Sy-Santos (Agra and Social Legislation Law)

Roman Catholic Archbishop of Manila v Social Security Commission

Facts:

Roman Catholic Archbishop of Manila filed a request with the SSC that Catholic
Churches and all religious and charitable institutions be exempted from the
compulsory coverage of the SSL. They also allege the constitutionality of the said law.

Petitioners argue that the provisions of Sec 9 SSL is based on the existence of an
employer-employee relationship. RCAM then contends that the term employer is
defined as those who carry on "undertakings or activities which have the element of
profit or gain, or which are pursued for profit or gain," because the phrase ,activity of
any kind" in the definition is preceded by the words "any trade, business, industry,
undertaking.", it should follow that the priests should not be covered by the SSL

Issue:

WON the Catholic Churches and all religious and charitable institutions are covered
by the SSL

Held:

SSL was enacted pursuant to the "policy of the Republic of the Philippines to develop,
Philippine Blooming Mills v SSS
establish gradually and perfect a social security system which shall be suitable to the
needs of the people throughout the Philippines and shall provide protection to
employees against the hazards of disability, sickness, old age and death."
Facts:
Being in fact a social legislation, compatible with the policy of the Church to
ameliorate living conditions of the working class, appellant cannot arbitrarily delimit PBMC, a domestic corporation, has been employing Japanese employees under a
the extent of its provisions to relations between capital and labor in industry and pre-arrange contract of employment for a minimum period of 6 months and a
agriculture. maximum of 24 months.

The funds contributed to the System created by the law are not public funds, but
funds belonging to the members which are merely held in trust by the Government.
At any rate, assuming that said funds are impressed with the character of public
funds, their payment as retirement death or disability benefits would not constitute a
violation of the cited provisions of the Constitution, since such payment shall be
made to the priest not because he is a priest but because he is an employee.
When it employed 6 Japanese technicians, they sent a letter to SSS inquiring on
whether said Japanese employees should be covered by the compulsory coverage of
SSS. SSS replied that said employees are subject to the compulsory coverage but if
they were only temporarily employed, then they shall be entitled to a rebate of a
proportionate amount of their contributions. Their employer shall be entitled to the
same proportionate rebate of their contributions.

These contributions are not in the nature of taxes on employment." They are
intended for the protection of said employees against the hazards of disability,
sickness, old age and death in line with the constitutional mandate to promote social
justice to insure the well-being and economic security of all the people.
After an 18 month employment with the corporation the Japanese nationals
employment ended, they filed -through the Asst. Gen Manager of the corporation- a
petition with the SSC for the return/refund of the premiums.
SSS contends that said return/rebate may only be awarded when the employee has
been a member of the SSS for at least two years. They assailed that the law where the
petitioners claim rests upon has already been amended. And that in the amended law,
the employer can no longer be given the rebate of the premiums.
Sy-Santos (Agra and Social Legislation Law)

Issue:

WON the Japanese employees as well as their employer is entitled to the rebate of
their contributions considering that said amendments were made while they
employees were still employed but was only published after their termination

Held:

Under Article 2 of the Civil Code,5 the date of publication of laws in the Official
Gazette is material for the purpose of determining their effectivity, only if the statutes
themselves do not so provide.

In the present case, the original Rules and Regulations of the SSS specifically provide
that any amendment thereto subsequently adopted by the Commission, shall take
effect on the date of its approval by the President. Consequently, the delayed
publication of the amended rules in the Official Gazette did not affect the date of their
effectivity, which is January 14, 1958, when they were approved by the President. It
follows that when the Japanese technicians were separated from employment in
October, 1958, the rule governing refund of premiums is Rule IX of the amended
Rules and Regulations, which requires membership for 2 years before such refund of
premiums may be allowed.
Sy-Santos (Agra and Social Legislation Law)

Raro v ECC

Facts:

The petitioner states that she was in perfect health when employed as a clerk by the
Bureau of Mines and Geo-Sciences on March 17, 1975. About four years later, she
began suffering from severe and recurrent headaches coupled with blurring of vision.
Forced to take sick leaves every now and then, she sought medical treatment in
Manila. She was then a Mining Recorder in the Bureau.

The petitioner was diagnosed at the Makati Medical Center to be suffering from brain
tumor. By that time, her memory, sense of time, vision, and reasoning power had
been lost.

A claim for disability benefits filed by her husband with the Government Service
Insurance System (GSIS) was denied.

Issue:

WON the petitioners condition can be compensated under the ECC

Held:

The "Presumption of compensability" together with the host of decisions interpreting

the "arising out of and in the course of employment" provision of the defunct law has
CMS Estate v SSS
been stricken from the present law, one has to go into the distinctions between the
old workmen's compensation law and the present scheme. The new law discarded,
among others, the concepts of "presumption of compensability" and "aggravation"
and substituted a system based on social security principles Facts:

In the present law, it is the trust fund and not the employer which suffers if benefits
are paid to claimants who are not entitled under the law. If diseases not intended by
the law to be compensated are inadvertently or recklessly included, the integrity of
the State Insurance Fund is endangered. Compassion for the victims of diseases not
covered by the law ignores the need to show a greater concern for the trust fund to
winch the tens of millions of workers and their families look for compensation
whenever covered accidents, salary and deaths occur.
Since the presumption of compensability was repealed and the petitioner was not
able to prove that her condition was caused by the circumstances of her employment,
she cannot claim compensation under the ECC.
CMS estate is a domestic corporation engaged in the real estate business with 6
employees since Dec. 1952. On June 1956, petitioner obtained a license with the
Bureau of Forestry to operate a forest concession in Baganga, Davao. On Jan. 1957, he
employed Eufracio Rojas for the management of the forest concession. The operation
started on April 1957, with 4 monthly salaried employees.
On Aug, 1958 petitioner became a member of the SSS with respect to its real estate
business. On Sept 1958, petitioner remitted the monthly salaries of the employees in
its logging business. But petitioner demanded the refund claiming that he is not yet
subject to the compulsory coverage with respect to his logging business. The request
was denied on the ground that the logging business was a mere expansion of
petitioner's activities and for purposes of the Social Security Act, petitioner should be
considered a member of the System since December 1, 1952 when it commenced its
real estate business.

Issue:
Sy-Santos (Agra and Social Legislation Law)

WON the contributions under the SSA is an exercise of police power or taxing power

WON the compulsory coverage refers to the employer with respect to all of his
businesses or refers to his businesses individually

Held:

The Social Security Law enactment implements the general welfare mandate of the
Constitution and constitutes a legitimate exercise of the police power of the State.
Membership in the SSS is in compliance with the lawful exercise of the police power
of the State. All that is required of appellant is to make monthly contributions to the
System for covered employees in its employ. These contributions, contrary to
appellant's contention, are not 'in the nature of taxes on employment.'

Sec. 9 of the Act provides that before an employer could be compelled to become a
member of the System, he must have been in operation for at least two years and has
at the time of admission at least six employees. It should be pointed out that it is the
employer, either natural, or judicial person, who is subject to compulsory coverage
and not the business. If the intention of the legislature was to consider every venture
of the employer as the basis of a separate coverage, an express provision to that
effect could have been made. Unfortunately, however, none of that sort appeared
provided for in the said law.

The records indubitably show that petitioner started its real estate business on
December 1, 1952 while its logging operation was actually commenced on April 1,
1957. Applying the provision of Sec. 10 of the Act, petitioner is subject to compulsory
coverage as of December 1, 1952 with respect to the real estate business and as of
April 1, 1957 with respect to its logging operation.
Sy-Santos (Agra and Social Legislation Law)

SSS v COA the SSC. It was crafted in such a manner that the specific benefits be laid out so that
there would be no need for Congress to later pass a law providing for additional
benefits.
Facts: Following the maxim expressio unius est exclusio alterius, which means the express
mention of one person, thing, act or consequence excludes all others,20 the COA was
SSS approved 2 resolutions for the allowances and EME of its members. However,
correct in disallowing the disbursements in question as they were not among those
years later, LAO-CGS of COA issued a Notice of Disallowance (ND).
enumerated in Section 3(a) of the SS Law.
LAO-CGS did so on the grounds that (1) these were irregular expenditures and (2)
The SSS cannot rely on Sections 3(c) and 25 of the SS Law either. A harmonious
the medical expenses, rice allowances and provident fund were for rank and file
reading of the said provisions discloses that the SSC may merely fix the compensation,
employees only.
benefits and allowances of SSS appointive employees within the limits prescribed by
SSS filed a MR arguing that the SS Law. Nothing in the aforementioned provisions authorizes the SSS to grant
(1) SSS law provides that SSC may adopt a budget expenditure including salaries of additional benefits to its members.
personnel against all funds available to the SSS; (2) under the same law, SSC is
In the case at bench need not refund the disallowed amount because they acted in
empowered to fix compensation, allowances and other benefits for its employees and
good faith. To reiterate, good faith may be appreciated because the approving officers
officials; (3) the compensation structure was in conformity with the COA rulings; (4)
were without knowledge of any circumstance or information which would render the
SSL reinforces the fiscal autonomy of the office; (5) the COA circular regarding the
transaction illegal or unconscientious. Neither could they be deemed to be grossly
ceilings of benefits covers only GOCCs which SSS is not one of and (6) SSS benefit
negligent as they believed that they could disburse the said amounts on the basis of
scheme is pursuant to law.
the provisions of the SS Law.
COA-LSS denied their MR ruling that SSC was still bound by the provisions of COA
Circular 2006-001. The COA-LSS explained that the said circular was issued to serve
as audit guidelines on the disbursements for EME in GOCCs/GFIs and their
subsidiaries, without any distinction whatsoever.

SSS appealed before the COA

COA upheld the disallowance of the disbursements in question. It explained that the
SS Law did not grant an authority to the SSC to fix the compensation, allowances and
other benefits of its members.

Aggrieved, the SSS moved for reconsideration of the decision but its motion was
denied by the COA

Issue:

WON the members of the SSC are entitled to the EME, medical benefit, rice allowance
and the provident fund

Held:

The nature of the funds possessed by the SSS is crucial in the resolution of the
present issue. In SSS v. COA, the Court expounded that the funds of the SSS were
merely held in trust for the benefit of workers and employees in the private sector

As inferred from the Committee Deliberations, Section 3(a) of the SS Law was passed
with the purpose of providing reasonable compensation to appointive members of
Sy-Santos (Agra and Social Legislation Law)

SSS v Davac

Facts:

Petronilo Davac was a member of the SS, his record shows that he designated
Candelaria Davac as his beneficiary and indicated that her relationship with he as
that of wife. On April 5, 1959, he died and Candelaria Davac and Lourdes Tuplano
filed claims for death benefit with the SSS.

Apparently, Petronilo contracted 2 marriages, the first one with Lourdes Tuplano and
the second with Candelaria Davac.

The SSC issued a resolution declaring Candelaria as the person entitled to receive the
death benefits in question.

Lourdes is contending that she is the lawful wife of Petronilo Davac and so she has
the rightful claim over his death benefits. She further argues that Art 2012 of the NCC
provides: Any person who is forbidden from receiving any donation under Article
739 cannot be named beneficiary of a life insurance policy Art. 739. The following
donations shall be void: (1) Those made between persons who were guilty of
adultery or concubinage at the time of the donation

Issue:

WON the contributions in SSS form part of the estate of the decease and should Dabatian v GSIS
therefor be awarded to his first wife

Held:
Article 739 is not applicable to herein appellee Candelaria Davac because she was not
guilty of concubinage, there being no proof that she had knowledge of the previous
marriage of her husband Petronilo.
The benefits accruing from membership in the Social Security System do not form
part of the properties of the conjugal partnership of the covered member.
The benefit receivable under the Act is in the nature of a special privilege or an
arrangement secured by the law, pursuant to the policy of the State to provide social
security to the workingmen. The amounts that may thus be received cannot be
considered as property earned by the member during his lifetime. His contribution to
the fund, it may be noted, constitutes only an insignificant portion thereof. The
benefits under the Social Security Act are not intended by the lawmaking body to
form part of the estate of the covered members.
Facts:
Sigfredo Dabatian was a Garbage Truck Driver in the Gen Services Dept of Cagayan
De Oro City. He was mostly assigned in the night shift, it was gathered from the
evidence that he was a heavy coffee drinker which was his way of warding off
sleepiness. Prior to his death, his co-employees noticed that he was getting paler and
weaker at work until he collapsed and became unconscious while on duty.
His widow claimed income benefits under the ECP. GSIS however decided against the
compensability claiming that his ailment, Peptic Ulcer is not definitely accepted as an
occupational disease neither was there showing that the same was directly caused by
his employment.
Issue:
WON under the premises the death of Sigfredo A. Dabatian is compensable.

Held:
Sy-Santos (Agra and Social Legislation Law)

The records show that petitioner died on July 3, 1976 when the old compensation
law had already been abrogated. No competent evidence whatsoever was submitted
to prove that Dabatian's ailment was contracted prior to January 1, 1975 in order to
bring it under the protective mantle of the old compensation law.

The present Labor Code, P.D. 442 as amended, abolished the presumption of
compensability and the rule on aggravation of illness caused by the nature of
employment, the reason being "to restore a sensible equilibrium between the
employer's obligation to pay workmen's compensation and the employee's right to
receive reparation for work- connected death or disability ... ".

Being a heavy coffee drinker may have aggravated his peptic ulcer, but, aggravation
of an illness is no longer a ground for compensation under the present law.
Sy-Santos (Agra and Social Legislation Law)

Gamogamo v PNOC government-owned and controlled corporations, they have no original charters;
hence they are not under the Civil Service Law.

RA 7699 reads: SEC 3. Provisions of any general or special law or rules and
Facts: regulations to the contrary notwithstanding, a covered worker who transfer(s)
employment from one sector to another or is employed in both sectors, shall have his
Petitioner Cayo Gamogamo was employed by the DOH from Jan 1963 to Nov 1977 for
creditable services or contributions in both systems credited to his service or
a total of 14 years. After which he was hired by LUSTEVECO. PNOC acquired and took
contribution record in each of the Systems and shall be totalized for purposes of
over LUSTEVECO and petitioner was among those who opted to be absorbed by
old-age, disability, survivorship, and other benefits in case the covered employee
PNOC. PNOC assumed without interruption petitioners service credit with
does not qualify for such benefits in either or both Systems without
LUSTEVECO but it did not make reference to nor assumed petitioners service credits
totalization: Provided, however, That overlapping periods of membership shall be
with DOH. PNOC undergone privatization on June 1993 which resulted to the
credited only once for purposes of totalization.
downsizing of the company. Due to the privatization, they implemented a program
wherein retrenched employees shall receive a two-month pay for every year of Obviously, totalization of service credits is only resorted to when the retiree does not
service. Sometime in 1995, petitioner requested to be included in the next qualify for benefits in either or both of the Systems. In any case, petitioners fourteen
retrenchment schedule but was denied since he was up for mandatory retirement on years of service with the DOH may not remain uncompensated because it may be
April 1995. recognized by the GSIS pursuant to the aforequoted Section 12, as may be
determined by the GSIS. Since petitioner may be entitled to some benefits from the
When PNOC changed their president, the new president approved the retrenchment
GSIS, he cannot avail of the benefits under R.A. No. 7699.
of two employees. Petitioner filed a complaint with the NLRC for the full payment of
his retirement benefits. He alleges that his years of service with the DOH should be
included in his computed retirement benefits and that he was discriminated in the
retrenchment program

Petitioner maintains that his service with DOH should be recognized and tacked to
his length of service with PNOC because LUSTEVECO was bought by PNOC, and PNOC
itself was government owned and controlled corporations and therefore under the
Civil Service Law. Prior to the separation of respondent from Civil Service petitioners
service should be considered continuous.

Issue:

WON the totalization of petitioners years service should be considered since his two
former employment were both government owned

Held:

The Court ruled that since the retirement pay solely comes from PNOCs funds, it is
but natural that they shall disregard petitioners length of service in another company
for the computation of his retirement benefits.

We cannot uphold petitioners contention that his fourteen years of service with the
DOH should be considered because his last two employers were government-owned
and controlled corporations, and fall under the Civil Service Law. Article IX(B),
Section 2 paragraph 1 of the 1987 Constitution states : Sec. 2. (1) The civil service
embraces all branches, subdivisions, instrumentalities, and agencies of the
Government, including government-owned or controlled corporations with original
charters. It is not at all disputed that while PNOC and LUSTEVECO are