitioner, who has fully availed of

    her right to be heard, only relied on the waiver of Editha

    and failed to present any evidence to invalidate or

    otherwise controvert the confirmed marriage certificate

    registered under LCR Registry No. 2083 on 21 November

    1967. She did not even try to allege and prove any

    infirmity in the marriage between the deceased and

    Editha.

    16. BENEFICIARIES; PRIMARY BENEFICIARIES

    The legal beneficiaries of a member are:

    Legally married dependent spouse until he or

    she remarries;

    Dependent legitimate, legitimated or legally

    adopted and illegitimate children.

    These two are primary beneficiaries.

    Spouse- common-law relationship has no right to claim.

    Until he or she remarries ha. Why? There is an assumption

    in law that if there is a separation de facto, the assumption

    is there is no more dependence. If they are living together,

    one is dependent to another. Question here is, what if one

    is working?

    Children- take note, there is also the word "dependent".

    Dependent, not gainfully employed, not yet reached the

    age of 21 yrs. old. Important phrase here: "not gainfully

    employed". No definition here in SS, in GSIS, there is.

    If single, benefits will go to dependent parents who are

    considered secondary beneficiaries.

    In absence of both primary and secondary, any other

    person designated by member.

    17.

    CONSENT OF SSS ON FILING OF CRIMINAL ACTION- Not needed.

    RA 8282, Sec. 28 (i) Criminal action arising from a violation

    of the provisions of this Act may be commenced by the SSS

    or the employee concerned either under this Act or in

    appropriate cases under the Revised Penal Code: Provided,

    That such criminal action may be filed by the SSS in the city

    or municipality where the SSS office is located, if the

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    violation was committed within its territorial jurisdiction or

    in Metro Manila, at the option of the SSS.

    18. LACK OF CRIMINAL INTENT AND GOOD FAITH ASDEFENCESTan vs Ballena

    In answer to criminal complaint for violation of SS law,petitioners interposed the defenses of lack of criminal

    intent and good faith as their failure to remit was brought

    about by alleged economic difficulties, and they have

    already agreed to settle their obligations with the SSS

    through a memorandum of agreement to pay in

    installments.

    SC: As held by the Court of Appeals, the claims of good

    faith and absence of criminal intent for the petitioners'

    acknowledged non-remittance of the respondents'

    contributions deserve scant consideration. The violations

    charged in this case pertain to the SSS Law, which is a

    special law. As such, it belongs to a class of offenses known

    as mala prohibita.

    19. PRESCRIPTIVE PERIOD

    Sickness Benefit

    Prescribed period in filing a claim of a member confined in

    hospital/home:

    - For hospital, claim for benefit must be filed

    within 1 year from last day of confinement;

    - For home, 1 year from start of illness.

    *Failure to file the claim within the prescribed period will

    result to denial of claim.

    Disability Benefit

    - 10 years from the date of occurrence of disability

    Right to Institute (NOT A CRIMINAL ACTION)

    Sec. 22 - The right to institute the necessary action

    against the employer may be commenced within twenty

    (20) years from the time the delinquency is known or the

    assessment is made by the SSS, or from the time the

    benefit accrues, as the case may be. (normally from the

    time of discovery)

    Prescriptive period in filing a disability claim: (Take note of

    this)

    10 years from the date of occurrence of

    disability. (employee filing claims against the system)

    In order to contextualize, the other prescriptive period is

    section 22: claims against the employer = 20 years

    (employee filing claims against employer)

    In the SS website, since the law is silent as to the period on

    retirement and death and maternity = no prescribed

    period. Does it follow that section 22 would apply (20

    years)? NOT necessarily since section 22 is a claims against

    the EMPLOYER i.e. (employer was not able to report).

    - According to SS Commission, the other benefits

    not covered, it is IMPRESCRIPTIBLE, that is if you have

    complied with the notices of requirement.

    20.

    GARCIA V SSCDIRECTOR LIABLE?

    Garcia vs SSC

    -SSC found Garcia, the sole surviving director of Impact

    Corporation, petitioner herein, liable for unremitted SSS

    contributions.

    Issue is whether or not petitioner, as the only surviving

    director of Impact Corporation, can be made solely liable

    for the corporate obligations of Impact Corporation

    pertaining to unremitted SSS premium contributions and

    penalties therefore.

    - Petitioner challenges the finding of the Court of Appeals

    that under Section 28 (f) of the Social Security Law, a mere

    director or officer of an employer corporation, and not

    necessarily a "managing" director or officer, can be held

    liable for the unpaid SSS premium contributions.

    - Section 28 (f) of the Social Security Law provides the

    following:

    (f) If the act or omission penalized by this

    Act be committed by an association, partnership,

    corporation or any other institution, its managing head,

    directors or partners shall be liable to the penalties

    provided in this Act for the offense. (very interesting

    provision daw)

    SC:

    This Court though finds no need to resort to statutory

    construction. Section 28 (f) of the Social Security Law

    imposes penalty on:

    (1) the managing head;

    (2) directors; or

    (3) partners, for offenses committed by a

    juridical person

    The said provision does not qualify that the director or

    partner should likewise be a "managing director" or

    "managing partner. The law is clear and unambiguous

    Although a corporation once formed is conferred a

    juridical personality separate and distinct from the persons

    comprising it, it is but a legal fiction introduced for

    purposes of convenience and to subserve the ends ofjustice. The concept cannot be extended to a point beyond

    its reasons and policy, and when invoked in support of an

    end subversive of this policy, will be disregarded by the

    courts.

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    II. GSIS Act of 1997

    1. JURISDICTION

    GSIS has original and exclusive jurisdiction to settle any

    dispute arising under RA 8291 w/ respect to:

    - Coverage- Entitlement to benefits

    - Collection and payment of contributions

    - Any other matter related to any or all of the foregoing

    which is necessary for their determination

    Prescriptive period

    Four years from date of contingency except life and

    retirement which do not prescribe.

    2. ARE JUDGES COVERED?

    COMPULSORY COVERAGE OF JUDGES UNDER GSIS: LIFE

    INSURANCE

    Compulsory Life Insurance NOTE

    All employees, including the members of the judiciary and

    the constitutional commissioners, but excluding the

    uniformed members of the Armed Forces of the

    Philippines (AFP), the Philippine National Police and the

    Bureau of Fire Protection (BFP), and Bureau of Jail

    Management and Penology.

    In contributions, there is a column 9% employees, 12%

    employers, in excess of 10,000 it is subject to 2%. There is

    a column for members of the judiciary and the

    constitutional commissioners. Ang percentage sa ilang

    contribution is 3% representing compulsory life insurance.

    And NOTE: THERE IS NOTHING THERE ABOUT EMPLOYERS

    CONTRIBUTION. Why? Because they are not covered. Ang

    coverage nila is only with respect to life insurance.

    3.

    WHO IS A DEPENDENT LEGITIMATE CHILD?4. NEW BENEFITS; PRIMARY BENEFICIARIES IN CASE OF

    SURVIVORSHIP

    Beneficiaries under GSIS:

    1. When a member or pensioner dies, the primary

    beneficiaries (surviving legal spouse and dependent

    children) or secondary beneficiaries, as the case may be,

    shall be entitled to the applicable survivorship benefits.

    2. The primary beneficiaries[1] shall be the following:

    a. The legitimate spouse, until s/he re-marries, or co-

    habits/engages in common-law relationship; andb. The dependent legitimate, legally adopted or

    legitimated children, including illegitimate children, who

    have not reached the age of majority, or, have reached the

    age of majority but incapacitated and incapable of self-

    support due to a mental or physical defect acquired prior

    to age of majority.

    3. The secondary beneficiaries shall be the dependent

    parents and, subject to the restrictions on dependent

    children, the legitimate descendants[2].

    The secondary beneficiaries shall only be entitled to

    survivorship benefits if there are no primary beneficiaries.

    Meaning of dependent?Dependent means one who derives his or her main

    support from another, meaning, relying, or subject to,

    someone else for support; not able to exist or sustain

    oneself, or to perform anything without the will, power, or

    aid of someone else. (A.M No. 100119 Ret. February 22,

    2001 * RE: APPLICATION FOR SUVIVORS BENEFITS OF MS.

    MAYLENNE G. MANLAVI, DAUGHTER OF THE LATE

    ERNESTO R. MANLAVI])

    A.M No. 100119 Ret. February 22, 2001 [ RE:

    APPLICATION FOR SUVIVORS BENEFITS OF MS. MAYLENNE

    G. MANLAVI, DAUGHTER OF THE LATE ERNESTO R.

    MANLAVI)

    5.

    SEPARATION BENEFITFOR CAUSE

    SEPARATION BENEFIT UNDER GSIS: TWO DISTINCTIONS:

    (1) IF SEPARATION IS FOR CAUSE OR (2) NOT FOR CAUSE

    IRR, Rule II, sec. 25; DISTINCTION

    Member separated for cause

    o Automatically forfeit

    o Unless terms of resignation or separation provide

    otherwise

    Member separated not for cause

    o Shall continue to be a member and entitled subject to

    qualification and other prescription

    6.

    COA DISALLOWANCES

    As a general rule, they cannot be deducted except when

    his monetary liability contractual or otherwise in favor of

    gsis member separated for cause automatically forfeit

    unless terms of resignation or separation provide

    otherwisemember separated not for cause shall continue

    to be member and entitled subject to qualification and

    other prescription

    What is COA disallowances?

    Disallowance - the disapproval in audit of a transaction,

    either in whole or in part. The term applies to the audit of

    disbursements a s distinguished from "charge" whichapplies to the audit of revenues/receipts.

    The scope of its audit and examination, establish the

    techniques and methods required therefor, and

    promulgate accounting and auditing rules and regulations

    including those for the prevention and disallowance of

    irregular, unnecessary, excessive, extravagant, or

    unconscionable expenditures, or uses of government

    funds and properties.

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    Section 4. Audit Disallowances/ Charges/ Suspensions - In

    the course of the audit, whenever there are differences

    arising from the settlement of accounts by reason of

    disallowances or charges, the auditor shall issue Notices of

    Disallowances/Charge (ND/NC) which shall issue Notices of

    Disallowance/Charge (ND/NC) which shall be considered as

    audit decisions, recommendations or dispositions shall be

    supported by applicable laws, regulations, jurisprudenceand the generally accepted accounting and auditing

    principles. The Auditor may issue Notices of Suspension

    (NS) for transactions of doubtful legality/validity/ propriety

    to obtain further explanation or documentation.

    "SEC. 39. Exemption from Tax, Legal Process and Lien

    "The funds and/or the properties referred to herein as well

    as the benefits, sums or monies corresponding to the

    benefits under this Act shall be exempt from attachment,

    garnishment, execution, levy or other processes issued by

    the courts, quasi-judicial agencies or administrative bodies

    including Commission on Audit (COA) disallowances and

    from all financial obligations of the members, including his

    pecuniary accountability arising from or caused or

    occasioned by his exercise or performance of his official

    functions or duties, or incurred relative to or in connection

    with his position or work except when his monetary

    liability, contractual or otherwise, is in favor of the GSIS.

    COA disallowances cannot be deducted from retirement

    benefits.

    GSIS VS COA

    The main controversy of whether COA disallowances could

    be deducted from retirement benefits because the Board

    ordered the dismissal of respondents claim for alleged

    lack of jurisdiction, before it could even decide on the

    principal issue.

    The lone issue is whether COA disallowances could be

    legally deducted from retirement benefits on the ground

    that these were respondents monetary liabilities to the

    GSIS under the said provision. There is no dispute that the

    amounts deducted by GSIS represented COA

    disallowances. Thus, the only question left for the Board

    to decide is whether the deductions are allowed under RA

    8291.

    Provision of law clearly states that no amount whatsoever

    could be legally deducted from retirement benefits, even

    those amounts representing COA disallowances.

    47.5. Exemption of all Funds of the GSIS from Tax,

    Attachment, Execution, Levy or Other Legal Processes.-

    The funds and/or the properties referred to herein as well

    as the benefits, sums or monies corresponding to the

    benefits under this Act shall be exempt from attachment,

    garnishment, execution, levy or other processes issued by

    the courts, quasi judicial agencies or administrative bodies

    including Commission on Audit (COA) disallowances and

    from all financial obligations of the members, including his

    pecuniary accountability arising from or caused or

    occasioned by his exercise or performance of his official

    functions or duties, or incurred relative to or in connection

    with his position or work except when his monetary

    liability, contractual or otherwise, is in favor of the GSIS.

    7. PRESCRIPTIVE PERIOD

    "SECTION 28. Prescription. Claims for benefits under

    this Act except for life and retirement shall prescribe after

    four (4) years from the date of contingency.

    When the pensioner dies within the 5-year period after

    receiving the five-year lump sum, the survivorship pension

    shall be paid only after the end of the said five-year period.

    However, filing of claim for survivorship benefit should be

    done before the end of the 4-year prescription period

    8.

    GSIS V NLRC SECURITY GUARDS MONEYCLAIMS

    GSIS vs. NLRC (important)

    Remember there is an indirect employer under the labor

    code.

    Private respondents were security guards of a security

    agency assigned to Tacloban branch of GSIS.

    The security guards thereafter filed an illegal dismissal

    against the agency and GSIS, separation pay, salary

    differential, 13th month and unpaid salary.

    When there was an execution against GSIS for the money

    claims, GSIS argued, you cannot touch our funds, invoking

    SEC. 39 of the Charter.

    GSIS filed the present petition contending the error

    committed because it is exempt from execution per

    charter.

    SC:

    The fact that there is no actual and direct employer

    employee relationship between petitioner and

    respondents does not absolve the former from liability for

    the latters monetary claims. When petitioner contracted

    DNL securitys services, petitioner became an indirect

    employer of respondents, pursuant to article 107 of the

    labor code.

    After DNL security failed to pay respondents the correct

    wages and other monetary benefits, petitioner, as

    principal, became jointly and severally liable, as providedin articles 106 and 109 of the labor code.

    Citing GSIS vs. RTC of Pasig. SC did not agree with

    petitioner that the enforcement of the decision is

    impossible because its charter unequivocally exempts it

    from execution.

    Petitioners charter should not be used to evade its

    liabilities to its employees, even to its indirect employees,

    as mandated by the labor code.

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    PEOPLE nagpadungog2 napud balik ang contracting agency

    echus sa LABOR. Maygawshhh!!!! Saup baya ko atong

    essay!!!!

    III. PORTABILITY LAW

    1. WHEN APPLICABLE? WHEN IS TOTALIZATION RESORTED

    TO?

    With the help of RA 7699, otherwise known as the

    Portability Law, government retirees who do not meet the

    required number of years provided under PD 1146 and RA

    8291 can still avail of retirement and other benefits.

    Under the scheme, you may combine your years of service

    in the private sector represented by your contributions to

    the Social Security System (SSS) with your government

    service and contributions to the GSIS to satisfy the

    required years of service under PD 1146 and RA 8291.

    However, if you have satisfied the required years of service

    under the GSIS retirement option you have chosen, you

    would not be allowed to incorporate your contributions to

    the SSS anymore for availment of additional benefits.

    In case of death, disability and old age, the periods of

    creditable services or contributions to the SSS and GSIS

    shall be summed up to entitle you to receive the benefits

    under either PD 1146 or RA 8291.

    If qualified under RA 8291, all the benefits shall apply

    EXCEPT the cash payment. The reason for this is that the

    Portability Law or RA 7699 provides that only benefits

    common to both Systems (GSIS and SSS) shall be paid.

    Cash payment is NOT included in the benefits provided by

    the SSS.

    Portability BenefitsRA 7699

    - A member of GSIS who does not qualify for old

    age and other benefits by reason of non-fulfillment of the

    required period of service may be able to qualify for such

    benefits by making use of the period during which he

    rendered services to a private employer and for which

    contributions were paid to SSS. This is allowed under RA

    7699 (approved May 1, 1994)

    - The Act instituted a limited portability scheme in

    the GSIS and SSS by totalizing the workers creditable

    services or contributions in each of the Systems.

    Portabilityrefers to transfer of funds for the benefit and

    account of a worker who transfers from one system to the

    other (RA 7699, Sec. 2 [b]).

    Totalization refers to the process of adding up the

    periods of creditable services or contributions in each of

    the Systems for purposes of eligibility and computation of

    benefits, For purposes of totalization, overlapping periods

    of membership shall be considered once only (Sec. 3)

    Overlapping period refers to the period during which a

    worker contributes simultaneously to GSIS and SSS.

    IV.

    V.

    VI. EMPLOYEES COMPENSATION

    1.

    VALERIANO V ECC - COVERAGE FORMULA "ARISINGOUT OF" AND "IN THE COURSE OF EMPLOYMENT"; 24-HOUR-DUTY DOCTRINE

    2.

    CAN A CLAIM FOR BENEFIT BE DEFEATED BY THE MEREFACT OF SEPARATION FROM SERVICE? (GSIS V CUANANG,AQUINO V SSS, ETC.)

    1) VALERIANO V. ECC(GR No. 136200,June 8, 2000)

    Celerino Valeriano was employed as a fire truck

    driver assigned at the San Juan Fire Station

    On July 3, 1985, petitioner met a friend by the

    name of Alexander Agawin. They decided to

    proceed to Bonanza Restaurant in EDSA, for

    dinner.

    Owner-type jeepney they were riding in figured

    in a head-on collision with another vehicle at the

    intersection of N. Domingo and Broadway

    streets in Q.C.

    Petitioner was thrown out of the vehicle and

    was severely injured. He was brought to the

    hospital for several treatments.

    On Sept. 16, 1985, he filed a claim for income

    benefits under PD 626 with GSIS.

    GSIS & ECC; Opposed on the ground that theinjuries he sustained did not directly arise or

    result from the nature of his work.

    ISSUES:- Whether petitioners injuries are work-

    connected

    - Whether petitioner fireman, like soldiers, can be

    presumed to be on 24- hour duty

    HELD:

    SC: For injury to be compensable, the standard of work-connection must be substantially satisfied. The injury and

    the resulting disability sustained by reason of employment

    are compensable regardless of the place where the injuredoccurred, if it can be proven that at the time of the injury,

    the employee was acting within the purview of his

    employment and performing an act reasonably necessary

    or incidental thereto. Petitioner sustained the injuriesafter pursuing a purely personal and social function. Hisinjuries and consequent disability were not work-connected and thus not compensable.

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    In Hinoguin and Nitura , the Court granted death

    compensation benefits to their heirs, as both members of

    the Phil. Army. Citing ECC v. CA, Court reviewed Hinoguin,

    Nitura and ECC and noted that in each case death benefit

    were granted, not just because of the principle that

    soldiers or policemen were virtually working round the

    clock, but of the reasonable nexus between the absence

    of the deceased from his assigned place of work and theincident causing his death.

    Taking together jurisprudence and pertinent

    guidelines of ECC with respect to claims for death benefits:

    1.

    That the employee must be at the place wherehis work requires him to be

    2. That the employee must have been performinghis official functions

    3. That if the injury is sustained elsewhere, theemployee must have been executing an orderfor the employer.

    24 hour duty doctrine cannot be applied to petitionerscase.

    -He was neither at assigned work place nor in

    pursuit of orders of his superiors when he met

    an accident.

    - He was not doing an act within his duty and

    authority as a fire truck driver at the time he

    sustained his injuries.

    2) GSIS V. CUANANG(GR No. 158846, June 3, 2004)

    Carmen Cuanang was formerly employed as a

    teacher in the Division of City Schools, Manila.

    She was first appointed as Elementary Grade

    Teacher, then promoted to Teacher I and later

    on to Teacher II.

    Carmen served as Teacher II until she applied for

    early optional retirement after completing

    almost 26 years of government service.

    Sept. 14-18, 1997 she was confined for

    Bronchial Ashma & Pneumonia, RHD and Mitral

    Stenosis. She filed sickness benefits with GSIS

    under PD 626. GSIS awarded her TemporaryTotal Disability benefits from Nov. 14-25, 1998.He was also granted Permanent PartialDisability benefits for 9 months.

    She died at the age of 65 with the immediate

    cause of death was determined to be CardioPulmonary Arrest with Acute MyocardialInfarction as the antecent cause, and BronchialAsthma and Hypertension as underlying cause.

    GSIS: PD 626 since it occurred after retirement andbeyond PPD period. death was due to Myocardial

    Infarction is not compensable underECC: affirmed the GSIS denial of respondents claimISSUE: Whether the resulting death of CarmenCuanang is compensable under PD 626.

    SC: The wife of the respondent died a year after herretirement . Clearly, the period between her

    retirement and demise was less than 1 year. A claim

    for benefit for such death cannot be defeated by the

    mere fact of separation from service.There was a substantial evidence to support respondentsclaim.

    -The requisite substantial evidence came fromthe expert opinion of Dr. Arsenio Estreras whoissued the Death Certificate

    - Expert opinion is fully supported by the facts

    leading to Carmen Cuanangs deteriorating

    health condition and ultimately, her death.

    When she joined the government service on Oct.

    1, 1972, she was in perfect health, but condition

    while still in service started to worsen.

    - Myocardial Infarction or known as coronary is

    a life threatening condition. Predisposing factors

    include stress. The collective effect of all the

    factors involved during her service contributed

    to the deterioration of her already precarious

    health.

    - The respondents claim is GRANTED.