AGRARIAN FINALS ANSWERS TO QUESTIONS 405 2013

1
1
st
PART: MCQ (60 MCQ: 40 ESSAY)

1. JURISDICTION OF GSIS

Jurisdiction (Part of the Final Exam)
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. THE CONCEPT OF EMPLOYMENT UNDER SS LAW: DEFINITION OF TERMS:
EMPLOYMENT SERVICES EXCLUDED UNDER THE LAW

(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 vessel is 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 on
coverage 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.

3. WHO IS AN EMPLOYER UNDER SS LAW

(c) Employer- Any person, natural or juridical, domestic or foreign, who carries on in
the Philippines any trade, business, industry, undertaking, or activity of any kind and
uses the services of another person who is under his orders as regards the
employment, except the Government and any of its political subdivisions, branches or
instrumentalities, including corporations owned or controlled by the
Government: Provided, That a self-employed person shall be both employee and
employer at the same time.

4. THE MAXIMUM NUMBER OF DAYS UNDER DAILY SICKNESS BENEFIT UNDER
SSS (ANNUAL)

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.

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).

5. TOTALIZATION OF SERVICE CREDITS UNDER RA 7699

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)
AGRARIAN FINALS ANSWERS TO QUESTIONS 405 2013


2

It is possible that you may start employment with GSIS and later on, you opt to qualify
with SSS. And this time it is your length of service with GSIS which can be added to
your present length of service to SSS to be able to qualify for the benefit under SSS.

Note: each of the system has this scheme can be invoked in both SSS and GSIS

6. SEC. 5: EE RELATIONSHIP UNDER SS LAW, WHO DETERMINES IN CASE OF
A FINAL JUDGEMENT OF NLRC, WHAT IS THE IMPACT OR INDICATION?

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. (Republic vs. Asiapro)

7. COMPULSORY COVERAGE UNDER GSIS

Compulsory for all employees
1. Appointive or elective
2. Whether temporary, casual, permanent, or contractual w/ e-e relationship
(those under job orders not covered)
o Those with job orders usually perform clerical functions.
3. Who are receiving basin pay or salary but not per diems, honoraria or
allowances and
4. Who have not reached the compulsory retirement of 65 yrs.

Example: There are several boards (regular members, ex-officio members and those
appointed by the City Mayor) created by the Sanggunian of Cebu City unlike from the
regular departments. So even if there is an appointment from the City Mayor and
even if it is temporary at the discretion of the mayor or for a specific period BUT the
person appointed doesnt receive basic pay or salary but only receives honoraria, then
that person is NOT compulsorily covered.
Consultants are also NOT compulsorily covered. They are appointed and contractual
because there is a period but they only receive honoraria.

8. NEW BENEFITS UNDER GSIS

New Benefits: not found in SSS
Unemployment benefits
Separation benefit

9. PERIOD TO APPEAL FROM DECISION OF THE SSC

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 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. (SS
vs. Atlantic Golf)

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.

10. PRIMARY BENEFICIARIES UNDER SS LAW

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.

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.

(k) Beneficiaries - The dependent spouse until he or she remarries, the dependent
legitimate, legitimated or legally adopted, and illegitimate children, who shall be the
primary beneficiaries of the member: Provided, That the dependent illegitimate
children shall be entitled to fifty percent (50%) of the share of the legitimate,
legitimated or legally adopted children: Provided, further, That in the
absence of the dependent legitimate, legitimated children of the
member, his/her dependent illegitimate children shall be entitled to
AGRARIAN FINALS ANSWERS TO QUESTIONS 405 2013


3
one hundred percent (100%) of the benefits. In their absence, the dependent parents
who shall be the secondary beneficiaries of the member. In the absence of all the
foregoing, any other person designated by the member as his/her secondary
beneficiary.

11. COMPULSORY coverage under SS law

Compulsory coverage
1. For an employee on the first day of employment
2. For an employer on 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.

12. PRESCRIPTIVE PERIOD UNDER GSIS

Prescriptive period
Four years from date of contingency except life and retirement which do not
prescribe.


13. COA DISALLOWANCES: WHETHER THEY CAN BE DEDUCTED? SEC. 39
"SECTION 39. Exemption from Tax, Legal Process and Lien. It is hereby declared to be the
policy of the State that the actuarial solvency of the funds of the GSIS shall be preserved and
maintained at all times and that contribution rates necessary to sustain the benefits under this Act
shall be kept as low as possible in order not to burden the members of the GSIS and their
employers. Taxes imposed on the GSIS tend to impair the actuarial solvency of its funds and
increase the contribution rate necessary to sustain the benefits of this Act. Accordingly,
notwithstanding any laws to the contrary, the GSIS, its assets, revenues including all accruals
thereto, and benefits paid, shall be exempt from all taxes, assessments, fees, charges or duties of
all kinds. These exemptions shall continue unless expressly and specifically revoked and any
assessment against the GSIS as of the approval of this Act are hereby considered paid.
Consequently, all laws, ordinances, regulations, issuances, opinions or jurisprudence contrary to or
in derogation of this provision are hereby deemed repealed, superseded and rendered ineffective
and without legal force and effect.
"Moreover, these exemptions shall not be affected by subsequent laws to the contrary unless this
section is expressly, specifically and categorically revoked or repealed by law and a provision is
enacted to substitute or replace the exemption referred to herein as an essential factor to maintai n
or protect the solvency of the fund, notwithstanding and independently of the guaranty of the
national government to secure such solvency or liability.
"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.

14. BENEFITS UNDER SS LAW WHERE THE EMPLOYER IS MANDATED TO
ADVANCE? MATERNITY AND SICKNESS

15. PRIMARY BENEFICIARIES UNDER GSIS

Who are eligible?
If at time of death, a member was in the service and has rendered at least 3 years of
service (primary beneficiaries to receive survivorship pension plus cash payment;
secondary beneficiaries or legal heirs entitled to cash payment)

Take NOTE of the BENEFICIARIES:

Primary beneficiaries
The legitimate spouse, until he/she remarries, and the dependent children

Secondary benefeciaries
The dependent parents; and
Legitimate descendants

Beneficiaries in SSS and GSIS are the same EXCEPT for two things:
1. Age of majority with respect to children
18 GSIS
21 SSS
2. SSS: in the absence of secondary beneficiaries, it is the person designated
by the member and the legal heirs only comes if there is no person
designated.
GSIS: legal heirs take the place in the absence of secondary beneficiaries.

Who are dependents?
a) The legitimate spouse dependent for support
b) Any legitimate, legitimated and/or legally adopted child
AGRARIAN FINALS ANSWERS TO QUESTIONS 405 2013


4
c) Any legitimate, legitimated and/or legally adopted child, including any
illegitimate child, who is unmarried, not gainfully employed, who has not
attained the age of majority, or being at the age of majority but incapacitated
and incapable of self-support due to a mental or physical effect acquired
prior to age of majority and
d) The parents dependent upon the member for support

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)

16. JURISDICTION OVER CLAIMS UNDER GSIS

Jurisdiction (Part of the Final Exam)
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


17. CASE OF ORTEGA VS. SSC REGARDING DISTINCTION BETWEEN CLAIMS
UNDER LC FOR COMPENSATION AND UNDER SS LAW

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 Labor Code govern compensability
of work-related disabilities or when there is loss of income due to work-connected or
work-aggravated injury or illness.
-On the other hand, the benefits under the Social Security Law are intended to
provide insurance or protection 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.

18. CRIMINAL ACTION UNDER SS LAW, WHO CAN FILE?

Selective Penal Clauses:
Who can file?
(b)Obtain or receive any money or check without being entitled with intent to defraud
any member or employees.
Ex- widowed and without reporting new marriage. Kadtong mga surviving spouses
engaged in common-law relationships, cge japon ug dawat, you fall under here.
(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 violation was committed within its territorial jurisdiction or in Metro Manila, at
the option of the SSS.
(e) fails or refuses to comply with the provisions, refusal to register employees, failure
to deduct for sss contribution remittance. For those employer who did not report
employees within 30 days.
(h) employer who after deducting fails to remit, presumption is misappropriation
pursuant to Article 315 of the RPC, fails to remit within 30 days from the date it
became due.


AGRARIAN FINALS ANSWERS TO QUESTIONS 405 2013


5
19. CASE OF GAMUGAMU VS PNOC

Gamogamo vs. PNOC, GR 141707, may 7, 2002

Facts: He used to work with DOH but na.abolish iya position sa DOH (served 17 yrs),
transferred to private employment and while serving for a minimal number of years.
CONTENTION: ang iyang 17 years of service should be added invoking RA 7699
because when SSS computed his number of years with the private employment, ang
iyang madawat would only be 500k na retirement, BUT if including GSIS, it will reach
about 1.8M.
SC: you cannot invoke portability law since under GSIS law you can qualify for
separation benefits.
- and since you can qualify for separation benefits under GSIS law assuming
that you have NOT yet applied for it (kay wa may facts didto if ni.apply ba xa
or wala), you cannot invoke portability law.
Held:
The totalization of service credits was resorted to only when the retiree did not
qualify for benefits in either or both the social security system (SSS) and the
government service insurance system (GSIS). In this case, petitioner was qualified to
receive benefits granted by the GSIS, if such right hand not yet been exercised.

In any case, petitioners fourteen years of service with the DOH may not remain
uncompensated because it may be recognized by the GSIS pursuant to section 12 of
GSIS act of 1977, as may be determined by the GSIS. Since petitioner may be entitled
to some benefits from the GSIS, he cannot avail of the benefits under RA 7699

20. 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.
21. ATLANTIC GOLF: REGARDING DACION EN PAGO IN RELATION TO
JURISDICTION

SS 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 such review, the procedure concerning appeals
AGRARIAN FINALS ANSWERS TO QUESTIONS 405 2013


6
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.

22. REP. VS. ASIAPRO IN RELATION TO EE RELATIONSHIP

REPUBLIC VS ASIAPRO CORPORATION
-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 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, respondent cooperative should register itself with SSS as an employer and make
the corresponding report and remittance of premium 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) 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.

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
AGRARIAN FINALS ANSWERS TO QUESTIONS 405 2013


7
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

23. 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

24. DEFENCES OF LACK OF CRIMINAL INTENT AND GOOD FAITH UNDER SS
LAW

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.

25. THERE ARE PROBLEMS INVOLVING INDEPENDENT AND LABOR-ONLY
CONTRACTING

Independent contracting and labor only employees = not covered by SS law.

26. TAXI DRIVERS COVERAGE UNDER SSS, (FIND RELATED CASE) PERUSE OVER
THE FACTS WHETHER THERE IS EE RELATIONS

They (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.

Taxi Driver compulsorily covered?

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
circular provides 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 7 GARAGE, 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
AGRARIAN FINALS ANSWERS TO QUESTIONS 405 2013


8
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 the owner of the laws
enacted to promote industrial peace."
As such employees, jeepney drivers are therefore covered under Sec. 10 of the Social
Security Law.

27. PRESCRIPTIVE PERIOD UNDER SSS

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.

Prescribed period in filing a claim of a member confined in hospital/home:
1. For hospital, claim for benefit must be filed within 1 year from last day of
confinement;
2. For home, 1 year from start of illness.
Failure to file the claim within the prescribed period will result to denial of
claim.

28. 4 QUESTIONS UNDER MATERNITY LEAVE. MEMORIZE THE REQUISITES.
SEMESTER OF CONTINGENCY

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 mentioned abortion, 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 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
AGRARIAN FINALS ANSWERS TO QUESTIONS 405 2013


9
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.

2
nd
PART: ESSAY (4 questions)

1. ABOUT PRESCRIPTION UNDER GSIS

Prescriptive period
Four years from date of contingency except life and retirement which do not
prescribe.

2. CASE OF DIRECTOR, GARCIA CASE,

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 of justice. 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.


3. EMPLOYMENT SERVICES, EXCLUDED, (1) PURELY CASUAL
EMPLOYMENT AND NOT FOR THE PURPOSE OF THE OCCUPATION OR
BUSINESS OF THE EMPLOYER: MANSAL VS GUCHECO L-8017 APRIL 30,
1955

(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;

Employment services excluded. You can find this also on SS book.
- FOCUS on number 1 and number 5. (na hala, wala ko kahibaw unsa ang 2,
3, or 4)
- 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.
AGRARIAN FINALS ANSWERS TO QUESTIONS 405 2013


10
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.

4. GSIS VS. NLRC

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, 13
th
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 provided in
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.

PEOPLE nagpadungog2 napud balik ang contracting agency echus sa LABOR.
Maygawshhh!!!! Saup baya ko atong essay!!!!

"Happiness is like glass. It may be all around you, yet be invisible.
But if you change your angle of viewing a little, then it will reflect light more beautifully than any other
object around you." Lelouch/Suzakuf