Agrarian Law and Social Legislation by P Ungos

Rights and privileges of domestic workers.............................................................................................................................................
189
Obligations of domestic workers.............................................................................................................................................................. 19l

Araw ng mga kasambahay............................................................................ ig^
Prohibited Activities............................................................................. 19 ^
When the employment relation can be terminated....................................... 192
Effect of termination without notice or before the
stipulated period................................................................................ 192
The just causes for termination of employment
by the domestic worker..................................................................... 193
The just causes for termination of employment
by the employer................................................................................. 193
Certificate of Employment........................................................................... 194
Criminal acts................................................................................................. 194
Criminal sanction.......................................................................................... 195
CHAPTER 5
THE MIGRANT WORKERS AND OVERSEAS
FILIPINOS ACT OF 1995
Migrant Worker............................................................................................ 196

Deployment of Migrant Workers.................................................................. 196
Liability of the POE A Governing Board, Government
Officials and Employees.................................................................... 197
Compulsory Insurance Coverage for agency-hired
migrant workers................................................................................. 197
Disqualification............................................................................................ 198
Coverage of the insurance............................................................................ 199
Repatriation of migrant workers................................................................... 200
Emergency Repatriation................................................................................ 201
Repatriation of underage migrant workers — mandatory... 201
Illegal recruitment of migrant workers......................................................... 201
Syndicated Illegal Recruitment..................................................................... 204
Large-Scale Illegal Recruitment................................................................... 205
Economic Sabotage...................................................................................... 205
Who can file the criminal complaint for illegal
recruitment........................................................................................ 205
Prescriptive period for illegal recruitment of migrant
workers............................................................................................ 205
Penalty for illegal recruitment of migrant workers....................................... 205
Jurisdiction of the POEA.............................................................................. 206
Power of POEA to order closure of establishment....................................... 206
Effect of closure order.................................................................................. 207
Remedies from a closure order............................................................. 207
xv
Who can file a motion to reopen the establishment.................................. 207
Who can file a motion to lift a closure order............................................ 208
Ground for lifting of the closure order..................................................... 208
Appeal........................................................................................................... 209
Prescriptive period for filing administrative cases................................... 209
POEA has no jurisdiction over claims of migrant
workers............................................................................................... 209
Reliefs for illegally dismissed migrant workers....................................... 209
Recruitment agencies are solidarity liable with
the principal........................................................................................ 209
Exceptions to the solidary liability rule......................................................... 210
Services and privileges available to migrant workers.............................. 210
Migrant Workers Day.................................................................................... 213
CHAPTER 6
THE PATERNITY LEAVE ACT OF 1996
Meaning of Paternity Leave.......................................................................... 214
Coverage of the Law..................................................................................... 214
Duration of paternity leave............................................................................ 214
Not convertible to cash.................................................................................. 214
Conditions for entitlement of paternity leave................................................ 215
When to avail of the paternity leave.............................................................. 215
How to avail of the paternity leave................................................................ 215
Proof of childbirth or miscarriage.................................................................. 216
Penal sanctions.............................................................................................. 216
CHAPTER 7
THE SOLO PARENTS’ WELFARE ACT OF 2000
Solo Parent.................................................................................................... 217
Benefits available to a solo parent................................................................. 218
Flexible work schedule.................................................................................. 218
Parental leave for solo parents....................................................................... 219
Housing benefits............................................................................................ 219
Educational benefits...................................................................................... 220
Medical Assistance........................................................................................ 221
CHAPTER 8
MAGNA CARTA OF PERSONS WITH DISABILITY
Persons with disability................................................................................... 222
Rights and privileges of persons with disability............................................ 222
xvi
Discrimination against persons with disability,
prohibited.................................................................................................. 232
Ridicule of persons with disability, prohibited............................................ 235
Villification of persons with disability, prohibited...................................... 235
Tax incentives for benefactors.............................................................................. 236
Penal sanctions..................................................................................................... 238
CHAPTER 9
THE SPECIAL PROTECTION OF CHILDREN
AGAINST ABUSE, EXPLOITATION AND DISCRIMINATION
ACT
Purpose of the Law............................................................................................... 240

Meaning of children............................................................................................. 240
Employment of children....................................................................................... 241
Suspension or cancellation of work permit.................................................. 242
Hours of Work of Working Children.................................................................... 243
Prohibited child employment................................................................................ 243
Handling of child’s income or property................................................................ 245
Child abuse — a criminal offense........................................................................ 245
Child prostitution or sexual abuse........................................................................ 246
Attempt to commit child prostitution................................................................... 247
Child Trafficking.................................................................................................. 248
Attempt to commit child trafficking..................................................................... 248
Obscene publications and indecent shows............................................................ 249
Other acts of child abuse...................................................................................... 249
Sanctions for erring establishments...................................................................... 251
Jurisdiction........................................................................................................... 252
Who may file a complaint.................................................................................... 252
Protective custody of the child............................................................................. 252
Confidentiality...................................................................................................... 253
Protection of children in situations of armed conflict.................................. 253
Rights of children arrested for reasons related to
armed conflict........................................................................................... 254
Children in conflict with the law.......................................................................... 255
Minimum age of criminal responsibility.............................................;....... 257
Determination of age............................................................................................ 257
Children not criminally liable for certain offenses............................................... 258
Procedure for taking the child in conflict with the
law into custody........................................................................................ 259
Treatment of children below the age of criminal
responsibility............................................................................................. 261
Petition for involuntary commitment.................................................................... 261
xvii
Detention pending trial............................................................................................ 26J
Automatic suspension of sentence........................................................................... 262
Execution of judgment............................................................................................ 263
CHAPTER 10
THE MAGNA CARTA OF WOMEN
Objective of the Law............................................................................................... 265
The rights of women............................................................................................... 267
Rights of “Women in Especially Difficult Circumstances”... 277
Sanctions ................................................................................................................ 278
Aggravating Circumstance...................................................................................... 279
CHAPTER 11
ANTI-VIOLENCE AGAINST WOMEN
AND THEIR CHILDREN ACT OF 2004
Violence against women and their children............................................................. 280

Physical violence..................................................................................................... 281
Sexual violence....................................................................................................... 281
Psychological violence............................................................................................ 282
Economic abuse...................................................................................................... 282
Remedies of victims of violence against women and
their children.............................................................................................. 283
The crime of violence against women and their children............................... 283
Aggravating circumstances..................................................................................... 286
Prohibited defense................................................................................................... 286
Battered woman syndrome is a defense for the woman................................. 286
Public crime............................................................................................................ 286
Exemption from liability......................................................................................... 287
No compromise on crimes involving violence against
women and their children......................................................................... 287
Venue of criminal action......................................................................................... 287
Protection order....................................................................................................... 287
Who can file petition for protection order............................................................... 288
How to obtain protection order................................................................................ 288
Barangay Protection Order (BPO)........................................................................... 289
Judicial Protection Order......................................................................................... 291
Enforceability of protection orders.......................................................................... 296
Confidentiality of Proceedings................................................................................ 297
Custody of children................................................................................................. 297
Leave for victims of violence against women
and their children....................................................................................... 297
xviii
CHAPTER 12
ANTI-TRAFFICKING OF PERSONS ACT OF 2003
Meaning of Trafficking in Persons............................................................ 299
Acts of Trafficking in Persons................................................................... 299
Acts that promote Trafficking in Persons.................................................. 300
Qualified Trafficking in Persons......................................................................... 301
Use of Trafficked Persons................................................................................... 302
Venue of criminal action.....................................,..................................... 303
Who may file a complaint................................................................................... 303
Immunity from criminal prosecution.................................................................. 303
Institution of Criminal and Civil Actions............................................................ 304
Prescriptive period.............................................................................................. 304
Confidentiality of proceedings............................................................................ 304
CHAPTER 13
THE ANTI-SEXUAL HARASSMENT ACT OF 1995
Meaning of sexual harassment............................................................................ 306
Where can sexual harassment be committed....................................................... 307
How is sexual harassment committed in a
work-related environment....................................................................... 307
How is sexual harassment committed in an education
or training environment.......................................................................... 307
Who can be victims of sexual harassment.......................................................... 308
Who may be liable for sexual harassment........................................................... 308
Obligations of employer or head of educational or
training institution................................................................................... 308
Composition of the Committee on Decorum
and Investigation..................................................................................... 309
Liability of the employer, educational or training
institutions.............................................................................................. 309
Penalties ............................................................................................................. 310
Prescriptive period.............................................................................................. 310
Illustrative Cases................................................................................................. 310
CHAPTER 14
THE SENIOR CITIZENS ACT
Senior Citizen..................................................................................................... 314
Privileges of Senior Citizens............................................................................... 314
Senior Citizen Discount and VAT Exemption applies
also to credit card payments.................................................................... 319
xix
Conditions for availment of the senior citizens’
privileges................................................................................
319
No double discounts........................................................................... 319
The senior citizen's discount can be claimed
as tax deduction..................................................................... 319
Additional privileges for indigent senior citizens............................... 320
Discount for DSWD-Accredited senior citizens center. 321
Incentives for Foster Care.................................................................. 322
Addition tax deduction for private entities that
322
employ senior citizens............................................................
322
Criminal Offenses and Penalties........................................................
324
The Office for Senior Citizens Affairs...............................................
324
Qualifications of the OSCA Head......................................................
325
Functions of the OSCA......................................................................
CHAPTER 15
THE HOME DEVELOPMENT MUTUAL
FUND LAW OF 1980
The Forerunner of the Present Home Development

Mutual Fund............................................................................................ 327
Objective of the Law........................................................................................... 327
The Home Development Mutual Fund................................................................ 328
Corporate Entity.................................................................................................. 328
Coverage ............................................................................................................ 329
Fund Contributions.............................................................................................. 329
Meaning of monthly compensation..................................................................... 330
Term of membership........................................................................................... 330
Suspension of contribution.................................................................................. 330
Withdrawal of contributions................................................................................ 330
Housing features.................................................................................................. 331
Waiver and suspension of coverage from the Home
Development Mutual Fund...................................................................... 331
Substitute retirement plan.................................................................................... 334
Penal provisions.................................................................................................. 334
CHAPTER 16
THE NATIONAL HEALTH INSURANCE ACT OF 1995
The rationale behind the enactment of the National

Health Insurance Act......................................................................... 335
The National Health Insurance Program...................................................... 335
Coverage of the National Health Insurance Program
xx
L
Enrollment of beneficiaries........................................................................... 33g
Enrollment Requirements.............................................................................. 337
Declaration of dependents............................................................................. 338
Health insurance 111 card............................................................................. 339
Premium contributions.................................................................................. 339
Premium contributions of individually-paying members.............................. 340
Persons not obliged to pay premium contributions........................................ 340
Premium contributions for indigent members............................................... 341
Benefits under the National Health Insurance
Program..................................................................................................... 341
Health services not covered by the National Health
Insurance Program..................................................................................... 342
Conditions for entitlement to benefits........................................................... 342
Health care providers.............................................................................................. 343
Health care providers should be accredited............................................................ 344
Payment of claims.................................................................................................. 345
Grounds for denial or reductions of claims............................................................. 346
Compensability of confinement for less than 24 hours.................................. 346
The Philippine Health Insurance Corporation........................................................ 347
CHAPTER 17
THE SOCIAL SECURITY ACT OF 1997
Development of the Law........................................................................................ 348
Rationale behind the, enactment of the Social'
Security Law............................................................................................. 348
Validity of the Social Security Law........................................................................ 349
Construction of the Social Security Law................................................................ 349
Social Security Law is not a law on succession...................................................... 349
Social Security Law is not part of the taxation system.................................. 349
The funds of the Social Security System are
private funds.............................................................................................. 349
Coverage of the SSS law........................................................................................ 350
Compulsory coverage............................................................................................. 350
Effective date of coverage...................................................................................... 351
Voluntary coverage................................................................................................ 351
When a person has secured an SSS number does it
mean that he is already an SSS member........................................... 351
Can a member withdraw his membership with the SSS................................. 351
Employees not covered by the SSS Law................................................................ 351
Obligations of the employer under the Social
Security Law.............................................................................................. 352
Effect of non-reporting or non-remittance.............................................................. 352
XX!
Effect of failure to make timely remittance
of contribution.......................................................................
353
Good faith is not a defense................................................................... 353
Demand is not a condition precedent for remittance
of premium contributions........................................................... 353
Contributions of the self-employed...................................................... 353
Policy on the primacy of regular employment over
354
self-employment.........................................................................
354
Effect of interruption of business or professional income.... 354
Effect of separation from employment................................................. 354
The Social Security Benefits................................................................ 355
Maternity Leave Benefit....................................................................... 356
Sickness Benefit................................................................................... 357
Permanent Total Disability Benefits..................................................... 359
Permanent Partial Disability Benefits................................................... 360
Retirement Benefits.............................................................................. 362
Death Benefits...................................................................................... 362
Funeral Benefits.................................................................................... 362
The Primary Beneficiaries.................................................................... 363
The Secondary Beneficiaries................................................................ 363
The dependents..................................................................................... 364
The dependents’ pension...................................................................... 364
The Social Security System (SSS)........................................................ 365
Social Security System may sue and be sued....................................... 366
The Social Security Commission (SSC)............................................... 368
Quasi-judicial functions of the SSC...................................................... 368
Appeal from decisions of the SSC........................................................
CHAPTER 18
THE GOVERNMENT SERVICE INSURANCE
SYSTEM ACT OF 1997
Coverage of the Government Service Insurance 369

System (GSIS)............................................................................ 369
Compulsory membership......................................................................
370
Employees not subject to compulsory coverage
370
of the GSIS.................................................................................
371
Classes of GSIS membership................................................................
Effective date of GSIS membership.....................................................
371
Separation from the sendee does not terminate
371
GSIS membership.......................................................................
372
The GSIS benefits.................................................................................
Separation benefits...............................................................................
xxii
Unemployment or involuntary separation benefits.................................................... 372
Permanent Total Disability Benefits......................................................................... 373
Permanent Partial Disability Benefits....................................................................... 375
Temporary Total Disability Benefits..............................................................*.........— 376
Suspension of disability benefits........................................................................................... 377
Forfeiture of disability benefits.............................................................................................. 377
Retirement Benefits.,............................................................................................................ 378
Survivorship Benefits................................................................................................ 379
Funeral Benefits................................................................................................................... 381
Life Insurance Benefit......................................................................................................... 381
Prescriptive period for filing of claims...................................................................... 381
INTRODUCTION
Agrarian Law
The term “agrarian” is derived from the Latin word “ager,” which means a field.
Lexically, the word agrarian means “relating to land or to the ownership or division of
land.”1
Agrarian law, therefore, basically refers to the distribution of public agricultural
lands, large estates, and regulation of the relationship between the landowner and the
farmer who works on the land. It embraces all laws that govern and regulate the rights and
relationship over agricultural lands between landowners, tenants, lessees or agricultural
workers.
Presently, the focus of agrarian laws is on agrarian reform, the thrust of which is
the redistribution of agricultural lands. Our basic law on Agrarian Reform is the
Comprehensive Agrarian Reform Law,2 .-upplemented by the Tenant Emancipation Law3
and the Code of Agrarian Reforms.4
The primary objective of the agrarian reform program is to breakup agricultural
lands and transform them into economic-size farms to be owned by the farmers themselves,
with the end in view of uplifting their socio-economic status.
The agrarian reform program is founded on the right of farmers and regular farm
workers who are landless, to own directly or collectively the lands they till or, in the case
of other farm workers, to receive a just share in the fruits thereof .5
'Webster’s New World Dictionary, 2nd Concise Edition.

"R.A. No. 6657, as amended by R.A. Nos. 7881, 7905, 8532 and 9700.
3
P.D. No. 27, as amended.
4
R.A. No. 6389.
DAR Administrative Order No. 02, series of 2009.
1
2 AGRARIAN LAW AND SOCIAL LEGISLATION
Social Legislation
There is no precise definition for social legislation. Social legislation is so
broad that it covers labor laws, agrarian laws, and welfare laws. The emphasis is
more on the aspect of general public good and social welfare. Essentially, these
are laws or statutes
enacted pursuant to the social justice clause of the Constitution.
CHAPTER 1
THE COMPREHENSIVE AGRARIAN
REFORM LAW OF 1998
REPUBLIC ACT NO. 6657

[As amended by Republic Act Nos. 7881, 7905, 8532 and 9700]
AN ACT INSTITUTING A COMPREHENSIVE AGRARIAN
REFORM PROGRAM TO PROMOTE SOCIAL JUSTICE AND
INDUSTRIALIZATION, PROVIDING THE MECHANISM FOR
ITS IMPLEMENTATION, AND FOR OTHER PURPOSES
CHAPTER I
PRELIMINARY CHAPTER
SECTION 1. Title. — This Act shall be known as the Comprehensive
Agrarian Reform Law of 1998.
NOTES:
Agrarian Law
Agrarian law embraces all laws that govern and regulate the rights and
relationship over agricultural lands between landowners, tenants, lessees or
agricultural workers.
History of Philippine Agrarian Laws
During the Spanish era, the relationship between landowners and tenants
was governed by the Civil Code, particularfy by the Special Provisions for Rural
Leases.
During the American regime, the Rice Share Tenancy Act1 was
promulgated. This law regulated the relationship between
‘Act 4054.
3
u
4 ACUAKIAN LAW AND SOCIAL LKGISLATJON Sec.)
landlords and tenants on rice lands. Thereafter, the Sugar Tenancy Act’ was
enacted to regulate the relationship between landlords and tenants on lands
plunted(to sugar cane.
During the commonwealth period, Commonwealth Act 53 was passed.
This law recognized the testimony of the tenant as prima facie evidence of the
terms of a tenancy contract that was not reduced in writing in a language known
to him. Subsequently, Commonwealth Act 178 was enacted to amend the
provisions of the Rice Share Tenancy Act. Thereafter, Commonwealth Act 271
was enacted to amend ActRo. 4113 by extending its application to sugar farm
workers. Afterwards, Commonwealth Act 461 was enacted to provide security of
tenure to agricultural tenants. This law was later amended by Commonwealth
Act 608.
After the grant of independence, Republic Act No. 34 was en: acted to
amend the Rice Share Tenancy Act by introducing changes in crop division.
Thereafter, the Agricultural Share Tenancy Act 1 was enacted. This law repealed
all the earlier tenancy laws except the Sugar Tenancy Act. Subsequently,
Republic Act No. 2263 amended Republic Act No. 34.
Thereafter, Republic Act. No. 1400 was passed, setting in motion the
expropriation of all tenanted estates. On August 13, 1963, the Agricultural Land
Reform Code* * was enacted. The Agricultural Land Reform Code abolished
share tenancy. In its place, it instituted the agricultural leasehold system. The
Agricultural Land Reform Code was later amended by Republic Act No. 6389
and was denominated as the Code of Agrarian Reforms.
Immediately after the declaration of martial law, President Ferdinand E.
Marcos promulgated the Tenant Emancipation Law6 which provided for the
transfer of lands primarily devoted to rice and corn to the tenants. Thereafter, the
Court of Agrarian Relations was reorganized with the enactment of Presidential
Decree No. 946. Subsequently, Presidential Decree No. 1038 was promulgated
to strengthen the security of tenure of tenants in nonrice or com agricultural
lands. The Code of Agrarian Reforms wus later amended by Presidential Decree
Nos. 251, 444,1039, and 1817.
’Act
4113.
•
’*P.D.
No. 27.
Sec. 1 CHAPTER 1 5
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
On July 17, 1987, President Corazon C. Aquino, exercising her powers under
the Transitory Provisions of the 1987 Constitution, issued Executive Order No. 228
(declaring full land ownership in favor of beneficiaries under Presidential Decree No.
27) and Executive Order No. 229 (providing the mechanics for its implementation).
Subsequently, Proclamation No. 131 instituting a comprehensive agrarian reform
program was issued.
On June 10, 1988, the Comprehensive Agrarian Reform Law of 1988r was
enacted. Thereafter, Republic Act Nos. 7881, 7905, 8532 and 9700 were enacted to
amend certain provisions of the Comprehensive Agrarian Reform Law. .
Meaning of Agrarian Reform

Agrarian Reform means the redistribution of lands, regardless of crops or fruits
produced to farmers and regular farmworkers who are landless, irrespective of tenurial
arrangement, to include the totality of factors and support services designed to lift the
economic status of the beneficiaries and all other arrangements alternative to the
physical redistribution of lands, such as production or profit- sharing, labor
administration, and the distribution of shares of stocks, which will allow beneficiaries
to receive a just share of the fruits of the lands they work .7
Gleaned from the foregoing definition, it can be seen that agrarian reform is not
confined to distribution of lands to landless farmers and regular farmworkers — it
includes other alternative modes, such as: (a) labor administration: (b) profit-sharing;
and (c) stock distribution. (The reason is becausejto confine agrarian reform to land
distribution is simply not feasible, considering there is not enough agricultural land
that can be distributed to every farmer or regular farmworker.
Applicability of the Comprehensive Agrarian Reform Law

The Comprehensive Agrarian Reform Law applies only to agricultural lands. It
does not apply to lands classified as residential, commercial, industrial, mineral, or
forest land.8
It
Meaning of Agricultural Land
Agricultural land refers to land devoted to agricultural activities. It contemplates

lands that are arable and suitable for fanning" f»i
NATALIA REALTY V. DAR

225 SCRA279
[1992]
FACTS: Natalia Realty, Inc. (NATALIA) is the owner of a 125-
hectare land in Antipolo, Rizal. On April 18, 1979, Presidential
Proclamation No. 1637 set aside 20,312 hectares of land located in
Antipolo, San Mateo and Montalban as townsite areas to absorb the
population overspill in the metropolis. The NATALIA properties were
situated within the areas proclaimed as townsite reservation.
Private landowners were allowed to develop their properties into
low-cost housing subdivisions within the reservation.
The Human Settlements Regulatory Commission (now Housing and Land
Use Regulatory Board) granted NATALIA the necessary permit to
develop the land into a subdivision.
When the Comprehensive Agrarian Reform Law took effect on
June 15, 1988, the Department of Agrarian Reform issued a Notice of
Coverage on the undeveloped portions of the subdivision. NATALIA
sought the cancellation of the Notice of Coverage on the ground that the
land in question ceased to be agricultural lands when Presidential
Proclamation No. 1637 transformed it into a townsite reservation.
ISSUE: Whether or not the undeveloped portions of the NATALIA
properties are covered by the Comprehensive Agrarian Reform Law.
HELD: The undeveloped portions of the NATALIA properties are
not covered by the Comprehensive Agrarian Reform Law because they
are not agricultural lands. Agricultural lands do not include commercial,
industrial or residential lands.
The NATALIA properties ceased to be agricultural lands upon approval
of their inclusion in the townsite reservation.
/'
“Sec. 3 (c), Comprehensive Agrarian Reform Law as amended; Luz Farms v. Secretary of Agrarian
Reform, 192 SCRA 51; De Guzman v. Court of Appeals. 504 SCRA 238.
(
Sec. 2 CHAPTER 1 7
Constitutionality of the Comprehensive Agrarian Reform Law

The Comprehensive Agrarian Reform law is not unconstitutional because it
is a valid exercise of police power .10
SECTION 2. Declaration of Principles and Policies — It is the policy of

the State to pursue a Comprehensive Agrarian Reform Program (CARP). The
welfare of the landless farmers and farmworkers will receive the highest
consideration to promote social justice and to move the nation toward sound
rural development and industrialization, and the establishment of owner
cultivatorship of economic-size farms as basis of Philippine agriculture.
The State shall promote industrialization and full employment based on
sound agricultural development and agrarian reform, through industries that
make full and efficient use of human and natural resources, and which are
competitive in both domestic and foreign markets: Provided, That the
conversion of agricultural lands into industrial, commercial or residential
lands shall take into account, tillers’ rights and national food security.
Further, the State shall protect Filipino enterprises against unfair foreign
competition and trade practices.'
The State recognizes that there is not enough agricultural land to be
divided and distributed to each farmer and regular farmworker so that each
one can own his/her economic-size farm. This being the case, a meaningful
agrarian reform program to uplift the lives and economic status of the farmer
and his/her children can only be achieved through simultaneous
industrialization aimed at developing a self- reliant and independent national
economy effectively controlled by Filipinos.
To this end, the State may, in the interest of national welfare or defense,
establish and operate vital industries.
A more equitable distribution and ownership of land, with due regard
to the rights of landowners to just compensation, retention rights under
Section 6 of Republic Act 6657,
‘“Association of Small Landowners v. Secretary of Agrarian Reform, 175 SCRA

343.
y
8 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 2
as amended, and to the ecological needs of the nation, shall be undertaken to

provide farmers and farmworkers with the opportunity to enhance their dignity
and improve the quality of their lives through greater productivity of agricultural
lands.
The agrarian reform program is founded on the right of farmers and
regular farmworkers, who are landless, to own directly or collectively the lands
they till or, in the case of farmworkers, to receive a just share of the fruits thereof.
To this end, the State shall encourage and undertake the just distribution of all
agricultural lands, subject to the priorities and retention limits set forth in this
Act, taking into account ecological, developmental, and equity considerations, and
subject to the payment of just compensation. The State shall respect the rights of
small landowners, and shall provide incentive for voluntary land-sharing.
As much as practicable, the implementation of the program shall be
community-based to assure, among others, that the farmers shall have greater
control of farmgate prices, and easier access to credit.
The State shall recognize the right of farmers, farmworkers and
landowners, as well as cooperatives and other independent farmers’
organizations, to participate in the planning, organization, and management of
the program, and shall provide support to agriculture through appropriate
technology and research, and adequate financial, production, marketing and
other support services.
The State shall recognize and enforce, consistent with existing laws, the
rights of rural women to own and control land, taking into consideration the
substantive equality between men and women as qualified beneficiaries, to
receive a just share of the fruits thereof, and to be represented in advisory or
appropriate decision-making bodies. These rights shall be independent of their
male relatives and of their civil status.
The State shall apply the principles of agrarian reform, or stewardship,
whenever applicable, in accordance with law, in the disposition or utilization of
other natural resources, including lands of the public domain, under lease or
concession, suitable to agriculture, subject to prior
See. 2 CHAPTER 1 9
THE COMPREHENSIVE ACiHAINAN REFORM l.AW OF 1998
rights, homestead rights of small settlers and the rights of indigenous

communities to their ancestral lands.
The State may resettle landless farmers and farmworkers in its own
agricultural estates, which shall be distributed to them in the manner provided
by law.
By means of appropriate incentives, the State shall encourage the
formation and maintenance of economic-size family farms to be constituted by
individual beneficiaries and small landowners.
The State shall protect the rights of subsistence fishermen, especially of
local communities, to the preferential use of communal marine and fishing
resources, both inland and offshore. It shall provide support to such fishermen
through appropriate technology and research, adequate financial, production
and marketing assistance and other services. The State shall also protect,
develop and conserve such resources. The protection shall extend to offshore
fishing grounds of subsistence fishermen against foreign intrusion. Fishworkers
shall receive a just share from their labor in the utilization of marine and fishing
resources.
The State shall be guided by the principles that land has a social function
and land ownership has a social responsibility. Owners of agricultural land have
the obligation to cultivate directly or through labor administration the lands
they own and thereby make the land productive.
The State shall provide incentives to landowners to invest the proceeds of
the agrarian reform program to promote industrialization, employment and
privatization of public sector enterprises. Financial instruments used as payment
for lands shall contain features that shall enhance negotiability and acceptability
in the marketplace.
The State may lease undeveloped lands of the public domain to qualified
entities for the development of capital- intensive farms, and traditional and
pioneering crops especially those for exports subject to the prior rights of the
beneficiaries under this Act.11
n
As amended by R.A. No. 9700.
Sec. 3
NOTES:
The Primary Objective of Agrarian Reform

The primary objective of agrarian reform is to breakup agricultural lands and
transform them into economic-size farms to be owned by the farmers themselves, with the
end in view of uplifting their socio-economic status.
The agrarian reform program is founded on the right of farmers and regular farm
workers who are landless, to own directly or collectively the lands they till or, in the case
of other farm workers, to receive a just share in the fruits thereof .12 But it does not
guarantee improvement in the lives of the agrarian reform beneficiaries — at best, it
merely provides for a possibility or a favorable chance of uplifting the economic status of
the agrarian reform beneficiaries, which may or may not be attained .13
Meaning of Economic Family-Size Farm

Economic family-size farm means an area of farm land that permits efficient use of
labor and capital resources of the farm family and will produce an income sufficient to
provide a modest standard of living to meet a farm family’s needs for food, clothing,
shelter, and education with possible allowance for payment of yearly installments on the
land, and reasonable reserves to absorb yearly fluctuations in income .14
SECTION 3. Definitions. — For the purpose of this Act, unless the context
indicates otherwise:
(a) Agrarian Reform means the redistribution of lands, regardless of crops

or fruits produced to farmers and regular farmworkers who are landless,
irrespective of tenurial arrangement, to include the totality of factors and support
services designed to lift the economic status of the beneficiaries and all other
arrangements alternative to the physical redistribution of lands, such as production
or profit-sharing, labor administration, and the distribution of shares of
12
‘“Hacienda Luisita Inc. v. PARC, 653 SCRA 154.
“Sec. 166 (20), Code of Agrarian Reforms, as
amended.
Sec. 3 CHAPTER 1 n
stocks, which will allow beneficiaries to receive a just share of the fruits of
the lands they work.
(b) Agriculture, Agricultural Enterprise or Agricultural Activity
means the cultivation of the soil, planting of crops, growing of fruit trees,
including the harvesting of such farm products, and other farm activities
and practices performed by a farmer in conjunction with such farming
operations done by persons whether natural or juridical.
(c) Agricultural Land refers to land devoted to agricultural activity
as defined in this Act and not classified as mineral, forest, residential,
commercial or industrial land.
(d) Agrarian Dispute refers to any controversy relating to tenurial
arrangements, whether leasehold, tenancy, stewardship or otherwise, over
lands devoted to agriculture, including disputes concerning farmworkers’
associations or representation of persons in negotiating, fixing, maintaining,
changing, or seeking to arrange terms or conditions of such tenurial
arrangements.
It includes any controversy relating to compensation of lands
acquired under this Act and other terms and conditions of transfer of
ownership from landowners to farmworkers, tenants and other agrarian
reform beneficiaries, whether the disputants stand in the proximate relation
of farm operator and beneficiary, landowner and tenant, or lessor and
lessee.
(e) Idle or Abandoned Land refers to any agricultural land not
cultivated, tilled or developed to produce any crop nor devoted to any
specific economic purpose continuously for a period of three (3) years
immediately prior to the receipt of notice of acquisition by the government
as provided under this Act, but does not include land that has become
permanently or regularly devoted to non-agricultural purposes. It does not
include land which has become unproductive by reason of force majeure or
any other fortuitous event, Provided that prior to such event, such land was
previously used for agricultural or other economic purpose.
(f) Farmer refers to a natural person whose primary livelihood is
cultivation of land or the production of agricultural crops, livestock and/or
fisheries either by himself/herself, or primarily with the assistance of his/her
Id ACKAKIAN l AW AND SOCIAL I.KOISI.ATION s<‘c :i
immediate farm household, whether the land is owned by him'her, or by another

person under a leasehold or share tenancy agreement or arrangement with the
owner thereof.11
(g) Farmworker is a natural person who renders services for value as
an employee or laborer in an agricultural enterprise or farm regardless of
whether his compensation is paid on a daily, weekly, monthly or “pakyaw” basis.
The term includes an individual whose work has ceased as a consequence of, or
in connection with, a pending agrarian dispute and who has not obtained a
substantially equivalent and regular farm employment.
(h) Regular Farmworker is a natural person who is employed on a
permanent basis by an agricultural enterprise or farm.
(i) Seasonal Farmworker is a natural person who is employed on a
recurrent, periodic or intermittent basis by an agricultural enterprise or farm,
whether as a permanent or a non-permanent laborer, such as “dumaan,”
“sacada,” and the like.
(j) Other Farmworker is a farmworker who does not fall under
paragraphs (g), (h) and (i).
(k) Cooperatives shall refer to organizations composed primarily of
small agricultural producers, farmers, farmworkers, or other agrarian reform
beneficiaries who voluntarily organize themselves for the purpose of pooling
land, human, technological, financial or other economic resources, and operated
on the principle of one member, one vote. A juridical person may be a member
of a cooperative, with the same rights and duties as a natural person.
(l) Rural women refer to women who are engaged directly or indirectly
in farming and/or fishing as their source of livelihood, whether paid or unpaid,
regular or seasonal, or in food preparation, managing the household, caring for
the children, and other similar activities.16
'"As amended by R.A. No. 9700. 111 Aa

amended by R.A. No. 9700.
Sec. 4 CHAPTER 1 13
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 19!>8
NOTES:
Raising of Livestock, Poultry or Fish Not Embraced in the Term
“Agriculture”
Lands devoted to raising of livestock, poultry, and swine are classified as
industrial, not agricultural, hence, exempt from the agrarian reform program."
In the case of Luz Farms v. Secretary of Agrarian Reform, 192 SCRA 51, the
Supreme Court declared unconstitutional the inclusion of lands devoted to raising of
livestock, poultry, and swine within the term “agriculture.” The reason is because in
livestock, poultry, or swine farming, no land is tilled and no crop is harvested. Land
is not the primary resource in raising of livestock, poultry or even swine. Livestock,
poultry, or swine do not sprout from the land, hence, they are not “fruits of the
land.”18
CHAPTER II
COVERAGE
SECTION 4. Scope. — The Comprehensive Agrarian Reform Law of
1988 shall cover, regardless of tenurial arrangement and commodity produced,
all public and private agricultural lands as provided in Proclamation No. 131
and Executive Order No. 229, including other lands of the public domain
suitable for agriculture: Provided, That landholdings of landowners with a total
area of five (5) hectares and below shall not be covered for acquisition and
distribution to qualified beneficiaries.
More specifically, the following lands are covered by the CARP:
(a) All alienable and disposable lands of the public domain
devoted to or suitable for agriculture. No reclassification of forest or
mineral lands to agricultural lands shall be undertaken after the
approval of this Act until Congress, taking into account ecological, devel-
opmental and equity considerations, shall have determined by law, the
specific limits of the public domain;
1;
RepubIic v. Salvador N. Lopez Agri-Business Corp., 639 SCRA 49. 18DAR v.
Sutton, 473 SCRA 392.
(b) All lands of the public domain in excess of the specific limits
as determined by Congress in the preceding paragraph;
(c) All other lands owned by the Government devoted to or
suitable for agriculture; and
(d) All private lands devoted to or suitable for agriculture
regardless of the agricultural products raised or that can be raised
thereon.
A comprehensive inventory system in consonance with the national land
use plan shall be instituted by the Department of Agrarian Reform (DAR), in
accordance with the Local Government Code, for the purpose of properly
identifying and classifying farmlands within one (1) year from effectivity of
this Act, without prejudice to the implementation of the land acquisition and
distribution.1*
NOTES:
Lands Covered by the Agrarian Reform Law
As a general rule, the Comprehensive Agrarian Reform Law covers the
following lands:
(a) all public and private agricultural lands; and
(b) other lands of the public domain suitable for agriculture.20
Lands Not Covered by the Agrarian Reform Law
The following lands are not covered by the Comprehensive Agrarian Reform
Law:
(a) Private lands with a total area of five (5) hectares and below ;21
(b) Lands actually, directly, and exclusively used for parks,
wildlife, forest reserves, reforestation, fish sanctuaries and breeding grounds,
watersheds and mangroves;
10
20
Sec. 4, Comprehensive Agrarian Reform Law, as amended. 2,Sec. 4,
Ibid.
Secs, 5-6 CHAPTER 1 15
(c) Private lands actually, directly and exclusively used for prawn
farms and fishponds;
(d) Lands actually, directly, and exclusively used and found to be
necessary for:
(i) national defense;
(ii) school sites and campuses;
(iii) experimental farm stations operated for educational
purposes;
(iv) seeds and seedling research and pilot production center,
(v) church sites and convents appurtenant thereto;
(vi) mosque sites and Islamic centers appurtenant thereto;
(vii) communal burial grounds and cemeteries;
(viii) penal colonies and penal farms actually worked by the
inmates;
(ix) research and quarantine centers; and
(x) all lands with eighteen percent (18%) slope and over,
except those already developed.22
SECTION 5. Schedule of Implementation. — The distribution of all

lands covered by this Act shall be implemented immediately and completed
within ten (10) years from the effectivity thereof.
NOTES:
Implementation Extended by Republic Act No. 9700
Section 7 of Republic Act No. 9700 extended the implementation of the
Comprehensive Agrarian Reform Law, particularly, the acquisition and
distribution of agricultural lands, to June 30, 2014.
SECTION 6. Retention Limits. — Except as otherwise provided in this

Act, no person may own or retain, directly or indirectly, any public or
private agricultural land, the
w
Scc. 10, Comprehensive Agrarian Reform Law, as amended by R.A. No. 7881.
16 AGRARIAN LAW AND SOCIAL LEGISLATION Sec e
size of which shall vary according to factors governing a viable family-size

farm, such as commodity produced, terrain, infrastructure, and soil fertility
as determined by the Presidential Agrarian Reform Council (PARC)
created hereunder, but in no case shall retention by the landowner exceed
five (5) hectares. Three (3) hectares may be awarded to each child of the
landowner, subject to the following qualifications: (1) that he is at least
fifteen (15) years of age; and (2) that he is actually tilling the land or directly
managing the farm: Provided, That landowners whose lands have been
covered by Presidential Decree No. 27 shall be allowed to keep the areas
originally retained by them thereunder: Provided, further, That original
homestead grantees or their direct compulsory heirs who still own the
original homestead at the time of the approval of this Act shall retain the
same areas as long as they continue to cultivate said homestead.
The right to choose the area to be retained, which shall be compact or
contiguous, shall pertain to the landowner: Provided, however, That in case
the area selected for retention by the landowner is tenanted, the tenant shall
have the option to choose whether to remain therein or be a beneficiary in
the same or another agricultural land with similar or comparable features.
In case the tenant chooses to remain in the retained area, he shall be
considered a leaseholder and shall lose his right to be a beneficiary under
this Act. In case the tenant chooses to be a beneficiary in another
agricultural land, he loses his right as a leaseholder to the land retained by
the landowner. The tenant must exercise this option within a period of one
(1) year from the time the landowner manifests his choice of the area for
retention.
In all cases, the security of tenure of the farmers or farmworkers on
the land prior to the approval of this Act shall be respected.
Upon the effectivity of this Act, any sale, disposition, lease,
management, contract or transfer of possession of private lands executed by
the original landowner in violation of this Act shall be null and void:
Provided, however, That those executed prior to this Act shall be valid only
when registered with the Register of Deeds within a period of three
Sec. 6 CHAPTER 1 yj
(3) months after the effectivity of this Act. Thereafter, all Registers of Deeds
shall inform the Department of Agrarian Reform (DAR) within thirty (30) days
of any transaction involving agricultural lands in excess of five (5) hectares.
NOTES:
Retention right of the landowner
Under Section 6 of the Comprehensive Agrarian Reform Law, the landowner
has the right to retain not more than five (5) hectares of his landholdings. The
retained area need not be personally cultivated by the landowner — cultivation can
be done indirectly through labor administration.23
Can a landowner who has already exercised his retention rights

under Presidential Decree No. 27 be entitled to the retention right
under the Comprehensive Agrarian Reform Law?
If the landowner has already exercised his right of retention under Presidential
Decree 27, he can no longer exercise the retention right under Comprehensive
Agrarian Reform Law.24 * 26
However, if the landowner chooses to retain five (5) hectares under
Comprehensive Agrarian Reform.Law, the seven (7) hectares previously retained by
him under Presidential Decree 27 shall be immediately placed under the coverage of
the comprehensive agrarian reform law.2$
Can spouses retain 5 hectares each under the agrarian reform law?
It depends:
(a) if the property regime is conjugal or absolute community — the
spouses can retain only five (5) hectares.
(b) if the property regime is separation of property — the spouses
can retain five (5) hectares each (a total of 10 hectares).20
23
Sec. 2 (b), DAR Administrative Order No. 05-00.
^Sec. 6, Comprehensive Agrarian Reform Law, as amended.
26
Sec. 3, DAR Administrative Order No. 05-00.
28
Sec. 9 (g) and (h), DAR Administrative Order No. 05-00.
Who has the right to choose the retention area?

The landowner has the right to choose the area to be retained. The chosen area
should be compact or contiguous.27 As long as the area to be retained is compact or
contiguous, and it does not exceed the retention ceiling of five (5) hectares, the
landowner’s choice of the area to be retained must prevail.28
The landowner should exercise his right of retention within sixty (60) days from
receipt of the Notice of Coverage.29 30 If the landowner does not exercise his right of
retention within the specified period, the Municipal Agrarian Reform Officer (MARO)
will designate the retained area for the landowner. If the landowner disagrees with the
area selected for retention, he may file a protest with the MARO .38
Can a landowner exercise his right to retention over the land which
has already been covered by an Emancipation Patent or Certificate of
Land Ownership Award?
The issuance of Emancipation Patent (EP) or Certificate of Land Ownership
Awards (CLOA) to beneficiaries does not absolutely bar the landowner from retaining
the area covered thereby. If the landowner has been deprived of his right to retention, he
may file a petition for cancellation of the EP or CLOA that may have been issued to the
tenants.31 Under Administrative Order No. 2, series of 1994, an EP or CLOA may be
cancelled if the land covered is later found to be part of the landowner’s retained area .32
Suppose the retention area chosen by the landowner is tenanted,

what happens to the tenant?
If the area selected for retention by the landowner is tenanted, the tenant may
choose on whether to remain therein or be a ' beneficiary in the same or another
agricultural land with similar or comparable features. The tenant must exercise this
option within a period of one (1) year from the time the landowner manifests his choice
of the area for retention.33
27
Sec, 6, Comprehensive Agrarian Reform Law, as amended.
28
Daez v. Court of Appeals, 325 SCRA 856.
29
Sec, 4, DAR Administrative Order No. 05-00.
30
Sec. 5, ibid.
3I
Tenants of the Estate of Dr. Jose Sison v. Court of Appeals, 201 SCRA 545.
32
Daez v. Court of Appeals, 325 SCRA 856.
33
Sec. 6, Comprehensive Agrarian Reform Law, as amended.
Sec. 6 CHAPTER 1 19
It should be noted that the law speaks of tenant, and not just of any settler on the
land. In short, the relationship of landlord- tenant must exist. Mere occupation or
cultivation of an agricultural land will not ipso facto make the tiller an agricultural tenant.
The person claiming to be an agricultural tenant must prove by substantial evidence the
existence of landlord-tenant relationship.34 This relationship can be determined by the
following elements:
(a) The landowner has engaged a person to personally cultivate an
agricultural land; and
(b) The landowner is compensated in terms of share in the produce
(share tenancy) or in terms of a price certain or ascertainable in produce or in
money or both (leasehold tenancy).
Effect if the tenant chooses to remain in the retained area

If the tenant chooses to remain in the retained area, he will no longer be considered
as a tenant but as an agricultural lessee and, he will no longer qualify as an agrarian
reform beneficiary.35
As an agricultural lessee, he will be entitled to:
(a) Peaceful possession and enjoyment of the land;
(b) Manage and work on the land in a manner and method of cultivation
and harvest which conform to proven farm practices;
(c) Mechanize all or any phase of his farm work;
(d) Deal with millers and processors and attend to the issuance of
quedans and warehouse receipts for the produce due him;36
(e) Be afforded a homelot;37
(f) Be indemnified for the cost and expenses incurred in the cultivation,
planting or harvesting and other expenses incidental to the improvement of his
crop in case he surrenders or abandons his landholding for just cause or ejected
therefrom;38
34
Rodriguez v. Salvador, 651 SCRA 429.
36
Sec. 6, Comprehensive Agrarian Reform Law as amended.
36
Sec. 23, Code of Agrarian Reforms, as amended.
37
Sec. 24, ibid.
20 AGRARIAN LAW AND SOCIAL LEGIST ATION Sec. {.
(g) Buy the agricultural landholding under reasonable terms and

conditions in case the agricultural lessor decides to sell the same;”
(h) Redeem the landholding at a reasonable price and consideration
in case the agricultural lessor sold the same to a third person without his
knowledge.39 40
Correlative to the foregoing rights are the following obligations:
(a) To cultivate and take care of the farm, growing crops, and other
improvements on the landholding as a good father of a family and perform
all the work therein in accordance with proven farm practices;
(b) Inform the agricultural lessor within a reasonable time of any
trespass committed by third persons upon the farm, without prejudice to his
direct action against the trespasser;
(c) Take reasonable care of the work animals and farm implements
delivered to him by the agricultural lessor and see that they are not used for
purposes other than those intended or used by another without the
knowledge and consent of the agricultural lessor;
(d) Keep his farm and growing crops attended to during the work
season;
(e) Notify the agricultural lessor at least three (3) days before the
date of harvesting or, whenever applicable, of threshing; and
(f) Pay the lease rental to the agricultural lessor when it falls due .41
What is the term of the lease?

The agricultural leasehold relation once established continues until such
leasehold relation is extinguished through any of the following means:
(a) Abandonment or voluntary surrender of the landholding by
the lessee; or
39
Sec. 11, ibid.
40
Sec. 12, ibid.
4,
Sec. 26, Code of Agrarian Reforms, as
amended.
Sec. 6 CHAPTER 1 21
(b) Absence of successor (i.e., surviving spouse, eldest direct

descendant by consanguinity, or next eldest descendant or descendants in the
order of their age) in the event of death or permanent incapacity of the
lessee.*2
The leasehold relation is not necessarily extinguished by death or incapacity
of the lessee. If the lessee dies or is permanently disabled, the leasehold continues
between the agricultural lessor and the person who can cultivate the landholding
personally, which the lessor can choose from among the following:
(a) the surviving spouse;
(b) the eldest direct descendant by consanguinity; or
(c) the next eldest descendant or descendants in the order of their
age.'3
Likewise, the agricultural leasehold is not terminated or extinguished by the
mere expiration of the term or period in a leasehold contract. Neither is it terminated
by the transfer of ownership or legal possession of the landholding. If the
agricultural lessor transfers the ownership or legal possession of the landholding,
the transferee becomes the agricultural lessor.*4
Effect if the Tenant Chooses to be a Beneficiary

If the tenant chooses to be a beneficiary in the same or another agricultural
land, he loses his right to be a lessee of the land retained by the landowner .42 43 44 45
Children of the Landowner are Entitled to 3 hectares each

If the landowner owns more than five (5) hectares of agricultural land, the
excess area may be awarded to the children of the landowner to the extent of three
(3) hectares for each child under the following conditions:
(a) the child is at least fifteen (15) years old; and
(b) the child is actually tilling the land or directly managing the
farm.
42
Secs. 7,
and
43 8, 9,
Sec. ibid.
44
Sec. 10,
4G
Sec. 6,
ibid.
E
The child need not directly or personally till the land — it j s enough that he
directly manages the farm.
A qualified child who owns less than five (5) hectares of agricultural land
is still entitled to an award of his parent’s landholding provided that his total area,
including the area to be awarded does not exceed the 5-hectare ownership ceiling."
For example, if the child already owns three (3) hectares of agricultural land, he
can still be awarded two (2) hectares from his parent’s landholding.
Lands awarded to qualified children of landowners cannot be sold,
transferred or conveyed within a period of ten (10) years, except:
(a) through hereditary succession;
(b) to the government;
(c) to the Land Bank of the Philippines; or
(d) to other qualified beneficiaries.
The children or the spouse of the transferor can repurchase the land from
the government or the Land Bank of the Philippines within a period of two ( 2)
years from the date of transfer."
Right of Homesteaders vis-a-vis Right of Tenants

Section 6 of Article XIII of the Constitution provides that:
“The State shall apply the principles of agrarian reform or stewardship,
whenever applicable in accordance with law, in the disposition or utilization of other
natural resources, including lands of public domain under lease or concession suitable
to agriculture, subject to x x x homestead rights of small settlers, and the
rights of indigenous cultural communities to their ancestral lands.”' 8
Section 6 of the Comprehensive Agrarian Reform Law also provides that:

“x x x original homestead grantees or their direct compulsory heirs who still
own the original homestead at the time of the approval of this Act shall retain the
same areas as long as they continue to cultivate said homestead.”*'
"
S
e
c
.
Sec. 6-A CHAPTER 1 23
It can be seen that both the Constitution and the Comprehensive Agrarian
Reform Law respect the superiority of the rights of homesteaders over the rights of
tenants. While the agrarian reform law is a remedial measure promulgated pursuant
to the social justice precepts of the Constitution, it cannot be invoked to defeat the
very purpose of the enactment of the Commonwealth Act 141. The Homestead Act
has been enacted for the welfare and protection of the poor. The law gives a needy
citizen a piece of land where he may build a modest house for himself and family
and plant what is necessary for subsistence and for the satisfaction of life’s other
needs.50
Therefore, the owners (or their direct compulsory heirs) of lands acquired
through homestead grants or Free Patents under Commonwealth Act 141 are
entitled to retain the entire area (even if it exceeds 5 hectares), provided that:
(a) they were cultivating the same at the time of the approval of
the Comprehensive Agrarian Reform Law {i.e., June 15, 1988); and
(b) they continue to cultivate the same.
SECTION 6-A. Exception to Retention Limits. — Provincial, city and

municipal government units acquiring private agricultural lands by
expropriation or other modes of acquisition to be used for actual, direct and
exclusive public purposes, such as roads and bridges, public markets, school
sites, resettlement sites, local government facilities, public parks and barangay
plazas or squares, consistent with the approved local comprehensive land use
plan, shall not be subject to the five (5)-hectare retention limit under this
Section and Sections 70 and 73 (a) of Republic Act No. 6657, as amended:
Provided, That lands subject to CARP shall first undergo the land acquisition
and distribution process of the program: Provided, further, That when these
lands have been subjected to expropriation, the agrarian reform beneficiaries
therein shall be paid just compensation.51 * 61
“AJita v. Court of Appeals, 170 SCRA 706.

61
Added by R.A. No. 9700.
24 AGRARIAN LAW AND SOCIAL LEGISLATION Secs. 6-B-7
NOTES:
Expropriation of Private Agricultural Lands By Local Government

Units
If a Local Government Unit (LGU) expropriates a private agricultural land for
actual, direct, and exclusive public purposes, the Department of Agrarian Reform
should first subject it to agrarian reform coverage. This means that the land should
first be acquired by the national government through the Department of Agrarian
Reform who will pay just compensation to the landowner. Thereafter, the
Department of Agrarian Reform will distribute the land to the agrarian reform
beneficiaries. After distribution, the LGU will expropriate the land and pay the
agrarian reform beneficiaries the just compensation.
SECTION 6-B. Review of Limits of Land Size. — Within six

(6) months from the effectivity of this Act, the DAR shall submit a
comprehensive study on the land size appropriate for each type of crop to
Congress for a possible review of limits of land sizes provided in this Act. 52
NOTES:
The Import of the Law
Section 6-B of the Comprehensive Agrarian Reform Law is an implied
recognition that the uniform setting of a 5-hectare limit for all agricultural
landholding may not be feasible, considering the economic differences for each type
of agricultural product. Surely, lands planted to rice, corn, coconut, mango, sugar,
pineapple, cacao, etc., cannot be treated identically.
SECTION 7. Priorities. — The DAR, in coordination with the

Presidential Agrarian Reform Council (PARC) shall plan and program the
final acquisition and distribution of all remaining unacquired and
undistributed agricultural lands from the effectivity of this Act until June 30,
2014. Lands shall be acquired and distributed as follows:
Phase One: During the five (5)-year extension period hereafter all remaining lands
above fifty (50) hectares
52
Sec. 7 CHAPTER 1 25
shall be covered for purposes of agrarian reform upon the effectivity of

this Act. All private agricultural lands of landowners with aggregate
landholdings in excess of fifty (50) hectares which have already been
subjected to a notice of coverage issued on or before December 10, 2008;
rice and corn lands under Presidential Decree No. 27; all idle or
abandoned lands; all private lands voluntarily offered by the owners for
agrarian reform: Provided, That with respect to voluntary land transfer,
only those submitted by June 30, 2009 shall be allowed: Provided,
further, That after June 30, 2009, the modes of acquisition shall be
limited to voluntary offer to sell and compulsory acquisition: Provided,
furthermore, That all previously acquired lands wherein valuation is
subject to challenge by landowners shall be completed and finally
resolved pursuant to Section 17 of Republic Act No. 6657, as amended:
Provided, finally, as mandated by the Constitution, Republic Act No.
6657, as amended, and Republic Act No. 3844, as amended, only
farmers (tenants or lessees) and regular farmworkers actually tilling the
lands, as certified under oath by the Barangay Agrarian Reform
Council (BARC) and attested under oath by the landowners, are the
qualified beneficiaries. The intended beneficiary shall state under oath
before the judge of the city or municipal court that he/she is willing to
work on the land to make it productive and to assume the obligation of
paying the amortization for the compensation of the land and the land
taxes thereon; all lands foreclosed by government financial institutions;
all lands acquired by the Presidential Commission on Good Government
(PCGG); and all other lands owned by the government devoted to or
suitable for agriculture, which shall be acquired and distributed
immediately upon the effectivity of this Act, with the implementation to
be completed by June 30, 2012;
Phase Two: (a) Lands twenty-four (24) hectares up to fifty (50)
hectares shall likewise be covered for purposes of agrarian reform upon
the effectivity of this Act. All alienable and disposable public
agricultural lands; all arable public agricultural lands under agroforest,
pasture and agricultural leases already cultivated
r
/
and planted to crops in accordance with Section 6, Article XIII of the

Constitution; all public agricultural lands which are to be opened for
new development and resettlement; and all private agricultural lands of
landowners with aggregate landholdings: above twenty- four (24)
hectares up to fifty (50) hectares which have already been subjected to a
notice of coverage issued on or before December 10, 2008, to implement
principally the rights of farmers and regular farmworkers, who are
landless, to own directly or collectively the lands they till, which shall be
distributed immediately upon the effectivity of this Act, with the
implementation to be completed by June 30, 2012; and
(b) All remaining private agricultural lands of landowners with
aggregate landholdings in excess of twenty-four (24) hectares,
regardless as to whether these have been subjected to notices of
coverage or not, with the implementation to begin on July 1,2012 and to
be completed by June 30, 2013;
Phase Three: All other private agricultural lands commencing
with large landholdings and proceeding to medium and small
landholdings under the following schedule:
(a) Lands of landowners with aggregate landholdings
above ten (10) hectares up to twenty-four (24) hectares, insofar as
the excess hectarage above ten (10) hectares is concerned, to begin
on July 1, 2012 and to be completed by June 30, 2013; and
(b) Lands of landowners with aggregate landholdings
from the retention limit up to ten (10) hectares, to begin on July 1,
2013 and to be completed by June 30,2014; to implement
principally the right of farmers and regular farmworkers who are
landless, to own directly or collectively the lands they till.
The schedule of acquisition and redistribution of all agricultural lands
covered by this program shall be made in accordance with the above order of
priority, which shall be provided in the implementing rules to be prepared by
the PARC, taking into consideration the following:
Sec. 7 CHAPTER 1 27
the landholdings wherein the fanners are organized and understand the
meaning and obligations of farmland ownership; the distribution of lands to
the tillers at the earliest practicable time; the enhancement of agricultural
productivity; and the availability of funds and resources to implementand
support the program: Provided, That thePARC shall design and conduct
seminars, symposia, information campaigns, and other similar programs for
farmers who are not organized or not covered by any landholdings.
Completion by these farmers of the aforementioned seminars, symposia, and
other similar programs shall be encouraged in the implementation of this Act
particularly the provisions of this Section.
Land acquisition and distribution shall be completed by June 30, 2014
on a province-by-province basis. In any case, the PARC or the PARC
Executive Committee (PARC EXCOM), upon recommendation by the
Provincial Agrarian Reform Coordinating Committee (PARCCOM), may
declare certain provinces as priority land reform areas, in which case the
acquisition and distribution of private agricultural lands therein under
advanced phases may be implemented ahead of the above schedules on the
condition that prior phases in these provinces have been completed: Provided,
That notwithstanding the above schedules, phase three (b) shall not be
implemented in a particular province until at least ninety percent (90%) of the
provincial balance of that particular province as of January 1, 2009 under
Phase One, Phase Two (a), Phase Two (b), and Phase Three (a), excluding
lands under the jurisdiction of the Department of Environment and Natural
Resources (DENR), have been successfully completed.
The PARC shall establish guidelines to implement the above priorities
and distribution scheme, including the determination of who are qualified
beneficiaries: Provided, That an owner-tiller may be a beneficiary of the land
he/ she does not own but is actually cultivating to the extent of the difference
between the area of the land he/she owns and the award ceiling of three (3)
hectares: Provided, further, That collective ownership by the farmer
beneficiaries shall be subject to Section 25 of Republic Act No. 6657, as
amended: Provided, furthermore, That rural women shall
fa
be given the opportunity to participate in the development planning and

implementation of this Act: Provided, finally, That in no case should the
agrarian reform beneficiaries’ sex, economic, religious, social, cultural and
political attributes adversely affect the distribution of lands.53
NOTES:
Acquisition and Distribution Scheme

This provision lays down the scheme for the final acquisition and distribution
of all remaining agricultural lands during the 5-year extension period up to June 30
2014, in following order of priority:
(a) Lands with an area of more than fifty (50) hectares, to be
completed by June 30, 2012, specifically:
(i) those which have already been subjected to a Notice of
Coverage on or before December 10, 2008;
(ii) rice and corn lands;
(iii) idle or abandoned lands;

NOTE: Idle or abandoned land refers to any agricultural land not cultivated,
tilled or developed to produce any crop nor devoted to any specific economic purpose
continuously for a period of three (3) years immediately prior to the receipt of notice of
acquisition by the government as provided under this Act, but does not include land that
has become permanently or regularly devoted to non-agricultural purposes. It does not
include land which has become unproductive by reason of force majeure or any other
fortuitous event, provided that prior to such event, such land was previously used for
agricultural or other economic purpose.64
(iv) private lands voluntarily offered by the owners for

agrarian reform;
(v) lands foreclosed by government financial institutions;
“As amended by R.A. No. 9700.

M
Sec. 3 (e), R.A. No. 6657, as
amended.
Sec. 7 CHAPTER 1 29
(vi) lands acquired by the Presidential Commission on Good

Government (PCGG); and
(vii) all other lands owned by the government devoted to or
suitable for agriculture.
(b) Lands with an area of twenty-four (24) hectares up to filly (50)
hectares, to be completed by June 30, 2013, specifically:
(i) all alienable and disposable public agricultural lands;
(ii) all arable public agricultural lands under agroforest, pasture
and agricultural leases already cultivated and planted to crops in
accordance with Section 6, Article XIII of the Constitution;
(iii) all public agricultural lands which are to be opened for
new development and resettlement;
(iv) all private agricultural lands which have already been
subjected to a Notice of Coverage issued on or before December 10,
2008; and
<3
0 (v) all remaining private agricultural lands regardless as to
whether they have been subjected to notices of coverage.
(c) Lands with an area of more than ten (10) hectares up to twent 3'-
four (24) hectares, to be completed by June 30, 2013; and
(d) Lands from the retention limit up to ten (10) hectares, to be
J completed by June 30, 2014.
Only farmers (tenants or lessees) and regular farmworkers actually
tilling the lands, as certified under oath by the Barangay Agrarian Reform
Council (BARC) and attested under oath by the landowners, can be
considered as qualified beneficiaries.
The intended beneficiary shall state under oath before the judge of the
city or municipal court that he/she is willing to work on the land to make it
productive and to assume the obligation of paying the amortization for the
compensation of the land and the land taxes thereon.
u
SECTION 8. Multinational Corporations. — All lands of the public domain

leased, held or possessed by multinational corporations or associations, and other
lands owned by the government or by government-owned or controlled
corporations, associations, institutions, or entities, devoted to existing and
operational agri-business or agro-industrial enterprises, operated by multinational
corporations and associations, shall be programmed for acquisition and
distribution immediately upon the effectivity of this Act, with the implementation
to be completed within three (3) years.
Lands covered by the paragraph immediately preceding, under lease,
management, grower or service contracts, and the like, shall be disposed of as
follows:
(a) Lease, management, grower or service contracts covering
such lands covering an aggregate area in excess of 1,000 hectares, leased or
held by foreign individuals in excess of 500 hectares are deemed amended
to conform with the limits set forth in Section 3 of Article XII of the
Constitution.
(b) Contracts covering areas not in excess of 1,000 hectares in the
case of such corporations and associations, and 500 hectares, in the case of
such individuals, shall be allowed to continue under their original terms
and conditions but not beyond August 29, 1992, or their valid termination,
whichever comes sooner, after which, such agreements shall continue only
when confirmed by the appropriate government agency. Such contracts
shall likewise continue even after the land has been transferred to
beneficiaries or awardees thereof, which transfer shall be immediately
commenced and implemented, and completed within the period of three (3)
years mentioned in the first paragraph hereof.
(c) In no case will such leases and other agreements now being
implemented extend beyond August 29, 1992, when all lands subject
hereof shall have been distributed completely to qualified beneficiaries or
awardees.
Such agreements can continue thereafter only under a new contract between the
government or qualified benefi-
£
Lz
Sec. 8 CHAPTER 1 31
ciaries or awardees, on the one hand, and said enterprises, on the other.
Lands leased, held or possessed by multinational corporations, owned by
private individuals and private nongovernmental corporations, associations,
institutions and entities, citizens of the Philippines, shall be subject to immediate
compulsory acquisition and distribution upon the expiration of the applicable
lease, management, grower or service contract in effect as of August 29,1987, or
otherwise, upon its valid termination, whichever comes sooner, but not later
than after ten (10) years following the effectivity of this Act. However during the
said period of effectivity, the government shall take steps to acquire these lands
for immediate distribution thereafter.
In general, lands shall be distributed directly to the individual worker-
beneficiaries. In case it is not economically feasible and sound to divide the land,
then they shall form a workers’ cooperative or association which will deal with
the corporation or business association or any other proper party for the
purpose of entering into a lease or growers agreement and for all other
legitimate purposes. Until a new agreement is entered into by and between the
workers’ cooperative or association and the corporation or business association
or any other proper party, any agreement existing at the time this Act takes
effect between the former and the previous landowner shall be respected by both
the workers’ cooperative or association and the corporation, business, as-
sociation or such other proper party. In no case shall the implementation or
application of this Act justify or result in the reduction of status or diminution of
any benefits received or enjoyed by the worker-beneficiaries, or in which they
may have a vested right, at the time this Act becomes effective.
The provisions of Section 32 of this Act, with regard to production and
income-sharing shall apply to farms operated by multinational corporations.
During the transition period, the new owners shall be assisted in their
efforts to learn modern technology in production. Enterprises which show a
willingness and commitment and good-faith efforts to impart voluntarily
such advanced technology will be given preferential treatment where feasible.

In no case shall a foreign corporation, association, entity or individual
enjoy any rights or privileges better than those enjoyed by a domestic
corporation, association, entity or individual.
NOTES:
Lands Possessed by Multinational Corporations are Covered by the CARL
Agricultural lands leased, held or possessed by multinational corporations are
also subject to compulsory acquisition and distribution. The land shall be distributed
directly to the individual worker-beneficiaries.
If it is not economically feasible and sound to divide the land, the individual
worker-beneficiaries shall form a workers’cooperative or association which will
deal with the corporation by way of lease or growers’ agreement and other
legitimate purposes.
SECTION 9. Ancestral Lands. — For purposes of this Act, ancestral

lands of each indigenous cultural community shall include, but not be limited
to, lands in the actual, continuous and open possession and occupation of the
community and its members: Provided, That the Torrens System shall be
respected.
The right of these communities to their ancestral lands shall be
protected to ensure their economic, social and cultural well-being. In line with
the principles of self- determination and autonomy, the systems of land
ownership, land use, and the modes of settling land disputes of all these
communities must be recognized and respected.
Any provision of law to the contrary notwithstanding, the PARC may
suspend the implementation of this Act with respect to ancestral lands for the
purpose of identifying and delineating such lands: Provided, That in the
autonomous regions, the respective legislatures may enact their own laws on
ancestral domain subject to the provisions of the Constitution and the
principles enunciated in this Act and other national laws.
to
Sec. 10 CHAPTER 1 33 1
NOTES:
Ancestral land defined
Ancestral lands are lands of the public domain that have been in open,
continuous, exclusive, and notorious occupation and cultivation by members of the
National Cultural Communities by themselves or through their ancestors, under a
bona fide claim of acquisition of ownership according to their customs and
traditions for a period of at least thirty (30) years before the date of approval of
Presidential Decree No. 410.
It refers to lands occupied, possessed and utilized by individuals, families,

and clans who are members of the indigenous cultural communities or indigenous
peoples since time immemorial, by themselves or through their predecessors-in-
interest, under claims of individual or traditional group ownership, continuously, to
the present except when interrupted by war, force majeure or displacement by
force, deceit, stealth, or as a consequence of government projects and other
voluntary dealings entered into by government and private individuals/corporations,
including, but not limited to, residential lots, rice terraces or paddies, private
forests, swidden farms, and tree lots.'6
Ancestral lands exempted from the Agrarian Reform Law

Ancestral lands are exempted from the coverage of the agrarian reform program .56 The
comprehensive agrarian reform law recognizes and respects the systems of land ownership, land
use, and the modes of settling land disputes of all indigenous cultural communities or indigenous
peoples, in line with the principles of self-determination and autonomy.
In the autonomous regions, the respective legislatures may enact their own
laws on ancestral domain subject to the provisions of the Constitution and the
principles enunciated in the comprehensive agrarian reform law and other national
laws.
SECTION 10. Exemptions and Exclusions. — a) Lands actually, directly

and exclusively used for parks, wildlife, forest reserves, reforestation, fish
sanctuaries and breeding
“Sec. 3 (b), R.A. No. 8371.

“DAR Administrative Order No. 02, series of 2009.
grounds, watersheds and mangroves shall be exempt from the coverage of this
Act.
b) Private lands actually, directly and exclusively used for prawn farms
and fishponds shall be exempt from the coverage of this Act: Provided, That said
prawn farms and fishponds have not been distributed and Certificate of Land
Ownership Award (CLOA) issued to agrarian reform beneficiaries under the
Comprehensive Agrarian Reform Program.
In cases where the fishponds or prawn farms have been subjected to the
Comprehensive Agrarian Reform Law, by voluntary offer to sell, or commercial
farms deferment or notices of compulsory acquisition, a simple and absolute
majority of the actual regular workers or tenants must consent to the exemption
within one (1) year from the effectivity of this Act. When the workers or tenants
do not agree to this exemption, the fishponds or prawn farms shall be distributed
collectively to the worker-beneficiaries or tenants who shall form a cooperative
or association to manage the same.
In cases where the fishponds or prawn farms have not been subjected to
the Comprehensive Agrarian Reform Law, the consent of the farm workers shall
no longer be necessary, however, the provision of Section 32-A hereof on
incentives shall apply.
c) Lands actually, directly and exclusively used and found to be
necessary for national defense, school sites and campuses, including experimental
farm stations operated by public or private schools for educational purposes,
seeds and seedling research and pilot production center, church sites and convents
appurtenant thereto, mosque sites and Islamic centers appurtenant thereto,
communal burial grounds and cemeteries, penal colonies and penal farms actually
worked by the inmates, government and private research and quarantine centers
and all lands with eighteen percent (18%) slope and over, except those already
developed, shall be exempt from the coverage of this Act. 57
57
See. 10 CIlAI'l'KU 1 35
THU COMPREHENSIVE AGRARIAN REFORM I,AW OF 1998
NOTES:
Land classification in the tax declaration is not conclusive
The land classification embodied in the tax declaration is not conclusive.

Tax declarations are not the sole basis of land classification. Thus, even if the tax
declaration classifies the land as agricultural, such classification is not irrefutable/"
REPUBLIC V. COURT OF APPEALS

342 SCRA 189 [2000]
FACTS: Green City Estate & Development Corp. is the owner of a
parcel of land located in Jala-Jala, Rizal, with a total area of 112 hectares.
Under the tax declaration, the land is classified ns agricultural. Hence, the
Department of Agrarian Reform (DAR) subjected the land to compulsory
acquisition under the agrarian reform law.
Thereafter, Green City Estate & Development Corp. filed an application
for exemption from agrarian reform on the ground that the land is non-
agricultural because it is within the residential and forest conservation zones
of the town plan/ zoning ordinance of Jala-Jala. The DAR denied the
application for exemption on the basis of the classification embodied in the
tax declaration.
ISSUE: Was the DAR correct in denying the application for
exemption on the mere fact that the tax declaration classified the land as
agricultural?
HELD: The DAR was not correct in denying the appli
cation for exemption by the mere fact that the tax declaration classified the
land as agricultural. There is no law or jurisprudence that holds that the land
classification embodied in the tax declarations is conclusive and final nor
would proscribe further inquiry. Furthermore, the tax declarations Eire not
clearly the sole basis of the classification of a land. In fact, DAR Adminis-
trative Order No. 6 lists other documents, aside from tax declarations, that
must be submitted when applying for exemption from CARP.
’Republic-, v. Salvador N. Lope/. Agri-Business Corp., 639 SCRA 49 .

Lands classified as non-agricultural prior to the effectivity of the CARL are

not covered
Lands already classified for residential, commercial or industrial use by the
Housing and Land Use Regulatory Board prior to the effectivity of the
Comprehensive Agrarian Reform Law (CARL) are not subject to agrarian reform. 59
In the case of NataliaRealty v. DAR, 225SCRA 278, the Supreme Court held that:
“Based on the foregoing, it is clear that the undeveloped portions of the

Antipolo Hills Subdivision cannot in any language be considered as
‘agricultural lands.’ These lots were intended for residential use. They ceased
to be agricultural lands upon approval of their inclusion in the Lungsod
Silangan Reservation. Even today, the areas in question continued to be
developed as low cost housing subdivision, albeit at a snail’s pace. This can be
gleaned from the fact that SAMBA members even instituted an action to
restrain petitioners from continuing with such development. The enormity of
the resources needed for developing a subdivision may have delayed its
completion but this does not detract from the fact that these lands are still
residential lands and outside of the ambit of the CARL.
Indeed, lands not devoted to agricultural activity are outside the
coverage of CARL. These include lands previously converted to non-
agricultural uses prior to the effectivity of CARL by government agencies other
than respondent DAR. x x x
Since the NATALIA lands were converted prior to 15 June 1988,
respondent DAR is bound by such conversion. It was therefore error to include
the undeveloped portions of the Antipolo Hills subdivision within the coverage
of CARL.”
Lands with at least 18% slope

The reason for exempting lands with at least 18% slope from the coverage of agrarian
reform is to prevent adverse effects on the lowlands and streams resulting from soil erosion.
That is why all lands of the public domain with at least 18% slope are considered as
permanent forests or forest reserves, regardless of the condition of vegetative cover,
occupancy, or use of any kind, and therefore, not alienable or disposable.
fi9
Buk1od Ng Magbuhukid sa Lupaing Ramos v. E.M. Ramos & Sons, 645 SCRA 401; Hairs of Dr.
Jose Deleste v. LBP, 651 SCRA 352.
Sec. 10 CHAPTER 1 37
If the land with at least 18% slope has been previously classified as alienable or
disposable, but not yet titled, it shall be reverted to the category of public forest. However,
if the land has been covered by an approved public land application or occupied openly,
continuously, adversely, and publicly for a period of not less than thirty (30) years as of the
effectivity of the Forestry Reform Code, it shall remain as such alienable or disposable on
condition that the land is kept in a vegetative state sufficient to prevent erosion and adverse
effects on the lowlands and streams.®
School sites and campuses

Lands actually, directly, and exclusively used and found necessary for school sites
and campuses are exempted from the coverage of agrarian reform. The School is in the best
position to determine whether the land is necessary for use as school site or campuses. The
DAR has no right to substitute its judgment or discretion for that of the school.61
CMU V. DABAB
215 SCRA 86
[1992]
FACTS: Central Mindanao University (CMU) is an agricultural

institution which owns 3,000 hectares of land. In 1984, CMU adopted a
livelihood program under which its land resources were leased to its
faculty and employees (groups of 5 members each group) to enable each
group to cultivate 4 to 5 hectares of land for lowland rice project. Later,
these faculty and employees filed before the Department of Agrarian
Reform (DAR) a complaint praying that they be declared as tenants under
the Comprehensive Agrarian Reform Law.
Acting on the said complaint, the DAR found that the faculty and
employees were not tenants, and cannot therefore qualify as an agrarian
reform beneficiary. However, the DAR segregated 400 hectares of
suitable, compact, and contiguous portions of the CMU land and subjected
it to agrarian reform coverage for distribution to qualified beneficiaries, on
the ground that it was not directly, actually, and exclusively used for
school site.
61
Sec. 16, P.D. No. 389 otherwise known as the Forestry Reform Code of the Philippines.
6
'CMU v. DARAB, 215 SCRA 86; DAR v. DECS, 426 SCRA 217.
I
38 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. U
ISSUE: Whether or not the DAR was correct in segregating the 400
hectares of CMU land.
HELD: The construction given by the DAR to Section 10 of the
Comprehensive Agrarian Reform Law restricts the land area of the CMU to
its present needs or to a land area presently, actively exploited and utilized
by the university in carrying out its present educational program with the
present student population and academic facility — overlooking the very
significant factor of growth of the university in the years to come. By the
very nature of the CMU, which is a school established to promote agriculture
and industry, the need for vast tract of agricultural land for future expansion
is obvious.
As to the determination of when and what lands are found to be necessary for
use by the CMU, the school is in the best position to resolve and answer the
question and pass upon the problem of its needs in relation to its avowed
objectives.
Who has jurisdiction to exempt a property from agrarian reform

coverage?
The Secretary of Agrarian Reform has the jurisdiction and authority to exempt or
exclude a property from the coverage of the agrarian reform program.62
SECTION 11. Commercial Farming. — Commercial farms, which are private

agricultural lands devoted to saltbeds, fruit farms, orchards, vegetable and cut-flower
farms, and cacao, coffee and rubber plantations, shall be subject to immediate
compulsory acquisition and distribution after ten (10) years from the effectivity of
this Act. In the case of new farms, the ten-year period shall begin from the first year
of commercial production and operation, as determined by the DAR. During the ten-
year period, the Government shall initiate steps necessary to acquire these lands,
upon payment of just compensation for the land and the improvements thereon,
preferably in favor of organized cooperatives or associations which shall thereafter
manage the said lands for the workers-beneficiaries.62
If the DAR determines that the purposes for which this deferment is granted no
longer exists, such areas shall automatically be subject to redistribution.
"’Milestone Farms, Inc. v. Office of the President,

644 SCRA 217. “As amended by R.A. No. 7881.
The provisions of Section 32 of the Act, with regard to production and

income sharing shall apply to commercial farms.
NOTES:
Commercial farms
Commercial farms are lands devoted to:
(a) saltbeds;
(b) fruit farms;
(c) orchards;
(d) vegetable and cut-flower farms; and

(e) cacao, coffee and rubber plantations.
Implementation of Agrarian Reform Law deferred on

commercial farms
Compulsory acquisition and distribution of commercial farms has been
deferred for 10 years:
(a) from the effectivity of Comprehensive Agrarian Reform Law
(i.eJune 15, 1988) — for farms already existing when the law took effect;
and
(b) from the first year of commercial production and operation

— for new farms.
Mode of acquisition of commercial farms

Commercial farms may be acquired through:
(a) Voluntary offer to sell (VOS);
(b) Compulsory acquisition (CA); or
(c) Direct payment scheme (DPS).54
Manner of distribution of commercial farms

Commercial farms may be distributed individually or collectively.
Individual beneficiaries are entitled to three (3) hectares
“Sec. 8, DAR Administrative Order No. 09, series of 1998.

each or a minimum of one ( 1) hectare each, if the land is not sufficient to
accommodate them.65
The following order of priority shall be observed in the distribution:
(a) agricultural lessees and share tenants;
(b) regular farm workers;
(c) seasonal farm workers;
(d) other farm workers;
(e) actual tillers or occupants of public lands;
(f) collectives or cooperatives of the above beneficiaries;
and
(g) others directly working on the land.“
If it is not economically feasible and sound to divide the land, the beneficiaries will be
obliged to form a workers cooperative or association.87
Infrastructure facilities and improvements which are necessary and beneficial to the
operations of the farm, including buildings, roads, machinery, receptacles, instruments or
implements permanently attached to the land may be subject to acquisition, as determined by the
Department of Agrarian Reform upon the recommendation of the agrarian reform beneficiaries. 68
Qualifications of commercial farm beneficiaries
Agrarian reform beneficiaries for acquired commercial farms must have the following
qualifications:
(a) Must be 18 years old at the time of the filing of the application as beneficiary;
(b) Must have the willingness, aptitude, and ability to cultivate and make the land
productive; and
(c) Must have been employed in the commercial farm between June 15,1988
and June 15,1998 or upon the expiration of the deferment.
“Sec. 17, DAR Administrative Order 09, series of 1998.

Farm workers who have worked the longest on the land continuously will be
given priority.69 70
Who are disqualified to become commercial farm beneficiaries?
The following are disqualified from becoming a commercial farm beneficiary:

(a) Farm workers who have retired from service, whether optional or
compulsory;
(b) Farm workers who have resigned from their employment with the
farm;
(c) Farm workers who have been dismissed for cause;
(d) Farm workers, lessees, or tenants who waive or refuse to be a

beneficiary; and
(e) Farm workers, lessees or tenants who have committed a violation
of agrarian reform laws and regulations.™
Freedom of beneficiaries to choose the type of agribusiness

Beneficiaries of commercial farms have the full freedom:
(a) To choose the type of agribusiness venture arrangement that will

maintain the economic viability of the farm;
(b) To market their products or enter into marketing arrangements; and
(c) To avail of the services or assistance of individuals, associations or
non-government organizations in negotiating for the most advantageous
agribusiness venture arrangement, enterprise development, and capability
building.71
Types of agribusiness venture arrangements

Under Section 29 of DAR Administrative Order No. 09, series of 1998, among the
agribusiness venture arrangements which
69
Sec. 4, ibid.
70
Sec. 5, DAR Administrative Order 09, series of 1998.
7,
Sec. 2 (i), ibid.
AGRARIAN LAW AND SOCIAL LEGISLATION
Set 11
42
commercial farm beneficiaries or their cooperatives may enter into are the following:
(a) Joint Venture Arrangement — In a joint venture arrangement, a

company is organized and coowned by an investor and the agrarian reform
beneficiaries through their cooperative or association. The investor may
provide the management and marketing skills, technology infrastructure and
capital, while the contribution or participation of the agrarian reform
beneficiaries includes labor, usufructuary rights to the land, and capital
infusion, if available.75
(b) Lease Arrangement — This is a scheme whereby the agrarian
reform beneficiaries through their cooperative or association, enter into a
contract of lease with the landowner or investor. The lessee controls the farm
operations within an agreed period of time not exceeding ten (10) years,
extendible by agreement."
(c) Contract Growing/Growership Arrangement — This is an
arrangement whereby the agrarian reform beneficiaries or their
cooperative produce certain crops for an investor or agribusiness firm
which buys the produce at pre-arranged terms."
(d) Management Contract - This is an arrangement whereby the
agrarian reform beneficiaries or their cooperative/ association hire the
services of the landowner or investor to manage and operate the farm in
exchange for fixed wages or commission."
(e) Build-Operate-Transfer Scheme — This is an arrangement whereby the
project proponent undertakes the financing and construction of a given infrastructure
facility and the operation and maintenance thereof for an agreed period of time not
exceeding twenty-five (25) years, subject to extension.™
,z
Sec. 3(i), ibid.
"Sec. 3(j), ibid.
"Sec. 3(e), ibid.
76
Sec, 3(k), ibid. , *, QQQ
78
Sec. 3(b), DAR Department Order No. 09 senes
Right of retention over commercial farms

Owners of commercial farms, whether individual or corporate, are entitled
to the retention rights granted by Section 6 of the Comprehensive Agrarian
Reform Law.”
CHAPTER III
IMPROVEMENT OF TENURIAL AND
LABOR RELATIONS
SECTION 12. Determination of Lease Rentals. — In order to protect and

improve the tenurial and economic status of the farmers in tenanted lands under the
retention limit and lands not yet acquired under this Act, the DAR is mandated to
determine and fix immediately the lease rentals thereof in accordance with Section
34 of Republic Act No. 3844, as amended: Provided, That the DAR shall immediately
and periodically review and adjust the rental structure for different crops, including
rice and com, or different regions in order to improve progressively the conditions
of the farmer, tenant or lessee.
NOTES:
Power of DAR to fix rentals
Under Section 6 of the Comprehensive Agrarian Reform Law, the tenant may
choose to remain in the portion retained by the landowner, in which case, he will no
longer be considered as a tenant but as a lessee.
In order to protect the economic status of the farmer, the Department of Agrarian
Reform is empowered to determine and fix the lease rental.™ The Department of
Agrarian Reform has fixed the rentals in this wise:
(a) For lands devoted to rice and other crops — 25% of the average
normal harvest after deducting the amount used for seeds and the cost of
harvesting, or threshing. If there has been no normal harvests, then the estimated
normal harvest 77 78
77
Sec. 2 (c), ibid.
78
Sec. 12, K.A No.
6657.
V
AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 13

44
during the three (3) agricultural years immediately preceding the date the
leasehold was established.™
(b) For sugar cane lands - 25% of average normal harvest less the
value of the cost of seeds/cane points, harvesting (cutting), loading, hauling,
and/or trucking fee, and cost of processing.*0
(c) For coconut lands — 25% of the average normal harvest for a
specific area for the preceding three (3) calendar years less the value of
production cost.81
SECTION 13. Production-Sharing Plan. — Any enterprise adopting the

scheme provided for in Section 32 or operating under a production venture,
lease, management contract or other similar arrangement and any farm covered
by Sections 8 and 11 hereof is hereby mandated to execute within ninety (90)
days from the effectivity of this Act, a production-sharing plan, under guidelines
prescribed by the appropriate government agency.
_ Nothing herein shall be construed to sanction the diminution of any
benefits such as salaries, bonuses, leaves and working conditions granted to the
employee-beneficiaries under existing laws, agreements, and voluntary practice
by the enterprise, nor shall the enterprise and its employee- beneficiaries be
prevented from entering into any agreement with terms more favorable to the
latter.
NOTES:
Applicability of the Law
This provision which obliges the establishment of a productionsharing plan,
applies only to:
(a) Farms operating under a production venture, lease, management

contract or other similar arrangement;
(b) Farms leased or operated by multinational corporations;
Secs. 14-15 CHAPTER 1 45
(c) Commercial farms, i.e., those devoted to saltbeds, fruit farms,

orchards, vegetable and cut flower farms, cacao, coffee or rubber plantations.
CHAPTER IV
REGISTRATION
SECTION 14. Registration of Landowners. — Within one hundred eighty
(180) days from the effectivity of this Act, all persons, natural or juridical,
including government entities, that own or claim to own agricultural lands,
whether in their names or in the name of others, except those who have already
registered pursuant to Executive Order No. 229, who shall be entitled to such
incentives as may be provided for the PARC, shall file a sworn statement in the
proper assessor’s office in the form to be prescribed by the DAR, stating the
following information:
(a) the description and area of the property;
(b) the average gross income from the property for at least three
(3) years;
(c) the names of all tenants and farmworkers therein;
(d) the crops planted in the property and the area covered by
each crop as of June 1,1987;
(e) the terms of mortgages, leases, and management contracts
subsisting as of June 1, 1987, and
(f) the latest declared market value of the land as determined
by the city or provincial assessor.
NOTES:
Purpose of the Law
The purpose of the sworn statement is to help the Department of Agrarian
Reform identify the lands and their owners for effective implementation of the
agrarian reform program.
SECTION 15. Registration of Beneficiaries. — The DAR in coordination

with the Barangay Agrarian Reform Committee (BARC) as organized in this
Act, shall register all agricultural
46
lessees, tenants and farmworkers who are qualified to be beneficiaries of the

CARP. These potential beneficiaries with the assistance of the BARC and the DAR
shall provide the following data:
(a) names and members of their immediate farm household;
(b) owners or administrators of the lands they work on and the
length of tenurial relationship;
(c) location and area of the land they work;
(d) crops planted; and
(e) their share in the harvest or amount of rental paid or wages
received.
A copy of the registry or list of all potential CARP beneficiaries in the
barangay shall be posted in the barangay hall, school or other public
buildings in the barangay where it shall be open to inspection by the public at
all reasonable hours.
NOTES:
Purpose of the Law
The purpose of requiring registration of agricultural lessees, tenants, and
farm workers is to develop a databank of potential and qualified beneficiaries
for the effective implementation of the agrarian reform program.
CHAPTERV
LAND ACQUISITION
SECTION 16. Procedure for Acquisition and Distribution of Private Lands.
— For purposes of acquisition of private lands, the following procedures shall be
followed:
(a) After having identified the land, the landowners and the
beneficiaries, the DAR shall send its notice to acquire the land to the
owners thereof, by
“DAR Administrative Older No. 4. scries of 1998.

personal delivery or registered mail, and post the same in a conspicuous

place in the municipal building and barangay hall of the place where
the property is located. Said notice shall contain the offer of the DAR to
pay a corresponding value in accordance with the valuation set forth in
Sections 17,18, and other pertinent provisions hereof.
(b) Within thirty (30) days from the date of receipt of written
notice by personal delivery or registered mail, the landowner, his
administrator or representative shall inform the DAR of his acceptance
or rejection of the offer.
(c) If the landowner accepts the offer of the DAR, the Land
Bank of the Philippines (LBP) shall pay the landowner the purchase
price of the land within thirty (30) days after he executes and delivers a
deed of transfer in favor of the Government and surrenders the
Certificate of Title and other monuments of title.
(d) In case of rejection or failure to reply, the DAR shall
conduct summary administrative proceedings to determine the
compensation for the land by requiring the landowner, the LBP and
other interested parties to submit evidence as to the just compensation
for the land, within fifteen (IS) days from the receipt of the notice. After
the expiration of the above period, the matter is deemed submitted for
decision. The DAR shall decide the case within thirty (30) days after it is
submitted for decision.
(e) Upon receipt by the landowner of the corresponding
payment or, in case of rejection or no response from the landowner,
upon the deposit with an accessible bank designated by the DAR of the
compensation in cash or in LBP bonds in accordance with this Act, the
DAR shall take immediate possession of the land and shall request the
proper Register of Deeds to issue a Transfer Certificate of Title (TCT)
in the name of the Republic of the Philippines. The DAR shall thereafter
proceed with the redistribution of the land to the qualified beneficiaries.
r
(f) Any party who disagrees with the decision may bring the
matter to the court of proper jurisdiction for final determination of just
compensation.83
NOTES:
The Compulsory Acquisition Process
This provision outlines the procedure to be followed in compulsory
acquisition of agricultural lands. Simply stated, the procedure is as follows:
(a) Identification by the Department of Agrarian Reform of the land,
landowner and beneficiary;
(b) Notice by the Department of Agrarian Reform to the landowner
about the compulsory acquisition and the price offer, thru the following
means:
(i) personal notice or by registered mail; and
(ii) posting of the notice in a conspicuous place in the
barangay hall and municipal hall where the land is located.
(c) Reply by the landowner about his acceptance or rejection of the
offered price:
(i) If the landowner accepts the offered price — the Land
Bank will pay the landowner within thirty (30) days from execution
and delivery of Deed of Transfer;
(ii) If the landowner rejects the offer — the Department of
Agrarian Reform will determine the just compensation thru
summary administrative proceedings;
(iii) If the landowner disagrees with the decision of the
Department of Agrarian Reform, he may bring the matter to the
regular courts of justice for final determination of just
compensation.
(d) Taking of immediate possession of the land by the Department of
Agrarian Reform:
(i) if the landowner receives the corresponding payment; or

(ii) if the landowner does not respond to the Notice of Acquisition.

(e) Request by the Department of Agrarian Reform to the Register of
Deeds to issue a Transfer Certificate of Title to the Republic of the Philippines;
(f) Distribution of the land to the qualified beneficiaries.
Two notices are required for validity of implementation

For a valid implementation of the agrarian reform program, two ( 2) notices to
the landowner are required, namely:
(a) Notice of Coverage pursuant to DAR Administrative Order No.
12, series of 1989; and
(b) Notice of Acquisition pursuant to Section 16 of the
Comprehensive Agrarian Reform Law.84
The first notice is in compliance with administrative due process, considering
that implementation of the agrarian reform law is an exercise of police power and the
power of eminent domain.85
Land acquisition procedure should be strictly construed

Since land acquisition under the agrarian reform law is an extraordinary
method of expropriation, it must be strictly construed. Hence, the failure of the
Department of Agrarian Reform or any of its agencies to comply with the proper
procedure for expropriation, i.e., when no Notice of Coverage was issued, it should be
treated as violation of constitutional due process and should be deemed arbitrary,
capricious, whimsical and tainted with grave abuse of discretion .85
When title or ownership of the land is transferred to the State

Title and ownership over the land will be transferred to the Republic of the
Philippines only upon full payment of the just compensation. Until the just
compensation is finally determined
'“Sta. Rosa Development Corp. v. Court of Appeals, 367 SCRA 175.

"Utoxas & Co. v. Court of Appeals, 321 SCRA 106; Heirs of Dr. Jose Deleste v. Land Bank,
651 SCRA 352.
85
Heirs of Nicolas Jugalbot v. Court of Appeals, 518 SCRA 202.
AGRARIAN LAW AND SOCIAL LEGISLATION
50 Sec. 17
and fully paid, the title and ownership remains with the landowner. This is so even if the
Department of Agrarian Reform has deposited the offered price with the Land Bank. The
mere fact, therefore, that the Department of Agrarian Reform has deposited the offered price
does not warrant the cancellation of the owner’s title.87
Opening of trust account does not constitute payment

Opening of a trust account does not constitute payment because the law requires
just compensation to be paid in cash and Land Bank bonds and not by trust account .98
CHAPTER VI
JUST COMPENSATION
SECTION 17. Determination of Just Compensation. — In determining just

compensation, the cost of acquisition of the land, the value of the standing crop, the
current value of like properties, its nature, actual use and income, the sworn
valuation by the owner, the tax declarations, the assessment made by government
assessors, and seventy percent (70%) of the zonal valuation of the Bureau of
Internal Revenue (BIR), translated into a basic formula by the DAR shall be
considered, subject to the final decision of the proper court. The social and
economic benefits contributed by the farmers and the farmworkers and by the
Government to the property as well as the nonpayment of taxes or loans secured
from any government financing institution on the said land shall be considered as
additional factors to determine its valuation.89
NOTES:
Concept of just compensation
Just compensation has been defined as “the full and fair equivalent of the property taken
from its owner by the expropriator.”
87
Association of Small Landowners v. Secretary of Agrarian Reform, 175 SCRA
“Heirs of Francisco Tan toco v. Court of Appeals, 489 SCRA 590.

The measure is not the taker’s gain, but the owner’s loss .*0 The word “just” is used to
intensify the meaning of the word “compensation” to convey the idea that the
equivalent to be rendered for the property to be taken shall be real, substantial, full and
ample.* 91
The concept of just compensation embraces not only the correct determination
of the amount to be paid to the landowner, but also “prompt payment,” i.e., payment
within a reasonable time from its taking. There is no “prompt payment” when
reimbursement is conditioned upon the Land Bank’s approval and release of the
amount is made to depend upon compliance with some documentary requirements .92
Prompt payment of just compensation does not only contemplate the
immediate deposit and release of the provisional compensation — it also encompasses
the full payment of the finally adjudged just compensation. There can be no “prompt
payment” when there is only partial payment of the just compensation .93 Without
prompt payment, compensation cannot be considered “just” because the land owner is
made to suffer the consequence of being immediately deprived of his land while being
made to wait for some time before actually receiving the amount necessary to cope
with his loss.94
The factors used in valuation of lands

The following are the factors in the valuation of lands:
(a) Capitalized Net Income (CNI) which is based on land use and
productivity;
(b) Comparable Sales (CS) which is based 70% of the BIR zonal value;
and
(c) Market Value (MV) which is based on the Tax Declaration .95
^Hacienda Luisita v. PARC, G.R. No. 171101, April 24, 2012.

91
Land Bank v. Dumlao, 572 SCRA 108.
92
Land Bank v. Soriano, 620 SCRA 347.
93
Land Bank v. Orilla, 556 SCRA 102.
^Land Bank v. Court of Appeals, 258 SCRA 407.
95
The basic formula when all factors are present

When all of the foregoing factors are present, the basic formula is as follows:
CNI x 0.60 + CS x 0.30 + MV x 0.10 = Land Value
The formula when CNI factor is not present

If the Capitalized Net Income (CNI) factor is not present, the formula is as follows:
CS x 0.90 + MV x 0.10 = Land Value
The formula when CS factor is not present

If the Comparable Sales (.CS) factor is not present, the formula is as follows:
CNI x 0.90 + MV x 0.10 = Land Value
The formula when CS and CNI factors are not present

If the Comparable Sales (CS) and Capitalized Net Income (CNI) factor are not present,
the formula is as follows:
MV x 2 = Land Value Reckoning of valuation

In determining just compensation, the value of the property at the time it was taken
from the owner and appropriated by the government shall be the basis. If the government takes
possession of the land before the institution of expropriation proceedings, the value should be
fixed as of the time of the taking of possession, not of the filing of the complaint. The ‘time of
taking1 does not only refer to that stage when the title is transferred to the Republic of the
Philippines or the beneficiaries — it also refers to the time when the agricultural land voluntarily
offered by a landowner was approved by Presidential Agrarian Reform Council (PARC) for
agrarian reform coverage through the stock distribution scheme.96
However, if there is undue delay in payment, the value of the property should be
determined not at the time of taking of the land,
“Hacienda Luisita v. PARC, G.R. No. 171101, April 24, 2012.

Hoc. 17 CHAPTER 1 53
THE COM I’RISI 1ENSIVH AGRARIAN REFORM LAW OF 1998
but at the time of full payment of the just compensation. As held by the Supreme Court in
Lubrica v. Land Bank, G.R. No. 170220, November 20, 2006:
“Petitioners were deprived of their proportion way back in 1972,

yet to date 2006, they have not yet received just compensation. Thus, it
would certainly be inequitable to determine just compensation bused on
the guideline provided by P.D. No. 227 and H.O. No. 22H considering
the failure to determine just compensation for a considerable length of
liino. That just compensation should be determined in accordance with
R.A. No. 6057 und not P.D. No. 227 or 10.0. No. 228, is important
considering that just compensation should lie the full and fair equivalent
of the property taken from its owner by the expropriator, the equivalent
being real, substantial, full and umplo.”
Procedure for determination of just compensation
The determination of just compensation under the Comprehensive Agrarian

Reform Law commences with Land Bank determining the value of the lands. Using
Land Bank’s valuation, the Department of Agrarian Reform makes an oiler to the
landowner. In case the landowner rejects the oiler, the Department of Agrarian Reform
conducts a summary administrative proceeding to determine the compensation for the
land by requiring the landowner, the Land Bank and other interested parties to submit
evidence as to the just compensation. A party who disagrees with the decision of the
adjudicator may bring the matter to the Regional Trial Court designated as a Special
Agrarian Court for final determination of just compensation.
Role of the Department of Agrarian Reform Adjudication Board (DARAB)

The DARAB or its Provincial Agrarian Reform Adjudicators (PARAD) can
conduct a summary administrative proceeding for the preliminary determination of
just compensation in order to determine whether land valuation computations of the
Lund Bank are in accordance with the rules or administrative orders."'
The preliminary proceedings of land valuation for the purpose of the
determination of just compensation for its acquisition shall be conducted by:
"'Sec. 1, Ruin XIX, 2009 DARAB Rules ofl’rocedure.

54 AGRARIAN IJ\W AND SOCIAL LEGISLATION Sec. 17
(a) PARAD — when the initial land valuation of the Land Bank is
less than P10M;
(b) Regional Agrarian Reform Adjudicators (RARAD) — when
the initial land valuation of the Land Bank is P10M to P50M; and
(c) DARAB — when the initial land valuation of the Land Bank is
above P50M.
In the event of non-availability, inhibition, or disqualification of a
designated PARAD in the locality, the RARAD concerned may conduct
preliminary proceedings of land valuation notwithstanding that the jurisdictional
amount is less than P10M.
On account of non-availability, inhibition or disqualification of the RARAD
concerned, the DARAB may conduct the preliminary proceedings of land
valuation or designate the same to an Adjudicator from among the PARADs in the
region.98
The valuation set by DAR not conclusive

The valuation set by the Land Bank is not conclusive. The landowner can
still contest the same in the proper court, i.e., the Regional Trial Court designated
as Special Agrarian Court. Section 6, Rule XIX of the 2009 DARAB Rules of
Procedure provides:
“SECTION 6. Filing of Original Action with the Special Agrarian

Court for Final Determination. — The party who disagrees with the decision of
the Board/Adjudicator may contest the same by filing an original action with the
Special Agrarian Court (SAC) having jurisdiction over the subject property within
fifteen (15) days from his receipt of the Board/ Adjudicator’s decision.
Immediately upon filing with the SAC, the party shall file a Notice of Filing of
Original Action with the Board/Adjudicator, together with a certified true copy of the
petition filed with the SAC.
Failure to file a Notice of Filing of Original Action or to submit a certified true
copy of the petition shall render the decision of the Board/Adjudicator final and
executory. Upon receipt of the Notice of Filing of Original Action or certified true
copy of the petition filed with the SAC, no writ of execution shall be issued by the
Board/Adjudicator.”
"Sec. 2, Rule XIX, 2009 DARAB Rules of Procedure.

Courts cannot disregard the formula

While the determination of just compensation is essentially a judicial function
vested in the Regional Trial Court acting as special agrarian court, it cannot disregard
the formula laid down by the Department of Agrarian Reform. 89 The factors for the
determination of just compensation which the Department of Agrarian Reform
converted into a formula are mandatory and not mere guides which the designated
Regional Trial Court may disregard.1"0
Consent of beneficiary not necessary in determining just com-

pensation
The consent of the farmer-beneficiary is not required in determining the
proper compensation of the landowner. Gleaned from Section 18 of the
Comprehensive Agrarian Reform Law, the only parties in the valuation of land are
the landowner, the Department of Agrarian Reform, and the Land Bank. Thus:
SECTION 18. Valuation and Mode of Compensation. —

The LBP shall compensate the landowner in such amount as may be agreed
upon by the landowner and the DAR and the LBP in accordance with the
criteria provided for in Sections 16 and 17 and other pertinent provisions
hereof, or as may be finally determined by the court as the just
compensation for the land (emphasis supplied).
The law does not mention the participation of the farmer- beneficiary.
Therefore, the Land Bank cannot refuse to pay the valuation set by the Provincial
Agrarian Reform Adjudicator (PARAD) simply because the consent of the farmer-
beneficiary was not obtained in fixing the just compensation.' 01
SECTION 18. Valuation and Mode of Compensation. — The LBP shall

compensate the landowner in such amounts as may be agreed upon by the
landowner and the DAR and the LBP, in accordance with the criteria provided for
in Sections 16 and 17 and other pertinent provisions hereof, or as may
"Land Bank v. Barrido, 628 SCRA 454.

100
Land Bank v. Colarina, 629 SCRA 614; Land Bank v. Escandor, 632 SCRA 504; Allied
Banking Corp. v. Land Bank, 581 SCRA 301.
,01
Land Bank v. Pascual, G.R. No. 128557, December 29, 1999.
be finally determined by the court, as the just compensation for the land.
The compensation shall be paid in one of the following modes, at the option of
the landowner:
(1) Cash payment, under the following terms and conditions;
(2) For lands above fifty Twenty-five percent (25%) cash, the
(50) hectares, insofar as the excess balance to be paid in government
hectarage is concerned. financial instruments negotiable at
any time.
(3) For lands above twenty- Thirty percent (30%) cash, the
four (24) hectares and up to fifty (50) balance to be paid in government
hectares. financial instruments negotiable at
any time.
(a) For lands twenty- Thirty-five percent (35%) cash, the

four (24) hectares and below. balance to be paid in government
financial instruments negotiable at
any time.
(4) Shares of stock in government-owned or controlled corporations, LBP

preferred shares, physical assets or other qualified investments in accordance with
guidelines set by the PARC; 3 4
(3) Tax credits which can be used against any tax liability;
(4) LBP bonds, which shall have the following features:

(a) Market interest rates aligned with 91-day treasury bill rates.
Ten percent (10%) of the face value of the bonds shall mature every year
from the date of issuance until the tenth (10th) year: Provided, That should
the landowner choose to forego the cash portion, whether in full or in part,
he shall be paid correspondingly in LBP bonds;
(b) Transferability and negotiability. Such LBP bonds may be used
by the landowner, his successors in
interest or his assigns, up to the amount of their face value, for any of the
following:
(i) Acquisition of land or other real properties of the
government, including assets under the Asset Privatization
Program and other assets foreclosed hy government financial
institutions in the same province or region where the lands for
which the bonds were paid are situated;
(ii) Acquisition of shares of stock of government-owned
or controlled corporations or shares of stocks owned by the
government in private corporations;
(iii) Substitution for surety or bail bonds for the
provisional release of accused persons, or performance bonds;
(iv) Security for loans with any government financial
institution; Provided, that the proceeds of the loans shall be
invested in an economic enterprise, preferably in a small- and
medium- scale industry, in the same province or region as the
land for which the bonds are paid;
(v) Payment for various taxes and fees to
government; Provided, That the use of these bonds for these
purposes will be limited to a certain percentage of the outstanding
balance of the financial instruments: Provided, further, That the
PARC shall determine the percentage mentioned above; ,
(vi) Payment for tuition fees of the immediate family of
the original bondholder in government universities, colleges, trade
schools, and other institutions;
(vii) Payment for fees of the immediate family of the
original bondholder in government hospitals; and
(viii) Such other uses as the PARC may from time to
time allow.
r—^---------------------
58 AGRARIAN LAW AND SOCIAL LEGISLATION Sac 18
In case of extraordinary inflation, the PARC shall take appropriate

measures to protect the economy.
NOTES:
Mode of payment
Payment of compensation may be done through the following modes, at the
option of the landowner:
(A) Cash and financial instruments of the government, payable as
follows:
(a) Lands above 50 hectares (with respect to the excess
hectarage):
(i) 25% in cash; and
(ii) 75% in government financial instruments.
(b) Lands above 24 hectares to 50 hectares:
(c) Lands above 24 hectares and below:
(B) Shares of stocks in government-owned or -controlled
corporations, preferred shares of the Land Bank, physical assets or other
qualified investments;
(C) Tax credits which can be used against tax liabilities;
and
(D) Land Bank bonds which shall mature every year until the 10th
year.
Landowner cannot insist in cash payment only

The landowner cannot insist in cash payment only because it is not
sanctioned by the agrarian reform law. The law says that the just compensation
shall be paid partly in cash and the remainder by means of bonds, government
financial instruments, shares of stock in government owned or controlled
corporations, tax credits or Land
Bank bonds.102 As rationalized by the Supreme Court in the case of

Association of Small Landowners v. Secretary of Agrarian Reform, 175SCRA 343:
“It cannot be denied from these cases that the traditional method
for the payment of just compensation is money and no other. And so,
conformably, has just compensation been paid in the past solely in that
medium. However, [th]e [Court] do[esj not deal here with the traditional
exercise of the power of eminent domain. This is not an ordinary
expropriation where only a specific property of relatively limited area is
sought to be taken by the State from its owner for a specific and perhaps
local purpose. What [th]e [Court] deal[s] with here is a revolutionary
kind of expropriation.
xxx xxx xxx
Accepting the theory that payment of the just compensation is not
always to be made fully in money, [th]e [Court] find[s] further that the
proportion of cash payment to the other things of value constituting the
total payment, as determined on the basis of the areas of the lands
expropriated, is not unduly oppressive upon the landowner. It is noted
that the smaller the land, the bigger the payment of money, primarily
because the small landowner will be needing the it more than the big
landowners, who can afford bigger balance in bonds and other things of
value. No less importantly, the government financial instruments making
up the balance of the payment are ‘negotiable at any time.’ The other
modes, which are likewise available to the landowner at his option, are
also not unreasonable because payment is made in shares of stock, LBP
bonds, other properties or assets, tax credits, and other things of value
equivalent to the amount of just compensation.”
Features of the Land Bank bonds

The features of the Land Bank bonds are as follows:
(a) Ten percent (10%) of the face value of the bonds shall mature
every year from the date of issuance until the tenth (10th) year;
(b) The bonds are transferable and negotiable;

(c) The bonds can be used for any of the following:
(i) Acquisition of land or other real properties of the government,
including assets under the Asset Priva-
102
Santos v. Land Bank, G.R. No. 137431, September 7, 2000.
60
tization Program and other assets foreclosed by government financial

institutions in the same province or region where the lands for which
the bonds were paid are situated;
(ii) Acquisition of land shares of stock of government-owned
or -controlled corporations or shares of stocks owned by the
government in private corporations;
(iii) Bail bonds for the provisional release of accused persons, or
performance bonds;
(iv) Security for loans with government financial institution,
provided that the proceeds of the loans shall be invested in an economic
enterprise;
(v) Payment for various taxes and fees to government;
(vi) Payment for tuition fees of the immediate family of the
original bondholder in government universities, colleges, trade schools,
and other institutions; and
(vii) Payment for fees of the immediate family of the original
bondholder in government hospitals.
SECTION 19. Incentives for Voluntary Offers for Sale. — Landowners,

other than banks and other financial institutions, who voluntarily offer their lands
for sale shall be entitled to an additional five percent (5%) cash payment.
NOTES:
Documentary requirements for voluntary offers for sale

Landowners who voluntarily offer their agricultural lands for sale must attach the
following documents to their written offer:
(a) Title or proof of ownership, if untitled;
(b) Tax declaration; and
(c) Approved survey plan.
If the landowner fails to submit the documentary requirements, the land will
be subjected to compulsory acquisition.
SECTION 20. Voluntary Land Transfer. — Landowners of agricultural

lands subject to acquisition under this Act may enter into a voluntary
arrangement for direct transfer of their lands to qualified beneficiaries subject to
the following guidelines:
(a) All notices for voluntary land transfer must be submitted to
the DAR within the first year of the implementation of the CARP.
Negotiations between the landowners and qualified beneficiaries covering
any voluntary land transfer which remain unresolved after one (1) year
shall not be recognized and such land shall instead be acquired by the
government and transferred pursuant to this Act.
(b) The terms and conditions of such transfer shall not be less
favorable to the transferee than those of the government’s standing offer
to purchase from the landowner and to resell to the beneficiaries, if such
offers have been made and are fully known to both parties.
(c) The voluntary agreement shall include sanctions for non-

compliance by either party and shall be duly recorded and its
implementation monitored by the DAR.
NOTES:
Voluntary land transfer no longer allowed
Section 7 of the Comprehensive Agrarian Reform Law, as amended by
Republic Act No. 9700, allowed voluntary land transfer up to June 30, 2009 only.
After June 30, 2009, the modes of acquisition are limited to voluntary offer to sell and
compulsory acquisition.
SECTION 21. Payment of Compensation by Beneficiaries Under

Voluntary Land Transfer. — Direct payments in cash or in kind may be made
by the farmer-beneficiary to the landowner under terms to be mutually
agreed upon by both parties, which shall be binding upon them, upon
registration with and approval by the DAR. Said approval shall be considered
given, unless notice of disapproval is received by the farmer-beneficiary
within thirty (30) days from the date of registration.
In the event they cannot agree on the price of land, the procedure for
compulsory acquisition as provided in Section 16 shall apply. The LBP shall
extend financing to the beneficiaries for purposes of acquiring the land.
NOTES:
Mode of payment in voluntary land transfers
Unlike in compulsory acquisition, the farmer-beneficiary pays the agreed
price of the land directly to the landowner.
CHAPTER VII
LAND REDISTRIBUTION
SECTION 22. Qualified Beneficiaries. — The lands covered by the CARP
shall be distributed as much as possible to landless residents of the same
barangay, or in the absence thereof, landless residents of the same municipality in
the following order of priority:
(b) regular farmworkers;
(c) seasonal farmworkers;
(d) other farmworkers;
(f) collectives or cooperatives of the above beneficiaries; and
(g) others directly working on the land.
Provided, however, That the children of landowners who are qualified
under Section 6 of this Act shall be given preference in the distribution of the
land of their parents: and Provided, further, That actual tenant-tillers in the
landholdings shall not be ejected or removed therefrom.
Beneficiaries under Presidential Decree No. 27 who have culpably sold,
disposed of, or abandoned their land are disqualified to become beneficiaries
under this Program.
A basic qualification of a beneficiary shall be his willingness, aptitude,
and ability to cultivate and make the land
Sec. 22 OHAPTKUl 63
TIIE COMPREHENSIVE AGRARIAN REFORM I-AW OK 1998
as productive as possible. The DAR shall adopt a system of monitoring the record or
performance of each beneficiary, so that any beneficiary guilty of negligence or misuse
of the land or any support extended to him shall forfeit his right to continue as such
beneficiary. The DAR shall submit periodic reports on the performance of the
beneficiaries to the PARC.
If, due to the landowner’s retention rights or to the number of tennnts, lessees,
or workers on the land, there is not enough land to accommodate any or some of them,
they may be granted ownership of other lands available for distribution under this Act,
at the option of the beneficiaries.
Farmers already in place and those not accommodated in the distribution of
privately-owned lands will be given preferential rights in the distribution of lands from
the public domain.
NOTES:
Who are eligible to become agrarian reform beneficiaries?

To be eligible to become an agrarian reform beneficiary, a person must be a landless
resident of the same barangay, or of the same municipality.
A landless resident is a farmer or tiller who owns less than three (3)
hectares of land.103 It could refer to any of the following:
(b) regular farmworkers;
(c) seasonal farmworkers;
(d) other farmworkers;
(f) collectives or cooperatives of the above beneficiaries;
and
(g) others directly working on the land.
lm
Sec. 25, Comprehensive Agrarian Reform Law.
AGRARIAN LAW AND SOCIAL LEGISLATION See. 22
64
Qualifications of an agrarian reform beneficiary

To qualify as an agrarian reform beneficiary, the farmer (whether tenant,
lessee, or worker) must be:
(a) Filipino citizen;
(b) Resident of the barangay or municipality where the landholding
is located;
(c) At least fifteen (15) years old at the time of identification,
screening and selection; and
<d) Willing, able, and equipped with aptitude to cultivate and make
the land productive.1"*
Special qualifications for farm workers in commercial farms or

plantations
In addition to the aforementioned qualifications, farm workers in
commercial farms of plantations can qualify as an agrarian reform beneficiary if
they were already employed as of June 15,1988 in the landholding covered by
the comprehensive agrarian reform law.1"5
Managerial farm workers not qualified to become beneficiaries

Farm workers holding managerial for supervisory) positions as of June
15, 1988 are not qualified to become agrarian reform beneficiaries.
However, farm workers promoted to managerial or supervisory position
after they were identified, screened and selected will remain as qualified
agrarian reform beneficiaries.106
Who are disqualified to become agrarian reform beneficiaries?

The following tenants, lessees, or farm workers are disqualified from
becoming an agrarian reform beneficiary under the agrarian reform law:
(a) Those who do not meet the basic qualifications;

(b) Those who have waived their right to become an agrarian reform
beneficiary in exchange for compensation, provided that the waiver has not
been questioned in the proper government entity;
(c) Those who have not paid an aggregate of three (3) annual
amortizations;
(d) Those who have failed to exercise right of redemption/
repurchase within two (2) years resulting in the foreclosure of mortgage by the
Land Bank of the Philippines of a previously awarded land;
(e) Those who refused to pay three (3) annual amortizations for land
acquired through voluntary land transfer or direct payment scheme, resulting
in the repossession by the landowner;
(f) Those who have been dismissed for cause;
(g) Those who have obtained substantially equivalent employment,
i.e., any employment or profession from which the applicant-farmer derives
income equivalent to the income of a regular farm worker at the time
identification, screening, and selection of the beneficiary;
(h) Those who have retired or voluntarily resigned from their
employment;
(i) Those who have misused the land or diverted the financial
support services extended by the government;
(j) Those who have misrepresented material facts in their basic
qualifications;
(l) Those who have sold, disposed, or abandoned the lands awarded
to them by the government;
(m) Those who have converted agricultural lands to non- agricultural
use without prior approval of the Department of Agrarian Reform;
(n) Those who have been finally adjudged guilty of forcible entry or
unlawful detainer over the property: and
(o) Those who have violated agrarian reform laws and regulations.107
107
AGRARIAN LAW AND SOCIAL LEGISLATION Secs. 22-A-2S
SECTION 22-A. Order of Priority. - A landholding of a

landowner shall be distributed first to qualified beneficiaries under
Section 22, subparagraphs (a) and (b) of that same landholding up
to a maximum of three (3) hectares each. Only when these
beneficiaries have all received three (3) hectares each, shall the
remaining portion of the landholding, if any, be distributed to
other beneficiaries under Section 22, subparagraphs (c), (d), (e), (f),
and (g).108
NOTES:
Order of distribution
As per Section 22 of the Comprehensive Agrarian Reform Law, children
of the landowner enjoy first preference in the distribution of the landholding.
Each child is entitled to three (3) hectares if he is:
(a) fifteen (15) years old; and
(b) actually tilling the land or directly managing
the farm.109
After the children, the covered landholding will be distributed to the
following:
(b) regular farmworkers.
If the lessees, tenants and regular farm workers have already received their
three (3) hectares, the remaining portion of the land will be distributed to:
(a) seasonal farm workers;
(b) other farm workers;
(c) actual tillers or occupants of public lands;
(d) collectives or cooperatives of the above beneficiaries;
and
(e) others directly working on the land.
SECTION 23. Distribution Limit. - No qualified beneficiary may own more

than three (3) hectares of agricu ura land.
108
,09
Sec. 6, Comprehensive Agrarian
Reform Law.
NOTES:
Maximum area that can be owned by or awarded to beneficiaries
The maximum agricultural land area that can be owned by or awarded to an
agrarian reform beneficiary is three (3) hectares. Therefore, if a tenant or farm
worker already owns two (2) hectares of agricultural land, he can still be awarded
one (1) hectare.
If the particular landholding is not enough to meet the 3-hectare award
ceiling for each agricultural lessee or tenant, the area to be distributed to them will
be based on the actual size of tillage by each lessee or tenant.
If the landholding is more than enough to accommodate the 3-hectare limit
for each agricultural lessee or tenant, the excess will be distributed to agrarian
reform beneficiaries in the following order of priority:
(a) seasonal farm workers;
(b) other farmworkers;
(c) actual tillers or occupants of public lands;
(d) collectives or cooperatives of the above beneficiaries.
If it is not economically feasible and sound to divide the excess land to the
seasonal or other farm workers, the following criteria for prioritization shall be
observed:
(a) willingness, aptitude, and ability to cultivate and make the land
productive;
(b) physical capacity; and
(c) length of service.
If the seasonal or other farm workers equally meet the foregoing criteria,
priority shall be given to those who have continuously worked on the subject
landholding. The other farm workers who cannot be accommodated will be put in
a wait list of potential beneficiaries in other landholdings. no 110
110
DAR Administrative Order No. 2. series of 2009.
68
If the beneficiaries opt for collective ownership, such as farmer?

cooperative, the total area must coincide with the total number of members or
co-owners multiplied by the 3-hectare limit.111
Factors to be considered in determining the size of land to be

awarded
In determining the size of the land for distribution, the following factors are to
be considered:
(a) Type of crop;
(b) Type of soil;
(c) Weather patterns; and
(d) Other pertinent factors critical for the success of the
beneficiaries.112
SECTION 24. Award, to Beneficiaries. — The rights and

responsibilities of the beneficiaries shall commence from their receipt of a
duly registered emancipation patent or certificate of land ownership award
and their actual physical possession of the awarded land. Such award shall
be completed in not more than one hundred eighty (180) days from the date
of registration of the title in the name of the Republic of the Philippines:
Provided, That the emancipation patents, the certificates of land ownership
award, and other titles issued under any agrarian reform program shall be
indefeasible and imprescriptible after one (1) year from its registration with
the Office of the Registry of Deeds, subject to the conditions, limitations and
qualifications of this Act, the property registration decree, and other
pertinent laws. The emancipation patents or the certificates of land
ownership award being titles brought under the operation of the Torrens
system, are conferred with the same indefeasibility and security afforded to
all titles under the said system, as provided for by Presidential Decree No.
1529, as amended by Republic Act No. 6732.
It is the ministerial duty of the Registry of Deeds to register the title of

the land in the name of the Republic
of the Philippines, after the Land Bank of the Philippines (LBP) has certified
that the necessary deposit in the name of the landowner constituting full
payment in cash or in bond with due notice to the landowner and the
registration of the certificate of land ownership award issued to the
beneficiaries, and to cancel previous titles pertaining thereto.
Identified and qualified agrarian reform beneficiaries, based on Section
22 of Republic Act No. 6657, as amended, shall have usufructuary rights over
the awarded land as soon as the DAR takes possession of such land, and such
right shall not be diminished even pending the awarding of the emancipation
patent or the certificate of land ownership award.
All cases involving the cancellation of registered emancipation patents,
certificates of land ownership award, and other titles issued under any agrarian
reform program are within the exclusive and original jurisdiction of the
Secretary of the DAR.113
NOTES:
Transfer of ownership to the beneficiaries not automatic

Compulsory acquisition does not mean automatic transfer of ownership of the
land to the tenant, lessee, or farm worker. Title and ownership over the land can be
transferred to the beneficiaries only upon full payment of the just compensation to
the landowner.'14
When does the DAR issue a Certificate of Land Ownership Award

(CLOA)?
The DAR will issue the CLOA only upon full payment of amortization by the
farmer-beneficary. The CLOA in turn, becomes the basis for the issuance in his name
of an original or transfer certificate of title.116 * *
m
*H Association of Small Landowners v. Secretary of Agrarian Reform, 175 SCRA 343; Land
Bank v. Court of Appeals, 249 SCRA 149; Land Bank v. Abello, 584 SCRA 342; Mago v. Barbin,
603 SCRA 383.
13B
Padua v. Court of Appeals, 517 SCRA 232.
CLOA is indefeasible
CLOAs are titles brought under the operation of the Torrens system. Hence,
they are conferred with the same indefeasibility and security as provided for by
Presidential Decree No. 1529, as amended by Republic Act No. 6732. CLOAs and
other titles issued under the agrarian reform program become indefeasible and
imprescriptible after one (1) year from its registration with the Office of the Registry
of Deeds, subject to the conditions, limitations and qualifications under
Comprehensive Agrarian Reform Law, the Property Registration Decree, and other
pertinent laws.116
Cancellation of CLOAs
AU cases involving the cancellation of CLOAs, and other titles issued
UDder any agrarian reform program are within the exclusive and original
jurisdiction of the Secretary of the Department of Agrarian Reform. 1"
Grounds for Cancellation of CLOAs
CLOAs may be cancelled on the following grounds:
(a) Abandonment of the land;
(b) Neglect or misuse of land;11*
(c) Failure to pay three (3) annual amortizations;11*
(d) Misuse or diversion of financial and support services;1”
(e) Sale, transfer or conveyance of the right to use the land ;* 111 and
(f) Illegal conversion of the land.152
When will the rights and obligations of beneficiaries commence?

The rights and responsibilities of the beneficiaries will begin
na
Reform
111
Ibid. Law.
n8
Reform Law.
1,0
Sec. 26, ibid.
,M
Sec. 37, ibid.
,21
Sec. 73, ibid.
,22
Sec. 73, ibid.
4
from their receipt of a duly registered CLOA and their actual physical possession of
the awarded land.123
Pending issuance of CLOA, the identified and qualified agrarian reform
beneficiaries have usufructuary rights over the awarded land which the Department
of Agrarian Reform, has taken possession.124
Obligations of Agrarian Reform Beneficiaries

Agrarian reform beneficiaries are obliged to:
(a) Exercise due diligence in the use, cultivation, and maintenance
of the land, including improvements thereon; and
(b) Pay the Land Bank thirty (30) annual amortizations with 6%
interest per annum;
The amortization will start one (1) year from the date of registration of the
CLOA. However, if actual occupancy of the land takes place after the registration
of the CLOA, the 1-year period shall be reckoned from constructive occupation of
the land by the beneficiary.
SECTION 25. Award Ceilings for Beneficiaries. — Beneficiaries shall be

awarded an area not exceeding three (3) hectares, which may cover a
contiguous tract of land or several parcels of land cumulated up to the
prescribed award limits. The determination of the size of the land for
distribution shall consider crop type, soil type, weather patterns and other
pertinent variables or factors which are deemed critical for the success of the
beneficiaries.
For purposes of this Act, a landless beneficiary is one who owns less
than three (3) hectares of agricultural land.
Whenever appropriate, the DAR shall encourage the agrarian reform
beneficiaries to form or join farmers’ cooperatives for purposes of affiliating
with existing cooperative banks in their respective provinces or localities, as
well as forming blocs of agrarian reform beneficiaries, corporations, and
partnerships and joining other farmers’ collective orga
123
Sec. 24, ibid- Pasco v. Pison-Areeo Agricultural Dev. Corp., 485 SCRA 514.
i24
Sec. 24, ibid.
72
nizations, including irrigators’ associations: Provided, That the agrarian

reform beneficiaries shall be assured of corresponding shares in the
corporation, seats in the board of directors, and an equitable share in the
profit.
In general, the land awarded to a farmer-beneficiary should be in the
form of an individual title, covering one (1) contiguous tract or several parcels of
land cumulated up to a maximum of three (3) hectares.
The beneficiaries may opt for collective ownership, such as co-workers
or farmers cooperative or some other form of collective organization and for the
issuance of collective ownership titles: Provided, That the total area that may be
awarded shall not exceed the total number of co-owners or members of the
cooperative or collective organization multiplied by the award limit above
prescribed, except in meritorious cases as determined by the PARC.
The conditions for the issuance of collective titles are as follows:
(a) The current farm management system of the land covered by

CARP will not be appropriate for individual farming of farm parcels;
(b) The farm labor system is specialized, where the farmworkers
are organized by functions and not by specific parcels such as spraying,
weeding, packing and other similar functions;
(c) The potential beneficiaries are currently not farming
individual parcels but collectively work on large contiguous areas; and
(d) The farm consists of multiple crops being farmed in an

integrated manner or includes non-crop production areas that are
necessary for the viability of farm operations, such as packing plants,
storage areas, dikes, and other similar facilities that cannot be
subdivided or assigned to individual farmers.
For idle and abandoned lands or underdeveloped agricultural lands to

be covered by CARP, collective ownership shall be allowed only if the
beneficiaries opt for it and there is a clear development plan that would require
collective
farming or integrated farm operations exhibiting the conditions described above.

Otherwise, the land awarded to a farmer-beneficiary should be in the form of an
individual title, covering one (1) contiguous tract or several parcels of land
cumulated up to a maximum of three (3) hectares.
In case of collective ownership, title to the property shall be issued in the
name of the co-owners or the cooperative or collective organization as the case
may be. If the certificates of land ownership award are given to cooperatives then
the names of the beneficiaries must also be listed in the same certificate of land
ownership award.
With regard to existing collective certificates of land ownership award, the
DAR should immediately undertake the parcelization of said certificates of land
ownership award, particularly those that do not exhibit the conditions for
collective ownership outlined above. The DAR shall conduct a review and
redocumentation of all the collective certificates of land ownership award. The
DAR shall prepare a prioritized list of certificates of land ownership award to be
parcelized. The parcelization shall commence immediately upon approval of this
Act and shall not exceed a period of three (3) years. Only those existing certificates
of land ownership award that are collectively farmed or are operated in an
integrated manner shall remain as collective.126
NOTES:
Individual titles for every beneficiary
As a general rule, the land should be awarded to the individual farmer-
beneficiary and should be covered by an individual title.
However, if the beneficiaries opt for collective ownership, such as farmers
cooperative, collective ownership title may be issued in the name of the co-owners or
the collective organization. If the title is issued in the name of the collective
organization, the names of the beneficiaries must be listed in the same certificate of
land ownership award.'20
‘“As amended by R.A. No. 9700.

'“Sec. 25, Comprehensive Agrarian Reform Law.
Conditions for issuance of collective titles

There are certain conditions that must be complied with before a collective
ownership title can be issued, namely:
(a) The farm management system of the land covered is not
appropriate for individual farming;
(b) The farm labor system is specialized, i.e., where the
farmworkers are organized by functions and not by specific parcels such as
spraying, weeding, packing and other similar functions;
(c) The beneficiaries are currently not farming individual parcels
but collectively work on large contiguous areas; and
(d) The farm consists of multiple crops being farmed in an
integrated manner or includes non-crop production areas that are necessary
for the viability of farm operations, such as packing plants, storage areas,
dikes, and other similar facilities that cannot be subdivided or assigned to
individual farmers.127
Title must indicate that it is an EP or CLOA

The title of the land awarded under the agrarian reform must indicate that it is
an Emancipation Patent (EP) or a Certificate of Land Ownership Award (CLOA).
The subsequent transfer title must also indicate that it is an emancipation patent
or a certificate of land ownership award.12"
SECTION 26. Payment by Beneficiaries. — Lands awarded pursuant to

this Act shall be paid for by the beneficiaries to the LBP in thirty (30) annual
amortizations at six percent (6%) interest per annum. The annual amortization
shall start one (1) year from the date of the certificate of land ownership award
registration. However, if the occupancy took place after the certificate of land
ownership award registration, the amortization shall start one (1) year from
actual occupancy. The payments for the first three (3) years after the award
shall be at reduced amounts as established by the PARC: Provided, That the
first five (5) annual payments may * 26
1!7
/6id.
I26
Sec. 27, Comprehensive Agrarian Reform
Law.
not be more than five percent (5%) of the value of the annual gross
production as established by the DAR. Should the scheduled
annual payments after the fifth (5th) year exceed ten percent (10%)
of the annual gross production and the failure to produce
accordingly is not due to the beneficiary’s fault, the LBP shall
reduce the interest rate and/or reduce the principal obligation to
make the repayment affordable.
The LBP shall have a lien by way of mortgage on the land
awarded to the beneficiary; and this mortgage may be foreclosed
by the LBP for non-payment of an aggregate of three (3) annual
amortizations. The LBP shall advise the DAR of such proceedings
and the latter shall subsequently award the forfeited landholding to
other qualified beneficiaries. A beneficiary whose land, as provided
herein, has been foreclosed shall thereafter be permanently
disqualified from becoming a beneficiary under this Act.1”
NOTES:
Schedule of payment
The cost of the awarded land is payable to the Land Bank (by the
beneficiaries) in thirty (30) annual amortizations with six percent ( 6%) interest per
annum.
Payment starts one (1) year from:
(a) date of registration of the Certificate of Land
Ownership Award (CLOA); or
(b) date of actual occupancy, if the occupancy took place
after the registration of the CLOA.
Basis of amortization
c
The maximum amortization is 5% of the annual gross production as

established by the Department of Agrarian Reform.
After the 5th year, the interest rate and/or the principal obligation may be
reduced by the Land Bank to make the repayment affordable: 129
129
>
(a) If due to failure of production, the scheduled annual payments

exceed 10% of the annual gross production; and
(b) the failure to produce is not due to the beneficiary’s fault.
Effect of failure to pay the amortizations

If the beneficiary fails to pay three (3) annual amortizations, the Land Bank
can forfeit the landholding and award it to other qualified beneficiaries.
The beneficiary whose land has been foreclosed or forfeited will be
permanently disqualified from becoming a beneficiary.
SECTION 27. Transferability of Awarded Lands. — Lands

acquired by beneficiaries under this Act or other agrarian reform
laws shall not be sold, transferred or conveyed except through
hereditary succession, or to the government, or to the LBP, or to
other qualified beneficiaries through the DAR for a period of ten (10)
years: Provided, however, That the children or the spouse of the
transferor shall have a right to repurchase the land from the
government or LBP within a period of two (2) years. Due notice of
the availability of the land shall be given by the LBP to the BARC of
the barangay where the land is situated. The PARCCOM, as herein
provided, shall, in turn, be given due notice thereof by the BARC.
The title of the land awarded under the agrarian reform must
indicate that it is an emancipation patent or a certificate of land
ownership award and the subsequent transfer title must also
indicate that it is an emancipation patent or a certificate of land
ownership award.
If the land has not yet been fully paid by the beneficiary, the
rights to the land may be transferred or conveyed, with prior
approval of the DAR, to any heir of the beneficiary or to any other
beneficiary who, as a condition for such transfer or conveyance,
shall cultivate the land himself/herself. Failing compliance herewith,
the land shall be transferred to the LBP which shall give due notice
of the availability of the land in the manner specified in the
immediately preceding paragraph.
L.
-ssa,
In the event of such transfer to the LBP, the latter shall

compensate the beneficiary in one lump sum for the amounts the latter
has already paid, together with the value of improvements he/she has
made on the land.'30
NOTES:
Sale or transfer of awarded lands prohibited
Agrarian reform beneficiaries cannot, within a period of ten ( 10) years, sell or
transfer ownership of the land awarded to them, except:
(a) through hereditary succession;

(b) to the Government;
(c) to the Land Bank of the Philippines; or
(d) to other qualified beneficiaries.
Meaning of hereditary succession

Hereditary succession means succession by intestate succession or by will to
the compulsory heirs — it does not pertain to succession to other persons. The
prohibition against transfer to persons other than the heirs of the agrarian reform
beneficiary stems from the policy of the Government to develop generations of
farmers to attain its avowed goal to have an adequate and sustained agricultural
production with certitude. Such objective will not see the light of the day if lands
covered by agrarian reform can easily be converted to non-agricultural purposes .131
Effect of sale or transfer to the Government or the Land Bank

If the beneficiary sells or transfers ownership of the land to the Government
or to the Land Bank of the Philippines, the children or the spouse of the transferor
can repurchase the land within two (2) years from the date of transfer.132
1:10
,31
Estate of the Late Encamacion Vda. De Panlilio v. Dizon, 536 SCRA 565.
132
DAR Administrative Order No, 2, series of 2009.
Can a beneficiary who has not fully paid the amortizations sell
the land to another?
If the land has not yet been fully paid by the beneficiary, he may sell
transfer, or convey his rights to the land under the following conditions:
(a) Approval of the Department of Agrarian Reform must first
be obtained;
(b) The land should be sold only to an heir of the beneficiary or
to any other qualified beneficiary; and
(c) The transferee must undertake to cultivate the land himself,
otherwise, the Land Bank will take the land for proper disposition.
If the sale or transfer complies with the foregoing conditions, the Land
Bank will compensate the beneficiary (i.e., the seller or transferor) in one
lump sum for the amounts he has already paid, together with the value of
improvements he has made on the land.
Can the beneficiary lease the land to another person?
What the law prohibits is the transfer of ownership, not transfer of
possession. Therefore, the beneficiary can lease the land to another person,
provided that the lease is also for agricultural purposes. If the lease is for
non-agricultural purpose, such as lease to a telecommunications company
for cellsites or antennas, the beneficiary must seek the approval of the
Department of Agrarian Reform.
Can the beneficiary lease the land to the former landowner?
The beneficiary can lease the land to its former owner. However, this
can only be done after obtaining approval from the Department of
Agrarian Reform through the Provincial Agrarian Reform Coordinating
Committee.133
SECTION 28. Standing Crops at the Time of Acquisition. — The
landowner shall retain his share of any standing crops unharvested at
the time the DAR shall take possession of the land under Section 16 of
this Act, and shall be given a reasonable time to harvest the same.
133
Sec. 44 (a) (3), Comprehensive Agrarian Reform Law.
TOE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
NOTES:
Right over standing crops at the time of acquisition
The landowner retains his right over crops not yet harvested at the
time the Department of Agrarian Reform took possession of the land.
CHAPTER VIII
CORPORATE FARMS
SECTION 29. Farms Owned or Operated by Corporations or
Other Business Associations. — In the case of farms owned or
operated by corporations or other business associations, the following
rules shall be observed by the PARC:
In general, lands shall be distributed directly to the individual
worker-beneficiaries.
In case it is not economically feasible and sound to divide the
land, then it shall be owned collectively by the worker-beneficiaries
who shall form a workers’ cooperative or association which will deal
with the corporation or business association. Until a new agreement is
entered into by and between the workers’ cooperative or association
and the corporation or business association, any agreement existing
at the time this Act takes effect between the former and the previous
landowner shall be respected by both the workers’ cooperative or
association and the corporation or business association.
NOTES:
Modes of distribution
There are two (2) modes of distribution of corporate farms, namely:
(a) direct; or
(b) indirect.
As a rule, corporate farms are to be distributed directly to the individual
worker-beneficiaries.
If it is not economically feasible and sound to divide the land, then it shall be
distributed indirectly to the worker-beneficiaries through a workers’ cooperative or
association.
Collective ownership is sanctioned by the Constitution. This is in

recognition of the fact that land reform may become successful even if it is done
through the medium of juridical entities composed of farmers. In the words of the
Supreme Court in Hacienda Luisita, Inc. v. PARC, G.R. No. 171101, July 5,
2011:
“As it were, the principle of ‘land to the tiller’ and the old pastoral
model of land ownership where non-human juridical persons, such as
corporations, were prohibited from owning agricultural lands are no longer
realistic under existing conditions. Practically, an individual fanner will often
face greater disadvantages and difficulties than those who exercise ownership
in a collective manner through a cooperative or corporation. The former is too
often left to his own devices when faced with failing crops and bad weather,
or compelled to obtain usurious loans in order to purchase costly fertilizers or
farming equipment. The experiences learned from failed land reform activities
in various parts of the country are lack of financing, lack of farm equipment,
lack of fertilizers, lack of guaranteed buyers of produce, lack of farm-to-
market roads, among others. Thus, at the end of the day, there is still no
successful implementation of agrarian reform to speak of in such a case.
Although success is not guaranteed, a cooperative or a corporation

stands in a better position to secure funding and competently maintain the
agri-business than the individual farmer. While direct singular ownership over
farmland does offer advantages, such as the ability to make quick decisions
unhampered by interference from others, yet at best, these advantages only but
offset the disadvantages that are often associated with such ownership
arrangement. Thus, government must be flexible and creative in its mode of
implementation to better its chances of success. One such option is collective
ownership through juridical persons composed of farmers.”
SECTION 30. Homelots and Farmlots for Members of Cooperatives.

— The individual members of the cooperatives or corporations mentioned
in the preceding section shall be provided with homelots and small
farmlots for their family use, to be taken from the land owned by the
cooperative or corporation.
NOTES:
Entitlement to homelot and small farmlot
As stated earlier, if it is not economically feasible and sound to divide the
farm owned or operated by corporations or other
business associations, it will be distributed indirectly to the worker- beneficiaries through

a workers’ cooperative or association, Under this situation, the beneficiaries are entitled
to a homelot and a small farmlot not exceeding 1,000 square meters which the
beneficiary can use as the site of his permanent dwelling and for raising vegetables,
poultry, pigs and other animals and engaging in minor industries.
The homelot and small farmlot will be taken from the land awarded to the
cooperative or association.
If the existing homelot is situated within the retained area of the landowner, the
beneficiary may be made to transfer his dwelling in his farmlot or other area designated
for his homelot, provided, that the landowner shoulders the cost of the transfer. 134
SECTION 31. Corporate Landowners. — Corporate land-

owners may voluntarily transfer ownership over their agricultural
landholdings to the Republic of the Philippines pursuant to Section
20 hereof or to qualified beneficiaries, under such terms and
conditions, consistent with this Act, as they may agree upon,
subject to confirmation by the DAR.
Upon certification by the DAR, corporations owning
agricultural lands may give their qualified beneficiaries the right to
purchase such proportion of the capital stock of the corporation that
the agricultural land, actually devoted to agricultural activities, bears
in relation to the company’s total assets, under such terms and
conditions as may be agreed upon by them. In no case shall the
compensation received by the workers at the time the shares of
stocks are distributed be reduced. The same principle shall be
applied to associations, with respect to their equity or participation.
Corporations or associations which voluntarily divest a
proportion of their capital stock, equity or participation in favor of
their workers or other qualified beneficiaries under this section shall
be deemed to have complied with the provisions of this Act:
Provided, That the following conditions are complied with:
a) In order to safeguard the right of beneficiaries
who own shares of stocks to dividends and other financial
134
DAR Administrative Order No. 12-91.
benefits, the books of the corporation or association shall be

subject to periodic audit by certified public accountants chosen
by the beneficiaries;
b) Irrespective of the value of their equity in the
corporation or association, the beneficiaries shall be assured of
at least one (1) representative in the board of directors, or in a
management or executive committee, if one exists, of the
corporation or association; and
c) Any shares acquired by such workers and beneficiaries
shall have the same rights and features as all other shares;
d) Any transfer of shares of stocks by the original
beneficiaries shall be void ab initio unless said transaction is in
favor of a qualified and registered beneficiary within the same
corporation.
If within two (2) years from the approval of this Act, the land or
stock transfer envisioned above is not made or realized or the plan
for such stock distribution approved by the PARC within the same
period, the agricultural land of the corporate owners or corporation
shall be subject to the compulsory coverage of this Act.
NOTES:
The schemes under Section 31 are no longer operative
Under Section 31, there are two schemes available to corporate landowners,
namely:
(a) Voluntary land transfer; and
(b) Stock distribution.
Both schemes are no longer operative. Section 7 of the Comprehensive Agrarian
Reform Law, as amended by Republic Act No. 9700, allowed voluntary land transfers
and stock distribution only up to June 30, 2009. After June 30, 2009, the modes of
acquisition are limited to voluntary offer to sell and compulsory acquisition. Thus:
“Section 7. Priorities — x x x (a)fter June 30, 2009, the modes of
acquisition shall be limited to voluntary offer to sell and compulsory
acquisition;”
Sec. 31 CHAPTER 1
The Hacienda Luisita case
HACIENDA LUISITA, INC. V. PARC

G.R. No. 171101
July 5, 2011
FACTS: In 1957, Tarlac Development Corporation TADECO;
bought Hacienda Luisita and Central Azucarera De Tarlac from their Spanish
owners. The Philippine government, through the then Central Bank of the
Philippines, assisted TADECO in obtaining a dollar loan from a US bank to
pay for the dollar component of the sale, while the Government Service
Insurance System (GSIS) extended a P5.911 million loan in favor of TADECO
to pay the peso price component of the sale.
One of the conditions for the GSIS loan was that the lots comprising the
HACIENDA LUISITA shall be subdivided by TADECO and sold at cost to the
tenants, if any, and whenever conditions should exist warranting such action
under the provisions of the Land Tenure Act.
On May 7, 1980, the martial Law administration filed a complaint with
the Regional Trial Court against TADECO to compel it to surrender
HACIENDA LUISITA to the then Ministry of Agrarian Reform (now
Department of Agrarian Reform; so that the land can be distributed to the
tenants. Although TADECO maintained that HACIENDA LUISITA does not
have tenants, and therefore, not covered by existing agrarian reform
legislations, the Regional Trial Court rendered a Decision ordering TADECO
to surrender HACIENDA LUISITA to the Ministry of Agrarian Reform.
TADECO appealed the Decision to the Court of Appeals. During the
pendency of the appeal, the Office of the Solicitor General (OSG) moved to
withdraw the government’s case against TADECO. The Court of Appeals
granted the motion on condition that TADECO must submit a Stock
Distribution Plan duly approved by the Presidential Agrarian Reform Council
(PARC; which must be implemented after such approval. Failure to comply
with these conditions will result in the revival of the case.
On August 23, 1988, TADECO organized the HACIENDA LUISITA,
INC. (HLI), as a vehicle to facilitate stock acquisition by the farm workers. For
this purpose, TADECO assigned and conveyed to HLI the agricultural land
portion (4,915.75 hectares; and other farm-related properties of Hacienda
Luisita in exchange for HLI shares of stock.
-4 AGRARIAN LAW AND SOCIAL LEGISLATION
Sec. 31
To accommodate the transfer of assets from TADECO to

HLI, the latter increased its capital stock from P1.5M (divided into
1.500,000 shares with a par value of Pl/sharej to P4M (divided into
400,000,000 shares also with par value of Pi/ share/.
Of the 400,000,000 shares, 150,000,000 were to be issued
to qualified and registered agrarian reform beneficiaries, and the
remaining 250,000,000 were to be issued to any stockholder of the
corporation.
Under the Stock Distribution Plan, the properties and assets
which TADECO contributed to the capital stock of HLI amounted to
P590,554,220, Deducting the total liabilities of the farm in the
amount of P235,422,758 leaves a net value of P355,531,462. This
translated to 355,531,462 shares with a par value of Pl/share.
In a referendum conducted on May 9, 1989, 93% of the farmworker-
beneficiaries of HACIENDA LUISITA signified their acceptance of the proposed
HLI’s Stock Distribution Option Plan.
Thus, on May 11, 1989, a Stock Distribution Option Agreement was
entered into by TADECO, HLI, and the 5,848 qualified farm worker-beneficiaries.
As may be gleaned from the Stock Distribution Option Agreement, included as part
of the distribution plan are:
(a) production-sharing equivalent to three percent (3%) of gross
sales from the production of the agricultural land payable to the farm
worker-beneficiaries in cash dividends or incentive bonus, irrespective of
whether HLI makes money or not; and
<h) distribution of free homelots of not more than 240 square meters
each to family-beneficiaries.
The Stock Distribution Option Agreement was approved by the
Presidential Agrarian Reform Council.
On August 15,1995, HLI applied for the conversion of 500 hectares of
land of the hacienda from agricultural to industrial use. On August 14, 1996, the
Department of Agrarian Reform approved the application subject to payment of
three percent (■VZo) of the gross selling price to the beneficiaries and to HLI’s
continued compliance with its undertakings under the Stock Distribution Plan.
On December 13, 1996, HLI, ceded 300 hectares of the converted area
to Centennary Holdings, Inc. The remaining 200 hectares was transferred to
Luisita Realty Corporation.
Subsequently, Centennary sold the entire 300 hectares to Luisita

Industrial Park Corporation (LIPCO) for the purpose of developing an
industrial complex. Later on, in a Deed of Absolute Assignment dated
November 25, 2004, LIPCO transferred the parcels llizal Commercial
Banking Corporation (RCBC) by way of dacion an pago in payment of
LIPCO’s PhP431,695,732.10 loon obligations.
Apart from the 500 hectares of converted area, another 80.51 hectares
of HACIENDA LUISITA were later acquired by the government as part of
the Subic-Clark-Tarlac Expressway (SCTEX) complex. Thus, 4,335.75
hectares remained of the original 4,915 hectares which TADECO ceded to
HLI.
Thereafter, a group of supervisors filed with the Department of
Agrarian Reform a petition to revoke the Stock Distribution Option
Agreement alleging that HLI had failed to give them their dividends and
the 1% share in gross sales, as well as the 33% share in the proceeds of the
sale of the converted 500 hectares of land.
Another petition to revoke the Stock Distribution Option Agreement
was filed by another group of beneficiaries who wanted distribution of
land and not stock option.
Finding that HLI has not complied with its obligations under
Republic Act No. 6657 despite the implementation of the Slock Distribution
Plan, the Presidential Agrarian Reform Council revoked the Stock
Distribution Option Agreement and placed HACIENDA LUISITA under the
compulsory coverage of the agrarian reform law.
Later, RCBC and LIPCO intervened in the proceedings,
questioning the inclusion of the lands that they had acquired from HLI in
the coverage of the agrarian reform program.
ISSUES: 1. Does the Presidential Agrarian Reform Council
(PARC) have jurisdiction, power and authority to nullify or revoke the
Stock Distribution Option Agreement?
2. Was the PARC correct in nullifying or revoking the Stock
Distribution Option Agreement?
3. Was the PARC correct in including the lands that RCBC and
LIPCO had acquired from HLI in the coverage of the agrarian reform
program.
4. Should the 80.51-hectare land transferred to the government
for use as part of the SCTEX, be excluded from the compulsory agrarian
reform coverage?
HELD: 1. The PARC has jurisdiction, power and authority to nullify or

revoke the Stock Distribution Option Agreement. While Republic Act No. 6657 or
other executive issuances on agrarian reform do not explicitly vest the PARC with
the power to revoke or recall an approved Stock Distribution Plan, such power or
authority is deemed possessed under the doctrine of necessary implication, a basic
postulate that what is implied in a statute is as much a part of it as that which is
expressed. Following the doctrine of necessary implication, it may be stated that the
conferment of express power to approve a plan for stock distribution of the
agricultural land of corporate owners necessarily includes the power to revoke or
recall the approval of the plan.
2. The PARC was correct in nullifying or revoking the Stock
Distribution Option Agreement.
Firstly, because HLI has not fully complied with its undertaking to
distribute homelots to the beneficiaries under the Stock Distribution Plan
despite the lapse of 16 years. With regard to the homelots already awarded or
earmarked, the beneficiaries are not obliged to return the same to HLI or pay
for its value since this is a benefit granted under the Stock Distribution Plan.
The homelots do not form part of the 4,915.75 hectares covered by the Stock
Distribution Plan but were taken from the 120.9234 hectare residential lot
owned by TADECO. Those who did not receive the homelots as of the
revocation of the Stock Distribution Plan will no longer be entitled to
homelots. Thus, in the determination of the ultimate agricultural land that
will be subjected to land distribution, the aggregate area of the homelots will
no longer be deducted. However, since the Stock Distribution
Plan was already revoked with finality, the
government through the Department of Agrarian
Reform must pay HLI the just compensation for said
homelots in consonance with Sec. 4, Article XHI of the
1987 Constitution that the taking of land for use in the
agrarian reform program is “subject to the payment of
just compensation.” (as modified by the Supreme Court
Resolution dated April 24, 2012)
Secondly, because the mechanics and timelines of stock distribution
violate the provisions of DAO 10. The distribution of the shares of stock
although not entailing a cash out from the beneficiaries, is contingent on the
number of “man days,” that is, the number of days that the beneficiaries have
worked during the year. By
CHAITEH 1 87
See. 31 THE COMPREHENSIVE AGRARIAN REEORM IAW OF 1998
providing that the number of shares of the original 1989 beneficiaries shall
depend on the number of “man days," HLI violated the rule on stock
distribution and effectively deprived the beneficiaries of equal shares of
stock in the corporation, for, in net effect, these 6,296 qualified
beneficiaries, who theoretically had given up their rights to the land that
could have been distributed to them, suffered a dilution of their due share
entitlement. HLI has chosen to use the shares earmarked for farmworkers
as reward system chips to water down the shares of the original 6,296
beneficiaries. It is clear that the original 6,296 beneficiaries, who were
qualified at the time of the approval of the Stock Distribution Plan,
suffered from watering down of shares. Each original beneficiary is
entitled to 18,804.32 HLI shares, The original beneficiaries got less than
the guaranteed 18,804.32 HLI shares per beneficiary, because the
acquisition and distribution of the HLI shares were based on “man days” or
“number of days worked” by the beneficiaries in a year’s time. As
explained by HLI, a beneficiary needs to work for at least 37 days in a
fiscal year before he or she becomes entitled to HLI shares. If it falls below
37 days, the beneficiary unfortunately, does not get any share at year end.
3. The Presidential Agrarian Reform Council was not correct in
including the lands that RCBC and LIPCO had acquired from HLI in the coverage
of the agrarian reform program. As bona fide purchasers for value, both LIPCO
and RCBC have acquired rights which cannot just be disregarded. However,
considering that the sale and transfer of the 500 hectares of land subject of the
August 14, 1996 Conversion Order came after compulsory coverage has taken
place, the beneficiaries should have their corresponding share of the land’s value.
HLI shall be liable for the value received for the sale of the 200-hectare land to
Luisita Realty Corporation and the equivalent value of the 12,000,000 shares of
its subsidiary, Centennary, for the 300-hectare lot sold to LIPCO.
4. As regards the 80.51-hectare land transferred to the government for
use as part of the SCTEX, this should also be excluded from the compulsory
agrarian reform coverage considering that the transfer was consistent with the
government’s exercise of the power of eminent domain and none of the parties
actually questioned the transfer. But considering that the sale and transfer of the
80.51-hectare SCTEX lot came after compulsory coverage has taken place, the
beneficiaries should have their corresponding share of the land’s value, for which
HLI is liable.
88 AGRA1UAN LAW AND SOCIAL LEGISLATION Sec. 32
The 6,296 original beneficiaries shall forfeit and relinquish their

rights over the HL1 shares of stock issued to them in favor of HL1.
The 4,206 non-qualified FWBs shall remain as stockholders of HLI.'“
SECTION 32. Production-Sharing. — Pending final land transfer,

individuals or entities owning, or operating under lease or management contract,
agricultural lands are hereby mandated to execute a production-sharing plan with
their farmworkers or farmworkers’ organization, if any, whereby three percent
(3%) of the gross sales from the production of such lands are distributed within
sixty (60) days of the end of the fiscal year as compensation to regular and other
farmworkers in such lands over and above the compensation they currently
receive: Provided, That these individuals or entities realize gross sales in excess of
five million pesos per annum unless the DAR, upon proper application, determines
a lower ceiling.
In the event that the individual or entity realizes a profit, an additional ten
percent (10%) of the net profit after tax shall be distributed to said regular and
other farmworkers within ninety (90) days of the end of the fiscal year.
To forestall any disruption in the normal operation of lands to be turned
over to the farmworker-beneficiaries mentioned above, a transitory period, the
length of which shall be determined by the DAR, shall be established.
During this transitory period, at least one percent (1%) of the gross sales
of the entity shall be distributed to the managerial, supervisory and technical
group in place at the time of the effectivity of this Act, as compensation for such
transitory managerial and technical functions as it will perform, pursuant to an
agreement that the farmworker- beneficiaries and the managerial, supervisory and
technical group may conclude, subject to the approval of the DAR.
536
As modified by the Supreme Court Resolution dated November 22, 2011.
THE COMPREHENSIVE AGRARIAN REEORM LAW OF 1998
NOTES:
Section 32 —A Transitory Provision
This provision applies only while the land transfer is being processed and
finalized. The scheme requires individuals or entities owning, or operating an
agricultural land under lease or management contract to adopt a production sharing
with farm workers in the following manner:
(a) if more than P5M gross sales/year are realized:
(i) 3% of the gross sales — to be distributed to regular and
other farm workers (over and above the compensation they currently
receive)
(ii) 1% of the gross sales — to be distributed to the
managerial, supervisory and technical employees
(b) If profits are realized — additional 10% of the net profit after
tax, to be distributed to regular and other farmworkers.
Section 32 — Declared unconstitutional with respect to

livestock and poultry
Section 32 of the Comprehensive Agrarian Reform Law which directs corporate
farms to execute and implement production sharing plans (pending final redistribution
of their landholdings), is unreasonable, confiscatory, and violative of due process,
hence, null and void for being unconstitutional, insofar as it includes the livestock,
poultry and swine farms in its coverage.136
SECTION 32-A. Incentives. — Individuals or entities owning or

operating fishponds and prawn farms are hereby mandated to execute
within six (6) months from the effectivity of this Act an incentive plan with
their regular fishpond or prawn farmworkers or fishpond or prawn farm
workers’ organization, if any, whereby seven point five percent (7.5%) of
their net profit before tax from the operation of the fishpond or prawn
farms are distributed within sixty (60) days at the end of the fiscal year as
compensation to regular and other pond workers in such ponds over and
above the compensation they currently receive. 13
13
*Luz Farms v. Secretary of Agrarian Reform, 192SCRA51.
90 AGRARIAN LAW AND SOCIAL LEGISLATION Secs. 33-34
In order to safeguard the right of the regular fishpond or prawn farm

workers under the incentive plan, the books of the fishpond or prawn farm
owners shall be subject to periodic audit or inspection by certified public
accountants chosen by the workers.
The foregoing provision shall not apply to agricultural lands subsequently

converted to fishpond or prawn farms provided the size of the land converted does
not exceed the retention limit of the landowner.137
NOTES:
Incentives for Regular Fishpond or Prawn Farm Workers
This provision applies to individuals or entities owning or operating fishponds
and prawn farms. The incentive is 7.5% of the net profit before tax over.
SECTION 33. Payment of Shares of Cooperative or Association. — Shares of

a cooperative or association acquired by farmer-beneficiaries or worker-
beneficiaries shall be fully paid for in an amount corresponding to the valuation as
determined in the immediately succeeding section. The landowner and the LBP
shall assist the farmer-beneficiaries and worker-beneficiaries in the payment for
said shares by providing credit financing.
NOTES:
Value of shares
The value of shares of a cooperative or association will be determined by the Land
Bank.
SECTION 34. Valuation of Lands. — A valuation scheme for the land shall be
formulated by the PARC, taking into account the factors enumerated in Section 17,
in addition to the need to stimulate the growth of cooperatives and the objective of
fostering responsible participation of the worker-beneficiaries in the creation of
wealth.
137
In the determination of a price that is just not only to the individual but to
society as well, the PARC shall consult closely with the landowner and the worker-
beneficiaries.
In case of disagreement, the price as determined by the PARC, if accepted
by the worker-beneficiaries, shall be followed, without prejudice to the
landowner’s right to petition the Special Agrarian Court to resolve the issue of
valuation.
NOTES:
The Land Bank now determines the valuation
Executive Order No. 405 promulgated on June 14, 1990, has transferred the
authority of the Presidential Agrarian Reform Council (PARC) to determine the
valuation or just compensation to the Land Bank. Section 1 of the said Executive Order
provides as follows:
“SECTION 1. The Land Bank of the Philippines shall be
primarily responsible for the determination of the land valuation and
compensation for all private lands suitable for agriculture under either the
Voluntary Offer to Sell (VOS) or Compulsory Acquisition (CA)
arrangement as governed by Republic Act No.
6657. The Department of Agrarian Reform shall make use of the
determination of the land valuation and compensation by the Land Bank of
the Philippines, in the performance of its functions.”
CHAPTER IX
SUPPORT SERVICES
SECTION 35. Creation of Support Services Office. — There is hereby
created the Office of Support Services under the DAR to be headed by an
Undersecretary.
The Office shall provide general support and coordinative services in the
implementation of the program, particularly in carrying out the provisions of the
following services to farmer beneficiaries and affected landowners:
1) Irrigation facilities, especially second crop or dry season
irrigation facilities;
2) Infrastructure development and public works projects
in areas and settlements that come under
AGRARIAN I.AW AND SOCIAL LEGISLATION Sec. 35
agrarian reform, and for this purpose, the preparation of the physical
development plan of such settlements providing suitable barangay sites,
potable water and power resources, irrigation systems, seeds and seedling
banks, post harvest facilities, and other facilities for a sound agricultural
development plan. For the purpose of providing the aforecited
infrastructure and facilities, the DAR is authorized to enter into contracts
with interested private parties on long term basis or through joint-venture
agreements or build-operate-transfer scheme;
3) Government subsidies for the use of irrigation facilities;
4) Price support and guarantee for all agricultural produce;
5) Extending to small landowners, farmers and farmers’
organizations the necessary credit, like concessional and collateral-free
loans, for agro-industrialization based on social collaterals like the
guarantees of farmers’ organizations;
6) Promoting, developing and extending financial assistance to
small and medium-scale industries in agrarian reform areas;
7) Assigning sufficient numbers of agricultural extension workers
to farmers’ organizations;
8) Undertake research, development and dissemination of
information on agrarian reform, plants and crops best suited for cultivation
and marketing, and low-cost and ecologically sound farm inputs and tech-
nologies to minimize reliance on expensive and imported agricultural inputs;
9) Development of cooperative management skills through
intensive training;
10) Assistance in the identification of ready markets for
agricultural produce and training in the other various aspects of marketing;
11) Conduct an effective information dissemination system through
the Department of Agriculture to
Il fcir*
Sec. 86 CHAH’EIU 9a
promote marketing and minimize spoilage of agricultural produce and

products;
12) Create a credit guarantee fund for agricultural landowners
that will enhance the collateral value of agricultural lands that are
affected or will be affected by coverage under the agrarian reform
program; and
13) Administration, operation, management and funding of
support services programs and projects including pilot projects and
models related to agrarian reform as developed by the DAR. ,3H
NOTES:
The success of agrarian reform depends on the provision of the necessary
support services and an organizational vehicle that will propel the beneficiaries to
attain economic independence and self- reliance. The lives of agrarian reform
beneficiaries will be uplifted through the provision of support services .138 139
SECTION 36. Funding for Support Services. — In order to cover the

expenses and cost of support services, at least forty percent (40%) of all
appropriations for agrarian reform during the five (5)-year extension period
shall be immediately set aside and made available for this purpose: Provided,
That the DAR shall pursue integrated land acquisition and distribution and
support services strategy requiring a plan to be developed parallel to the land
acquisition and distribution process. The planning and implementation for land
acquisition and distribution shall be hand-in-hand with support services
delivery: Provided, further, That for the next five years, as far as practicable, a
minimum of two (2) Agrarian Reform Communities (ARCs) shall be established
by the DAR, in coordination with the local government units, non governmental
organizations, community-based cooperatives and people’s organizations in each
legislative district with a predominant agricultural population: Provided,
furthermore, That the areas in which the ARCs are to be established
138
139
DAR Administrative Order No. 5, series of
1995.
shall have been substantially covered under the provisions of this Act and other
agrarian or land reform laws: Provided, finally, That a complementary support
services delivery strategy for existing agrarian reform beneficiaries that are not in
barangays within the ARCs shall be adopted by the DAR.
For this purpose, an Agrarian Reform Community is composed and
managed by agrarian reform beneficiaries who shall be willing to be organized and
to undertake the integrated development of an area and/or their organizations/
cooperatives. In each community, the DAR, together with the agencies and
organizations abovementioned, shall identify the farmers’ association, cooperative or
their respective federations approved by the farmers-beneficiaries that shall take the
lead in the agricultural development of the area. In addition, the DAR, in close
coordination with the congressional oversight committee created herein, with due
notice to the concerned representative of the legislative district prior to
implementation shall be authorized to package proposals and receive grants, aids
and other forms of financial assistance from any source.140
NOTES:
1. Establishment of Agrarian Reform Communities
This provision mandates the Department of Agrarian Reform to establish
Agrarian Reform Communities in each legislative district with a predominant agricultural
population.
The Agrarian Reform Community will be composed of and managed by agrarian
reform beneficiaries who shall be willing to be organized and to undertake the integrated
development of an area, their organizations or cooperatives.
SECTION 37. Support Services for the Agrarian Reform Beneficiaries. — The
State shall adopt the integrated policy of support services delivery to agrarian
reform beneficiaries. To this end, the DAR, the Department of Finance, and the
Bangko Sentral ng Pilipinas (BSP) shall institute reforms to
,40
THU COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
liberalize access to credit by agrarian reform beneficiaries. The PARC shall

ensure that support services for agrarian reform beneficiaries are provided,
such as:
(a) Land surveys and titling;
(b) Socialized terms on agricultural credit facilities;
Thirty percent (30%) of all appropriations for support services
referred to in Section 36 of Republic Act No. 6657, as amended, shall be
immediately set aside and made available for agricultural credit
facilities: Provided, That one-third (1/3) of this segregated appropriation
shall be specifically allocated for subsidies to support the initial
capitalization for agricultural production to new agrarian reform
beneficiaries upon the awarding of the emancipation patent or the
certificate of land ownership award and the remaining two-thirds (2/3)
shall be allocated to provide access to socialized credit to existing
agrarian reform beneficiaries, including the leaseholders: Provided,
further, the LBP and other concerned government financial institutions,
accredited savings and credit cooperatives, financial service co-
operatives and accredited cooperative banks shall provide the delivery
system for disbursement of the above financial assistance to individual
agrarian reform beneficiaries, holders of collective titles and
cooperatives.
For this purpose, all financing institutions may accept as
collateral for loans the purchase orders, marketing agreements or
expected harvests: Provided, That loans obtained shall be used in the
improvement or development of the farmholding of the agrarian
reform beneficiary or the establishment of facilities which shall
enhance production or marketing of agricultural products or increase
farm income therefrom: Provided, further, That of the remaining
seventy percent (70%) for the support services, fifteen percent (15%)
shall be earmarked for farm inputs as requested by the duly accred-
ited agrarian reform beneficiaries’ organizations, such as, but not
limited to: (1) seeds, seedlings and/or planting materials; (2) organic
fertilizers; (3) pesticides; (4) herbicides; and (5) farm animals,
implements/machiner-
ies; and five percent (5%) for seminars, trainings and the like to
help empower agrarian reform beneficiaries.
(c) Extension services by way of planting, crop- i ping,
production and post-harvest technology transfer, as well as
marketing and management assistance and support to
cooperatives and farmers’ organizations;
(d) Infrastructure such as, but not limited to, access

trails, mini-dams, public utilities, marketing and storage
facilities;
(e) Research, production and use of organic fertilizers
and other local substances necessary in farming and
cultivation; and
(f) Direct and active DAR assistance in the education and
organization of actual and potential agrarian reform beneficiaries, at
the barangay, municipal, city, provincial, and national levels, towards
helping them understand their rights and responsibilities as owner-
cultivators developing farm-related trust relationships among
themselves and their neighbors, and increasing farm production and
profitability with the ultimate end of empowering them to chart their
own destiny. The representatives of the agrarian reform beneficiaries to
the PARC shall be chosen from the nominees of the duly accredited
agrarian reform beneficiaries’ organizations, or in its absence, from
organizations of actual and potential agrarian reform beneficiaries as
forwarded to and processed by the PARC EXCOM.
The PARC shall formulate policies to ensure that support services for
agrarian reform beneficiaries shall be provided at all stages of the program
implementation with the concurrence of the concerned agrarian reform
beneficiaries.
The PARC shall likewise adopt, implement, and monitor policies and
programs to ensure the fundamental equality of women and men in the
agrarian reform program as well as respect for the human rights, social
protection, and decent working conditions of both paid and unpaid men and
women farmer-beneficiaries.
The Bagong Kilusang Kabuhayan sa Kaunlaran (BKKK) Secretariat shall
be transferred and attached to the LBP.
for its supervision including all its applicable and existing funds, personnel,
properties, equipment and records.
Misuse or diversion of the financial and support services herein
provided shall result in sanctions against the beneficiary guilty thereof,
including the forfeiture of the land transferred to him/her or lesser sanctions
as may be provided by the PARC, without prejudice to criminal
prosecution.1'1
NOTES:
Support services to beneficiaries
This provision mandates the Government to extend support services to
agrarian reform beneficiaries, most notable of which are:
(a) Land surveys and titling;
(b) Liberalized access to credit;
(c) Socialized terms on agricultural credit facilities;
(d) Technology transfer;
(e) Infrastructure, such as storage facilities, mini dams,
etc.
SECTION 37-A. Equal Support Services for Rural Women. — Support

services shall be extended equally to women and men agrarian reform
beneficiaries.
The PARC shall ensure that these support services, as provided for in
this Act, integrate the specific needs and wellbeing of women farmer-
beneficiaries taking into account the specific requirements of female family
members of farmer- beneficiaries.
The PARC shall also ensure that rural women will be able to
participate in all community activities. To this effect, rural women are
entitled to self-organization in order to obtain equal access to economic
opportunities and to have access to agricultural credit and loans,
marketing facilities and technology, and other support services, and equal
treatment in land reform and resettlement schemes.
I 141
The DAR shall establish and maintain a women’s desk, which will be
primarily responsible for formulating and implementing programs and
activities related to the protection and promotion of women’s rights, as well
as providing an avenue where women can register their complaints and
grievances principally related to their rural activities. 1*2
NOTES:
Meaning of Rural Women
Rural women are those engaged directly or indirectly in farming or fishing as
their source of livelihood, whether paid or unpaid, regular or seasonal, or in food
preparation, managing the household, caring for the children, and other similar
activities.113
Under Section 40(5) of the Comprehensive Agrarian Reform Law, all

qualified women members of the agricultural labor force are guaranteed and
assured of the following:
(a) equal right to ownership of the land;

(b) equal shares of the farm’s produce; and
(c) representation in advisory or appropriate decisionmaking
bodies.
SECTION38 Support Services for Landowners. — The PARC, with the

assistance of such other government agencies and instrumentalities as it
may direct, shall provide landowners affected by the CARP and prior
agrarian reform programs with the following services:
(a) Investment information, financial and counseling
assistance, particularly investment information on government-
owned and/or -controlled corporations and disposable assets of the
government in pursuit of national industrialization and economic
independence:
(b) Facilities, programs and schemes for the conversion or
exchange of bonds issued for payment of the
"Hbid..
,43
Sec. 3 (1), Comprehensive Agrarian Reform Law.
Sec. 38 CHAFFER 1 99
lands acquired with stocks and bonds issued by the National

Government, the BSP and other government institutions and
instrumentalities;
(c) Marketing of agrarian reform bonds, as well as
promoting the marketability of said bonds in traditional and
non-traditional financial markets and stock exchanges;
and/or
(d) Other services designed to utilize productively the
proceeds of the sale of such lands for rural industrialization.
A landowner who invests in rural-based industries shall be entitled to the
incentives granted to a registered enterprise engaged in a pioneer or preferred
area of investment as provided for in the Omnibus Investment Code of 1987, or
to such other incentives as the PARC, the LBP, or other government financial
institutions shall provide.
The LBP shall redeem a landowner’s agrarian reform bonds at face
value as an incentive: Provided, That at least fifty percent (50%) of the proceeds
thereof shall be invested in a Board of Investments (BOI)-registered company or
in any agri-business or agro-industrial enterprise in the region where the CARP-
covered landholding is located. An additional incentive of two percent (2%) in
cash shall be paid to a landowner who maintains his/her enterprise as a going
concern for five (5) years or keeps his/her investments in a BOI-registered firm
for the same period: Provided, further, That the rights of the agrarian reform
beneficiaries are not, in any way, prejudiced or impaired thereby.
The DAR, the LBP and the Department of Trade and Industry shall
jointly formulate the program to carry out these provisions under the
supervision of the PARC: Provided, That in no case shall the landowners’ sex,
economic, religious, social, cultural and political attributes exclude them from
accessing these support services.114
111
NOTES:
Support services for landowners
This provision outlines the support services that are available to
landowners, the most notable of which is the incentive granted to a landowner
who invests in rural-based industries.
A landowner who invests in rural-based industry is entitled to the
incentives granted to a registered enterprise engaged in a pioneer or preferred
area of investment under the Omnibus Investment Code of 1987.
Moreover, the Land Bank will redeem the landowner’s agrarian reform
bonds at its face value if at least 50% of the proceeds thereof are invested in a
Board of Investments (BOI)-registered company or in any agri-business or agro-
industrial enterprise in the region where the CARP-covered landholding is
located.
Furthermore, if the landowner maintains his enterprise as a going concern
or keeps his investments in a BOI-registered firm for five (5) years, he is entitled
to be paid an additional incentive of 2% in cash.
SECTION 39. Land Consolidation. — The DAR shall carry out land
consolidation projects to promote equal distribution of landholdings, to
provide the needed infrastructures in agriculture, and to conserve soil
fertility and prevent erosion.
NOTES:
This provision is intended to:
(a) promote equal distribution of landholdings;

(b) provide the needed infrastructures in agriculture;
and
(c) conserve soil fertility and prevent erosion.
CHAPTER X
SPECIAL AREAS OF CONCERN
SECTION 40. Special Areas of Concern. — As an integral part of the
Comprehensive Agrarian Reform Program, the
following principles in these special areas of concern shall be observed:

(1) Subsistence Fishing. — Small fisherfolk, including seaweed farmers,
shall be assured of greater access to the utilization of water resources.
(2) Logging and Mining Concessions. — Subject to the requirement of
a balanced ecology and conservation of water resources, suitable areas, as
determined by the Department of Environment and Natural Resources (DENR), in
logging, mining and pasture areas, shall be opened up for agrarian settlements
whose beneficiaries shall be required to undertake reforestation and conservation
production methods. Subject to existing laws, rules and regulations, settlers and
members of tribal communities shall be allowed to enjoy and exploit the products
of the forest other than timber within the logging concessions.
(3) Sparsely Occupied Public Agricultural Lands. — Sparsely occupied
agricultural lands of the public domain shall be surveyed, proclaimed and
developed as farm settlements for qualified landless people based on an organized
program to ensure their orderly and early development.
Agricultural land allocations shall be made for ideal family-size farms as
determined by the PARC. Pioneers and other settlers shall be treated equally in
every respect.
Subject to the prior rights of qualified beneficiaries, uncultivated lands of
the public domain shall be made available on a lease basis to interested and
qualified parties. Parties who will engaged in the development of capital-
intensive, traditional or pioneering crops shall be given priority.
The lease period, which shall not be more than a total of fifty (50) years,
shall be proportionate to the amount of investment and production goals of the
lessee. A system of evaluation and audit shall be instituted.
(4) Idle, Abandoned, Foreclosed and Sequestered Lands.
— Idle, abandoned, foreclosed and sequestered lands shall be planned for
distribution as home lots and family-size farmlots to actual occupants. If land
area permits, other landless families shall be accommodated in these lands.
(5) Rural Women. — All qualified women members of the agricultural

labor force must be guaranteed and assured equal right to ownership of the
land, equal shares of the farm’s produce, and representation in advisory or
appropriate decision-making bodies.
(6) Veterans and Retirees. — In accordance with Section 7 of Article
XVI of the Constitution, landless war veterans and veterans of military
campaigns, their surviving spouses and orphans, retirees of the Armed Forces
of the Philippines (AFP) and the Integrated National Police (INP), returnees,
surrenderees, and similar beneficiaries shall be given due consideration in the
disposition of agricultural lands of the public domain.
(7) Agriculture Graduates. — Graduates of agricultural schools
who are landless shall be assisted by the government, through the DAR, in
their desire to own and till agricultural lands.
NOTES:
Opening of agrarian settlements in special areas
Farm settlements may be opened up in the following areas:
(a) Logging and mining concessions — farm settlements may be
opened up here, provided that the beneficiaries will undertake reforestation
and conservation production methods.
(b) Sparsely occupied public agricultural lands - farm settlement
may be opened up here for qualified landless people pursuant to an organized
program to ensure orderly development.
CHAPTER XI
PROGRAM IMPLEMENTATION
SECTION 41. The Presidential Agrarian Reform Council. — The

Presidential Agrarian Reform Council (PARC) shall be composed of the
President of the Philippines as Chairperson, the Secretary of Agrarian
Reform as Vice-Chairperson and the following as members: Secretaries of
the Departments of Agriculture; Environment and Natural Resources;
Budget and Management; Interior and Local Government; Public
Works and Highways; Trade and Industry; Finance; and Labor and
Employment; Director-General of the National Economic and
Development Authority; President, Land Bank of the Philippines;
Administrator, National Irrigation Administration; Administrator,
Land Registration Authority; and six (6) representatives of affected
landowners to represent Luzon, Visayas and Mindanao; six (6)
representatives of agrarian reform beneficiaries, two (2) each from
Luzon, Visayas and Mindanao: Provided, That at least one (1) of them
shall be from the indigenous peoples: Provided, further, That at least one
(1) of them shall come from a duly recognized national organization of
rural women or a national organization of agrarian reform
beneficiaries with a substantial number of women members: Provided,
finally, That at least twenty percent (20%) of the members of the
PARC shall be women but in no case shall they be less than two (2).'“
SECTION 42. Executive Committee. — There shall be an Executive
Committee (EXCOM) of the PARC composed of the Secretary of the
DAR as Chairman, and such other members as the President may
designate, taking into account Article XIII, Section 5 of the
Constitution. Unless otherwise directed by the PARC, the EXCOM
may meet and decide on any and all matters in between meetings of
the PARC; Provided, however, That its decisions must be reported to the
PARC immediately and not later than the next meeting.
SECTION 43. Secretariat. — A PARC Secretariat is hereby
established to provide general support and coordinative services such
as inter-agency linkages; program and project appraisal and
evaluation and general operations monitoring for the PARC.
The Secretariat shall be headed by the Secretary of Agrarian
Reform who shall be assisted by an Undersecretary and supported by
a staff whose composition shall be determined by the PARC Executive
Committee and whose compensation shall be chargeable against the
Agrarian Reform Fund. All officers and employees of the Secretariat
shall be appointed by the Secretary of Agrarian Reform.
M5
As amended by R.A. No. 9700,
104 AGRARIAN LAW AND SOCIAL LEGISLATION Hum. 4V 4:1
NOTES:
Composition of the Presidential Agrarian Roform Council (PARC)

The PARC IH composed of'the following:
Chairperson — President of tho Philippines Vice-Chairperson — Secretary of
Agrarian Reform Members — Secretary of — the Department of Agriculture

— the Department of Environment and Natural
Resources
— the Department of Budget and Management
— the Department of Interior and Local
Government
— the Department of Public Works and
Highways
— the Department of Trade and Industry
— the Department of Finance
— the Department of Labor and
Employment
— Director-General — National Economic and
Development Authority
— President — Land Bank of the Philippines
— Administrator — National Irrigation Administration
— Administrator — Land Registration Authority
— 6 representatives of affected landowners to represent
Luzon, Visayas and Mindanao;
— 6 representatives of agrarian reform beneficiaries, two (2)
each from Luzon, Visayas and Mindanao:
Of the 6 representatives of the agrarian reform beneficiaries:
(a) at least one (1) should be from the indigenous peoples;
Av. 44 CHAPTER 1 105
THE COMPREHENSIVE AGRARIAN REFORM LAW OK 1998
do at least one (1) should come from a duly recognized national

organization of rural women or a national organization of agrarian reform
beneficiaries with a substantial number of women members.
At least 20' v of the members of t he PARC should be women but in no case
should they be less than two (.2).
SECTION 44. Provincial Agrarian Reform Coordinating Committee (PARC-

COM). — A Provincial Agrarian Reform Coordinating Committee is hereby created
in each province, composed of a Chairman, who shall be appointed by the President
upon the recommendation of the EXCOM, the Provincial Agrarian Reform Officer
as Executive Officer, and one (1) representative each from the Departments of
Agriculture, and of Environment and Natural Resources and from the LBP; one (1)
representative each from existing farmers’ organizations, agricultural cooperatives
and non-governmental organizations in the province; two (2) representatives from
landowners, at least one (1) of whom shall be a producer representing the principal
crop of the province, and two (2) representatives from farmer and farmworker or
beneficiaries, at least one (1) of whom shall be a farmer or farmworker representing
the principal crop of the province, as members: Provided, That in areas where there
are cultural communities, the latter shall likewise have one (1) representative.
The PARCCOM shall coordinate and monitor the implementation of the
CARP in the province. It shall provide information on the provisions of the CARP,
guidelines issued by the
PARC and on the progress of the CARP in the province; in addition, it
shall:
a) Recommend to the PARC the following:
1) Market prices to be used in the determination of the
profit sharing obligation of agricultural entities in the province;
2) Adoption of the direct payment scheme between the
landowner and the farmer and/ or farmworker beneficiary:
Provided, that the
AGRARIAN LAW AXD SOCL-U. LEGISLATION Sec. 44
amount and terms of payment are not more burdensome to the

agrarian reform beneficiary' than under the compulsory coverage
provision of the CARL: Prodded, further. That the agrarian reform
beneficiary agrees to the amount and terms of payment: Prodded,
furthermore, That the DAR shall act as mediator in cases of
disagreement between the landowner and the farmer and/or
farmworker beneficiary; Prodded, finally, That the farmer and/ or
farmer beneficiary shall be eligible to borrow' from the LBP an
amount equal to eighty-five percent (85%) of the selling price of
the land that they have acquired;
3> Continuous processing of applications for lease back
arrangements, joint-venture agreements and other schemes that
will optimize the operating size for agricultural production and
also promote both security of tenure and security of income to
farmer beneficiaries: Provided, That lease back arrangements
should be the last resort.1*6
VOTES:
Composition of the PARCCOM
Chairman
— appointed by the President upon the
recommendation of the EXCOM
— Provincial Agrarian Reform Officer

Executive Officer 1 representative
— the Department of Agriculture
— the Department of Environment and
each from
Natural Resources
— the Land Bank

— existing farmers’ organizations,
agricultural cooperatives and non-
governmental organizations in the
1 representative each from province
"'•Ah amended by R.A. No. 7900.

Sec. *15 CHAPTER 1 107
THE COMPREHENSIVE AGRARIAN REFORM
LAW OF 1998
2 representatives from — landowners, at least one (1) of whom
shall be a producer representing the
principal crop of the province
— farmer and farmworker or beneficiaries,
2 representatives from at least one (1) of whom shall be a
farmer or farmworker representing the
principal crop of the province
— cultural communities, in areas where
there are cultural communities
1 representative from
SECTION 45. Province-by-Province Implementation. — The PARC shall

provide the guidelines for the province-byprovince implementation of the CARP,
taking into account the peculiarities and needs of each place, kind of crops needed or
suited, land distribution workload, beneficiaries development activities and other
factors prevalent or obtaining in the area. In all cases, the implementing agencies at
the provincial level shall promote the development of identified ARCs without
neglecting the needs and problems of other beneficiaries. The ten-year program of
distribution of public and private land in each province shall be adjusted from year to
year by the province’s PARCCOM in accordance with the level of operations
previously established by the PARC, in every case ensuring that support services arc
available or have been programmed before actual distribution is effected. M7
NOTES:
Manner of Implementation of the Agrarian Reform Program

Section 45 of the Comprehensive Agrarian Reform Law mandates the
implementation of the agrarian reform program on a province-hy-province basis because of
the peculiarities and needs of each province, such as the kind of crops needed or suited,
land
U,
AH amended by li.A. No. 7905,
108 AGRARIAN LAW AND SOCLAL LEGISLATION Sec. 46
distribution workload, and other factors prevalent or obtaining in the area.

The PARCCOM coordinates and monitors the implementation of the agrarian
reform program in the province.
SECTION 46. Barangay Agrarian Reform Committee (BARC). — Unless

otherwise provided in this Act, the provisions of Executive Order No. 229
regarding the organization of the Barangay Agrarian Reform Committee
(BARC) shall be in effect.
NOTES:
Composition of the Barangay Agrarian Reform Council (BARC)

The Barangay Agrarian Reform Council (BARC) is composed of representatives coming from the
following:
(a) Farmers and farmworkers beneficiaries;
(b) Farmer and farmworkers non-beneficiaries;
(c) Agricultural cooperatives;
(d) Other farmer organizations;
(e) Barangay Council;
(f) Non-government organizations;
(g) Landowners;
(h) Land Bank;

(i) Official of the Department of Agriculture assigned to the barangay;
(j) Official of the Department of Environment and Natural Resources official assigned to
the area; and
(k) Department of Agrarian Reform Technologist assigned to the area who shall act as the
Secretary.1'*
■“Sec. 19. E.O. No, 229 dated July 22, 1987.

y
SECTION 47. Functions of the BARC. — (1) In addition to those provided in
Executive Order No. 229, the BARC shall have the following functions:
(a) Mediate and conciliate between parties involved in an agrarian
dispute including matters related to tenurial and financial arrangements;
(b) Assist in the identification of qualified beneficiaries and
landowners within the barangay;
(c) Attest to the accuracy of the initial parcellary mapping of the
beneficiary’s tillage;
(d) Assist qualified beneficiaries in obtaining credit from lending
institutions;
(e) Assist in the initial determination of the value of the land;
(f) Assist the DAR representatives in the preparation of periodic
reports on the CARP implementation for submission to the DAR;
(g) Coordinate the delivery of support services to beneficiaries; and
(h) Perform such other functions as may be assigned by the DAR.
(2) The BARC shall endeavor to mediate, conciliate and settle agrarian
disputes lodged before it within thirty (30) days from its taking cognizance
thereof. If after the lapse of the thirty-day period, it is unable to settle the
dispute, it shall issue a certificate of its proceedings and shall furnish a copy
thereof upon the parties within seven (7) days after the expiration of the thirty-
day period.
NOTES:
Functions of the BARC under Executive Order No. 229'^
The functions of the BARC under Section 19 of Executive Order No. 229 are
the following:
(a) To participate and give support to the implementation of programs
on agrarian reform;
(b) To mediate, conciliate or arbitrate agrarian conflicts and issues that
are brought to it for resolution; and
no AGRARIAN LAW AND SOCIAL LEGISLATION Secs. 48-50
(c) To perform such other functions that the PARC,

its Executive Committee, or the DAR Secretary may delegate
from time to time.
SECTION 48. Legal Assistance. — The BARC or any member thereof may,
whenever necessary in the exercise of any of its functions hereunder, seek the legal
assistance of the DAR and the provincial, city, or municipal government.
NOTES:
Legal assistance
In the exercise of its mediation or conciliation functions, the Barangay Agrarian
Reform Council can ask for legal advice from the Department of Agrarian Reform to
ensure that its proposed solution to the dispute is within the bounds of law.
SECTION 49. Rules and Regulations. — The PARC and the DAR shall have
the power to issue rules and regulations, whether substantive or procedural, to carry
out the objects and purposes of this Act. Said rules shall take effect ten (10) days
after publication in two (2) national newspapers of general circulation.
NOTES:
Rule-making power of DAR and PARC

This provision authorizes the Department of Agrarian Reform and the Presidential
Agrarian Reform Council to promulgate rules and regulations to carry out the purposes of
the agrarian reform program. In the exercise of their rule-making power, the Department
of Agrarian Reform and the Presidential Agrarian Reform Council cannot enlarge or
amend the provisions of the statute.
Y
CHAPTER XII
ADMINISTRATIVE ADJUDICATION
SECTION 50. Quasi-Judicial Powers of the DAR. — The DAR is hereby

vested with primary jurisdiction to determine and adjudicate agrarian reform
matters and shall have exclusive original jurisdiction over all matters involving
LAW OF 1998
the implementation of agrarian reform, except those falling under the
exclusive jurisdiction of the Department of Agriculture (DA) and the DENR.
It shall not be bound by technical rules of procedure and evidence
but shall proceed to hear and decide all cases, disputes or controversies in a
most expeditious manner, employing all reasonable means to ascertain the
facts of every case in accordance with justice and equity and the merits of
the case. Toward this end, it shall adopt a uniform rule of procedure to
achieve a just, expeditious and inexpensive determination of every action or
proceeding before it.
It shall have the power to summon witnesses, administer oaths, take
testimony, require submission of reports, compel the production of books
and documents and answers to interrogatories and issue subpoena, and
subpoena duces tecum and to enforce its writs through sheriffs or other duly
deputized officers. It shall likewise have the power to punish direct and
indirect contempts in the same manner and subject to the same penalties as
provided in the Rules of Court.
Responsible farmer leaders shall be allowed to represent themselves,
their fellow farmers, or their organizations in any proceedings before the
DAR: Provided, however, That when there are two or more representatives
for any individual or group, the representatives should choose only one
among themselves to represent such party or group before any DAR
proceedings.
Notwithstanding an appeal to the Court of Appeals, the decision of
the DAR shall be immediately executory except a decision or a portion
thereof involving solely the issue of just compensation.149
NOTES:
Two-Fold jurisdiction of the Department of Agrarian Reform (DAR)
The jurisdiction of the DAR under Section 50 of the Comprehensive Agrarian Reform Law is two-
fold, to wit:
149
• The first is essentially executive and pertains to the enforcement and

administration of the laws, carrying them into practical operation and enforcing
their due observance.
• The second is judicial and involves the determination of rights and
obligations of the parties.150
Therefore, a line must be drawn between the functions of the DAR Regional
Office and the functions of the DAR Adjudication Board (DARAB). Thus:
• The function of the DAR Regional Office concerns the
implementation of agrarian reform laws.
• The functions of the DAR Adjudication Board, including the
Regional Agrarian Reform Adjudicators (RARAD) or Provincial Agrarian Reform
Adjudicators (PARAD) concerns adjudication of agrarian reform cases.
The first is essentially executive because it pertains to the enforcement and
administration of the laws, carrying them into practical operation and enforcing their due
observance. The second is judicial in nature, involving as it does the determination of
rights and obligations of the parties.1'1
The quasi-judicial jurisdiction of the DAR

The quasi-judicial power of the DAR, which it exercises through the DAR
Adjudication Board (DARAB), embraces the following:
(a) Primary jurisdiction to determine and adjudicate agrarian reform
matters; and
(b) Appellate jurisdiction over orders and decisions of the Agrarian
Reform Adjudicators.152
The quasi-judicial powers of the DAR

In the exercise of its quasi-judicial powers, the DARAB is authorized to:
(a) hear and decide cases within its jurisdiction;
(b) summon witnesses;
,60
Soriano v. Bravo, 638 SCRA 403,
16!
Cabral v. Court of Appeals, G.R. No. 101974, July 12, 2001.
,62
Sec. 2, Rule II, 2009 DARAB Rules of Procedure.
Sec. 50 CHAPTER 1
THE COMPREHENSIVE AGRARIAN RKKOHM RAW OK im>8 113
(c) administer oaths;
(d) take testimony;
(e) issue subpoena ad testificandum or duces tecum;
(f) issue writs of execution; and
(g) punish direct or indirect contempt.
The Provincial Agrarian Reform Adjudicators (PARAD)

In general, the PARAD has primary and exclusive jurisdiction to hear and
decide agrarian disputes. Agrarian dispute is defined in this manner:
“Agrarian dispute refers to any controversy relating to tenurial arrangements, whether

leasehold, tenancy, stewardship or otherwise, over lands devoted to agriculture, including disputes
concerning farmworkers’ associations or representation of persons in negotiating, fixing,
maintaining, changing, or seeking to arrange terms or conditions of such tenurial arrangements.
It includes any controversy relating to compensation of lands acquired under this Act and
other terms and conditions of transfer of ownership from landowners to farmworkers, tenants and
other agrarian reform beneficiaries, whether the disputants stand in the proximate relation of farm
operator and beneficiary, landowner and tenant, or lessor and lessee.” 153
It must be noted that not every case involving an agricultural land automatically
makes it an agrarian dispute upon which the DARAB has jurisdiction. The mere fact
that the land is agricultural does not ipso facto make the possessor an agricultural
lessee or tenant. Tenancy is not a purely factual relationship dependent on what the
alleged tenant does upon the land. It is also a legal relationship. The intent of the
parties, the understanding when the farmer is installed, and their written agreements,
provided these are complied with and are not contrary to law, are even more
important. The law states that an agrarian dispute must be a controversy relating to a
tenurial arrangement over lands devoted to agriculture. Such arrangement may be
leasehold, tenancy or stewardship. If
1B3
Sec. 3 (d), Comprehensive Agrarian Reform Law.
114 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. BO
the occupancy and possession was by mere tolerance, there is no agrarian dispute to
speak of.164
Specifically, the PARAD has primary and exclusive jurisdiction determine and
adjudicate matters pertaining to:
(a) Rights and obligations of persons engaged in the management,
cultivation, and use of all agricultural lands covered by the Comprehensive
Agrarian Reform Law and other related agrarian laws;
(b) Preliminary administrative determination of reasonable and just
compensation of lands acquired under Presidential Decree No. 27 and the
Comprehensive Agrarian Reform Program;
(c) Annulment or rescission of lease contracts or deeds of sale of lands
under the administration and disposition of the DAR or Land Bank, including
amendment of titles of agricultural lands under the administration and disposition
of the DAR, Land Bank, as well as Emancipation Patents issued under
Presidential Decree No. 266, Homestead Patents, Free Patents, and miscellaneous
sales patents to settlers in settlement and re-settlement areas under the
administration and disposition of the DAR;
(d) Ejectment and dispossession of tenants or leaseholders;
(e) Sale, alienation, pre-emption, and redemption of agricultural lands
under the coverage of the Comprehensive Agrarian Reform Law, as amended or
other agrarian laws;
(f) Correction, partition, secondary and subsequent issuances such as
reissuance of lost or destroyed owner’s duplicate copy and reconstitution of
Certificates of Land Ownership Award and Emancipation Patents which are
registered with the Land Registration Authority;
(g) Review of leasehold rentals and fixing of disturbance compensation;
(h) Collection of amortization payments, foreclosure and similar
disputes concerning the functions of the Land
‘“Isidro v. Court of Appeals, 216 SCRA 503.

Sec. SO CHAPTER 1 115
Bank, and payments for lands awarded under agrarian laws, including payment for
residential, commercial, and industrial lots within the settlement and resettlement areas
under the administration and disposition of the DAR;
(i) Boundary disputes over lands under the administration and disposition of
the DAR and the Land Bank, which were transferred, distributed, or sold to tenant-
beneficiaries and covered by deeds of sale, patents, and certificates of title;
(j) Cases previously falling under the original and exclusive jurisdiction of
the defunct Court of Agrarian Relations under Section 12 of Presidential Decree No.
946 except those cases falling under the proper courts or other quasi-judicial bodies;
and
(k) Such other agrarian cases, disputes, matters or concerns referred to it by
the Secretary of the Department of Agrarian Reform.1M
NOTE: Section 12 of Presidential Decree No. 946 provides as follows:
“SECTION 12. Jurisdiction over Subject Matter. — The Courts of

Agrarian Relations shall have original and exclusive jurisdiction over:
a) Cases involving the rights and obligations of persons in the
cultivation and use of agricultural land except those cognizable by the
National Labor Relations Commission; Provided, That no case involving the
determination of rentals over any kind of tenanted agricultural land shall be
taken cognizance of by the Courts of Agrarian Relations unless there has
been a prior fixing of provision rental by the Department of Agrarian Reform,
except that the tenant-farmer may directly bring the case for immediate
determination by the Courts of Agrarian Relations;
b) Questions involving rights granted and obligations imposed by
laws, Presidential Decrees, Orders, Instructions, Rules and Regulations issued
and promulgated in relation to the agrarian reform program; Provided,
however, That matters involving the administrative implementation of the
transfer of the land to the tenant-farmer under Presidential Decree No. 27 and
amendatory and related decrees, orders, instructions, rules
ls5
Sec. 1, Rule n, 2009 DARAB Rules of Procedure.
and regulations, shall be exclusively cognizable by the Secretary of Agrarian

Reform, namely:
(1) classification and identification of landholdings;
(2) identification of tenant-farmers and landowners, and
determination of their tenancy relationship;
(3) parcellary mapping;
(4) determination of the total production and value of the land to
be transferred to the tenant-farmer;
(5) issuance, recall or cancellation of certificates of land transfer
in cases outside the purview of Presidential Decree No. 816;
(6) right of retention of the landowner;
(7) right of the tenant-farmer to a home lot;
(8) disposition of the excess area in the tenant’s farmholding;
(9) change of crop from rice and/or corn to any other
agricultural crop;
(10) issuance of certification for the conversion of tenanted rice
and/or com land for residential, commercial, industrial, or other urban
purposes, it being understood that the authority to issue certificates for
conversion of other kinds of tenanted agricultural land for the same
purposes remains vested in the Secretary of Agrarian Reform;
(11) transfer, surrender or abandonment by the tenant-farmer of
his farmholding and its disposition; and
(12) increase of tillage area by a tenant-farmer;
Provided, further, That the decision of the Secretary of Agrarian Reform may
be appealed to the President of the Philippines.
c) Cases involving the collection of amortizations on payments for lands
acquired under Presidential Decree No. 27, as amended, Commonwealth Act
Numbered twenty, as amended, Commonwealth Act Numbered five hundred thirty-
nine, as amended, Republic Act Numbered eleven hundred and sixty, as amended,
Republic Act Numbered fourteen hundred, as amended, Republic Act Numbered
thirty-eight hundred and forty-four, as amended, and other related laws, decrees,
orders, instructions, rules and regulations, as well as payment for residential,
commercial and industrial lots within the
Sec. 50 CHAPTER 1
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998 117
settlement and resettlement areas under the administration and disposition of

the Department of Agrarian Reform;
d) Cases involving collection of amortizations on payments for farm
machineries and implements distributed and sold by the Department of
Agrarian Reform and the Land Bank of the Philippines to tenant-farmers,
agricultural lessees, settlers, owner-cultivators, amortizing owner-cultivators,
the Samahang Nayon, compact farms, farmers’ cooperatives, and other
registered farmers’ associations or organizations, as well as payment for
indebtedness of settlers by reason of the assistance given them by the
Department of Agrarian Reform in the form of seeds, work animals, houses,
subsistence, transportation, medicines, farm implements, tools, and the like;
e) Cases involving collection of amortizations on payments for
irrigation systems and/or water rights grants, as well as irrigation fees, charge
and/or rentals;
f) Cases involving collection of rentals on agricultural lands leased
by the Department of Agrarian Reform or Land Bank and collection of
agricultural loans granted to tenant- farmers, agricultural lessees, settlers,
owner-cultivators, amortizing owner-cultivators, the Samahang Nayon,
compact farms, farmers’ cooperatives and other registered farmer associations
or organizations;
g) Cases involving the annulment or rescission of lease contracts
and deeds of sale, and the cancellation or amendment of titles pertaining to
agricultural lands under the administration and disposition of the Department of
Agrarian Reform and the Land Bank, as well as emancipation patents issued
under Presidential Decree No. 266, homestead patents, free patents, and
miscellaneous sales patents to settlers in settlement and resettlement areas
under the administration and disposition of the Department of Agrarian
Reform;
h) Cases involving boundary disputes over lands under the
administration and disposition of the Department of Agrarian Reform and the
Land Bank, which are transferred, distributed and/or sold to tenant-
beneficiaries and are covered by deeds of sale, patents and certificates of titles;
i) Cases arising out of, or in connection with, membership in the
Samahang Nayon, compact farms, farmers’ cooperatives and other registered
farmers’ associations or organizations, and the rights and obligations arising
from such membership;
j) Cases arising directly or indirectly between corporations or
partnerships covered by General Order No. 47 and tenant-farmers, agricultural
lessees, settlers, owner-cultiva-
11S AGRARIAN LAW AND SOCLAL LEGISLATION Sec. 50
tors. amortizing owner-cultivators. the Samahang Xayon, compact farms, farmers'

cooperatives, and other registered farmers’ associations or organizations, and
between such corporation or partnerships and other corporations, partnerships,
associations or sdngie proprietorships where the question involved affects the rights
and interests of the persons herein mentioned;
k* Cases involving the determination of title to agricultural lands where
this issue is raised in an agrarian dispute by any of the parties or a third person in
connection with the possession thereof for the purpose of preserving the tenure of
the agricultural lessee or actual tenant-farmer and effecting the ouster of the
interloper or intruder in one and the same proceeding;
Ij Cases involving the sale, alienation, mortgage foreclosure, pre-emption
and redemption of tenanted agricultural land:
m) Cases involving expropriation of all kinds of land in furtherance of the
agrarian reform program:
nj Expropriation proceedings for public purpose of all kinds of tenanted
agricultural land, whether instituted by the State, its political subdivisions and
instrumentalities, or corporations and entities authorized by laws to expropriate;
o) Cases involving acquisition by the Department of Agrarian
Reform of irrigation systems and/or water rights grants for the benefit of tenant-
farmers, agricultural lessees, settlers, owner-cultivators, amortizing owner-
cultivators, the Samahang Nayon, compact farms, farmers’ cooperatives, and other
registered farmers’ associations or organizations, the Department of Agrarian
Reform being hereby vested with the authority to construct irrigation systems
and apply for water rights grants for the purpose herein provided;
p) Ejectment proceedings instituted by the Department of Agrarian
Reform and the Land Bank involving lands under their administration and
disposition, except urban properties belonging to the Land Bank;
qj Cases involving violations of the penal provisions of Republic Act
Numbered eleven hundred and ninety-nine, as amended, Republic Act
Numbered thirty eight hundred and forty-four, as amended, Presidential Decrees
and laws relating to agrarian reform; Provided, however, That violations of the said
penal provisions committed by any Judge shall be tried by the courts of general
jurisdiction; and
r) Violations of Presidential Decrees Nos. 815 and
816/
LAW OF 1998
Appeal from decisions of the PARAD
Decisions of the PARAD are appealable to the DAR Adjudication Board
(DARAB) within fifteen (15) days.1116
The Regional Agrarian Reform Adjudicators (RARAD)

The RARAD is the Executive Adjudicator in the Region. It is vested with
the following functions:
fa) Administrative supervision over the PARAD including the
monitoring of cases in the Region;
(b) Conduct hearing and adjudication of agrarian disputes within
the Region;
(c) Conduct hearing on the following:
(i) Cases that cannot be handled by the PARAD on account
of inhibition, disqualification or when there is no PARAD
designated in the locality;
(ii) Matters of such complexity and sensitivity that the
decision thereof would constitute an important precedent affecting
regional interest as may be recommended by the concerned RARAD
and approved by the Board; and
(iii) Preliminary determination of just compensation of lands
valued at P10M to P50M.
(iv) Conduct hearing on applications for the issuance of a
writ of preliminary injunction or temporary restraining order and
such other cases which the Board
may assign.11"
DARAB has no jurisdiction over matters pertaining to ownership

When the controversy pertains to ownership, there is no agrarian dispute,
hence, the matter is beyond the jurisdiction of the DARAB. As held by the
Supreme Court in the case of Heirs of Herman Rey Santos v. Court of Appeals,
G.R. No. 109992, March 7, 2000:
]
“>Sec. 2, Rule II; Sec. 1, Rule XIV, 2009 DARAB Rules of Procedure. “’Sec.
2, Rule II, 2009 DARAB Rules of Procedure.
120 AGRARIAN LAW AND SOCLAL LEGISLATION Sec. 50
“Petitioners and private respondent have no tenunal, leasehold, or any

agrarian relations whatsoever that could have brought this controversy under
the ambit of the agrarian reform laws. Consequently, the DARAB has no
jurisdiction over the controversy and should not have taken cognizance of
private respondent’s petition for injunction in the first place.”
DARAB has no jurisdiction over retention or exemption issues

Issues pertaining to retention rights of the landowner and the exclusion or
exemption from agrarian reform coverage are not cognizable by the DARAB, but
by the Secretary of the Department of Agrarian Reform because they pertain to
administrative implementation of agrarian law.158
DARAB has no jurisdiction over right of way issues

The DARAB cannot entertain a petition for right of way filed by agrarian reform
beneficiaries against an adjoining landowner because the issue of a right of way or easement
over private property without tenancy relations is outside the jurisdiction of the DARAB.
LAGUNA ESTATES V. COURT OF APPEALS

G.R. No. 119357
July 5, 2000
FACTS: Some 234.76 hectares of agricultural land situated in

Barangay Casile, Cabuyao,
Laguna belonging to the Sta. Rosa Realty Development Corporation

(“SRRDC,” hereafter) was placed by the Department of Agrarian Reform
(DAR) under the compulsory acquisition scheme of the Comprehensive
Agrarian Reform Program (CARP), and subsequently, Certificates of Land
Ownership Award (CLOA’s) were issued to the farmers-beneficiaries.
The aforesaid agricultural lands are isolated and/or separated from the
rest of the Municipality of Cabuyao, and the only passage way or access road
leading to said private respondents’ agricultural lands is the privately owned
road network situated within the premises of Laguna Estate. The subject road
network is open to the public. But after agrarian reform beneficiaries were
awarded the aforesaid agricultural land, Laguna Estate prohibited and denied
the agrarian reform
168
Sta. Ana v. Carpo, 572 SCRA 463; Magno v. Francisco, 616 SCRA 402.
beneficiaries from utilizing the subject road network, thereby preventing

the ingress to, and egress from, Bgy. Casile where the farmlands awarded
to private respondent are located.
On petition by the agrarian reform beneficiaries, the DARAB
ordered Laguna Estate to give a right of way over the subject road
network owned by Laguna Estate.
ISSUE: Whether or not the DARAB has jurisdiction to grant the
beneficiaries of the agrarian reform program a right of way over Laguna
Estate’s network of private roads intended for their exclusive use.
HELD: DARAB has no jurisdiction. For DARAB to have jurisdiction
over a case, there must exist a tenancy relationship between the parties.
Obviously, the issue of a right of way or easement over private property
without tenancy relations is outside the jurisdiction of the DARAB. This is not
an agrarian issue. Jurisdiction is vested in a court of general jurisdiction.
DARAB has no jurisdiction to identify and classify landholdings for

agrarian reform coverage
The jurisdiction to classify and identify landholdings for agrarian
reform coverage is reposed in the Secretary of Agrarian Reform and not
with the DARAB because the matter of agrarian reform coverage is strictly
a part of the administrative implementation of the agrarian reform
program.l“
DARAB has no jurisdiction over matters pertaining to identification

and selection of beneficiaries
Identification and selection of agrarian reform beneficiaries are
matters involving administrative implementation of the agrarian reform
program. Therefore, the matter is cognizable by the Secretary of Agrarian
Reform and not by the DARAB. Hence, any party who claims to have
priority over those who have been identified by the Municipal Agrarian
Reform Officer (MARO) should file his protest with the MARO or
Provincial Agrarian Reform Officer (PARO) and later to the Department of
Agrarian Reform, but not with the DARAB. 159
159
Alangilan Realty v. Office of the
President, 616 SCRA 633. '“Concha
v. Rubio, 617 SCRA 223.
122 AGRARIAN LAW AND SOCIAL LEGISLATIONSec. 50-A
SECTION 50-A. Exclusive Jurisdiction on Agrarian Dispute. — No court or

prosecutor’s office shall take cognizance of cases pertaining to the implementation of
the CARP except those provided under Section 57 of Republic Act No. 6657, as
amended. If there is an allegation from any of the parties that the case is agrarian in
nature and one of the parties is a farmer, farmworker, or tenant, the case shall be
automatically referred by the judge or the prosecutor to the DAR which shall
determine and certify within fifteen (15) days from referral whether an agrarian
dispute exists: Provided, That from the determination of the DAR, an aggrieved
party shall have judicial recourse. In cases referred by the municipal trial court and
the prosecutor’s office, the appeal shall be with the proper regional trial court, and
in cases referred by the regional trial court, the appeal shall be to the Court of
Appeals.
In cases where regular courts or quasi-judicial bodies have competent
jurisdiction, agrarian reform beneficiaries or identified beneficiaries and/or their
associations shall have legal standing and interest to intervene concerning their
individual or collective rights and/or interests under the CARP.
The fact of non-registration of such associations with the Securities and
Exchange Commission, or Cooperative Development Authority, or any concerned
government agency shall not be used against them to deny the existence of their legal
standing and interest in a case filed before such courts and quasi-judicial bodies. 161
NOTES:
Agrarian case directly filed in court — action to be taken
The primary jurisdiction to determine and adjudicate agrarian reform

matters is vested with the Department of Agrarian Reform. Should a party
directly file a case with the regular court and the pleading alleges that the case is
agrarian in nature and one of the parties is a farmer, farmworker, or tenant, the
Court should not
,61
L-

dismiss the case. Instead, it should refer the matter to the DAR for the purpose of
determining whether an agrarian dispute exists.
The aggrieved party has fifteen (15) days to appeal the ruling of DAR to the:
(a) Regional Trial Court — For cases referred by the
Municipal Trial Court or the prosecutor’s office; and
(b) Court of Appeals — For cases referred by the
Regional Trial Court.
Legal personality of unregistered associations cannot be challenged

Courts can still entertain complaints or petitions filed by unregistered
associations or cooperatives composed of agrarian reform beneficiaries
despite the fact that they are not incorporated with the Securities and
Exchange or registered with the Cooperative Development Authority.
SECTION 51. Finality of Determination. — Any case or controversy

before it shall be decided within thirty (30) days after it is submitted for
resolution. Only one (1) motion for reconsideration shall be allowed. Any order,
ruling or decision shall be final after the lapse of fifteen (15) days from receipt of
a copy thereof.
NOTES:
Judicial Review
The aggrieved party can elevate the order or ruling of the DAR to the Court of
Appeals by way of a petition for review on certiorari under Rule 43 of the Rules of
Court.
SECTION 52. Frivolous Appeals. — To discourage frivolous or dilatory

appeals from the decisions or orders on the local or provincial levels, the DAR
may impose reasonable penalties, including but not limited to fines or censures
upon erring parties.
NOTES:
Frivolous or dilatory appeals
As to what is a frivolous or dilatory appeal is a factual matter which
should be decided according to the surrounding facts and circumstances.
SECTION 53. Certification of the BARC. — The DAR shall not take cognizance
of any agrarian dispute or controversy unless a certification from the BARC that the
dispute has been submitted to it for mediation and conciliation without any success of
settlement is presented: Provided, however, That if no certification is issued by the
BARC within thirty (30) days after a matter or issue is submitted to it for mediation or
conciliation, the case or dispute may be brought before the PARC.
NOTES:
Prerequisite to filing of a complaint before the DARAB
The Department of Agrarian Reform Adjudication Board (DARAB) or its
Adjudicators shall not take cognizance of any agrarian case, dispute, or
controversy, unless a certification from the Barangay Agrarian Reform
Committee (BARC) of the barangay where the land involved is located is
presented, to the effect that the dispute has been submitted to it for mediation or
conciliation without any success or settlement.
However, BARC certification is not necessary in the following cases:
(a) where the issue involves the valuation of land to determine
just compensation for its acquisition;
(b) where one party is a public or private corporation,
partnership, association or juridical person, or a public officer or
employee and the dispute relates to the performance of his official
functions;
(c) where the Secretary of the Department of Agrarian Reform
directly refers the matter to the DARAB or Adjudicator; or
(d) where the Municipal Agrarian Reform Officer or, in his
absence, the Senior Agrarian Reform Program Technologist
or Agrarian Reform Program Technologist certifies the nonexistence of the B

ARC or the inability of the BARC to convene.162
BARC Certification not needed in judicial determination of just

compensation
The BARC is needed only for cases filed before the DARAB. It is not needed
in petitions filed with the special agrarian courts for determination of just
compensation, because the jurisdiction of Special Agrarian Courts over petitions for
determination of just compensation is original and exclusive.
CHAPTER XIII
JUDICIAL REVIEW
SECTION 54. Certiorari. — Any decision, order, award or
ruling of the DAR on any agrarian dispute or on any matter pertaining
to the application, implementation, enforcement, or interpretation of
this Act and other pertinent laws on agrarian reform may be brought to
the Court of Appeals by certiorari except as otherwise provided in this
Act within fifteen (15) days from the receipt of a copy thereof.
The findings of fact of the DAR shall be final and conclusive if
based on substantial evidence.
NOTES:
The remedy from an adverse ruling of the DAR
The remedy from an adverse ruling of the DAR is to file a petition
for review on certiorari under Rule 43 of the Rules of Court within
fifteen (15) days from notice of the ruling.
SECTION 55. No Restraining Order or Preliminary Injunction.
— Except for the Supreme Court, no court in the Philippines shall
have jurisdiction to issue any restraining order or writ of preliminary
injunction against the PARC, the DAR, or any of its duly authorized
or designated agencies in any case, dispute or controversy arising
from, necessary to, or in connection with the application,
implementation,
‘“Sec. 1, Rule m, 2009 DARAB Rules of Procedure.

126 AGRARIAN LAW AND SOCLAL LEGISLATION Sec. .56
enforcement, or interpretation of this Act and other pertinent laws on agrarian reform-
(as amended by Republic Act No. 9700)
NOTES:
What Section 55 seeks to prohibit is the issuance of restraining orders or
injunctions against the proceedings before the Department of Agrarian Reform or
the Presidential Agrarian Reform Council so as not to disrupt the smooth
implementation of the agrarian reform program. But once a ruling is rendered and
the aggrieved party brings the matter to the proper courts, the prohibition will no
longer apply. In such a situation, the court can issue a restraining order or
injunction as an ancillary relief, particularly when jurisdictional error or grave
abuse of discretion was committed in rendering the ruling.
SECTION 56. Special Agrarian Court. — The Supreme Court shall designate at
least one (1) branch of the Regional Trial Court (RTC) within each province to act as a
Special Agrarian Court.
The Supreme Court may designate more branches to constitute such additional
Special Agrarian Courts as may be necessary to cope with the number of agrarian cases
in each province. In the designation, the Supreme Court shall give preference to the
Regional Trial Courts which have been assigned to handle agrarian cases or whose
presiding judges were former judges of the defunct Court of Agrarian Relations.
The Regional Trial Court (RTC) judges assigned to said courts shall exercise
said special jurisdiction in addition to the regular jurisdiction of their respective courts.
The Special Agrarian Courts shall have the powers and prerogatives inherent in
or belonging to the Regional Trial Courts.
NOTES:
The RTC should be designated as Special Agrarian Court
The Regional Trial Court should specifically be designated by the Supreme
Court as a Special Agrarian Court. Regional Trial
Seca. 57-58 CHAPTER! 127
THE COMPREHENSIVE AGRARIAN REFORM LAW OR 1!)!)8
Courts which have not been designated as special agrarian courts cannot hear
petitions for determination of just compensation even if the land subject of such
cases happen to bo within their territorial jurisdiction.
SECTION 57. Special Jurisdiction. — The Special Agrarian Courts shall have
original and exclusive jurisdiction over all petitions for the determination of just
compensation to landowners, and the prosecution of all criminal offenses under this
Act. The Rules of Court shall apply to all proceedings before the Special Agrarian
Courts, unless modified by this Act.
The Special Agrarian Courts shall decide all appropriate cases under their
special jurisdiction within thirty (30) days from submission of the case for decision.
NOTES:
Additional jurisdiction of the Special Agrarian Court (SAC)
In addition to their vested jurisdiction, Special Agrarian Courts are
conferred original and exclusive jurisdiction to hear and decide:
(a) petitions for the determination of just compensation
to landowners; and
(b) criminal violations of the Comprehensive Agrarian
Reform Law.
Just compensation preliminarily determined by the DARAB should be

filed with the SAC within fifteen (15) days from notice
Under Section 6, Rule XIX of the 2009 DARAB Rules of Procedure, the
party who disagrees with the decision of the Adjudicator may contest the same by
filing an original action with the Special Agrarian Court having jurisdiction over
the subject property within fifteen (15) days from his receipt of the Adjudicator’s
decision.
SECTION 58 .Appointment of Commissioners. — The Special Agrarian

Courts, upon their own initiative or at the instance
‘“Land Bank v. Villegas, 616 SCRA 626.

128 AGRARIAN LAW AND SOCIAL LEGISLATION Secs. 59.60
of any of the parties, may appoint one or more commissioners to examine, investigate
and ascertain facts relevant to the dispute, including the valuation of properties, and to
file a written report thereof with the court.
NOTES:
Objections to the Commissioner’s report

Under the Rule 32 of the Rules of Court, a party has ten (1O days within
which to signify grounds for objections to the findings of the report. Upon
expiration of the 10-day period, the matter will be set for hearing after which the
court will issue an order adopting, modifying or rejecting the report in whole or
in part.
SECTION 59. Orders of the Special Agrarian Courts. — No order of the Special
Agrarian Courts on any issue, question, matter or incident raised before them shall be
elevated to the appellate courts until the hearing shall have been terminated and the
case decided on the merits.
NOTES:
Interlocutory Orders
Interlocutory orders of the Special Agrarian Court cannot be challenged
before the higher court until the case is decided on the merits. The obvious
purpose is to expedite the resolution of agrarian disputes.
SECTION 60. Appeals. — An appeal may be taken from the decision of the
Special Agrarian Courts by filing a petition for review with the Court of Appeals
within fifteen (15) days from receipt of notice of the decision; otherwise, the decision
shall become final.
An appeal from the decision of the Court of Appeals, or from any order, ruling
or decision of the DAR, as the case may be, shall be by a petition for review with the
Supreme Court within a non-extendible period of fifteen (15) days from receipt of a
copy of said decision.
NOTES:
Remedy from adverse decision of the Special Agrarian Court
The remedy from an adverse decision rendered by the Regional Trial Court
acting as Special Agrarian Court is appeal via petition for review under Rule 43 of
the Rules of Court, and not an ordinary appeal. This is so even if Special Agrarian
Courts are not mentioned in Rule 43 of the Rules of Court. As held in the case of
Land Bank v. De Leon, G.R. No. 143275, September 10, 2002:
“x x x the failure to mention Special Agrarian Courts in Section 1 of
Rule 43 of the Revised Rules of Civil Procedure cannot be construed to
mean that a petition for review is not permissible for decisions of the said
special courts. In fact, the said Rule is not relevant to determine whether a
petition for review is the proper mode of appeal from decisions of Regional
Trial Courts in agrarian cases, that is, when they act as Special Agrarian
Courts. Section 1 of Rule 43 of the 1997 Revised Rules of Civil Procedure
merely mentions the Court of Tax Appeals and the other different quasi-
judicial agencies without exclusivity in its phraseology. Such omission
cannot be construed to justify the contention that a petition for review is
prohibited for decisions on special agrarian cases inasmuch as the category
is for quasi-judicial agencies and tax courts to which the Regional Trial
Courts do not properly belong. Although Supreme Court Circular No. 1-91
(precursor to Rule 43 of the Revised Rules of Civil Procedure) included the
decisions of Special Agrarian Courts in the enumeration requiring petition
for review, its non-inclusion later on in Rule 43 merely signifies that it was
inappropriately classified as a quasi-judicial agency.
What is indisputable is that Section 60 expressly regards a petition
for review as the proper way of appealing decisions of agrarian courts. So
far, there is no rule prescribed by th[e] Court expressly disallowing the said
procedure.”
Remedy from adverse decision of the Court of Appeals
The remedy from an adverse decision of the Court of Appeals is appeal by
certiorari with the Supreme Court under Rule 45 of the Rules of Court, within fifteen (15)
days from notice.
The 15-day period is non-extendible

By express provision of Section 60 of the Comprehensive Agrarian Reform law, the
15-day period within which to file petition for review with the Supreme Court is non-
extendible.
SECTION 61. Procedure on Review. — Review by the Court of Appeals

or the Supreme Court, as the case may be, shall be governed by the Rules of
Court. The Court of Appeals, however, may require the parties to file
simultaneous memoranda within a period of fifteen (15) days from notice, after
which the case is deemed submitted for decision.
NOTES:
Applicability of the Rules of Court
On appeal, the procedures outlined in the Rules of Court will govern. To
expedite the proceedings, the Court can just require the parties to submit simultaneous
memorandum within fifteen (15) days after which the case will be deemed submitted
for decision.
SECTION 62. Preferential Attention in Courts. — All courts in

the Philippines, both trial and appellate, shall give preferential
attention to all cases arising from or in connection with the
implementation of the provisions of this Act.
All cases pending in court arising from or in connection with the
implementation of this Act shall continue to be heard, tried and
decided into their finality, notwithstanding the expiration of the ten-
year period mentioned in Section 5 hereof.
NOTES:
Expeditious disposition of agrarian cases is the objective
Considering the nature of an agrarian case, it is imperative that the case be
decided with expeditiously for the benefit of both the agrarian reform beneficiary
and the landowner who is entitled to prompt payment of just compensation.
CHAPTER XIV
FINANCING
SECTION 63. Funding Source. — The amount needed to further

implement the CARP as provided in this Act, until June 30, 2014, upon
expiration of funding under Republic Act No. 8532 and other pertinent laws,
shall be funded from the Agrarian Reform Fund and other funding sources
in the amount of at least One hundred fifty billion pesos (P150,000,000,000.00).

Additional amounts are hereby authorized to be appropriated as and when
needed to augment the Agrarian Reform Fund in order to fully implement the
provisions of this Act during the five (5)-year extension period.
Sources of funding or appropriations shall include the following:
(a) Proceeds of the sales of the Privatization and
Management Office (PMO);
(b) All receipts from assets recovered and from sales of ill-
gotten wealth recovered through the PCGG excluding the amount
appropriated for compensation to victims of human rights violations
under the applicable law;
(c) Proceeds of the disposition and development of the
properties of the Government in foreign countries, for the specific
purposes of financing production credits, infrastructure and other
support services required by this Act;
(d) All income and collections of whatever form and nature
arising from the agrarian reform operations, projects and programs of
the DAR and other CARP implementing agencies;
(e) Portion of amounts accruing to the Philippines from all
sources of official foreign aid grants and concessional financing from all
countries, to be used for the specific purposes of financing productions,
credits, infrastructures, and other support services required by this
Act;
(f) Yearly appropriations of no less than Five billion pesos
(P5,000,000,000.00) from the General Appropriations Act;
(g) Gratuitous financial assistance from legitimate sources; and
(h) Other government funds not otherwise appro-
j priated.
132 AGRARIAN LAW AND SOCIAL LEGISLATION See. 64
All funds appropriated to implement the provisions of this Act shall be

considered continuing appropriations during the period of its
implementation: Provided, That if the need arises, specific amounts for bond
redemptions, interest payments and other existing obligations arising from
the implementation of the program shall be included in the annual General
Appropriations Act: Provided, further, That all just compensation payments
to landowners, including execution of judgments therefor, shall only be
sourced from the Agrarian Reform Fund: Provided, however, That just
compensation payments that cannot be covered within the approved annual
budget of the program shall be chargeable against the debt service program
of the national government, or any unprogrammed item in the General
Appropriations Act: Provided, finally, That after the completion of the land
acquisition and distribution component of the CARP, the yearly
appropriation shall be allocated fully to support services, agrarian justice
delivery and operational requirements of the DAR and the other CARP
implementing agencies.164
NOTES:
Funding of just compensation
The just compensation payments to landowners can only be sourced from
the Agrarian Reform Fund. If the annual budget for the agrarian reform fund is
not sufficient, the just compensation payments shall be charged against the debt
service program of the national government, or any unprogrammed item in the
General Appropriations Act.
SECTION 64. Financial Intermediary for the CARP. — The Land

Bank of the Philippines shall be the financial intermediary for the CARP,
and shall insure that the social justice objectives of the CARP shall enjoy
a preference among its priorities.
'"As amended by R.A. Nos. 8532 and 9700.

NOTES:
Role of the Land Bank
The Land Bank is the financial arm of the agrarian reform pro gram. The
determination of just compensation under the Comprehensive Agrarian Reform
Law commences with the Land Bank determining the value of the lands. Using
Land Bank’s valuation, the Department of Agrarian Reform makes an offer to the
landowner.
CHAPTER XV
GENERAL PROVISIONS
SECTION 65. Conversion of Lands. — After the lapse of five (5) years
from its award, when the land ceases to be economically feasible and sound
for agricultural purposes, or the locality has become urbanized and the land
will have a greater economic value for residential, commercial or industrial
purposes, the DAR, upon application of the beneficiary or the landowner
with respect only to his/her retained area which is tenanted, with due notice
to the affected parties, and subject to existing laws, may authorize the
reclassification or conversion of the land and its disposition: Provided, That
if the applicant is a beneficiary under agrarian laws and the land sought to
be converted is the land awarded to him/her or any portion thereof, the
applicant, after the conversion is granted, shall invest at least ten percent
(10%) of the proceeds coming from the conversion in government se-
curities: Provided, further, That the applicant upon conversion shall fully
pay the price of the land: Provided, furthermore, That irrigated and
irrigable lands, shall not be subject to conversion: Provided, finally, That the
National Irrigation Administration shall submit a consolidated data on the
location nationwide of all irrigable lands within one (1) year from the
effectivity of this Act.
Failure to implement the conversion plan within five
(5) years from the approval of such conversion plan or any violation of the
conditions of the conversion order due to the fault of the applicant shall
cause the land to automatically be covered by CARP. 165
165
NOTES:
Meaning of conversion
Conversion is the act of changing the current use of a piece of agricultural
land into some other use, to wit:
(a) For residential, commercial, industrial, and other non-
agricultural purposes;
(b) For another type of agricultural activity such as livestock,
poultry, and fishpond the effect of which is to exempt the land from CARP
coverage;
(c) For non-agricultural use other than that previously
authorized.166
Change of crops to commercial crops or high value crops is considered as a
conversion in the use or nature of the land.167
Conversion differs from reclassification

Conversion is the act of changing the current use of a piece of agricultural
land into some other use as approved by the Department of Agrarian Reform.
Reclassification is the act of specifying how agricultural lands shall be
utilized for non-agricultural uses such as residential, industrial, and commercial, as
embodied in the land use plan, subject to the requirements and procedures for land
use conversion.168
Effect of reclassification
A mere reclassification of an agricultural land does not automatically allow
the landowner to change its use. He has to undergo the process of conversion before
he is permitted to use the agricultural land for other -purposes.169
Scope of the DAR’s conversion authority

Agricultural lands that were already or reclassified as non- agricultural prior
to June 15,1998 does not require any conversion
166
167
Sec. 65-D, Comprehensive Agrarian Reform Law.
16fl
CREBA v. Secretary of Agrarian Reform, 621 SCRA
m
Ibid.
clearance or authority from the Department of Agrarian Reform because the said
lands are not covered by the agrarian reform program. 1™
The authority of the Department of Agrarian Reform to approve or

disapprove conversion of agricultural land into residential, commercial or industrial
use can only be exercised after the effectivity of Republic Act No. 6657 on June
15,1988. After June 15,1998, conversion approval is necessary even if the land has
been reclassified as non-agricultural by the local government units or by way of
Presidential Proclamation. Reclassification alone will not suffice to use the
agricultural lands for non-agricultural purposes. Conversion is needed to change the
current use of reclassified agricultural lands.170 171
Who can apply for conversion?

The following persons can apply for land conversion:
(a) the beneficiary; or
(b) the landowner with respect only to his retained area which is
tenanted.
When is the proper time to file the application for conversion?

The application for conversion can be filed after the lapse of five (5) years
from the award of the land.
Under what conditions can an application for conversion be

filed?
The application for conversion can be filed if any of the following
conditions exist:
(a) when the land ceases to be economically feasible for
agricultural purposes, or
(b) when the locality has become urbanized and the land will have
a greater economic value for residential, commercial or industrial purposes.
170
Sta. Rosa Realty v. Court of Appeals, G.R. No. 112526, October 12, 2001.
171
CREBA v. Secretary of Agrarian Reform, supra.
136 AGRARIAN LAW AND SOCIAL LEGISLATION S6C. 65
Obligations of the beneficiary if the application for conversion is

approved
If the conversion application is approved, the beneficiary is required
to:
(a) invest 10% of the proceeds from the conversion in
government securities; and
(b) pay the Land Bank the full price of the land upon
conversion.
Lands that cannot absolutely be subject to conversion

The following lands are absolutely not subject to conversion:
(a) Agricultural lands within protected areas designated under the
National Integrated Protected Areas System (NIP AS), including watershed
and recharged areas of aquifers, as determined by the Department of
Environment and Natural Resources (DENR);
(b) All irrigated lands, as delineated by the Department of
Agriculture (DA) and/or the National Irrigation Administration (NIA), where
water is available to support rice and other crop production, and all irrigated
lands where water is not available for rice and other crop production but are
within areas programmed for irrigation facility rehabilitation by the DA
and/or the NIA;
(c) All irrigable lands already covered by irrigation projects with
firm funding commitments, as delineated by DA and/or NIA; and
(d) All agricultural lands with irrigation facilities operated by private
organizations.172
Areas highly restricted from conversion

The following areas are highly restricted from conversion:
(a) Irrigable lands not covered by irrigation projects with firm funding
commitment:
(b) Agro-industrial croplands, or lands presently plant-
172
Sec. 4, DAK Administrative Order No. 01-99.
ed to industrial crops that support the economic viability of existing

agricultural infrastructure and agro-based enterprises;
(c) Highlands or areas located in elevations of 500 meters or
above and have the potential for growing semi- temperate and usually
high-value crops;
(d) Lands issued with notice of land valuation and acquisition, or
subject of a perfected agreement between the landowner and the
beneficiaries under the voluntary land transfer/ direct payment scheme
(VLT/DPS) under the Comprehensive Agrarian Reform Program
(CARP); and
(e) Environmentally critical areas (EGAs) as determined by the
DENR in accordance with law.
These lands are highly restricted from conversion because they require,
apart from the standard requirements, a project feasibility study and
environmental compliance certificate.173
Effect of failure to implement the approved conversion plan

If the approved conversion plan is not implemented within five ( 5) years
from approval, the land will continue to be covered by the agrarian reform
program.
SECTION 65-A. Conversion Into Fishpond and Prawn Farms. — No

conversion of public agricultural lands into fishponds and prawn farms
shall be made except in situations where the provincial government with
the concurrence of the Bureau of Fisheries and Aquatic Resources (BFAR)
declares a coastal zone as suitable for fishpond development. In such case,
the Department of Environment and Natural Resources (DENR) shall
allow the lease and development of such areas: Provided, That the
declaration shall not apply to environmentally critical projects and areas
as contained in title (A) sub-paragraph two, (B-5) and (C-l) and title (B),
number eleven (11) of Proclamation No. 2146, entitled “Proclaiming
Certain Areas and Types of Projects as Environmentally Critical and
Within the Scope of the Environmental Impact Statement (EIS) System
established
173
138 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. G5-A
under Presidential Decree No. 1586,” to ensure the protection of river systems,
aquifers and mangrove vegetations from pollution and environmental
degradation: Provided, further, That the approval shall be in accordance with
a set of guidelines to be drawn up and promulgated by the DAR and the
BFAR: Provided, furthermore, That small-farmer cooperatives and
organizations shall be given preference in the award of the Fishpond Lease
Agreement (FLAs).
No conversion of more than five (5) hectares of private lands to fishpond
and prawn farms shall be allowed after the passage of this Act, except when
the use of the land is more economically feasible and sound for fishpond
and/or prawn farm, as certified by the Bureau of Fisheries and Aquatic
Resources (BFAR), and a simple and absolute majority of the regular farm
workers or tenants agree to the conversion, the Department of Agrarian
Reform, may approve applications for change in the use of the land: Provided,
finally, That no piecemeal conversion to circumvent the provisions of this Act
shall be allowed. In these cases where the change of use is approved, the
provisions of Section 32-A hereof on incentives shall apply. 1,4
NOTES:
Conversion of public agricultural lands to fishponds
Public agricultural lands can be converted into fishponds and prawn
farms only when the coastal zone is declared suitable for fishpond development
by the provincial government and the Bureau of Fisheries and Aquatic
Resources.
If the condition is complied with, the Department of Environment and
Natural Resources (DENR) can allow the lease and development of the area.
Conversion of private agricultural lands to fishponds

Private agricultural lands can be converted into fishponds and prawn
farms up to a maximum area of five (5) hectares.
"‘Added by R.A. No. 7881.

Sec. 65-B CHAPTER 1 139
Exceptionally, the Department of Agrarian Reform may approve

the conversion of more than five (5) hectares of agricultural land to
fishponds and prawn under the following conditions:
(a) when the use of the land is more economically feasible
and sound for fishpond and/or prawn farm, as certified by the
Bureau of Fisheries and Aquatic Resources (BFAR); and
(b) a simple and absolute majority of the regular farm
workers or tenants agree to the conversion.
SECTION 65-B. Inventory. — Within one (1) year from the effectivity
of this Act, the BFAR shall undertake and finish an inventory of all
government and private fishponds and prawn farms, and undertake a
program to promote the sustainable management and utilization of prawn
farms and fishponds. No lease under Section 65-A hereof may be granted
until after the completion of the said inventory.
The sustainable management and utilization of prawn farms and
fishponds shall be in accordance with the effluent standards, pollution
charges and other pollution control measures such as, but not limited to, the
quantity of fertilizers, pesticides and other chemicals used, that may be
established by the Fertilizer and Pesticide Authority (FPA), the
Environmental Management Bureau (EMB), and other appropriate
government regulatory bodies, and existing regulations governing water
utilization, primarily Presidential Decree No. 1067, entitled “A Decree
Instituting A Water Code, Thereby Revising and Consolidating the Laws
Governing the Ownership, Appropriation, Utilization, Exploitation,
Development, Conservation and Protection of Water Resources.” 175
NOTES:
Purpose of inventory
The inventory of all government and private fishponds and prawn farms
will help the Department of Agrarian Reform monitor unauthorized conversions
of lands into fishponds and prawn farms.
“Added by R.A. No. 7881.

140 AGRARIAN LAW AND SOCIAL LEGISLATION Secs. 65-C-66
SECTION 65-C. Protection of Mangrove Areas. — In existing Fishpond

Lease Agreements (FLAs) and those that will be issued after the effectivity of this Act,
a portion of the fishpond area fronting the sea, sufficient to protect the environment,
shall be established as a buffer zone and be planted to specified mangrove species to be
determined in consultation with the regional office of the DENR. The Secretary of
Environment and Natural Resources shall provide the penalties for any violation of
this undertaking as well as the rules for its implementation. 176
NOTES:
The Import of the Provision

This provision is intended to harmonize agrarian reform with the
environmental laws.
SECTION 65-D. Change of Crops. — The change of crops to commercial

crops or high value crops shall not be considered as a conversion in the use or nature
of the land. The change in crop should however, not prejudice the rights of tenants or
leaseholders should there be any and the consent of a simple and absolute majority of
the affected farm workers, if any, shall first be obtained. 177
NOTES:
Change of crops does not need DAR approval

Considering that change of crops to commercial crops or high value
crops is not considered as a conversion in the use or nature of the land, approval
of the Department of Agrarian Reform is not required.
SECTION 66. Exemptions from Taxes and Fees of Land Transfers. — Transactions
under this Act involving a transfer of ownership, whether from natural or juridical
persons, shall be exempted from taxes arising from capital gains. These transactions
shall also be exempted from the payment of registration fees, and all other taxes and
fees for the
'“Ibid.
■"Added by R.A No.
7881.
conveyance or transfer thereof; Provided, That all arrearages in real

property taxes, without penalty or interest, shall be deductible from the
compensation to which the owner may be entitled.
NOTES:
Lands transferred to beneficiaries exempted from taxes and fees
Deeds of transfer of ownership to agrarian reform beneficiaries, whether
voluntary transfer or compulsory acquisition are exempted from capital gains tax,
and other applicable taxes or fees.
SECTION 67. Free Registration of Patents and Titles. — All Registers

of Deeds are hereby directed to register, free from payment of all fees and
other charges, patents, titles and documents required for the implementation
of the CARP.
NOTES:
Exemption from registration fees
Lands acquired by agrarian reform beneficiaries and those retained by the
landowner are exempted from transfer fees, registration fees, etc.
SECTION 68. Immunity of Government Agencies from Undue

Interference. — In cases falling within their jurisdiction, no injunction,
restraining order, prohibition or mandamus shall be issued by the regional
trial courts, municipal trial courts, municipal circuit trial courts, and
metropolitan trial courts against the DAR, the DA, the DENR, and the
Department of Justice in their implementation of the Program. 1’"
NOTES:
No injunction policy
The purpose of the law in prohibiting lower courts from issuing injunction
is to ensure the unhampered, speedy, and smooth implementation of the agrarian
reform program.
178
SECTION 69. Assistance of Other Government Entities. — The

PARC, in the exercise of its functions, is hereby authorized to call upon the
assistance and support of other government agencies, bureaus and offices,
including government-owned or controlled corporations.
NOTES:
Inter-Agency Cooperation
This provision emphasizes the utmost importance given by the government
to the agrarian reform program.
SECTION 70. Disposition, of Private Agricultural Lands. — The

sale or disposition of agricultural lands retained by a landowner as a
consequence of Section 6 hereof shall be valid as long as the total
landholdings that shall be owned by the transferee thereof inclusive of the
land to be acquired shall not exceed the landholding ceiling provided for in
this Act.
Any sale or disposition of agricultural lands after the effectivity of

this Act found to be contrary to the provisions hereof shall be null and void.
Transferees of agricultural lands shall furnish the appropriate
Register of Deeds and the BARC an affidavit attesting that his total
landholdings as a result of the said acquisition do not exceed the
landholding ceiling. The Register of Deeds shall not register the transfer of
any agricultural land without the submission of this sworn statement
together with proof of service of a copy thereof to the BARC.
NOTES:
Affidavit of aggregate landholding — a requirement for
registration
Aside from the normal requirements for registration, the buyer of an
agricultural land is required, as a condition for registration of title, to submit
to the Register of Deeds an affidavit of aggregate landholding (with
confirmation from the Assessor’s Office) in order to ensure that the
landholding of the buyer does not exceed the 5-hectare limit.
SECTION 71. Bank Mortgages. — Banks and other financial institutions

allowed by law to hold mortgage rights or security interests in agricultural lands
to secure loans and other obligations of borrowers, may acquire title to these
mortgaged properties, regardless of area, subject to existing laws on compulsory
transfer of foreclosed assets and acquisition as prescribed under Section 13 of this
Act.
NOTES:
When the bank or financial institution is deemed as the new

landowner
For purposes of covering the property under the agrarian reform program, the
bank or financial institution, as mortgagee, is considered as the new landowner if
before the deposit of just compensation:
(a) The bank or financial institution is the purchaser in the foreclosure
sale and the redemption period, as provided by law, has already expired in cases
where the right of redemption exists; or
(b) The bank or financial institution is the purchaser in the foreclosure
sale and said foreclosure sale is confirmed by the court in cases where only
equity of redemption is provided.'™
When the bank or financial institution is deemed as lien-holder

The bank or financial institution, as mortgagee, is considered a hen-holder if on
the date the land transfer claim was received by the Land Bank from the Department of
Agrarian Reform (DAR):
(a) The mortgage debt is not yet due and demandable; or
(b) The mortgage debt is already due and demandable but the bank or
financial institution has not foreclosed on the property; or
(c) The mortgage has already been foreclosed but the period to
exercise the right of redemption, in cases provided 179
179
144 AGRARIAN LAW AND SOCL4L LEGISLATION Set Z
bv law, has not yet expired; or the foreclosure sale has not yet been
confirmed by the court in cases where there is only equity of
redemption.'®
Rights and privileges of the bank or financial institution as new

landowner
As new landowner, the bank, financial institution, or other concerned
person is entitled to:
(a) Receive all notices, advices, correspondence, and all other
communications from the Department of Agrarian Reform (DAR) or
Land Bank (LB), such as, but not limited to, Notice of Coverage, Notice of
Land Valuation and Acquisition, Letter-Requirement for Processing and
Payment of Claim, etc.:
(b) Transact with DAR or LB regarding all aspects of subject
land transfer claim, to the exclusion of all other persons:
(c) Be named as the recipient of all cash and bond deposits;
and
(d) Receive all the proceeds of subject land transfer claim, less
deductions to which the land may be liable.1"1
Rights and privileges of the bank or financial institution as lien-

holder
As lien-holder, the bank, financial institution, or other concerned person
is entitled to:
(a) Receive payment for the obligation of the mortgagor from
the land transfer proceeds up to an amount equivalent to the
landowner’s compensation value; and
(b) Receive notices, advices, and all other communications
pertaining to the obligation of the landowner-debtor, i.e.,
mortgagor.180 * 182
180
Sec. 5, ibid.
t8l
Sec. 8, ibid.
lfl2
Obligations of the bank or financial institution as the new land-

owner
As new landowner, the bank or financial institution is obliged to:
(a) Comply with all the requirements for processing and payment of
the claim such as surrender of the Owner’s Duplicate Copy of Title; and
(b) Sign all land transfer documents required as a consequence of
the processing and payment of the land transfer claim such as: Deed of
Assignment, Warranties and Undertaking, Deed of Transfer, Deed of
Confirmation of Coverage and Transfer, etc.183
Obligations of the bank or financial institution as lien-holder

As lien-holder, the bank or financial institution is obliged to:
(a) Issue a release of mortgage, or execute a deed of redemption,
and deliver the Owner’s Duplicate Copy of Title after payment of the value of
the lien; and
(b) Sign all other documents necessary to effect the cancellation of
the mortgage.184
SECTION 72. Lease, Management, Grower or Service Contracts,

Mortgages and Other Claims. — Lands covered by this Act under lease,
management, grower or service contracts, and the like shall be disposed of as
follows:
(a) Lease, management, grower or service contracts covering
private lands may continue under their original terms and conditions
until the expiration of the same even if such land has, in the meantime,
been transferred to qualified beneficiaries.
(b) Mortgages and other claims registered with the Register of
Deeds shall be assumed by the government up to an amount equivalent
to the landowner’s compensation value as provided in this Act.
1B3
Sec.
9, Ibid.
184ibid.
NOTES:
The term of contractual arrangements will be respected
If at the time when the land was placed under agrarian reform coverage, any
contract of lease, management contract, grower or service contracts, will be respected
until their expiry, notwithstanding the fact that the land has already been transferred to
the beneficiaries.
Debts secured by mortgage on the land
If the land subject of agrarian reform coverage has been mortgaged, the
government will assume the obligation in an amount not exceeding what the
landowner would receive as just compensation for the land.
SECTION 73. Prohibited Acts and Omissions. — The following are

prohibited:
(a) The ownership or possession, for the purpose of
circumventing the provisions of this Act, of agricultural lands in excess
of the total retention limits or award ceilings by any person, natural or
juridical, except those under collective ownership by farmer-benefi-
ciaries;
(b) The forcible entry or illegal detainer by persons who are
not qualified beneficiaries under this Act to avail themselves of the
rights and benefits of the Agrarian Reform Program;
(c) Any conversion by any landowner of his/her agricultural
land into any non-agricultural use with intent to avoid the application of
this Act to his/her landholdings and to dispossess his/her bonafide
tenant farmers;
(d) The malicious and willful prevention or obstruction by any
person, association or entity of the implementation of the CARP;
(e) The sale, transfer, conveyance or change of the nature of
lands outside of urban centers and city limits either in whole or in part
after the effectivity of this Act, except after final completion of the
appropriate
. 73 CHAPTER 1 147
conversion under Section 65 of Republic Act No. 6657, as amended. The date of
the registration of the deed of conveyance in the Register of Deeds with respect
to titled lands and the date of the issuance of the tax declaration to the transferee
of the property with respect to unregistered lands, as the case may be, shall be
conclusive for the purpose of this Act;
(f) The sale, transfer or conveyance by a beneficiary of the right to use
or any other usufructuary right over the land he/she acquired by virtue of being
a beneficiary, in order to circumvent the provisions of this Act;
(g) The unjustified, willful, and malicious act by a responsible officer
or officers of the government through the following:
(1) The denial of notice and/or reply to landowners;
(2) The deprivation of retention rights;
(3) The undue or inordinate delay in the preparation of claim
folders; or
(4) Any undue delay, refusal or failure in the payment of just
compensation;
(h) The undue delay or unjustified failure of the DAR, the LBP, the
PARC, the PARCCOM, and any concerned government agency or any
government official or employee to submit the required report, data and/or
other official document involving the implementation of the provisions of this
Act, as required by the parties or the government, including the House of
Representatives and the Senate of the Philippines as well as their respective
committees, and the congressional oversight committee created herein;
(i) The undue delay in the compliance with the obligation to certify or
attest and/or falsification of the certification or attestation as required under
Section 7 of Republic Act No. 6657, as amended; and
(j) Any other culpable neglect or willful violations of the provisions of
this Act.
In the case of government officials and employees, a conviction

under this Act is without prejudice to any civil case and/or appropriate
administrative proceedings under civil service law, rules and
regulations.
Any person convicted under this Act shall not be entitled to any
benefit provided for in any agrarian reform law or program. 181
NOTES:
Criminal violations
The following are the criminal violations of the Comprehensive Agrarian Reform
Law:
(a) Ownership or possession of agricultural lands in excess of the total
retention limits or award ceilings, if done for the purpose of circumventing the
provisions of the Comprehensive Agrarian Reform Law;
(b) Forcible entry or illegal detainer by persons who are not qualified
beneficiaries under the Comprehensive Agrarian Reform Law, if done to avail of the
rights and benefits of the agrarian reform program;
(c) Conversion of agricultural land to non-agrieultural use, if done with
intent to avoid the application of the Comprehensive Agrarian Reform Law to his
landholdings and to dispossess his bonafide tenant farmers;
(d) Malicious and willful prevention or obstruction of the implementation
of the CARP;
(e) Sale, transfer, conveyance or change of the nature of lands outside of
urban centers and city limits either in whole or in part after the effectivity of the
Comprehensive Agrarian Reform Law, except after final completion of the
appropriate conversion under Section 65 of Republic Act No. 6657, as amended;
(f) Sale, transfer or conveyance by a beneficiary of the right to use or any
other usufructuary right over the land he
185
Sec 73-A CHAPTER 1 149
acquired by virtue of being a beneficiary, if done to circumvent the

provisions of the Comprehensive Agrarian Reform Law;
(g) Unjustified, willful, and malicious act by a responsible officer
or officers of the government through the following:
(1) Denial of notice and/or reply to landowners;
(2) Deprivation of retention rights;
(3) Undue or inordinate delay in the preparation of claim
folders; or
(4) Undue delay, refusal or failure in the payment of just
compensation;
(h) Undue delay or unjustified failure by any concerned
government agency or any government official or employee to submit the
required report, data and/or other official document involving the
implementation of the provisions of the Comprehensive Agrarian Reform
Law, as required by the parties or the government, including the House of
Representatives and the Senate of the Philippines as well as their
respective committees, and the congressional oversight committee created
herein;
(i) Undue delay in the compliance with the obligation to certify or
attest and/or falsification of the certification or attestation as required
under Section 7 of Republic Act No. 6657, as amended; and
(j) Any other culpable neglect or willful violations of the
provisions of this Act.
SECTION 73-A. Exception. — The provisions of Section 73,

paragraph (e), to the contrary notwithstanding, the sale and/or transfer of
agricultural land in cases where such sale, transfer or conveyance is made
necessary as a result of a bank’s foreclosure of the mortgaged land is
hereby permitted.11*
'"Added by R.A. No. 7881.

NOTES:
Sale resulting from foreclosure of mortgage not a criminal violation

The sale or transfer of a mortgaged agricultural land as a result of a bank’s
foreclosure is not a criminal violation of the Comprehensive Agrarian Reform Law.
SECTION 74. Penalties. — Any person who knowingly or willfully violates

the provisions of this Act shall be punished by imprisonment of not less than one (1)
month to not more than three (3) years or a fine of not less than One thousand pesos
(PI,000.00) and not more than Fifteen thousand pesos (P15,000.00), or both, at the
discretion of the court: Provided, That the following corresponding penalties shall be
imposed for the specific violations hereunder:
(a) Imprisonment of three (3) years and one (1) day to six (6) years
or a fine of not less than Fifty thousand pesos (P50,000.00) and not more than
One hundred fifty thousand pesos (P150,000.00), or both, at the discretion of
the court upon any person who violates Section 73, subparagraphs (a), (b), (f),
(g), and (h) of Republic Act No. 6657, as amended; and
(b) Imprisonment of six (6) years and one (1) day to twelve (12)
years or a fine of not less than Two hundred thousand pesos (P200,000.00)
and not more than One million pesos (PI,000,000.00), or both, at the
discretion of the court upon any person who violates Section 73,
subparagraphs (c), (d), (e), and (i) of Republic Act No. 6657, as amended.
If the offender is a corporation or association, the officer responsible therefor
shall be criminally liable.187
SECTION 75. Suppletory Application of Existing Legislation. — The
provisions of Republic Act No. 3844 as amended, Presidential Decree Nos. 27 and 266
as amended, Executive Order Nos. 228 and 229, both Series of 1987; and other laws
not inconsistent with this Act shall have suppletory effect.
187
THE COMPREHENSIVE AGRARIAN REFORM LAW
OF 1998
SECTION 76. Repealing Clause. — Section 35 of Republic Act No.
3844, Presidential Decree No. 316, the last two paragraphs of Section 12 of
Presidential Decree No. 946, Presidential Decree No. 1038, and all other
laws, decrees, executive orders, rules and regulations, issuances or parts
thereof inconsistent with this Act are hereby repealed or amended
accordingly.
SECTION 77. Separability Clause. — If, for any reason, any section or
provision of this Act is declared null and void, no other section, provision, or
part thereof shall be affected and the same shall remain in full force and
effect.
SECTION 78. Effectivity Clause. — This Act shall take effect
immediately after publication in at least two (2) national newspapers of
general circulation.
CHAPTER 2
THE TENANT EMANCIPATION LAW
PRESIDENTIAL DECREE NO. 27
[as amended by Executive Order No. 228]

The Tenant Emancipation Law supplements the Comprehen- sive Agrarian
Reform Law.1 It applies only to private agricultural lands primarily devoted to rice
and com under share tenancy or lease-tenancy.
Transfer of lands to tenants

Presidential Decree No. 27 provides that:
“The tenant farmer, whether in land classified as landed estate or not,
shall be deemed owner of a portion constituting a family-size farm of five (5)
hectares if not irrigated and three (3) hectares if irrigated .”2
Section 1 of Executive Order No. 228 further provides that:

“SECTION 1. All qualified farmer beneficiaries are now deemed full
owners as of October 21, 1972 of the land they acquired by virtue of
Presidential Decree No. 27 (hereinafter referred to as P.D. No. 27).” 3
The phrase “shall be deemed owner” or “are now deemed full owners”
does not mean automatic transfer of title or ownership
■Sec. 75, R.A. No. 6657.

2
Emphasis supplied.
“Emphasis supplied.
152
CHAPTER 2 153
THE TENANT EMANCIPATION
LAW
of the land to the tenant or lessee. There has to be full payment of just compensation
before the landowner could be divested of his land, otherwise, the land would be taken
without just compensation in violation of the constitutional injunction against taking of
private property without just compensation. Therefore, notwithstanding the phrase “shall
be deemed owner, ” or “are now deemed full owners” the title and ownership over the
land will be transferred to the beneficiaries only upon full payment of the just
compensation to the landowner.
Size of land to be transferred to the tenant-farmer

The tenant-farmer is entitled to:
(a) five (5) hectares, if not irrigated; or
(b) three (3) hectares, if irrigated;
Stages of land transfer

The land transfer under Presidential Decree No. 27 is effected in two ( 2) stages,
namely:
(a) Issuance of a Certificate of Land Transfer (CLT) to the farmer-

beneficiary; and
(b) Issuance of Emancipation Patent (EP).4
Significance of the Certificate of Land Transfer (CLT)

The CLT does not vest upon the tenant-beneficiary ownership over the land. It
merely qualifies the tenant-beneficiary to possess the land and comply with certain
conditions preparatory to ownership. If the tenant-beneficiary complies with the
conditions, he is issued an Emancipation Patent.5
Significance of an Emancipation Patent (EP)

The EP vests upon the farmer-beneficiary absolute ownership over the
landholding, and it constitutes conclusive authority for the issuance of an original or
transfer certificate of title in his name .6
4
Heirs of Dr. Jose Deleste v. Land Rank, 651 SCRA 352.
“Lcvardo v. Yatco, 582 SCRA 93; Vin/.ons-Magana v. Estrella, 201 SCRA 536.
“Maylem v. Ellano, 592 SCRA 440.
Indefeasibility of EPs
EPs are titles brought under the operation of the Torrens System. Hence,
they are conferred with the same indefeasibility and security as provided for
by Presidential Decree No. 1529, as amended by Republic Act No. 6732.
Emancipation patents become indefeasible and imprescriptible after one (1)
year from its registration with the Office of the Registry of Deeds, subject to
the conditions, limitations and qualifications under the Comprehensive
Agrarian Reform Law, the Property Registration Decree, and other pertinent
laws. This is provided for in Section 24 of the Comprehensive Agrarian
Reform Law, the pertinent portion of which reads as follows:
“SECTION 24. Award to Beneficiaries. — The rights and

responsibilities of the beneficiaries shall commence from their receipt of a
duly registered emancipation patent or certificate of land ownership award
and their actual physical possession of the awarded land. Such award shall
be completed in not more than one hundred eighty (180) days from the date
of registration of the title in the name of the Republic of the Philippines:
Provided, That the emancipation patents, the
certificates of land ownership award, and other titles
issued under any agrarian reform program shall be
indefeasible and imprescriptible after one (1) year
from its registration with the Office of the Registry of
Deeds, subject to the conditions, limitations and qualifications of this
Act, the property registration decree, and other pertinent laws.
The emancipation patents or the certificates of land ownership award being
titles brought under the operation of the torrens system, are conferred with
the same indefeasibility and security afforded to all titles under the said
system, as provided for by Presidential Decree No. 1529, as amended by
Republic Act No. 6732.”
Cancellation of EPs
Emancipation Patents may be cancelled on the following grounds:
(a) Abandonment of the land;
(b) Neglect or misuse of land;7
(c) Failure to pay three (3) annual amortization;8
7
8ec. 22, Comprehensive Agrarian
Reform
"Sec. 26,Law.
ibid.
CHAPTER 2 155
LAW
(d) Misuse or diversion of financial and support services ;8
(e) Sale, transfer or conveyance of the right to use the land;10 and
(f) Illegal conversion of the land.11
Jurisdiction over cancellation of EPs
All cases involving the cancellation of registered emancipation patents are within the
exclusive and original jurisdiction of the Secretary of the Department of Agrarian Reform .12
Tenant-beneficiary cannot sell or transfer ownership of the land

The tenant-beneficiary cannot sell or transfer ownership of the land acquired under the
Tenant Emancipation Law, except to the Government or by hereditary succession. Presidential
Decree No. 27 expressly provides that;
“Title to land acquired pursuant to this Decree or the Land Reform Program of the
Government shall not be transferable except by hereditary succession or to the Government in
accordance with the provisions of this Decree, the Code of Agrarian Reforms and other existing laws
and regulations.”
The tenant-farmer will pay the Land Bank

The farmer-beneficiary or his heirs will pay the Land Bank the total costs of the
land plus interest at the rate of six percent (6%) per annum for twenty (20) years in
twenty (20) equal annual amortizations. The Emancipation Patent will be issued to the
farmer-beneficiary after full payment of the amortizations. Section 6 of Executive
Order No. 228 provides that;
“SECTION 6. The total costs of the land including interest at the rate of
six percent (6%) per annum with a two percent ( 2%) rebate for amortizations paid
on time, shall be paid by the farmer-beneficiary or his heirs to the Land Bank over a
period of up to twenty (20) years in twenty (20) equal annual amortizations. Lands
already valued and financed by the Land * 10 * 12
8
Sec. 37,
ibid.
10
Sec. 73,
"Sec. 73,
12
Sec. 24,
ibid.
Bank are likewise extended a 20-year period of payment of twenty (20) equal
annual amortizations. However, the farmer- beneficiary if he so elects, may
pay in full before the twentieth year or may request the Land Bank to
structure a repayment period of less than twenty ( 20) years if the amount to
be financed and the corresponding annual obligations are well within the
farmer’s capacity to meet. Ownership of lands acquired by the farmer-
beneficiary may be transferred after full payment of amortizations.”
Failure on the part of the farmer-beneficiary to pay three (3) annual

amortizations shall cause the Land Bank to foreclose the mortgage.11
The tenant-farmer, or any of his compulsory heirs may lift the foreclosure
within a period of two (2) years from its registration by paying the Land Bank all
unpaid amortizations on the land with interest thereon of six percent (6%) per
annum.1*
If the tenant-farmer or any of his compulsory heirs does not take steps to
lift the foreclosure within the 2-year period, ownership of the land will be
transferred to the Land Bank. 13 * 15 Thereafter, the Land Bank, not later than
three (3) months after its acquisition of the land, shall sell the foreclosed land to
any interested landless farmer duly certified to as a bonafide landless farmer by
the Department of Agrarian Reform of the barangay or the two closest
barangays where the land is situated.16
Payment of just compensation to landowner

The just compensation is payable to the landowner through any of the
following modes, at the option of the landowner:
(a) Direct payment to the landowner by the farmer- beneficiaries,
in cash or in kind, on terms to be mutually agreed upon by the
beneficiaries and landowners and subject to the approval of the
Department of Agrarian Reform;
(b) Payment by the Land Bank with 10% payable in cash
immediately and the balance payable in the form of Land
13
Sec. 8,
E.O.
'Sec.No.
10,
"Ibid.
16
Sec. 11,
ibid.
CHAPTER 2 157
LAW
Bank bonds over a 10-year period, with 1/10 of the face value maturing every year until
the 10th year; and
(c) Other modes of payment as may be prescribed or approved by the
Presidential Agrarian Reform Council.1’
Lease rentals paid to the landowner by the farmer beneficiary after October 21, 1972
is considered as advance payment for the land.18
Retention right of landowner

Under Presidential Decree No. 27, the landowner is entitled to retain an area of not
more than seven (7) hectares, if he is cultivating or will cultivate it. Thus:
“In all cases, the landowner may retain an area of not more than seven (7) hectares if
such landowner is cultivating such area or will now cultivate it.”
Personal cultivation by the landowner is not required — cultivation can be done

indirectly through labor administration.19
Retention right under Predidential Decree No. 27 vis-d-vis retention right

under the CARL
If the landowner has already exercised his right of retention under Presidential Decree
No. 27, he can no longer exercise the retention right under Comprehensive Agrarian Reform
Law. However, he can keep the 7-hectare retention limit granted under Presidential Decree
No. 27.20
If the landowner chooses to retain five (5) hectares under Comprehensive Agrarian
Reform Law, the seven (7) hectares previously retained by him under Presidential Decree No. 27
shall be immediately placed under the coverage of the Comprehensive Agrarian Reform Law .21
"Sec. 3, E.O. No. 228.

'“See. 2, ibid.
■“Sec. 2 (b), DAR Administrative Order No. 05-00.
2
“Sec. 6, Comprehensive Agrarian Reform Law, as amended.
21
Jurisdiction over retention or exemption issues

Issues pertaining to retention rights of the landowner and the exclusion or
exemption from agrarian reform coverage are cognizable by the Secretary of the
Department of Agrarian Reform because they pertain to administrative
implementation of agrarian law.22
22
Sta. Ana v. Carpo, 572 SCRA 463; Magno v. Francisco, 616 SCRA 402.
CHAPTER 3
THE CODE OF AGRARIAN REFORMS

[as amended by Presidential Decree Nos. 251,444, 1039, and 1817,
Republic Act Nos. 6389, 6557, 7907, and 9700]
History of the Code of Agrarian Reforms

The Code of Agrarian Reforms was initially denominated as the Agricultural Land Reform
Code. Republic Act No. 6389 renamed it as the Code of Agrarian Reforms.
The Agricultural Land Reform Code was an administration bill submitted by President
Diosdado Macapagal for enactment by the 5th Congress of the Philippines. It was signed into law
on August 8, 1963.
Objective of the Code of Agrarian Reforms

The main objective of the Code of Agrarian Reforms is to create a system of owner-
cultivatorship and economic family-size farm as basis of Philippine agriculture.
Code of Agrarian Reforms vis-a-vis Comprehensive Agrarian Reform

Law
The Comprehensive Agrarian Reform Law did not repeal the Code of Agrarian Reforms.
The Code of Agrarian Reforms supplements the Comprehensive Agrarian Reform Law. 1
‘Sec. 75, R.A. No. 6657.
159
The salient features of the Code of Agrarian Reforms

The salient features of the Code of Agrarian Reforms are as follows:
(a) It abolished the share tenancy system and replaced it with

agricultural leasehold;
(b) It established a bill of rights for agricultural workers;
(c) It established the Department of Agrarian Reform as the
machinery for the acquisition and distribution of agricultural land; and
(d) It established the Land Bank as the financial arm of the
agrarian reform program.
The Code of Agrarian Reforms abolished share tenancy

Share tenancy is a situation where two persons agree on a joint
undertaking for agricultural production wherein one party furnishes the land and
the other his labor, with either or both, contributing any one or several of the
items of production, the tenant cultivating the land personally with the aid of
labor available from members of his immediate farm household, and the produce
thereof to be divided between the landholder and the tenant.2
In an agricultural leasehold, the farmer cultivates the land belonging to,
or possessed by, another with the latter’s consent for a price certain in money or in
produce or both.
The Code of Agrarian Reforms abolished share tenancy. All share tenancy
arrangements were automatically converted to leasehold.3
Extent of application of the leasehold principles under the Code of

Agrarian Reforms
With the enactment of the Comprehensive Agrarian Reform Law which
compulsorily acquired lands for distribution to farmer- beneficiaries, leasehold
relationship can exist under the following situations:
(a) In case the area retained by the landowner is tenanted;
2
Sec. 166 (25), Code of Agrarian Reforms, as amended.
3
CHAPTER 3 161
THE CODE OF AGRARIAN
REFORMS
(b) In case the farmer-beneficiary leases the land awarded to him to
another person;
(c) In case the farmer-beneficiary leases the land awarded to him back to
the former owner of the land; or
(d) In case the land awarded to a farmer’s cooperative or association is
leased to agricultural corporations.
Under the present set-up, therefore, the agrarian reform beneficiaries can become
lessors of agricultural land. However, the leasehold principles under the Code of Agrarian
Reforms will apply only to situations where the lessor is the landowner, to wit:
(a) farmers whose tenancy relations were automatically converted to
leasehold by virtue of the Code of Agrarian Reforms; and
(b) tenanted lands that were retained by the landowner, which were
automatically converted to leasehold by virtue of the Comprehensive Agrarian
Reform Law;
If the lessor is the farmer-beneficiary under the Comprehensive Agrarian Reform
Law, the leasehold relationship will be governed by the Lease Contract and by the
Comprehensive Agrarian Reform Law.
Form of lease contract

Considering that the conversion to leasehold was by operation of law, no particular
form is required to establish the leasehold relation. The lease agreement can be oral or
written.4 The lessor need not be the owner of the land — he can be a usufructuary or a
legal possessor such as civil law lessee.5
Should the parties agree to reduce their agreement in writing, the agricultural
leasehold contract shall be;
(a) drawn in quadruplicate in a language or dialect known to the
agricultural lessee;
(b) signed or thumb-marked both by the agricultural lessee personally
and by the agricultural lessor before two witnesses, to be chosen by each party;
‘Sec. 5, ibid.
(c) acknowledged before the municipal court of the municipality where

the land is situated; and
(d) registered with the Municipal Treasurer.
If the agricultural lessee does not know how to read, the contents of the
document shall be read and explained to him by his witness."
The Municipal Treasurer is the custodian of agricultural lease contracts. The said
contracts are to be kept and recorded in the Registry of Agricultural Leasehold
Contracts.* 7
Terms and conditions of the lease contract

The agricultural lessor and the agricultural lessee are free to enter into any kind
of term, condition or stipulation in a leasehold contract, as long as they are not contrary
to law, morals or public policy.8
The following stipulations in an agricultural leasehold contract are considered
contrary to law, morals or public policy:
(a) Stipulation requiring the agricultural lessee to pay excessive rental;
NOTE: • The rental for riceland and lands devoted to other crops
shall not be more than the equivalent of 25% of the average normal
harvest.
• If there have been no normal harvests, then rental shall be
the estimated normal harvest during the three (3) agricultural years
immediately preceding the date the leasehold was established after
deducting the amount used for seeds and the cost of harvesting,
threshing, loading, hauling and processing, whichever are applicable.
• If the land has been cultivated for a period of less than three
(3) years, the initial rental shall be based on the average normal harvest.
If there have been no normal harvests, then the rental shall be based:
(i) on the estimated normal harvest during the
preceding years when the land was actually cultivated; or
®Sec. 17, Code of Agrarian Reforms, as

amended.
7
Sec. 18, ibid.
"Sec. 15. ibid.
CHAPTER 3 163
REFORMS
(ii) on the harvest of the first year in the case of newly
cultivated lands, if that harvest is normal harvests.
• The final consideration shall be based on the average normal
harvest during these three (3) preceding agricultural years.4
(b) Stipulation requiring the agricultural lessee to pay an amount in excess
of the fair rental value for the use of the lessor’s (or any other person’s) work
animals or farm implements;
NOTE: The fair rental value for work animal or animals and farm
implements used to produce the crop shall not exceed 5% of the gross
harvest for the work animal or animals and 5% for implements.9 10
(c) Stipulation requiring the agricultural lessee to rent work animals or
to hire farm implements from the agricultural lessor or a third person;
(d) Stipulation requiring the agricultural lessee to make use of any
store or services operated by the agricultural lessor or a third person;
(e) Stipulation requiring the agricultural lessee to render any service
other than his duties and obligations as lessee, with or without compensation; or
(f) Stipulation requiring the agricultural lessee to answer for any fine,
deductions and/or assessments.11
(g) Stipulation requiring the agricultural lessee to accept a loan or to
make payment therefor in kind.12
Mode of payment of rental

The rental may be paid by the agricultural lessee in money or in produce, or both.
If the rental is to be paid in produce, it should be paid immediately after threshing or
processing. If payment to be paid in money, it should be paid within a reasonable time
from threshing or processing.13
9
Sec. 34, ibid.
10
Sec. 166
"Sec. 15, ibid.
l2
Ibid.
13
Sec. 33,
ibid.
Term of the lease
The term of the lease is indefinite, i.e., until the lease is terminated for
cause. The reason is because agricultural lessees- farmers are entitled to security of
tenure.14
Expiration of lease contract does not terminate the leasehold relation

Agricultural leasehold relationship is not an ordinary contractual relation. Thus,
the mere fact that the agreed lease period has expired will not result in the termination of
the leasehold relationship. The reason is because agricultural lessees are entitled to secu-
rity of tenure. Section 10 of the Code of Agrarian Reforms provides:
“SECTION 10. Agricultural Leasehold Relation Not Extinguished by

Expiration of Period, etc. — The agricultural leasehold relation under this Code
shall not be extinguished by mere expiration of the term or period in a leasehold contract
nor by the sale, alienation or transfer of the legal possession of the landholding. In case
the agricultural lessor sells, alienates or transfers the legal possession of the landholding,
the purchaser or transferee thereof shall be subrogated to the rights and substituted to the
obligations of the agricultural lessor.”
Neither will the expiration of the lease contract authorize the landowner to
increase the rentals, unless the landowner introduces capital improvements to
increase its productivity, in which case, the rental may be increased
proportionately to the consequent increase in production due to said
improvements.15
Transfer of ownership of the land does not terminate the leasehold

relation
If the landowner-lessor sells or transfers ownership of the land, the
leasehold relationship is not extinguished. The buyer or transferee becomes the
lessor.15 * 16
14
Sec. 7, ibid.
16
Secs. 16 and
34, ibid.
CHAPTER 3 165
Death or physical incapacity of the lessee does not terminate the

leasehold relation
If the lessee dies or becomes incapacitated, the leasehold relations is not
extinguished. The lessor must choose the successor from among the following, if they
are willing to personally cultivate the landholding:
(a) the surviving spouse;
(b) the eldest direct descendant by consanguinity; or
(c) the next eldest descendant or descendants in the order of their age.
If none of the above exists, or if the above persons are not willing to cultivate
the land, the leasehold relations is extinguished. Section 9 of the Code of Agrarian
Reforms, as amended, provides:
“SECTION 9. Agricultural Leasehold Relation Not Extinguished by
Death or Incapacity of the Parties. — In case of death or permanent incapacity of
the agricultural lessee to work his landholding, the leasehold shall continue between the
agricultural lessor and the person who can cultivate the landholding personally, chosen
by the agricultural lessor within one month from such death or permanent incapacity,
from among the following: (a) the surviving spouse; (b) the eldest direct descendant by
consanguinity; or (c) the next eldest descendant or descendants in the order of their age:
Provided, That in case the death or permanent incapacity of the agricultural lessee
occurs during the agricultural year, such choice shall be exercised at the end of that
agricultural year: Provided, further, That in the event the agricultural lessor fails to
exercise his choice within the periods herein provided, the priority shall be in accordance
with the order herein established.
In case of death or permanent incapacity of the agricultural lessor, the leasehold
shall bind his legal heirs.”
When the agricultural leasehold is extinguished

The agricultural leasehold established under Code of Agrarian Reforms is
extinguished by:
fa) Abandonment of the landholding without the knowledge of the
agricultural lessor;
(b) Voluntary surrender of the landholding by the agricultural lessee; or
(c) Absence of the persons under Section nine to succeed to the lessee, in
the event of death or permanent incapacity of the lessee .17
Abandonment of the Landholding

To constitute abandonment, two (2) essential elements must concur, namely:
(a) There must be intent to abandon; and
(b) There must be actual act of abandonment, i.e., the lessee must actually
stop occupying and working on the land for a substantial period of time.
Voluntary Surrender of the Landholding

To constitute a ground for extinguishment of the lease:
(a) The surrender of the landholding must be voluntary on the part of the
farmer-lessee, i.e., the decision to relinquish the leasehold relations must not be
influenced by any compelling factor from the landowner; and
(b) The farmer lessee must serve three (3) months advance notice.
Termination of leasehold by agricultural lessee

The agricultural lessee may terminate the leasehold for any of the following causes:
(a) Cruel, inhumane or offensive, treatment of the agricultural lessee or any
member of his immediate farm household by the agricultural lessor;
(b) N on-compliance on the part of the agricultural lessor with any of his
obligations under the Code of Agrarian Reforms or under the lease contact;
(c) Compulsion of the agricultural lessee or any member of his immediate
farm household by the agricultural lessor to render any service not in any way
connected with farm work, or even without compulsion if no compensation is paid;
"Sec. 8, Code of Agrarian Reforms, as amended.

CHAPTER 3 167
(d) Commission of a crime by the agricultural lessor or his

representative against the agricultural lessee or any member of his
immediate farm household; or
(el Voluntary surrender due to circumstances more advantageous to
him and his family.18
Dispossession
The lessee may be dispossessed of the landholding on the following
grounds:
(a) The land has been declared by the appropriate government
agency to be suited for residential, commercial, industrial or some other
urban purposes (Under this situation, the agricultural lessee shall be entitled
to disturbance compensation equivalent to five times the average of the
gross harvests on his landholding during the last five preceding calendar
years!;
(b) Failure of the agricultural lessee to substantially comply with
any of the terms and conditions ofthe lease contract or any of the provisions
of the Code of Agrarian Reforms;
(c) The agricultural lessee planted crops or used the landholding
for a purpose other than what had been previously agreed upon;
(d| The agricultural lessee failed to adopt proven farm practices as
determined under paragraph 3, Section 29 of the Code of Agrarian Reforms;
(e) The land or other substantial permanent improvement thereon
is substantially damaged or destroyed or has unreasonably deteriorated
through the fault or negligence of the agricultural lessee;
(f) The agricultural lessee does not pay the lease rental when it
falls due.
(g) The lessee employed a sub-lessee on his landholding .18
The dispossession on the above-mentioned grounds is not automatic. The
landowner-lessor should file the corresponding petition * 19
1H
19
Sec. 36, ibid.
with the DAR Adjudication Board and prove the existence of the grounds for
dispossession.20
Obligations of the agricultural lessor

The agricultural lessor is obliged to:
(a) Keep the agricultural lessee in peaceful possession and cultivation
of his landholding; and
tb) Keep intact such permanent useful improvements existing on the

landholding at the start of the leasehold relation .21
These obligations are “intended to protect the interest of the agricultural lessee
against harassment by the agricultural lessor. Moreover, permanent useful
improvements are generally considered as an important part of the consideration of the
leasehold contract and to remove or destroy them would be a substantial violation
thereof.”22
Obligations of the agricultural lessee

The agricultural lessee is obliged to:
(1) Cultivate and take care of the farm, growing crops, and other
improvements on the landholding as a good father of a family and perform all
the work therein in accordance with proven farm practices;
(2) Inform the agricultural lessor within a reasonable time of any

trespass committed by third persons upon the farm, without prejudice to his
direct action against the trespasser;
t3) Take reasonable care of the work animals and farm implements
delivered to him by the agricultural lessor and see that they are not used for
purposes other than those intended;
(4) Keep his farm and growing crops attended to during the work
season. In case of unjustified abandonment or neglect of his farm, any or all of
his expected produce may, upon order of the Court, be forfeited in favor of the
agricultural lessor to the extent of the damage caused thereby;
“Secs. 36 and 37, ibid.

=‘Sec. 30, ibid.
“Montemayor, Labor, Agrarian and Social Legislation, vol. 3, p. 284, 2nd *
CHAPTER 3 169
REFORMS
(5) Notify the agricultural lessor at least three days before the date of
harvesting or, whenever applicable, of threshing; and
(6) Pay the lease rental to the agricultural lessor when it falls due .23
Destroying any improvement on the landholding is a violation of the agricultural
lessee’s obligation to take care of the farm, crops and other improvements on the
landholding with the diligence of a good father of a family. As held in the case of
Guevarra v. Santos, G.R. No. L-19716, November 23, 1966:
“There is ample evidence showing that Herminigildo Guevarra and

Apolonio Javinia caused the death of twenty eight (28) and six ( 6) coconut
trees, respectively, in their holdings. In the case of Guevarra, twenty-eight
(8) trees were destroyed when hay was heaped at the base of the coconut
trees and burned, and in the case of Apolonio Javinia, he failed to exercise
caution in plowing his holding to prevent serious damage to the coconut
trees. As lessee-tenants defendants Herminigildo Guevarra and Apolonio
Javinia are obliged to exercise the diligence of a good father of a family to
preserve the improvements existing in their holdings. Herminigildo
Guevarra while denying that he actually burned the hay heaped at the base
of twenty eight (281 trees, admitted that at the time the hay was burned he
was away from his holding. He may not have had any hand in the burning
of the hay but certainly he should be made accountable for depositing hay
at the base of the trees, an act which would not be done by a reasonably
careful father of a family. It does not require great intelligence to perceive
that hay is highly and unpredictably inflammable and if heaped at the base
of young coconut tress could cause total destruction of the trees.
On the part of Apolonio Javinia, knowing that young coconut trees
were growing in his holding, he plowed too closely to the six ( 6) tress
causing their death. As a fanner of long standing he should have known
that by plowing too close to the base of the trees his plow would inevitably
cut the trees’ roots. He, therefore, failed to exercise sufficient caution in
his plowing.”
23
Sec. 26, supra.
Rights of the agricultural lessor

The following are the rights of an agricultural lessor:
(a) To inspect and observe the extent of compliance with the terms and
conditions of the lease contract;
(b) To propose a change in the use of the landholding to other

agricultural purposes, or in the kind of crops to be planted;
(c) To require the agricultural lessee to adopt in his farm proven farm
practices necessary to the conservation of the land, improvement of its fertility
and increase of its productivity; and
(d) To mortgage expected rentals.21

The agricultural lessor can exercise the aforementioned rights as long as it does
not interfere with the lessee’s peaceful possession of the landholding.
Rights of agricultural lessee

The following are the rights of an agricultural lessee:
(a) To have possession and peaceful enjoyment of the
land;
Cb) To manage and work on the land in a manner and method of
cultivation and harvest which conform to proven farm practices;
(c) To mechanize all or any phase of his farm work; and

(d) To deal with millers and processors and attend to the issuance of
quedans and warehouse receipts for the produce due him.24 25
(e) To have a homelot within the land that he is leasing .35
Right of lessee to be indemnified for his labor

If the agricultural lessee surrenders, abandons or is validly ejected from his
landholding, he is entitled to be indemnified for:
24
Sec. 29, Code
of Agrarian
Reforms,
“Sec. as
24. ibid.
CHAPTER 3 171
(a) the cost and expenses incurred in the cultivation, planting or

harvesting and other expenses incidental to the improvement of his crop; and
(b) for one-half of the necessary and useful improvements made by him
on the landholding which are tangible and have not yet lost their utility at the
time of surrender and/or abandonment of the landholding .21
Right of pre-emption
The agricultural lessee has the preferential right to buy the land actually
cultivated by him under reasonable terms and conditions.
Therefore, if the agricultural lessor decides to sell the landholding, he should
give notice to:
(a) the Department of Agrarian Reform; and
(b) all the lessees affected.
If the agricultural lessee agrees with the terms and conditions of the sale, he
must give written notice to the agricultural lessor of his intention to exercise his right
of pre-emption, and thereafter tender payment of, or present a guarantee certificate
from the Land Bank to the agricultural lessor. If the lessor refuses to accept such
tender or presentment, he may consign it with the court.
Any dispute as to the reasonableness of the terms and conditions may be
brought by the lessee or by the Department of Agrarian Reform to the proper court.
Section 11 of the Code of Agrarian Reforms, as amended, provides:
“SECTION 11. Lessee’s Right of Pre-Emption. — In case the agricultural lessor

decides to sell the landholding, the agricultural lessee shall have the preferential right to
buy the same under reasonable terms and conditions: Provided, That the entire
landholding offered for sale must be pre-empted by the Department of Agrarian Reform
upon petition of the lessee or any of them: Provided, further, That where there are two or
more agricultural lessees, each shall be entitled to said preferential right only to the
extent of the area actually
cultivated by him. The right of pre-emption under this Section may be exercised
within one hundred eighty days from notice in writing, which shall be served by
the owner on all lessees affected and the Department of .Agrarian Reform.
If the agricultural lessee agrees with the terms and conditions of the sale,
he must give notice in writing to the agricultural lessor of his intention to exercise
his right of preemption within the balance of one hundred eighty day's period still
available to him. but in any case not less than thirty days. He must either tender
payment of. or present a certificate from the Land Bank that it shall make payment
pursuant to section eighty of this Code on. the price of the landholding to the
agricultural lessor. If the latter refuses to accept such tender or presentment, he
may consign it with the court.
Any dispute as to the reasonableness of the terms and conditions may
be brought by the lessee or by the Department of Agrarian Reform to the
proper Court of Agrarian Relations which shall decide the same within sixty
days from the date of the filing thereof: Provided, That upon finality of the
decision of the Court of Agrarian Relations, the Land Bank shall pay to the
agricultural lessor the price fixed by the court within one hundred twenty days:
Provided, further, That in case the Land Bank fails to pay within that period,
the principal shall earn an interest equivalent to the prime bank rate existing at
the time.
Upon the filing of the corresponding petition or request with the
department or corresponding case in court by the agricultural lessee or lessees,
the said period of one hundred and eighty days shall cease to run.
Any petition or request for pre-emption shall be resolved within sixty
days from the filing thereof; otherwise, the said period shall start to run
again.”
The Register of Deeds will not register or issue a Transfer Certificate of Title
without a sworn statement from the vendor (landowner) that he has given the required
notice to the lessee or that the land is not covered by an agricultural lease. 28 This is
provided for in Section 13 of the Code of Agrarian Reforms, which reads as follows:
“SECTION 13. Affidavit Required in Sale of Land Subject to Right of

Pre emption. — No deed of sale of agricultural land under cultivation by an
agricultural lessee or lessees shall be
28
CHAPTER 3 173
recorded in the Registry of Property unless accompanied by an affidavit of

the vendor that he has given the written notice required in Section eleven of
this Chapter or that the land is not worked by an agricultural lessee.”
Right of redemption
If the land was sold to a third person without the knowledge of the agricultural
lessee, the latter shall have the right to redeem the same at a reasonable price and
consideration to the extent of the area actually cultivated by him, by filing a petition or
request for redemption with the Department of Agrarian Reform within one hundred eighty
(180) days from knowledge of the sale.
The redemption price shall be the reasonable price of the land at the time of the
sale. The Department of Agrarian Reform shall initiate, while the Land Bank shall finance,
said redemption. Section 12 of the Code of Agrarian Reforms as amended provides:
“SECTION 12. Lessee’s Right of Redemption. — In case the

landholding is sold to a third person without the knowledge of the
agricultural lessee, the latter shall have the right to redeem the same at a
reasonable price and consideration: Provided,
That where there are two or more agricultural lessees, each shall be
entitled to said right of redemption only to the extent of the area actually
cultivated by him. The right of the redemption under this Section may be
exercised within one hundred eighty days from notice in writing which
shall be served by the vendee on all lessees affected and the Department of
Agrarian Reform upon the registration of the sale, and shall have priority
over any other right of legal redemption. The redemption price shall be the
reasonable price of the land at the time of the sale.
Upon the filing of the corresponding petition or request with the
department or corresponding case in court by the agricultural lessee or
lessees, the said period of one hundred and eighty days shall cease to run.
Any petition or request for redemption shall be resolved within sixty
days from the filing thereof; otherwise, the said period shall start to run
again.
The Department of Agrarian Reform shall initiate, while the Land
Bank shall finance, said redemption as in the case of pre-emption.”
X
MiTT*~ ................................................... ____________________________________________________________________________________
Rights of agricultural workers

Agricultural workers are entitled to the same rights and opportunities in life as
industrial workers, hence, they are entitled to the following rights:
(a) Right to self-organization;
(b) Right to engage in concerted activities;
(c) Right to minimum wage;
(d) Right to work for not more than eight hours;

(e) Right to compensation for personal injuries, death or
illness; and
(0 Right to security of tenure.®
Acts which the agricultural lessor is forbidden to do

The agricultural lessor is forbidden to do the following acts:
(a) To dispossess the agricultural lessee of his landholding without
just cause;
(b) To require the agricultural lessee to assume, directly or indirectly,
the payment of the taxes or part thereof levied by the government on the
landholding;
(c) To require the agricultural lessee to assume, directly or indirectly,
any part of the rent, “canon” or other consideration which the agricultural lessor
is under obligation to pay to third persons for the use of the land;
(d) To deal with millers or processors without written authorization of
the lessee in cases where the crop has to be sold in processed form before
payment of the rental; or
(e) To discourage, directly or indirectly, the formation, maintenance
or growth of unions or organizations of agricultural lessees in his landholding, or
to initiate, dominate, assist or interfere in the formation or administration of any
such union or organization.30
zs
Sec. 39, Code of Agrarian Reforms, as amended. “Sec. 31, ibid.
CHAPTER 3 175
THE CODE OK AGRARIAN
REFORMS
Acts which the agricultural lessee is forbidden to do
The agricultural lessee is forbidden to do the following acts:
(a> To work additional landholdings belonging to a different agricultural
lessor; and
(b) To employ a sub-lessee on his landholding.51
The purpose of the prohibition is to prevent the agricultural lessee from
dissipating his labor and efforts in various landholdings at the expense of the first
agricultural lessor. Agricultural leasehold is personal in character in the sense that the
agricultural lessee must personally work and cultivate the landholding .55
Enforceability of loans obtained by an agricultural lessee
To be enforceable, loans obtained by an agricultural lessee should be:
(a) written in a language or dialect known to the agricultural lessee; and
(b) signed or thumb-marked by the agricultural lessee or by his agent.31 *
33 *
Properties of the lessee that are exempt from liens or execution

The following properties of the agricultural lessees cannot be the subject of lien
or execution:
(a) 25% of the entire produce of the land under cultivation; and
(b) Work animals and farm implements, except upon a judgment for its
price or upon a judgment of foreclosure of a mortgage thereon."
The exemption cannot be waived for the reason that it is intended to provide
sustenance for the lessee and his family from one harvest to the next. As held by the
Supreme Court in Maniego v. Castelo, G.R. No. L-9855, April 29,1957:
31
Sec. 27, ibid.
“Montemayor, Labor, Agrarian and Social Legislation, vol. 3, p. 278, 2nd ed.
“Sec. 20, supra.
“Sec. 21, Code of Agrarian Reforms, as amended.
17(J AGRARIAN LAW AND SOCIAL LEGISLATION
“Being designed to provide sustenance for the tenant and his family from
one harvest to the next, a waiver of the exemption could amount to a waiver of
the tenant’s right to live. Any such renunciation would therefore be against
public policy, and hence null and void even without specific statutory provision.
The case comes under the rule of Art. 6 of the New Civil Code, x x x
The Tenancy Act is a remedial legislation intended to better the lot of the
sharecropper by giving him a more equitable participation in the produce of the
land which he cultivates. Being a remedial statute it should be construed so as to
further its purpose in accordance with the general intent of the lawmaker.
Adopting the construction placed upon it by the petitioner would open the door
to evasions and render the law useless” (Sibulo v. Altar, 83 Phil., 513, 46 Off.
Gaz., 5502).
The Sheriffs levy on the exempt portion being illegal, the sale thereof was
likewise unlawful and unenforceable. The petitioner could not plead ignorance
of the inclusion of the exempted portion in the levy and sale, he being the
landlord on whose land the palay was harvested.”
Prescription of action
The prescriptive period for filing an action to enforce the rights and
obligations under the Code of Agrarian Reforms is three (3) years reckoned from
the time the cause of action accrued.35
The Department of Agrarian Reform
The Agricultural Land Reform Code created the Land Authority as the
implementing arm of the implementing arm of the agrarian reform program. The
Code of Agrarian Reforms re-named the Land Authority as the Department of
Agrarian Reform. As the implementing arm of the agrarian reform program, the
Department of Agrarian Reform is tasked with the following functions:
fa) Implement laws, programs and policies for the acquisition and
distribution of all agricultural lands as provided by laws;
(b) Resettle landless farmers and farm workers in government-
owned agricultural estates which shall be distributed to them as provided by
law;
35
Scc. 38. ibid.
CHAPTER 3 177
(c) Recommend and provide incentives for voluntary sharing of lands

by owners of agricultural lands;
(d) Acquire, determine the value, subdivide into family- size farms,
develop and distribute to qualified tillers, actual occupants and displaced urban
poor, private agricultural lands regardless of area and crops planted;
(e) Administer and dispose of, under a settlement scheme, all portions
of the public domain declared as alienable and disposable lands for speedy
distribution to and development by deserving and qualified persons who do not
own any land and under such terms and conditions as the Department may
prescribe, giving priority to qualified and deserving farmers in the province where
such lands are located;
(f) Provide free legal assistance to farmers covered by agrarian reform
and expedite the resolution of agrarian conflicts and land tenure problems either
through conciliatory or adversary proceedings;
(g) Provide creative, responsive and effective information, education
and communication programs and projects both for the tenant beneficiaries,
landowners, the government and private sectors and the general public, thereby
generating a broad spectrum of support and understanding of the new agrarian
reform program;
(h) Strengthen agr arian reform beneficiaries organizations to a degree of
national viability that would enable them to share in the shaping of government
policies and institutionalize farmers’ participation in agrarian reform policy
formulation, program implementation and evaluation;
(i) Promote the organization and development of cooperatives of agrarian
reform beneficiaries and register the same;
(j) Implement all agrarian reform laws and for this purpose issue
subpoena, subpoena duces tecum, and writs of execution of its orders, and
decisions and other legal processes to ensure compliance from all parties concerned
for successful and expeditious program implementation;
(k) Undertake land surveys on lands covered by agrarian reform, and
issue patents to farmers covered by agrarian reform, both on private and public
lands;
(l) Develop, implement and undertake alternative and innovative

land development schemes and land tenure systems such as, but not
limited to land consolidation, land forming, cooperative farming and agro-
industrial estates;
(m) Approve or disapprove conversion of agricultural lands to
non-agricultural uses such as residential and industrial conversions in
accordance with the existing provisions of law;
(n) Undertake land use management studies;
(o) Compensate the landowners covered by agrarian reform;
(p) Integrate and synchronize program implementation of the
Land Bank of the Philippines and other relevant civilian and military
government and private entities involved and mandated to support the
agrarian reform program through Inter-Agency Committees and Agrarian
Reform Coordinating Councils; and
(q) Perform such other functions as may be provided by
law.*
The Land Bank

The Land Bank which was created by the Code of Agrarian Reforms is the
financial arm of the agrarian reform program. It is vested with the following
powers:
(a) To prescribe, repeal and alter its own by-laws to determine its
operating policies, and to issue such rules and regulations as may be
necessary;
(b) To adopt, alter and use a corporate seal;
(c) To hold, purchase, acquire and own real and personal property,
introduce necessary improvements thereon to enhance and develop their social
and economic values, and to sell, mortgage or otherwise dispose of the same;
(d) To sue and be sued, make contracts, negotiate and secure loans
from both local and foreign sources. Before undertaking any such credit
operation, the Bank, through the Secretary of Finance, shall request the
opinion, in writing, 36
36
Sec. 3, Title XI, Administrative Code of 1987.
CHAPTER 3 179
REFORMS
of the Monetary Board on the monetary implications of the contemplated action. All
loans from foreign sources shall be subject to approval by the President of the
Philippines and shall be fully guaranteed by the Philippine Government;
(e) To grant short, medium and long term loans and advances against
security of real estate and/or other acceptable assets for the establishment,
development or expansion of agricultural, industrial, home building or home
financing projects and other productive enterprises;
(0 To grant loans to farmers’ cooperatives/associations to facilitate
production, marketing of crops and acquisition of essential commodities;
(g) To finance and/or guarantee the acquisition, under Presidential Decree
No. 85 dated December 25, 1972, of farm lots transferred to tenant-farmers pursuant
to Presidential Decree No. 27 dated October 21, 1972;
(h) To underwrite, hold, own, purchase, acquire, sell, mortgage, dispose or
otherwise invest or reinvest in stocks, bonds, debentures, securities and other
evidence of indebtedness of other corporations and of the government or its instru-
mentalities which are issued for or in connection with any project or enterprise;
(i) The provision of any law to the contrary notwithstanding, to guarantee
acceptance(s), credits, loans, transactions or obligations of any person, co-partnership,
association or corporation in favor of any financing or banking institution, whether
foreign or domestic: Provided, That the proceeds of such acceptances, credits, loans,
transactions or obligations are utilized or earmarked for the development and/or expan-
sion of agriculture and industry;
(j) To borrow from, or rediscount notes, bills of exchange and other
commercial papers with, the Central Bank. The rate of interest to be charged and the
conditions on such obligations or borrowings shall be subject to the rules and reg-
ulations of the Monetary Board;
(k) To act as trustee, or administer any trust or hold property in trust in
accordance with the provisions of law governing trust corporations; and
(l) To act as an official government depository with full authority

to maintain deposits of the government, its branches, subdivisions and
instrumentalities, and of government-owned or -controlled corporations
which deposits shall be subject to liquidity floor and/or reserve
requirements as may be imposed by the Monetary Board upon other
commercial banks;
(m) For the strengthening of the capital base of the bank, to
establish a national marketing umbrella for farmers and fisheries
cooperatives to attract massive capital formation from savings deposits of
the cooperative members nationwide;
(n) To exercise the general powers mentioned in the Corporation
Law and the General Banking Act, as amended, insofar as they are not
inconsistent or incompatible with this Decree .37
37
CHAPTER 4
DOMESTIC WORKERS ACT
[BATAS KASAMBAHAY]

The Domestic Workers Act applies only to domestic
workers working within the Philippines.1
Meaning of Domestic Worker

Domestic worker or “Kasambahay” is a person engaged to
work for a household within an employment relationship.
Examples are: general househelp, nursemaid, cook,
gardener, or laundry person.
To be considered as domestic worker, one should be hired
specifically to perform household work. In the absence of
specific engagement, one cannot be considered as a domestic
worker.
Persons who perform domestic work occasionally and not
on an occupational basis are not considered as domestic
workers. Thus, children who are under foster family
arrangement and are provided access to education and given an
allowance incidental to education, i.e., “boon* transportation,
school projects and school activities, are not considered
domestic workers.2
Children or relatives of the domestic worker who live
under the employer’s roof and share the same accommodations
provided for the domestic worker cannot be considered as
‘
S
e
181
1S2 AGRARIAN' LAW AND SOCL^L LEGISLATION
they were not engaged as such and are not required to perform substantial
household work.
APEX MINING CO. V. NLRC

196 SCRA 251
FACTS: SC was engaged by Apex Mining to perform laundry sendee at
its staffhouse. While she was attending to her assigned task, she accidentally
slipped and hit her back on a stone. As a result of the accident, she was not able
to continue with her work. She was then permitted to go on leave for
medication. Thereafter, she was not allowed to return to work. SC then filed a
complaint for illegal dismissal against Apex Mining, The main defense
interposed by Apex Mining is that SC was not a regular employee but a
domestic worker.
HELD: SC is not a domestic worker but a regular employee of Apex
Mining. While it is true that the nature of work performed by SC as
laundrywoman in the staffhouse is similar to the work of a domestic worker, still
she could not be classified as a domestic worker because she was not working
for a family but for a corporation. The mere fact that SC worked within the
premises of Apex Mining, as in its staffhouses for its guests or even for its
officers and employees is an indication that SC is a regular employee and not a
mere domestic worker.
BARCENAS V. NLRC
187 SCRA 498
FACTS: B was hired by the Manila Buddhist Temple as secretary and
interpreter. B’s position required her to receive and assist Chinese visitors to
the temple, act as tourist guide for foreign Chinese visitors, attend to the
callers of the Head Monk as well as to the food for the temple visitors, run
errands for the Head Monk such as paying Meralco, PLDT, MWSS bills, and
act as liaison in some government offices. After the death of the Head Monk,
B’s monthly allowance was discontinued and she was forcibly evicted from
her quarters in the temple. In a complaint for illegal dismissal filed by B, the
Manila Buddhist Temple claimed that B was not its employee but a domestic
worker who confined herself to the personal needs of the Head Monk, and
therefore her position was coterminous with that of her master.
HELD: B is not a domestic worker but a regular employee of the
Temple. The work of B cannot be categorized as mere domestic work but
were essential and important to the operation and religious functions of the
temple.
CHAPTER 4 183
DOMESTIC WORKERS ACT (BATAS KASAMBAHAY)
Minimum age for employment of domestic workers

The minimum age for employment of domestic workers is fifteen (15) years old.
It is unlawful to employ any person below fifteen (15) years of age as a domestic
worker.3
Hiring of domestic workers

Domestic workers can be hired directly or through a private employment
agency. If a private employment agency recruits domestic workers, it should require
the domestic worker to submit the following documents:
(a) Medical or a health certificate issued by a local government health officer;
(b) Barangay and police clearance;
(c) National Bureau of Investigation (NBI) clearance; and
(d) Duly authenticated birth certificate or, if not available, any other
document showing the age of the domestic worker such as voter’s
identification card, baptismal record or passport.
Employers who directly hire the domestic worker may also require the
submission of the above-mentioned documents.
The cost of the foregoing documents shall be borne by the prospective
employer or agency, as the case may be.4 *
Recruitment of domestic workers by private employment agencies

Employment agencies that recruit domestic workers must obtain a license and
authority to recruit from the Regional Office of the DOLE having jurisdiction over
the place where the recruitment activities will be undertaken. 6
Employment agencies can engage in recruitment activities only through their
representatives who are:
(a) duly authorized to recruit; and
3
Sec. 16, Domestic Workers Act.
4
Sec. 12, ibid.
6
Sec. 15, Rule III, Rules Governing Private Recruitment and Placement Agency
or
Local Employment.
(b) registered with the Regional Office of the DOLE.*

A duly notarized recruitment contract should be executed between the
employment agency and the recruit.
Thereafter, the employment agency should submit to the DOLE Regional
Office where recruitment was undertaken (copy furnished the DOLE Regional
Office of destination):
(a) the names of the recruits;
(b) addresses;
(c) birth certificates;
(d) medical certificates; and
(e) recruitment contract.
The employment agency should provide the recruit with a stamped envelope
(which the recruit will send to his parent) containing the following:
(a) name and address of recruit; and
(b) name, address, telephone number of his employer.7
Liability of private employment agencies

Private employment agencies are jointly and severally liable with the
employer for all the wages, and other benefits due a domestic worker.8
Responsibility of private employment agencies

The responsibilities of private employment agencies are the following:
(a) Ensure that domestic workers are not charged or levied any
recruitment or placement fees;
(b) Ensure that the employment agreement between the domestic
worker and the employer stipulates the terms and conditions of
employment and all the benefits prescribed by the Domestic Workers Act; 6
6
Sec. 18, Rule III, Rules Governing Private Recruitment and
Placement Agency for Local Employment.
’Sec. 20, ibid.
B
CHAPTER 4 185
(c) Provide pre-employment orientation briefing to the domestic worker

and the employer about their rights and responsibilities under the Domestic
Workers Act;
(d) Keep copies of employment contracts and agreements pertaining to
recruited domestic workers which shall be made available during inspections or
whenever required by the Department of Labor and Employment (DOLE) or
local government officials;
(e) Assist domestic workers with respect to complaints or grievances
against their employers; and
(f) Cooperate with government agencies in rescue operations
involving abused or exploited domestic workers.8
Recruitment and Finder’s Fees

Regardless of whether the domestic worker was hired through a private employment
agency or a third party, no share in the recruitment or finder’s fees shall be charged against the
domestic worker by the said private employment agency or third party .10
Employment Contract
Whether the domestic worker was hired directly or through an employment agency, the
employer and the domestic worker must execute an employment contract before the
commencement of the service. The contract must be written in a language or dialect
understood by both the domestic worker and the employer. The domestic worker should be
given a copy of the employment contract.11
Basic contents of the employment contract
The contract of domestic work should contain the following stipulations:
(a) Duties and responsibilities of the domestic worker;
(b) Period of employment;
(c) Compensation;
•Sec. 30. OmnesUe Workers Act.

'“Sec. 13.ib id .
"Sec. It, ibid.
1S6 AGRARIAN LAW AND SOCIAL LEGISLATION
(d) Authorized deductions;

(e) Hours of work and proportionate additional pay meat;
(f) Rest days and allowable leaves;

(g) Board, lodging and medical attention;
(h) Agreements on deployment expenses, if any;
(i) Loan agreement;
(j) Termination of employment; and
(k) Any other lawful condition agreed upon by both parties.
If the domestic worker was hired through a private employment agency, the agency
should keep a copy of the employment contracts which shall be made available for
verification and inspection by the DOLE.12
Registration of domestic workers

Employers are required to register their domestic workers in the barangay where
the employer’s residence is located.13
Terms and conditions of employment of domestic workers

Health and Safety
The employer shall safeguard the health and safety of the domestic worker, with
due consideration of the peculiar nature of domestic work.'1
Free Board, Lodging and Medical Attendance

The employer shall provide for the basic necessities of the domestic worker to
include:
(a) at least three (3) adequate meals a day;

(b) humane sleeping arrangements;
(c) appropriate rest and assistance in case of illness or injuries
sustained during service without loss of benefits.
,
2
Se
13
S
ec.
CHAPTER 4 187
NOTE: Medical attendance is limited to medical treatment

for ailments contracted by the househelper while in the service
of the employer. It does not include hospitalization."
The employer cannot withdraw or hold in abeyance the provision of these basic
necessities as punishment or disciplinary action to the domestic worker. 15 * * 18
Daily Rest Period

Domestic workers are entitled to an aggregate daily rest period of eight (8) hours
per day.17
Weekly Rest Period

Domestic workers are entitled to a weekly rest period of at least twenty-four (24)
consecutive hours.
The employer and the domestic worker shall agree in writing on the schedule of the
weekly rest day of the domestic worker. The rest day chosen by the domestic worker on
religious grounds shall be respected.
The domestic worker and the employer may validly agree on the following:
(a) Offset a day of absence with a particular rest day;
(b) Waive a particular rest day in return for an equivalent daily rate of
pay;
(c) Accumulate rest days not exceeding five (5) days; or
(d) Other similar arrangements.18
Appropriate compensation for Assignment to Non-Household Work
Domestic workers cannot be assigned to work in a commercial, industrial or
agricultural enterprise at a wage rate lower than that provided for agricultural or
nonagricultural workers.
15
Zamora v, Sy, 52 O.G. 1518.
ls
Sec. 6, supra,
n
Sec, 20, ibid.
,8
Sec. 21, Domestic Workers
Act.
Domestic workers assigned to work in such establishments shall be paid the applicable
minimum wage.19
Extent of Duty
The employer may allow a domestic worker to temporarily perform a task for
another household, but any liability that will be incurred by the domestic worker on
account of such arrangement shall be borne by the original employer.
The domestic worker who temporarily works for another household shall be paid
an additional compensation of not less than the existing minimum wage rate of a domestic
worker. The original employer to charge any amount from the household where the
service of the domestic worker was temporarily performed .20
Minimum Wage of Domestic Workers

(a) P2,500.00/month — in the National Capital Region
(NCR);
(b) P2,000,00/month — in chartered cities and first
class municipalities; and
(c) Pl,500.00/month — in other municipalities.
The Regional Tripartite and Productivity Wage Boards (RTPWBs) may from time
to time review, determine, and adjust the minimum wage rates of domestic workers .21
Payment of Wages
Wages of domestic workers should be paid:
1. in cash;
2. directly to the domestic worker; and
3. at least once a month.

The employer cannot pay the wages of a domestic worker by means of promissory
notes, vouchers, coupons, tokens, tickets, chits, or any object other than cash .22
19
Sec.
22,
“Sec.ibid.
21
Sec.
CHAPTER 4 189
Pay Slip
The employer shall at all times provide the domestic worker with a copy of the pay
slip containing the amount paid in cash every pay day, indicating all deductions made, if
any. The copies of the pay slip shall be kept by the employer for a period of three (3)
years.23
Thirteenth Month Pay

Domestic workers are entitled to 13th month pay as provided for by the 13th month
pay law.24 *
Leave Benefits
Domestic workers who have rendered at least one (1) year of service shall be
entitled to an annual service incentive leave of five (5) days with pay. Unused portion
of said annual leave is neither cumulative nor convertible to cash .23
Social Security, PhilHealth and Pag-Ibig Fund

Domestic workers who have rendered at least one (1) month of service shall be
covered by the Social Security System (SSS), the Philippine Health Insurance
Corporation (PhilHealth), and the Home Development Mutual Fund (Pag-IBIG). The
premium contributions shall be paid as follows:
(a) For domestic workers who receive a monthly wage of less than
P5,000.00 — the employer’s contribution and the domestic worker’s
contribution shall be borne solely by the employer;
(b) For domestic workers who receive a monthly wage of P5,000.00
and above — the domestic worker and the employer shall shoulder their
respective premium contributions.26
Rights and privileges of domestic workers

Right to Humane Treatment
The employer or any member of the household shall not subject a domestic
worker to any kind of abuse, physical violence,
“See. 26, Domestic Workers Act.

24
Sec. 25, ibid.
“Sec. 27, ibid.
“Sec. 28, ibid.
harassment or any act tending to degrade the dignity of a domestic worker .27
NOTE: Any abused or exploited domestic worker shall be

immediately rescued by a municipal or city social welfare officer or a social
welfare officer from the Department of Social Welfare and Development
(DSWD) in coordination with the concerned barangay officials. The DSWD
and the DILG shall develop a standard operating procedure for the rescue
and rehabilitation of abused domestic workers, and in coordination with the
DOLE, for possible subsequent job placement .28 29 30
Right to Privacy
The employer shall respect the privacy of the domestic worker at all times. The
right to privacy extends to all forms of communication and personal effects .23
Access to Outside Communication

The employer shall grant the domestic worker access to outside communication
during free time. However, in case of emergency, access to communication shall be granted
even during work time. Should the domestic worker make use of the employer’s telephone
or other communication facilities, the costs shall be borne by the domestic worker, unless
such charges are waived by the employer,50
Right to Education and Training

The employer shall afford the domestic worker the opportunity to finish basic
education and may allow access to alternative learning systems and, as far as practicable,
higher education or technical and vocational training.
The employer shall adjust the work schedule of the domestic worker to allow such
access to education or training without hampering the services required by the employer .31
27
Sec. 5,
ibid. 31,
^Sec.
ibid.
29
Sec. 7,
30
ibid.
Sec. 8,
ibid.
31
Sec. 9.
ibid.
CHAPTEK 4 191
Obligations of domestic workers

Domestic workers are obliged to:
(a) render satisfactory service at all times;32
(b ) observe the terms and conditions of the employment contract ;33 * *
(c) refrain from publicly disclosing any communication or information
pertaining to the employer or members of the household during and after
employment.
NOTE: Information that may be divulged by the domestic worker on
the matter are privileged in character and therefore, inadmissible in
evidence except when the suit involves the employer or any member of the
household in a crime against persons, property, personal liberty and
security, and chastity.3*
Araw ng mga kasambahay

January 18 (the date of approval of the law) has been designated as the “Araw ng mga
Kasambahay.""'
Prohibited Activities
Prohibition Against Deposits for Loss or Damage
The employer cannot oblige the domestic worker to make deposits to answer for loss
or damage to tools, materials, furniture and equipment in the household .36
Prohibition on Debt Bondage

The employer cannot oblige the domestic worker to render service as security for or in
payment for a debt, where the length and nature of service is not clearly defined or when the
value of the service is not reasonably applied in the payment of the debt .37
32
Sec. 7,
ibid. 34,
“Sec.
“Sec. 3,
36
Sec. 39,
36
Sec. 14,
“See. 15,
ibid.
Prohibition on Interference in the Disposal of Wages

The employer cannot interfere with the freedom of any domestic
worker to dispose of the latter’s wages. Thus, the domestic worker
cannot be obliged to purchase merchandise, commodities or other
properties from the employer or from any other person, or otherwise
make use of any store or services of such employer or any other
person.38
Prohibition Against Withholding of Wages

The employer cannot, directly or indirectly, to withhold th
wages of the domestic worker. Likewise, the employer cannot indue
the domestic worker to give up any part of the wages by force, stealth
intimidation, threat or by any other means whatsoever.39
When the employment relation can be terminated

If there is a just cause — the domestic worker or the employer
can terminate the employment relations any time.
If there is no just cause — the domestic worker or the employer
can terminate the employment relations:
(a) At the end of the stipulated period; or

(b) If no stipulated period — by giving 5 days advance
notice.40
Effect of termination without notice or before the stipulated period

If the stipulated period or the 5-day advance notice is not
observed, the following are the consequences:
On the part of the domestic worker

(a) He forfeits any unpaid salary equivalent to 15 days;
and
(b) He is liable for the deployment expenses, if the
termination is done within six (6) months from hiring.
3fl
39
Sec. 28, ibid.
*°Sec. 32, ibid.
CHAPTER 4 193
On the part of the employer

He is liable for indemnity in an amount equivalent to 15 days pay.“
The just causes for termination of employment by the domestic
worker
The domestic worker may validly terminate the employment relationship at any
time for any of the following just causes:
(a) Verbal or emotional abuse by the employer or any member of the
household;
(b) Inhumane treatment including physical abuse by the employer or
any member of the household;
(c) Commission of a crime or offense against the domestic worker by the
employer or any member of the household;
(d) Violation by the employer of the terms and conditions of the
employment contract and other standards set forth under the law;
(e) If he is suffering from a disease prejudicial to the health of the
domestic worker, the employer, or member/s of the household; and
(f) Other causes analogous to the foregoing.42
The just causes for termination of employment by the employer

The employer can terminate the services of the domestic worker for any of the
following just causes:
( a ) Misconduct or willful disobedience to lawful order in connection
with the work;
( b ) Gross or habitual neglect or inefficiency;
(c) Fraud or willful breach of the trust;
( d ) Commission of a crime or offense by the domestic worker against
the person of the employer or any immediate member of the employer’s family;
‘See. 32, ibid.

( e ) Violation by the domestic worker of the terms and conditions of

the employment contract and other standards set -forth under the law;
( f ) If the domestic worker is suffering from a disease prejudicial to
his health, the health of the employer, or members of the household; and
( g ) Other causes analogous to the foregoing.*3 Certificate of
Employment
Upon the severance of the employment relationship, the employer shall issue
the domestic worker within five (5) days from request a certificate of employment
indicating the nature, duration of the service and work performance."
Criminal acts
The Domestic Workers Act declares the following acts as criminal offenses:
(a) Employing a domestic worker who is below 15 years
old;46
(b) Charging by the original employer any amount from the
household where the service of his domestic worker was temporarily
performed;46
(c) Requiring the domestic worker to make deposits to answer for
losses or damage to tools, materials, furniture and equipment in the
household;47
(d) Placing the domestic worker under debt bondage. i.e., requiring
the domestic worker to render service as security or payment for a debt where
the length and nature of service is not clearly defined or when the value of the
service is not reasonably applied in the payment of the debt ;18
"Sec. 34, ibid.

“Sec. 35, ibid.
“Sec. 16, ibid.
“Sec. 23, ibid.
"Sec. 14, ibid.
"Sec. 4 (a) and
15. ibid.
i
CHAPTER 4 1&5
DOMKHTIO WOKKKKS ACT tfcATAS
KASAMBAHAYj
(c) I ntcrfering with the freedom of the domestic worker to dispose of

his wages, or. forcing, impelling or obliging the domestic worker to purchase
merchandise, commrxiities or other properties from the employer or from any
other person, or otherwise make use of any store or services of such employer or
any other person;4*
(f) Withholding the wages of the domestic worker or inducing the
domestic worker to give up any part of his wages by force, stealth, intimidation,
threat or by any other means whatsoever.™
Criminal sanction
The aforementioned criminal acts will subject the offender to a fine of not less
than Ten thousand pesos (P10,000.00) but not more than Forty thousand pesos
(P40,000.00).51
49
Sec. 27, ibid.
“Sec. 28, ibid.
51
Sec. 40, ibid.
CHAPTER 5
FILIPINOS ACT OF 1995
[as amended by R.A. 9422 and R.A. 10022]
Migrant Worker
A migrant worker is an overseas Filipino worker, i.e., a person who is to
be engaged or has been engaged in a remunerated activity in a country of which
he is not a citizen, or on board a vessel navigating the foreign seas, other than a
government ship used for military' or non-commercial purposes, or on an
installation located offshore or on high seas.
A person is deemed to have been “engaged in a remunerated activity” if
he has been promised or assured employment overseas.1
Deployment of Migrant Workers

Migrant workers can be deployed only in countries where the rights of
Filipino workers are protected. This may be indicated if the receiving country:
(a) Has existing labor and social laws protecting the rights of
migrant workers;
(b) Is a signatory to or a ratifier of multilateral conventions,
declarations, or resolutions relating to the protection of workers, including
migrant workers; or
'Sec 2 (jj), Omnibus Rules and Regulations Implementing the Migrant Workers and Overseas Filipinos
Act of 1995.
196
CHAPTER 5 197
THE MIGRANT WORKERS AND OVERSEAS FILIPINO ACT OF 1995
(c) Has concluded a bilateral agreement with the Philippine government

on the protection of the rights of overseas
Filipino workers.2
With regard to Filipino seafarers, their deployment to vessels navigating the
foreign seas or to installations located offshore or on high seas will be allowed only
when the owners/employers are compliant with international laws and standards that
protect the rights of migrant workers.
With regard to companies and contractors with international operations,
deployment of Filipino workers thereat will be allowed if they are compliant with
standards and conditions embodied in the employment contracts prescribed by the
POEA.
In the absence of clear showing that any of the aforementioned guarantees exist
in the country of destination of the migrant workers, the POEA will not issue a
deployment permit.3
Liability of the POEA Governing Board, Government Officials and

Employees
The members of the POEA Governing Board who actually voted in favor of an
order allowing the deployment of migrant workers without any of the aforementioned
guarantees shall suffer the penalties of removal or dismissal from service with
disqualification to hold appointive public office for five (5) years .4
Government officials or employees responsible for allowing the deployment of
migrant workers in direct contravention of the prohibition imposed by tfie POEA
Governing Board shall also be meted the same penalties.5
Compulsory Insurance Coverage for agency-hired migrant workers

Recruitment or manning agencies are obliged to provide each migrant worker
they deploy a compulsory insurance at no cost to the worker.6
2
Sec. 3 (a), R.A. No. 8042, as amended.
3
Sec. 4, ibid.
4
Sec. 4, ibid.
•Sec. 4, ibid.
•Sec. 37-A, ibid.
If the migrant worker was made to shoulder the cost of insurance premium, the
license of the recruitment or manning agency will be cancelled and all its directors,
partners, proprietors, officers and employees shall be perpetually disqualified from
engaging in recruitment of overseas workers, without prejudice to any other liabilities."
The insurance company must be:
• duly registered with the Insurance Commission;
• in existence and operational for at least five (5) years:
• with a net worth of at least P500,000,000.00 to be determined by the
Insurance Commission; and
• with a current certificate of authority.®
The recruitment/manning agency has the right to choose the insurance
provider. The migrant worker should be given an authenticated copy of the
insurance policy. The certificate of insurance coverage should be submitted to the
POEA as a requirement for the issuance of an Overseas Employment Certificate.
Insurance policies issued by foreign insurance companies to seafarers shall be
accepted by the POEA if the minimum coverage are complied with.9
Migrant workers recruited by the POEA on a government-to- govemment
arrangement shall be covered by a foreign employer’s guarantee fund established
by the POEA. The foreign employer’s guarantee fund shall answer for the
workers’ monetary claim arising from breach of contractual obligations. Migrant
workers who are classified as rehires, name hires, or direct hires may request their
foreign employers to pay for the cost of insurance coverage or opt to pay the
premium themselves.10
Disqualification
Insurance companies who have directors, partners, officers, employees or
agents with relatives, within the fourth civil degree of consanguinity or affinity,
who work or have interest in any of the government agencies involved in the
overseas employment program are disqualified from providing this workers’
insurance coverage.11
’Sec. 37-A, ibid.

'Sec. 37-A, ibid.
9
Scc. 37-A, ibid.
“ftec. 37-A, ibid..
’'Sec. 37-A, ibid.
CHAPTER 5 199
Coverage of the Insurance

The insurance policy which should be effective for the duration of the migrant
worker’s employment contract and shall cover:
(a) US$15,000.00 for accidental death, payable to the

migrant worker’s beneficiaries;
(b) US$10,000.00 for natural death, payable to the migrant worker’s
beneficiaries;
(c) US$7,500.00 for permanent total disability, payable to the migrant
worker;12
(d) US$100.00 per month for subsistence allowance for a maximum of
six (6) months if the migrant worker is involved in a case or litigation for the
protection of his rights in the receiving country; 13
(e) Repatriation cost of the worker when employment is terminated
without any valid cause, including the transport of his or her personal
belongings;14
(f) Money claims arising from employer’s liability which may be
awarded or given to the worker in a judgment or settlement of his or her case in
the National Labor Relations Commission;15
12
The following disabilities are deemed permanent total:
' complete loss of sight of both eyes;
• loss of two (2) limbs at or above the ankles or wrists;
' permanent complete paralysis of two (2) limbs;
' brain injury resulting to incurable imbecility or insanity.
13
The concerned labor attache or, in his absence, the embassy or consular office shall issue a certification
which states the name of the case, the names of the parties and the nature of the cause of action of the migrant worker.
14
In case of death, the insurance provider shall;
(a) arrange and pay for the repatriation or return of the worker’s remains;
(b) render assistance necessary in the transport, including, but not limited to, locating a local
and licensed funeral home, mortuary or direct disposition facility to prepare the body for transport, completing all
documentation, obtaining legal clearances, procuring consular services, providing death certificates, purchasing the
minimally necessary casket or air transport container, as well as transporting the remains including retrieval from site
of death and delivery to the receiving funeral home [Sec. 37-A, R.A. No. 8042, as amended]. In case of repatriation, a
certification which states the reason for the termination of the migrant worker’s employment and the need for his or
her repatriation shall be issued by the Philippine foreign post or the Philippine Overseas Labor Office (POLO) located
in the receiving country.
The insurance coverage for money claims shall be equivalent to at least three
(g) Cost of transportation for compassionate visit by one (1)

family member (or requested individual) to the major airport closest to
the place of hospitalization of the worker, in case the migrant worker is
hospitalized or confined for at least seven (7) consecutive days;1*
(h) Cost of medical evacuation, when proximate and adequate
medical facility is not available to the migrant worker, as determined by
the insurance company’s physician or consulting physician; and
(i) Cost of medical repatriation, when medically necessary as
determined by the attending physician, and medically cleared for travel by the
commercial carrier.16 17
Claims arising from accidental death, natural death or disablement shall be
paid by the insurance company without any contest and without the necessity of
proving fault or negligence of any kind on the part of the insure migrant worker .18 19
The following documents, duly authenticated by the Philippine foreign posts,
shall be sufficient evidence to substantiate the claim:
• Death Certificate — In case of natural or accidental death;
• Police or Accident Report — In case of accidental death;
• Medical Certificate — In case of permanent disablement.18
Repatriation of Migrant Workers

Repatriation of overseas worker and the transport of his personal belongings
is the primary responsibility of the recruitment agency. All costs attendant to
repatriation shall be borne by or charged to the agency concerned and/or its
principal.
16
It is, however, the responsibility of the family member or requested individual to meet
all visa and travel document requirements (Sec. 37-A, R.A. No. 8042, aft amended].
17
Sec. 37-A, R.A. No. 3042, as amended
'•Sec. 37-A, ibid.
19
Sec. 37-A, ibid.
CHAPTER 5 201
Likewise, the repatriation of remains and transport of the personal belongings

of a deceased worker and all costs attendant thereto shall be borne by the principal
and/or the recruitment agency.
However, in cases where the termination of employment is due solely to the
fault of the worker, the principal/employer or agency will not be responsible for the
repatriation of the former and/or his belongings.20
Emergency Repatriation
In case of war, epidemic, disasters or calamities, natural or manmade, and
other similar events, the OWWA,21 in coordination with appropriate international
agencies shall undertake the repatriation of workers. The cost of repatriation is
subject to reimbursement by the responsible principal or agency.
If the principal or recruitment agency cannot be identified, all costs
attendant to repatriation shall be borne by the OWWA.22 23
Repatriation of underage migrant workers — mandatory

If there are migrant workers whose actual age fall below 18 years old, the
responsible officers in the foreign service shall without delay repatriate said workers.
The license of the recruitment/manning agency which recruited or deployed the
underaged migrant worker shall be automatically revoked and shall be meted out with a
fine ranging from P500,000.00 to PI ,000,000.00.
Furthermore, the recruitment or manning agency shall refund all the fees
incurred by the underage worker without need of notice. The refund should be paid
within thirty (30) days from the date of the mandatory repatriation. 22
Illegal recruitment of migrant workers

Illegal recruitment can be committed in the following manner:
20
Sec. 15, ibid.
zl
Overseas Workers Welfare Administration.
Z2
Sec. 15, supra.
23
Sec. 16, ibid.
(a) When a person who is not licensed or authorized to recruit

workers, engages in recruitment activities;21 or
(b) When a person, whether or not he is licensed or authorized to
recruit, commits any of the following prohibited activities:
• Charging or accepting directly or indirectly any amount greater than
that specified in the schedule of allowable fees;
• Making a worker pay or acknowledge any amount greater than that
actually received by him as a loan or advance;
• Furnishing or publishing any false notice or information or
document in relation to recruitment or employment;
• Misrepresentation in obtaining a license or authority to recruit or in
the documentation of hired workers;
• Reprocessing workers through a job order that pertains to:
• nonexistent work;
• work different from the actual overseas work; or
• work with a different employer.
. Inducing or attempting to induce a worker already employed to quit his
employment in order to offer him another unless the transfer is
designed to liberate a worker from oppressive terms and conditions
of employment;
. Influencing or attempting to influence any person or entity not to
employ a worker who has not applied for employment through his
agency; •
• Influencing or attempting to influence any person or entity

not to employ a worker who has formed, joined or
supported, or has contacted or is supported by any union or
workers’ organization;
^Recruitment activities refer to canvassing, enlisting, contracting, transport

ing, utilizing, hiring, or procuring workers, including referrals, contract serviette
promising, or advertising for employment abroad, whether for profit or not.
V)
CHAPTER 5 203
• Engaging in the recruitment of placement of workers in jobs

harmful to public health or morality or to the dignity of the
Republic of the Philippines;
• Obstructing or attempting to obstruct inspection by the Secretary of
Labor and Employment or by his duly authorized
representative;
• Substituting or altering to the prejudice of the worker,
employment contracts approved and verified by the Department
of Labor and Employment from the time of actual signing
thereof by the parties up to and including the period of the
expiration of the same without the approval of the Department
of Labor and Employment;
• For an officer or agent of a recruitment or placement agency to
become an officer or member of the Board of any corporation
engaged in travel agency or to be engaged directly or indirectly
in the management of a travel agency;
• Withholding or denying travel documents from applicant workers

before departure for monetary or financial considerations, or for
any other reasons, other than those authorized under the Labor
Code and its implementing rules and regulations;
■ Failure to submit reports on the status of employment, placement
vacancies, remittance of foreign exchange earnings, separation
from jobs, departures, and such other matters or information as
may be required by the Secretary of Labor and Employment;
. Failure to actually deploy a contracted worker without valid
reason as determined by the Department of Labor and
Employment;
Failure to reimburse expenses incurred by the worker in

connection with his documentation and processing for purposes
of deployment, in cases where the deployment does not actually
take place without the worker’s fault;
Allowing a non-Filipino citizen to head or manage a licensed

recruitment/manning agency;
• Charging an overseas Filipino worker with interest exceeding eight

percent (8%) per annum, for a loan which will be used for payment of
legal and allowable placement fees and make the migrant worker issue,
either personally or through a guarantor or accommodation party,
postdated checks in relation to the said loan;
• Obliging the overseas Filipino worker to avail of loan only from
specifically designated institutions, entities or persons;
• Refusing to condone or renegotiate a loan incurred by an overseas
Filipino worker after the latter’s employment contract has been
prematurely terminated through no fault of his or her own;
• Obliging the an overseas Filipino worker to undergo health
examinations only from specifically designated medical clinics,
institutions, entities or persons, except in the case of a seafarer whose
medical examination cost is shouldered by the principal/shipowner;
• Obliging the overseas Filipino worker to undergo training, seminar,
instruction or schooling of any kind only from specifically designated
institutions, entities or persons, except for recommendatory trainings
mandated by principals/shipowners where the latter shoulder the cost of
such trainings;
• Engaging any kind of recruitment activity including the processing of
pending workers’ applications while the license is suspended; and
• Charging the cost of the compulsory insurance to the overseas Filipino
worker.25
Syndicated Illegal Recruitment

Illegal recruitment is deemed committed by a syndicate if carried out by a
group of three (3) or more persons conspiring or confederating with one another .25 * 26
26
Sec. 6,
ibid.
26
Sec.
6. ibid.
CHAPTER 5 205
Large-Scale Illegal Recruitment

Illegal recruitment is deemed in large scale if committed against three (3) or
more persons individually or as a group.'7
Economic Sabotage
Illegal recruitment is considered an offense involving economic sabotage when
committed by a syndicate or in large scale.*
Who can file the criminal complaint for illegal recruitment

The criminal complaint for illegal recruitment can be filed by:
• the Secretary of Labor and Employment or his duly authorized
representative;
• the POEA Administrator or his duly authorized representative; or
• any aggrieved person.73
Prescriptive period for illegal recruitment of migrant workers
Simple illegal recruitment prescribes in five (5) years.
Large-scale or syndicated illegal recruitment prescribes in twenty ( 20) years.30
Penalty for illegal recruitment of migrant workers

For simple illegal recruitment:
■ 12 years and 1 day to 20 years imprisonment, and
• a fine of ranging from PI,000,000.00 to P2,000,000.00. For large-
scale or syndicated illegal recruitment:
• life imprisonment, and
• a fine ranging from P2,000,000.00 to P5,000,000.00.
”Ibid.
K
Ibid.
™lbid.
’"Sec. 12, R.A. No. 8042, i amended.
205 AGRARIAN LAW AMD SOCIAL LEGISLATION
The maximum penalty shall be imposed:

• if the person illegally recruited is less than eighteen (IS) years of age.
or
• if committed by a non-licensee or non-holder of authority.
For persons found guilty of any of the prohibited acts:
• 6 years and 1 day to 12 years imprisonment; and
• a fine ranging from P500,000.00 to Pi,000,000.00. Accessory
penalties:
• Deportation after service of sentence — if the offender is an alien;
• Automatic revocation of the license or registration of the
recruitment/manning agency, lending institution, training school or
medical clinic.3'
Jurisdiction of the POEA

The POEA has original and exclusive jurisdiction to hear and decide:
(a) the administrative aspect of recruitment violations committed by
recruitment or manning agencies; and
( h ) disciplinary action cases and other special cases involving
employers, principals, contracting partners and overseas workers processed by
the POEA.31 32
The decision of the POEA Administrator may be appealed to the Secretary of
Labor and Employment within fifteen (15) days from the receipt of the Decision. 33
Power of POEA to order closure of establishment

The POEA Administrator may order the closure of the establishment if he finds
(upon preliminary examination) that the activities of a non-licensee:
31
f3ec. 7, R.A. No. 8042, as amended.
M
Sec. 6, Rule X, Omnibus Rules and Regulations Implementing the Migrant Workers
and Overseas Filipinos Act of 1995, as amended.
33
Sec. 11, Rule X, ibid.
^ a.
CHAPTER 5 207
• constitute a danger to national security and public order; or
• will lead to further exploitation of job seekers."

The closure shall be effected by sealing and padlocking the establishment and
posting a notice of such closure in bold letters at a conspicuous place in the premises
of the establishment.M
Effect of closure order

A closure order will result in:
(a) the inclusion of all officers and responsible employees of the entity
engaged in illegal recruitment activities in the List of Persons With Derogatory
Record; and
(b) their disqualification from participating in the overseas

employment program of the government.36
Remedies from a closure order

The following remedies may be availed of from an order of closure:
• Motion to Re-Open Establishment;
• Motion to Lift Closure Order; and
• Appeal.
Who can file a motion to reopen the establishment

A motion to re-open may be filed only by the following persons:
• The owner of the building;
• The building administrator; or
• Any person or entity legitimately operating within the premises
closed or padlocked and whose operations or activities are distinct
from the recruitment activities of the entity subject of the closure
order.”
“7
The motion to reopen will be granted if it is proven that:

• The office is not the subject of the closure order;
• The contract of lease with the owner of the building administrator
has already been canceled or terminated;
• The office is shared by a person or entity not involved in illegal
recruitment activities, whether directly or indirectly;
• Any other ground that the POEA may consider as valid and
meritorious.38 * *
Who can file a motion to lift a closure order

Only the person or entity against whom the closure order was issued and
implemented can file a motion to lift a closure order.59
The motion to lift a closure order should be filed with the Licensing and
Regulation Office (LRO) within ten (10) calendar days from the date of
implementation thereof.
The motion should be under oath and should clearly state the grounds upon
which it is based, with supporting documents attached.
A motion to lift which does not conform with these requirements shall be
denied.*"
Grounds for lifting of the closure order

The closure order may be lifted on any of the following grounds:
fa) The person has proven that it is not involved in illegal
recruitment activities, whether directly or indirectly; or
(b) Any other analogous ground which the POEA may find valid
and meritorious.
Lifting of a closure order is without prejudice to the filing of a criminal

complaint with the appropriate office against the person alleged to have conducted
illegal recruitment activities.41
“Sec. 17, Rule VI,

ibid.
**Sec. 19, Rule VI,
^Sec. 18, Rule VI,
4I
Sec. 20, Rule VI,
ibid.
CHAPTER 5
THE MIGRANT WORKERS AND 0\"ERSEAS FILIPINO ACT OF 1995 209
Appeal
The order of the POEA Administrator denying the motion to lift a closure order or
denying the motion to re-open may be appealed to the Secretary within ten (10) days from
service or receipt thereof.*-'
Prescriptive period for filing administrative cases

Administrative cases involving recruitment violation and disciplinary action
should be filed within three (3) years from accrual of the cause if action, otherwise, it will
be barred by prescription
POEA has no jurisdiction over claims of migrant workers

The Labor Arbiters of the National Labor Relations Commission have the original and
exclusive jurisdiction to hear and decide claims of migrant workers arising out of an
employer-employee relationship, including claims for actual, moral, exemplary, and other
forms of damages."
Reliefs for illegally dismissed migrant workers

A migrant worker who is illegally dismissed is entitled to the following reliefs:
• payment of salaries for the unexpired portion of his employment contract; and
• full reimbursement of his placement fee and the deductions made with interest of
12%per annum.411
NOTE: The clause “or for three (3) months for every year of the unexpired term,
whichever is less ” as provided in Section 10 of the Migrant Workers and Overseas
Filipinos Act was declared unconstitutional in the case of Serrano v. Gallant Maritime
Services, G.R. No. 167614, March 24, 2009.
Recruitment agencies are solidarily liable with the principal
Recruitment or manning agencies for overseas employment are jointly and severally liable
with the principal or employer for all
claims and liabilities which may arise from the implementation of the employment
contract.'8
Exceptions to the solidary liability rule

The rule regarding the solidary liability of recruitment agencies admits of certain
exceptions, namely:
(a) When the workers themselves were the ones who insisted that
the recruitment agency to send them back abroad despite their knowledge
that the foreign employer might not be able to pay their wages because of
financial difficulties and they agreed not to hold the agency responsible
therefor.*'
(b) When the workers were recruited by the supposed recruitment
agency without the latter’s knowledge and consent.*3
Services and privileges available to migrant workers

Exemption from Travel Tax and Airport Fee
Migrant workers are exempt from the payment of travel tax and airport
fee upon proper shoving of proof of entitlement by the POEA.*9
Exemption from Documentary Stamp Tax

The remittances of all overseas Filipino workers are also exempt from the
payment of documentary stamp tax, upon showing of proof of entitlement by the
overseas Filipino worker’s beneficiary or recipient.50
Travel Advisory/Information Dissemination

All embassies and consular offices, through the POEA are obliged shall
issue travel advisories or disseminate information on labor and employment
conditions, migration facilities, adherence of particular countries to international
standards on human and workers’ rights which will adequately prepare
individuals into making
“Ibid.
*7Feagle Construction Corp v. Gayda, 186 SCRA 589. ‘“Has V. NLRC, 193 SCRA 682.
,!
Sec. 35, R.A. No. 8042, as amended.
60
R.A. No, 8042, as amended.
CHAPTER 5
THU MIGRANT WORKERS AND OVERSEAS FILIPINO ACT OF 1995
informed and intelligent, decisions about overseas employment, and thus prevent
illegal recruitment, fraud, and exploitation or abuse of Filipino migrant workers.
Such advisory or information shall be published in a newspaper of general
circulation at least three (3) times in every quarter."1
Migrant Workers and Other Overseas Filipinos Resource Center

This is required to be established within the premises of the Philippine
Embassy in countries where there are large concentrations of Filipino migrant
workers. The Migrant Workers and Other Overseas Filipinos Resource will
provide the following services to migrant workers:
(a) Counseling and legal services;
(b) Welfare assistance including the procurement of medical and
hospitalization services;
(c) Information, advisory and programs to promote social
integration such as post-arrival orientation, settlement and community
networking services and activities for social interaction;
(d) Registration of undocumented workers to bring them within
the purview of the Migrant Workers Act;
(e) Human resource development, such as training and skills
upgrading;
(f) Gender sensitive programs and activities to assist particular
needs of women migrant workers;
(g) Orientation program for returning workers and other
migrants; and
(h) Monitoring of daily situations, circumstances, and activities
affecting migrant workers and other overseas Filipinos.
The Center is open for twenty-four (24) hours daily including Saturdays, Sundays, and
holidays.
6,
In countries categorized as highly problematic by the Department of Foreign

Affairs and the Department of Labor and Employment and where thei'e is a concentration
of Filipino migrant workers, the government must provide a Shari’a or human rights
lawyer, a psychologist and a social worker for the Center. In addition to these personnel,
the government must also hire within the receiving country, in such number as may be
needed by the post, public relation officers or case officers who are conversant, orally and
in writing, with the local language, laws, customs and practices. The Labor Attache shall
coordinate the operation of the Center and shall keep the Chief of Mission informed and
updated on all matters affecting it.
The Center shall have a counterpart 24-hour information and assistance center at
the Department of Foreign Affairs to ensure a continuous network and coordinative
mechanism at the home office.52
Migrant Workers Loan Guarantee Fund

The Migrant Workers Loan Guarantee Fund which is administered by the
Overseas Workers Welfare Administration (OWWA) may be availed of by the migrant
worker for pre-departure loan or family assistance loan in order to further prevent
unscrupulous illegal recruiters from taking advantage of workers seeking employment
abroad.53
Congressional Migrant Workers Scholarship Fund

This is intended for the benefit of deserving migrant workers or their immediate
descendants below twenty-one (21) years of age who intend to pursue courses or training
primarily in the field of science and technology .54
National Reintegration Center for Overseas Filipino Workers (NRCO)

This is under the Department of Labor and Employment, the purpose of which is
to assist in the reintegration of returning Filipino migrant workers into the Philippine
society, serve as a promotion
“
S
“
S
“
S
CHAPTER 5
FILIPINO ACT OF 1995
house for their local employment, and tap their skills and potentials for national
development. For this purpose, the Technical Education and Skills Development
Authority (TESDA1, the Technology Livelihood Resource Center (TLRC), and other
government agencies involved in training and livelihood development shall give
priority to returnees who had been employed as domestic helpers and entertainers.“
Legal Assistance
Migrant workers and overseas Filipinos in distress are entitled to legal
assistance through the Legal Assistant for Migrant Workers Affairs under the
Department of Foreign Affairs. The Legal Assistant for Migrant Workers Affairs is
primarily responsible for the provision and overall coordination of all legal services
to migrant workers and overseas Filipinos in distress and can hire private lawyers,
domestic or foreign, in order to assist him in the effective discharge of the above
functions.3*
Sectoral Representation in Congress

Filipino migrant workers are entitled to two (2) sectoral
representatives in the House of Representatives to be appointed by the
President from the ranks of migrant workers. At least one (1) of the two (2)
sectoral representatives shall come from the women migrant workers sector.
All nominees must have at least two (2) years experience as a migrant
worker.57
Migrant Workers Day
The day of signing by the President of the Migrant Workers and
Overseas Filipinos Act, June 7 has been designated as the Migrant Workers
Day to be commemorated annually.5*
“Sec. 17, ibid.

“Sec. 24. ibid.
*;Sec. 34. ibid
“Sec. 39. ibid.
CHAPTER 6
Meaning of Paternity Leave

Paternity leave refers to the time-off with pay granted to a married male
employee by reason of childbirth or miscarriage of his lawful wife so that he could
lend support to his wife during her period of recovery, or in nursing of the newly
bom child.1
Coverage of the Law

The Paternity Leave Act covers married male employees in both the public
and the private sector.
Duration of paternity leave

The duration of paternity leave is seven (7) days with full pay, available
only for the first four (4) deliveries (or miscarriage) of the legitimate spouse with
whom he is cohabiting.2
Full pay consists of basic salary, all allowances, and other monetary
benefits.3
Not convertible to cash

Paternity leave benefit, if unused, is not convertible to cash. 4
'Sec. 1, Revised Implementing Rules and Regulations Implementing R.A. No. 8187
for the Private Sector.
2
Sec. 2, Paternity Leave Act of 1996.
"Sec. 6, R.A. No. 8187; Sec. 3, Revised Implementing Rules and Regulations
Implementing R.A. No. 8187 for the Private Sector.
'‘Sec. 7. R.A. No. 8187: Sec. 3. ibid.
CHAPTER 6 215
Conditions for entitlement of paternity leave

A male employee can avail of the paternity leave if the following
conditions are complied with:
(a) The woman who gave birth or suffered miscarriage must be
the legal wife;
(b) At the time of the miscarriage or delivery of the child, the
male spouse must be:
(if an employee; and
(ii) cohabiting with his lawful wife.
(c) The employee must notify the employer of the pregnancy of
his wife, stating the expected date of delivery.5
(d) The paternity leave can be availed of only for the first four (4)
childbirth or miscarriage."
When to avail of the paternity leave

The paternity leave may be enjoyed before, during, or after the delivery by
his wife but not later than sixty (60) after the date of said delivery.’
How to avail of the paternity leave

As soon as the married male employee learns that his spouse is pregnant,
he should inform his employer about the pregnancy and the expected date of
delivery, within a reasonable period of time. The employee should file an
application for paternity leave by accomplishing the Paternity Notification Form
to be provided for by the employer and submit the same to the latter, together
with a copy of his marriage contract; or where not applicable, any proof of
marriage.
*
The notification requirement does not apply to miscarriage or abortion.®
6
6
Sec. 2, R.A. No. 8187; Sec. 3, ibid.
6
Sec. 3, ibid.
7
Sec. 5, Revised Implementing Rules and Regulations Implementing R.A. No. 8187 for
the Private Sector.
8
Sec. 4, ibid.
Proof of childbirth or miscarriage

The employee who has availed of the paternity leave benefits shall,
within a reasonable period of time, submit a copy of the birth certificate of the
newly-born child, death or medical certificate in case of miscarriage or abortion,
duly signed by the attending physician or midwife showing the actual date of
childbirth, miscarriage, or abortion, as the case may be.9 10
Penal sanctions
Violation of the Paternity Leave Act is punishable by:
(a) fine not exceeding P25.000; or
(b) imprisonment ranging from 30 days to 6 months.11
9
Sec. 4, ibid.
10
Sec. 5, Paternity Leave Act
of 1996.
CHAPTER 7
Solo Parent
A solo parent is a person left alone with the responsibility
of parenthood due to the following circumstances:
(a) Giving birth as a result of rape or crimes against chastity;
(b) Death of spouse;

(c) Detention or imprisonment of spouse for at least one
(1) year;
(d) Physical or mental incapacity of spouse as certified by a public medical

practitioner;
(e) Legal separation/de facto separation from spouse for at least one (1) year;
(f) Declaration of nullity or annulment of marriage;

(g) Abandonment of spouse for at least one (11 year;
(h) An unmarried mother/father who preferred to keep and rear his/her child or
children instead of having others care for them or give them up to a welfare institution; (i)
(i) A foster parent duly licensed by the Department of Social Welfare and
Development or a legal guardian appointed by the court, who solely provides parental
care and support to a child or children;
(j) A family member who assumes the responsibility of head of family as a

result of the death, abandonment, disappearance, or prolonged absence of the parents or
solo
217
parent, provided, that such abandonment, disappearance, or absence lasts for

at least one (1) year.1
Benefits available to a solo parent

The Solo Parents Welfare Act accords solo parents the following benefits:
(a) Flexible work schedule;
(b) Parental leave of not more than seven (7) days;
(c) Educational benefits;

(d) Housing benefits on liberal terms in low-cost government
housing; and
(e) Medical assistance.
These benefits can be enjoyed as long as the solo parent continues to be
left alone with the responsibility of parenthood .2 3
Flexible work schedule

Flexible work schedule is a system whereby a solo parent- employee is
given the right to vary his/her arrival and departure time without affecting the core
work hours as defined by the employer.1
The employer is obliged to provide for a flexible working schedule for solo
parents as long as it does not affect individual and company productivity. If
individual or company productivity will be affected, the employer may request
exemption from the Department of Labor and Employment.4
In the case of employees in the government service, flexible working hours
will be subject to the discretion of the head of the agency. In no case shall the
weekly working hours be reduced in the event the agency adopts the flexible
working hours schedule format (flexi-time). In the adoption of flexi-time, the core
working hours shall be prescribed taking into consideration the needs of the
service.5
'Sec. 3 (a), Solo Parents’ Welfare Act of 2000.

2
Sec. 3, ibid.
3
Sec. 3 (e), ibid.
4
Sec. 6, ibid.
s
Sec. 16, Rules Implementing the Solo Parents’ Welfare Act of2000.
CHAPTER 7 219
The solo parent is entitled to the flexible work schedule even if his/her income is
above the poverty threshold set by the National Economic and Development Authority
(NEDA) and assessment of the Department of Social Welfare and Development
(DSWD).6
Parental leave for solo parents

Parental leave is time-off granted to a solo parent to enable him/her to perform
parental duties and responsibilities where physical presence is required .7
Solo parent-employees who have rendered service of at least one (1) year are
entitled to parental leave of not more than seven (7) working days every year .8
The seven-day parental leave is non-cumulative and not convertible to cash, if
unused.9
Conditions for Entitlement to Parental Leave

The parental leave for solo parents can be availed of if the following
conditions are complied with:
(a) The solo parent must have rendered at least one (1)
year of service, whether continuous or broken;
(b) The solo parent must give notice to the employer of
the availment thereof within a reasonable time period; and
(c) The solo parent must present his Solo Parent
Identification Card to the employer.
The solo parent is entitled to parental leave even if his/her income is above
the poverty threshold set by the National Economic and Development Authority
(NEDA) and assessment of the Department of Social Welfare and Development
(DSWD).10
Housing benefits
Solo parents are entitled to be given allocation in government low-cost
housing projects on liberal terms of payment, under the following conditions:
6
Sec. 4, supra.
7
Sec. 3 (d), ibid.
8
Sec. 8, ibid.
’Sees. 18 and 20, Rules Implementing the Solo Parents’ Welfare Act of 2000.
l0
Sec. 4, supra.
(a) The solo parent applying for housing benefits must meet the
qualification criteria for housing assistance under the Urban Development and
Housing Act" and other eligibility criteria set by the National Housing Authority;
and
(b) The eligible solo parent must file their application for housing emit
directly with the concerned National Housing Authority Project Offices .12
Educational benefits
The following are the educational benefits and privileges available to solo parents:
(1) Scholarship programs for qualified solo parents and their children in
institutions of basic, tertiary and technical/ skills education; and
(2) Non-formal education programs appropriate for solo parents and
their children.13
Procedure for Availing Educational Benefits
To avail of the educational benefits under the Solo Parents Welfare Act, the solo
parent must:
(a) Secure an application form from either Department of Education,
Commission on Higher Education or Technical Education and Skills
Development Authority (TESDA) depending on his need; and
(b) Submit the duly accomplished application form together with the
following documents:
(i) Solo Parent Identification Card;
(ii) Barangay Clearance;
(iii) Birth Certificate;
(iv) Notice of admission from the school; and
"R.A. No. 7279.

"Sec. 10, Solo Parents’ Welfare Act of 2000; Sec. 24, Rules Implementing the Solo Parents’
Welfare Act of 2000.
"Sec. 9, Solo Parents' Welfare Act of 2000.
V
CHAPTER 7
(v) Original or Certified True Copy of the transcript of

record, or the Report Card of the last year the applicant attended
school."
Only solo parents whose income in the place of domicile falls below the
poverty threshold as set by the National Economic and Development Authority
(NEDA) and as assessed by the Department of Social Welfare and
Development are eligible for educational benefits.15
Medical Assistance
Only solo parents whose income in the place of domicile falls below the
poverty threshold as set by the National Economic and Development Authority
(NEDA) and as assessed by the Department of Social Welfare and
Development are eligible for medical assistance."
CHAPTER 8
MAGNA CARTA OF PERSONS WITH
DISABILITY

[as amended by Republic Act No. 9442]
Persons with disability

Persons with disability refer to those who are suffering from certain limitations to
perform an activity in the manner considered normal for a human being, as a result of a
mental, physical or sensory impairment.1
Rights and privileges of persons with disability

20% Discount
Persons with disability are entitled to at least twenty percent ( 20%) discount on
the following:
(a) services in hotels, lodging establishments, restaurants, and

recreation centers.2
(b) admission fees in theaters, cinema houses, concert halls, circuses,

carnivals and other similar places of culture, leisure, and amusement .3
(c) cost of medicines in all drugstores;

(d) cost of medical and dental services in all government facilities;
‘Sec. 4 (a), Magna Carta of Persons With Disability, as amended.

2
Sec. 32 (a), ibid.
3
Sec. 32 (b), ibid.
222
CHAPTER 8 223
MAGNA CARTA OF PERSONS WITH DISABILTTY
(e) cost of medical and dental services in all private hospitals and
medical facilities, including diagnostic and laboratory fees, and professional fees
of attending doctors;
(f) fare for land, domestic air, and sea travel.4
The discount is available only to persons with disability who are Filipino
citizens upon submission of any of the following as proof of entitlement:
(1) Identification card issued by the city or municipal
mayor or the barangay captain of the place where the
persons with disability resides;
(2) Passport of the persons with disability concerned;
or
(3) Transportation discount fare Identification Card (ID) issued by
the National Council for the Welfare of Disabled Persons (NCWDP).
The discount privileges cannot be claimed if the persons with disability claims a
higher discount as may be granted by the commercial establishment and/or under other
existing laws or in combination with other discount programs.
Express Lanes
All commercial and government establishments are required to provide express
lanes for persons with disability. Jn the absence thereof, priority shall be given to persons
with disability.5 6 *
Right to Barrier-Free Environment
This will enable persons with disability to have access in public and private
buildings and establishments and such other places mentioned in Batas Pambansa Big.
344, otherwise known as the “Accessibility Law.” 8 The pertinent provisions of the
Accessibility Law read as follows:
“SECTION 1. In order to promote the realization of the rights of disabled
persons to participate fully in the social life and the development of the societies in
which they live and the
4
Sec. 32,
ibid.
6
Sec. 32,
e
Sec. 25,
ibid.
enjoyment of the opportunities available to other citizens, no li-

cense or permit for the construction, repair or renovation of
public and private buildings for public use, educational
institutions, airports, sports and recreation centers and
complexes, shopping centers or establishments, public parking
places, workplaces, public utilities, shall be granted or issued
unless the owner or operator thereof shall install and
incorporate in such building, establishment, institution or public
utility, such architectural facilities or structural features as shall
reasonably enhance the mobility of disabled persons such as
sidewalks, ramps, railings and the like. If feasible, all such
existing buildings, institutions, establishments, or public utilities
may be renovated or altered to enable the disabled persons to
have access to them: Provided, however, That buildings,
institutions, establishments, or public utilities to be constructed
or established for which licenses or permits had already been
issued may comply with the requirements of this law: Provided,
further, That in case of government buildings, streets and
highways, the Ministry of Public Works and Highways shall see
to it that the same shall be provided with architectural facilities
or structural features for disabled persons.
In the case of the parking place of any of the above
institutions, buildings, or establishments, or public utilities, the
owner or operator shall reserve sufficient and suitable space for
the use of disabled persons.
SECTION 2. In case of public conveyance, devices such
as the prominent display of posters or stickers shall be used to
generate public awareness of the rights of the disabled and
foster understanding of their special needs. Special bus stops
shall be designed for disabled persons. Discriminating against
disabled persons in the carriage or transportation of
passengers is hereby declared unlawful.
xxx xxx xxx
SECTION 4. Any person violating any provision of this Act
or of the rules and regulations promulgated hereunder shall,
upon conviction by a court of competent jurisdiction, suffer the
penalty of imprisonment of not less than one month but not
more than one year or a fine of P2,000 to P5,000 or both, at the
discretion of the court: Provided, That in the case of
corporations, partnerships, cooperatives or associations, the
president, manager or administrator, or the person who has
charge of the construction, repair or renovation of the building,
space or utilities shall be criminally responsible for any violation
of this Act and/or rules and regulations promulgated pursuant
thereto.”
CHAPTERS 225
MAGNA CARTA OF PERSONS WITH D18AIM JTY
Free Use of Government Recreational or Sports Centers

Recreational or sports centers owned or operated by the
Government shall be used, free of charge, by marginalized persons
with disability during their social, sports or recreational activities. 7
Free Postal Charges
Persons with disability are entitled to free postal charges on
the following items:
a) articles and literatures sent by mail within the
Philippines and abroad, like books and periodicals, orthopedic
and other devices, and teaching aids for the exclusive use of
the person with disability; and
b) aids and orthopedic devices for the disabled sent by
abroad by mail for repair.8
This privilege, however is available only to marginalized
Filipino citizens with disability who are:9
(a) Certified to be a person with disability by the Social
Welfare and Development Office of the municipality, city
government unit or representative of the Department of Social
Welfare and Development in the municipality or city
government unit where the person with disability is a resident;
(b) Holders of accreditation certificate issued by the
Postmaster General or representative of the Philippine Postal
Corporation.
It is also required that the envelop or wrapper of the franked
mail must on the left upper corner state the name and complete
address of the sender, and on the upper right corner the words
“Free Matter for Disabled Person.” Private or unauthorized use to
avoid payment of postage is penalized by a fine or imprisonment or
both.10
7
Sec. 37, ibid.
8
Sec. 24, Magna Carta of Persons With Disability, as amended.
^Marginalized disabled person with disability is one who lack access to reha bilitation services and
opportunities to be able to participate fully in socioeconomic activities and who have no means of livelihood or
whose income fall below the poverty threshold (Rule, VI, Rules Implementing the Magna Carta of Persons With
Disability).
10
Rule, VI, Rules Implementing the Magna Carta of Persons With Disability.
Right to Equal Opportunity for Employment

Persons with disability have the right to equal opportunity for suitable
employment.11 To carry out this objective, the law mandates that 5% of all casual
emergency and contractual positions in the Departments of Social Welfare and
Development; Department of Health; Department of Education; and other government
agencies, offices or corporations engaged in social development should be reserved for
persons with disability.12
Right to Equal Terms and Conditions of Employment

Persons with disability, if they are qualified, 13 are entitled to the same terms and
conditions of employment and the same compensation, privileges, benefits, fringe
benefits, incentives or allowances as a qualified able-bodied person.
BERNARDO V. NLRC
310 SCRA 186
FACTS: X and several others who are deaf-mutes
were hired on various periods from 1988 to 1993 by FEBTC
as Money Sorters and Counters through a uniformly worded
Employment Agreement for Handicapped Workers. Upon
expiration of their employment contracts, the FEBTC
terminated their employment. X and the other deaf-mute
employees claimed that they cannot be terminated from
their employment because they are regular employees of
the FEBTC, considering that their task as Money Sorters
and Counters was necessary and desirable to the business
of a bank.
On the other hand, FEBTC maintained that X, et al.,
were not regular employees because they were engaged as
special workers pursuant to Article 80 of the Labor Code.
Furthermore, FEBTC claimed that their employment was
“Suitable employment refers to jobs or occupations appropriate to the needs of persons with
disability and which enhance their skills and provide them with better opportunities for employment
(Sec. 1, Rule I, Rules Implementing the Magna Carta of Persons With Disability).
12
13
Qualified employees with disability refer to those who can perform the essential functions
of the employment position they hold or desire to hold, with or without reasonable accommodations.
As to what functions of a job are essential will depend upon the employer’s judgment. If an
employer has prepared a written job description before advertising or interviewing applicants, the
job description will be considered evidence of the essential functions of the job (Sec. 1, Rule I, Rules
Implementing the Magna Carta of Persons With Disability).
CHAPTER. S 227
MAGNA CARTA OF PERSON'S WTTH DISABILITY
smerely an accommodation to the request cf government officials and dtic-tnioded

citizens. They were told from the start, with me assistance of government
representatives that they could not become regular employees because there were
no plantilla positives for money sorters and counters whose task used to be
performed by tellers. Further, FEETC claimed that their contracts were renewed
several times, not because of need, but merely for humanitarian reasons.
ISSUE: Whether cr not X and the other deaf-mute employees are regular
employees.
HELD: X and the other deaf-mute employees are regular employees of
the FEBTC. While their Employment Contracts indubitably conform with
Article 280 of the Labor Code, succeeding events and the enactment of
Republic Act No. 7277 (the Magna Carta for Disabled Persons;, however,
justify the application of Article 280 of the Labor Code. The fact that the
Employment Contracts have been renewed and other deaf-mutes have been
hired lead to the conclusion that their tasks were beneficial and necessary to
FEBTC. More importantly, these facts show that they were qualified to
perform the responsibilities of their positions. In other words, their disability
did not render them unqualified or unfit for the tasks assigned to them. In this
light, the Magna Carta for Disabled Persons mandates that a qualified disabled
employee should be given the same terms and conditions of employment as a
qualified able-bodied person.
The fact that the employees were qualified disabled persons necessarily
removes the Employment Contracts from the ambit of Article 80 of the
Labor Code. Since the Magna Carta accords them the rights of qualified
able-bodied persons, they are thus covered by Article 280 of the Labor
Code. As regular employees, therefore, X and the other deaf-mute
employees are entitled to security of tenure; that is, their services may be
terminated only for a just or authorized cause. Considering, however, that
the job of money sorting is no longer available because it has been assigned
back to the tellers to whom it originally belonged, reinstatement cannot be
ordered. In lieu thereof, separation pay is awarded, in addition to back
wages.
Rif/hi to Sheltered. Employment

The Department of Labor and Employment shall provide training for persons with
disability so that they can qualify for sheltered employment.1'1
"Mi r 2, Rule II, Ruins Implementing the Magna Carta of Persons With Dis-
“W Illy
I
AOKAHIAN LAW AND KOCIAL LKOIKLATJON
Sheltered Employment refers productive work through workshops with Hpecial

CacilitieH, income-producing projects or homework HchemeH designed to give the
person with disability opportunity to earn a living and acquire a working capacity
required in open industry. "
Right to Be Hired as Apprentices or Learners

Persons with disability are eligible for apprenticeship or learnership, as long as
their handicap will not effectively impede the performance of the job operations which
they will handle."1
Right to Quality Education

Learning institutions are obliged to admit all persons with special needs whether
in academic, vocational or technical courses and other training programs, except in the
following instances:
a) If the learning institutions have already accepted persons with

special needs and further acceptance will render the teaching personnel and
facilities less effective.
b) If the learning institutions do not meet the criteria set by the

Bureau of Special Education and are not included in the financial assistance
program.
It is unlawful for any learning institution to deny a person admission to any

course it offers simply because of handicap or disability .17
Right to Educational Assistance

Persons with disability are entitled to educational assistance so that they can
pursue primary, secondary, tertiary, post tertiary, as well as vocational or technical
education, in both public and private schools.
The educational assistance can be in the form of scholarships, grants,

financial aids, subsidies and other incentives, including support for books, learning
materials, and uniform allowance to the extent feasible.
CHA1TKR H
MAGNA CARTA OK PERSONS Wi l l I DISABILITY 229
To he entitled to the educational assistance, the person with disability

must meet minimum admission requirements set by the Department of
Education, the Commission on Higher Education, or the Technical Education
and Skills Development Authority.18
Right to Health Services
With regard to health services, the National Government is mandated to:
(a) Provide an integrated health service for persons with
disability, such as:
(i) prevention of disability through immunization, nutrition,
environmental protection and preservation, and genetic counseling; and
early detection of disability and timely intervention to arrest disabling
condition; and
(ii) medical treatment and rehabilitation.10
(b) Institute a national health program for the purpose of:
(i) prevention of disability, whether occurring pre- natally or
post-natally;
(ii) recognition and early diagnosis of disability; and
(iii) early rehabilitation of the persons with disability.-”
(c) Establish medical rehabilitation centers in government provincial
hospitals, formulate and implement a program to enable marginalized persons
with disability to avail of free rehabilitation services in government hospitals .21
Auxiliary Social Services
Municipal and city governments are obliged to develop and implement
programs on auxiliary social services that will respond to the needs of marginalized
persons with disability, which program shall be composed of the following:
18
Sec. 32(h), Magna Carta of Persons With Disability, as amended; Sec. 6, Rule
IV, Rules Implementing R.A. No. 9442.
,0
20
Sec. 18, ibid.
2
’.Sec. 19, ibid.
(a) assistance in the acquisition of prosthetic devices and medical

intervention of specialty services;
(b) provision of specialized training activities designed to
improve functional limitations of persons with disability related to
communication skills;
(c) development among persons with disability of a positive self-
image through the provision of counseling, orientation, and mobility and
strengthening daily living capability;
(d) provision of family care services geared towards developing
the capability of families to respond to the needs of the disabled members
of the family;
(e) provision of substitute family care services and the facilities
therefor for abandoned, neglected, abused and unattached persons with
disability who need custodial care;
(f) provision of after care and follow-up services for the
continued rehabilitation in a community-based setting of persons with
disability who were released from residential care or rehabilitation centers;
and
(g) provision of day care services for disabled children of pre-
school age.22
Television stations are encouraged to provide a sign-language inset or
subtitles in at least one ( 1) newscast program a day and special programs covering
events of national significance.23
Telephone companies are encouraged to install special telephone devices or
units for the hearing-impaired and ensure that they are commercially available to
enable them to communicate through the telephone system.24
Mobility
The following persons with disability can be allowed to drive motor

vehicle:26
(a) Partially blind — person with poor visual acuity due to partial loss
of vision/sight;
“Sec. 21, Magna Carta of Persons With Disability, as amended.

“Sec. 22. ibid.
CHAPTER 8 231
(b) Orthopedically-impaired — person with amputated left or

right leg; amputated left or right arm; post-polio victims; paralyzed legs;
weak legs but not paralyzed;
(c) Speech and hearing impaired — person unable to speak but
can partially hear.*5
Persons with disability who apply for driver’s license must comply with
the following requirements:
(a) Medical Certificate/Itecommendation from a government
accredited physician;
(b) Written and practical examinations;
(c) Student permit and driving instruction for 60 days;
Applicants with disability may use a customized vehicle provided that it
meets the standard/specifications set and duly requested at Land Transportation
Office.2’
Suffrage
A qualified person with disability may register as a voter by
accomplishing the required voter’s affidavit, and such other forms through:
(i) Any relative within the fourth civil degree of consanguinity
or affinity; or
(ii) Any member of the board of election inspectors.25
During the elections, a person with disability shall be allowed to be
assisted by a person of his choice from among the following:
(i) A relative, by affinity or consanguinity, within the fourth civil
degree;
(ii) Any person of his confidence, whether or not belonging to the
same household; or
(iii) Any member of the board of election inspectors.25
“Sec. 1, C, Rule, VII, Rules Implementing the Magna Carta of Persons With Disability.
27
Sec. 1, B, Rule, VII, Rules Implementing the Magna Carta of Persons With Disability.
“Sec. 1,1.1, Rule, VIII. ibid.
“Sec. 1,1.2, Rule, VIII, ibid.
Freedom of Expression
Persons with disability have the right to participate in processions,
rallies, parades, demonstrations, public meetings, and assemblages or other
forms of mass or concerned action held in public.30
Self-Organization
Persons with disability have the right to form organizations or associations
that promote their welfare and advance or safeguard their interests .31
Discrimination against persons with disability, prohibited

Discrimination in Employment
Discrimination against a qualified person with disability with regard to job
application procedures; the hiring, promotion, or discharge of employees;
employee compensation, job training, and other terms and conditions of
employment is prohibited.
The following constitute acts of discrimination with respect to employment:
(a) Limiting, segregating or classifying a disabled job applicant in

such manner that adversely affects his work opportunities;
(b) Using qualification standards, employment tests or other

selection criteria that rule out or tend to rule out a person with disability,
unless such standards, tests or other selection criteria are shown to be job-
related for the position in question and are consistent with business
necessity;
(cl Utilizing standards, criteria or methods of administration that:

(i) have the effect of discrimination on the basis of disability;
or (ii)
(ii) perpetuate the discrimination of

others who are subject to common
administrative control.
3f,
Sec. 30, Magna Carta of Persona With Disability, as amended.
3l
Scc. 31, ibid.
CHAPTER 8 £33
(d) Providing a lower compensation, salary, wage or other

forms of remuneration and fringe benefits to a qualified employee with
disability as compared to an able-bodied worker performing the same
type and amount of work;
(e) Favoring an able-bodied employee over a qualified
employee with disability with respect to promotion, training
opportunities, study and scholarship grants, solely on account of the
latter’s disability;
(f) Re-assigning or transferring an employee with disability to
a job or position he cannot perform by reason of his disability;
(g) Dismissing or terminating the services of an employee with
disability by reason of his disability;
(h) Failing to select or administer in the most effective manner
employment tests which accurately reflect or measure the skills,
aptitude or positive traits of the applicant or employee with disability
rather than the impaired sensory, manual or speaking capabilities of
such applicant or employee, if any; and
(i) Excluding employees with disability from membership in
labor unions or similar organizations.32
Discrimination in the Use of Public Accommodations and Services

The following constitute acts of discrimination in the use of public
accommodations and services:33
“Sec. 1, Rule, II, Rules Implementing the Magna Carta of Persons With Disability.
33
Public accommodations and services include the following:
a) an inn, hotel, motel, or other place of lodging, except for an establishment located
within a building that contains not more than five (5) rooms for rent or hire and that is actually
occupied by the proprietor of such establishment as the residence of such proprietor;
b) a restaurant, bar, or other establishment serving food or drink;
c) a motion picture, theater, concert hall, stadium, or other place of exhibition or
entertainment;
d) an auditorium, convention center, lecture hall, or other place of public gathering;
e) a bakery, grocery store, hardware store, shopping center, or other sales or rental
establishment;
234 AGRARIAN LAW AND SOCLAL LEGISLATION
(a) denying a passenger with disability to enter the terminal, station

or depot premises;
(b) denying a passenger with disability to purchase travel tickets,

prepare waybills, secure boarding passes, claim tags for baggages and other
transactions which an able-bodied passenger may do;
(c) failure to provide accessibility features such as ramps, signages
and stickers inside the terminal, station or depot;
(d) failure to designate seats in the waiting area for passengers with
disability, if there are seats available;
(e) denying a passenger with disability to use the toilet/ washroom
or failure to make such facilities accessible.^
f; a bank, barber shop, beauty shop, travel service, funeral parlor, gas station, office of a lawyer,
pharmacy, insurance office, professional office of a health care provider, hospital or other service
establishment;
g) a terminal, depot, or other station used for specified public transportation;
h; a museum, gallery, library or other place of public display or collection;
i) a park, zoo, amusement park, or other place of recreation;
j) a nursery, elementary, secondary, undergraduate, or post-graduate private school, or other
place of education;
k) a gymnasium, health spa, bowling alley, golf course; or
l) other place of exercise or recreation (Sec. 35, Magna Carta of Persons With Disability).
^Sec. 36, Magna Carta of Persons With Disability; Sec. 3, Rule EX, Rules Implementing R.A. No.
7277.
a) an inn, hotel, motel, or other place of lodging, except for an establishment located within a
building that contains not more than five (5) rooms for rent or hire and that is actually occupied by the
proprietor of such establishment as the residence of such proprietor;
b; a restaurant, bar, or other establishment serving food or drink;
c) a motion picture, theater, concert hall, stadium, or other place of exhibition or
entertainment;
d) an auditorium, convention center, lecture hall, or other place of public gathering;
e) a bakery, grocery store, hardware store, shopping center, or other sales or rental
establishment;
0 a bank, barber shop, beauty shop, travel service, funeral parlor, gas station, office of a lawyer,
pharmacy, insurance office, professional office of a health care provider, hospital or other service
establishment;
g) a terminal, depot, or other station used for specified public transportation;
h) a museum, gallery, library or other place of public display or collection;
i) a park, zoo, amusement park, or other place of recreation;
j) a nursery, elementary, secondary, undergraduate, or post-graduate private school, or other
place of education;
CHAPTERS 235
Ridicule of persons with disability, prohibited

Public ridicule is the act of making fun or contemptuous imitating or making
mockery of persons with disability whether in writing, or in words, or in action due to
their impairment.
The following acts constitute public ridicule:
(a) Making fun of a person on account of his/her disability even
through jokes in a manner that is degrading resulting to the embarrassment of
the person with disability in front of two or more persons;
(b) Making mockery of a person with disability whether in oral or in
writing;
(c) Imitating a person with disability in public gatherings,
stage shows, carnivals, television shows, broadcast media and other
forms of entertainments that are offensive to the rights and dignity of
persons with disability or any other similar acts;
No individual, group or community shall execute any of these acts of
ridicule against persons with disability in any time and place which could
intimidate or result in loss of self-esteem of the latter.3*
Villification of persons with disability, prohibited
Vilification is the act of:
(a) Uttering slanderous and abusive statements against a
person with disability, such as but not limited to:
(i) calling a person by his disability in public which
results to humiliation;
(ii) using the disability of a person as an example in a
manner that is embarrassing and humiliating to the dignity of
persons with disability.
(b) Inciting in public, hatred, serious contempt, or severe
ridicule of persons with disability.
k) a gymnasium, health spa, bowling alley, golf course; or

l) other place of exercise or recreation (Sec. 35, Magna Carta of Persons
llip/ini/rrif n c n m on rl a
Any individual, group or community is prohibited from vilifying any person

with disability which could result into loss of self-esteem of the latter.®
Tax incentives for benefactors

Persons caring for and living with a person with disability are entitled to the
following tax incentives:
(a) Single persons shall be considered as head of family and shall be

entitled to one basic personal exemption equivalent to Twenty-five thousand
pesos (P25,000), or as allowed thereafter under the National Internal Revenue
Code.
(b) Married persons who have a child or children with disability

dependent on him for support, are entitled to an additional exemption of Eight
Thousand pesos (P8,000) per qualified dependent (not exceeding four).
NOTE: A married individual is not entitled to the above

additional exemption if he/she takes care of a person with disability who
is not his/her child, unless he/she legally adopts the same.
(c) Single or legally separated persons with child or children with
disability dependent on him for support, are entitled to an additional
exemption of Eight Thousand pesos (P8,000) per qualified dependent (not
exceeding four).
NOTE: A solo parent is not entitled to the additional exemption if he/she

takes care of a person with disability who is not his/her child, unless he/she
legally adopts the same.
(d) Grandparents not legally separated or a widow/ widower/solo

parent are entitled to a basic personal exemption of Thirty-two thousand
pesos (P32,000) [the personal exemption granted to a married individual],
(e) Grandparents legally separated or a solo parent, are entitled to

the basic personal exemption accorded to a head of the family in the amount
of Twenty-five thousand pesos (P25,000). 36
36
Sec. 8, Rule V, Rules Implementing R.A. No. 9442.
CHAPTER 8 237
Individuals or nongovernmental institutions establishing homes,

residential communities or retirement villages solely to suit the needs and
requirements of persons with disability are entitled to:
(a) Realty tax holiday for the first five years of operation; and
(b) Priority in the building and/or maintenance of provincial or
municipal roads leading to the aforesaid home, residential community or
retirement village. The city and municipal government concerned where the
homes, residential communities or retirement villages is located shall issue the
implementing guidelines for the availment of this incentives .37
Establishments granting the 20% discount are entitled to tax deductions based on
the net cost of the goods sold or services rendered under the following conditions:
(a) the cost of the discount should be claimed as deduction from gross
income for the same taxable year that the discount is granted;
(b) the total amount of the claimed tax deduction net of value-added tax
if applicable, should be included in their gross sales receipts for tax purposes and
shall be subject to proper documentation and to the provisions of the National
Internal Revenue Code, as amended.38
Donations, bequests, subsidies or financial aids made to organizations of persons
with disability or to government agencies engaged in the rehabilitation of persons with
disability are exempt from the donor’s tax, and shall be allowed as deductions from the
donor’s gross income for purposes of computing the taxable income subject to the
provisions of Section 29 (h) of the Code.
Donations from foreign countries are also exempt from taxes and duties on
importation subject to the provisions of Section 105 of the Tariff and Customs Code of
the Philippines, as amended, Section 103 of the NIRC, as amended and other relevant
laws and international agreements.39
"Sec. 6.12, ibid.

“Sec. 6.12, ibid.
“Sec. 42, Magna Carta of Persons With Disability, as
amended.
Local manufacturing or technical aids and appliances for use by

persons with disability are considered as a preferred area of investment and,
as such, shall enjoy the rights, privileges and incentives as provided in said
Code such as, but not limited, to the following:
(a) repatriation of investments;
(b) remittance of earnings;
(c) remittance of payments on foreign contracts;
(d) freedom from expropriations;
(e) freedom from requisition of investment;
(f) income tax holiday;
(g) additional deduction for labor expense;
(h) tax and duty exemption on imported capital equipment;
(i) tax credit on domestic capital equipment;
(j) exemption from contractor’s tax;
(k) simplification of customs procedures;
(l) unrestricted use of consigned equipment;
(m) employment of foreign nationals;
(n) tax credit for taxes and duties on raw materials;
(o) access to bonded manufacturing/traded warehouse system;
(p) exemption from taxes and duties on imported spare parts;
and
(q) exemption from wharfage dues and any export tax, duty,
impost and fee.40
Penal sanctions
Violation of the Magna Carta for Persons With Disability entails the following
penalties:
40
Sec. 42 (c), ibid.
__________ .
WUih.
CHAPTER 8 239
(a) For the first violation — finerangingfrom P50.000.00 to

P100,000.00, or imprisonment ranging from six (6) months to two (2)
years, or both at the discretion of the court; and
(b) For subsequent violation — a fine ranging from
P100,000.00 to P200,000.00 or imprisonment ranging from two
(2) years to six (6) years, or both at the discretion of the court.
(c) For abuse of the privileges — imprisonment of not less than
six (6) months or a fine ranging from P5,000.00 to P50.000.00, or both,
at the discretion of the court.
(d) If the violator is an alien or a foreigner, he shall be deported
immediately after service of sentence without further deportation
proceedings.41
‘Sec. 46, Magna Carta of Persons With Disability, as amended by R.A. No.
9442.
CHAPTER 9
THE SPECIAL PROTECTION OF CHILDREN
AGAINST ABUSE, EXPLOITATION AND
DISCRIMINATION ACT

[as amended by Republic Act Nos. 7658 and 9231]
Purpose of the Law

Republic Act No. 7610 was enacted to provide special protection to
children from all forms of abuse, neglect, cruelty, exploitation, discrimination,
and other conditions prejudicial to their development, including child labor and
worst forms of child labor. It supplies the inadequacies of existing laws treating
crimes committed against children, namely, the Revised Penal Code, and the
Child and Youth Welfare Code.
The law, however, should not be taken to mean that wayward youths
should be cuddled. The deviant conduct of the youth should be corrected rather
than take the cudgels for them. The law should be applied only and strictly to
actual child abusers, lest [th]e [Court] regressfes] to a culture of juvenile
delinquency and errant behavior.1
Meaning of children
The term “children” refers to persons who are:
(a) below eighteen (18) years of age; or
(b) over (18) years of age, but unable to fully take care
or protect themselves from abuse, neglect, cruelty, exploitation
1
Amanquiton v. People, 596 SCRA 366.
CHAPTER 9 241
THE SPECIAL PROTECTION OF CHILDREN AGAINST ABUSE,
EXPLOITATION AND DISCRIMINATION ACT
or discrimination due to physical or mental disability or condition.2
Employment of Children
General Rule: Children below fifteen (15) years old cannot be employed,
permitted or suffered to work in any public or private establishment .3
Exceptions\ Children below fifteen (15) years of age may be employed
under the following circumstances:
(a) When a child works directly under his parents or legal
guardian, subject to the following conditions:
(i) Only members of his family are employed thereat;
(ii) The employment does not endanger the child's life,
safety, health, and morals, or impair his normal development;
(iii) The parent or legal guardian provides the child with the
prescribed primary or secondary education; and
(iv) A work permit is first obtained from the Department of
Labor and Employment.
(b) When the employment of the child is essential in public
entertainment or information such as cinema, theater, radio, television or
other forms of media, subject to the following conditions:
(i) An employment contract, duly approved by the
Department of Labor and Employment, must be executed by the
parents or legal guardian of the child;
(ii) The employer must ensure the protection, health, safety,
morals, and normal development of the child;
(iii) The employer must institute measures to prevent the child’s
exploitation or discrimination;
’Sec. 3, (a). Special Protection of Children Against Abuse, Exploitation and

Discrimination Act, as amended.
’Sec. 12. ibid.
(iv) The employer must formulate and implement a

continuing program for training and skills acquisition of the child,
subject to the approval and supervision of competent authorities;
and
(v) A work permit must be obtained from the Department
of Labor and Employment.1
NOTE: 1. Work permit is not necessary for spot extras or those

being cast outright on the day of the filming or taping. Instead, the
employer shall file a notice with the Regional Office where the work is to
be performed that it will undertake activities involving child work. The
notice shall be in the form prescribed by the Department and shall state the
approximate number of child workers to be employed, the date, place and
time the work is to be performed, and an undertaking that the employment
shall be in conformity with Republic Act No. 9231 and these Rules .* * * 6
2. The work permit is valid for a maximum period of one ( 1)
year.6
Suspension or cancellation of the work permit

The Regional Director of the Department of Labor and Employment may
cancel the work permit of the child on the following grounds:
(a) Fraud or misrepresentation in the application for work
permit;
(b) Violation of the terms and conditions of the child’s
employment contract;
(c) Failure to institute measures to ensure the protection, health,
safety, morals, and normal development of the child;
(d) Failure to formulate and implement a program for the
education, training and skills acquisition of the child; or
■■Sec. 12, Special Protection of Children Against Abuse, Exploitation and Dis-
crimination Act, as amended.
6
Sec. 13, Rules and Regulations Implementing R.A. No. 9231.
6
Sec. 12, ibid.
CHAPTER 9 243
(e) Depriving the child of access to formal, non-formal or

alternative learning systems of education.1
Hours of Work of Working Children

BELOW 15 YEARS OLD Not more than four (4) hours/
day
Not more than twenty (20)
hours/week
No work between 8:00 P.M.
and 6:00 A.M.
Not more than eight (8) hours/
15-18 YEARS OLD day
Not more than forty (40) hours/
week
No work between 10:00 P.M.
and 6:00 A.M.7 8
Prohibited child employment

Children cannot be employed in any of the following:
(a) As a model in any advertisement which directly or indirectly
promote:
(i) alcoholic beverages or intoxicating drinks;
(ii) tobacco and its by-products;
(iii) gambling;
(iv) violence; or
(v) pornography.'
(b) In worst forms of labor, particularly:
(i) Slavery or acts similar to slavery, such as sale and
trafficking of children, debt bondage and serfdom, forced labor, or
for use in .armed conflict;
7
Sec. 22, ibid.
8
Sec. 12-A, Special Protection of Children Against Abuse, Exploitation and Dis-
'Sec. 6, Rules Implementing R.A No, 9231.
i44 AGRARIAN LAW AND SOCIAL LEGISLATION
(ii) Prostitution, pornographic performances, or production

of pornography;
UiO Illegal or illicit activities, including the production and
trafficking of dangerous drugs and volatile substances prohibited
under existing laws;
(iv) Jobs which degrade or demean the intrinsic worth and
dignity of a child as a human being;
(v) Jobs which are highly stressful psychologically, or which
expose the child to physical, emotional or sexual abuse;
(vi) Jobs which are performed underground, underwater or
at dangerous heights;
(vii) Jobs which involve the use of dangerous machinery,
equipment and tools such as power-driven or explosive power-
actuated tools; or
(viii) Jobs which expose the child to physical danger such
as, but not limited to the dangerous feats of balancing, physical
strength or contortion, or which requires the manual transport of
heavy loads;
(ix) Jobs which expose the child to hazardous working
conditions, elements, substances, co-agents or processes involving
ionizing, radiation, fire, flammable substances, noxious
components and the like, or to extreme temperatures, noise levels,
or vibrations;
(x) Jobs performed under particularly difficult conditions;
(xi) Jobs which expose the child to biological agents such
as bacteria, fungi, viruses, protozoans, nematodes and other
parasites; or
(xii) Jobs which involve the manufacture or handling of
explosives and other pyrotechnic products.10
t0
Sec. 12-D, Special Protection of Children Against Abuse, Exploitation and Discrimination Act, as
amended.
CHAPTER 9 245
THE SPECIAL PROTECTION OF CHILDREN AGAINST ABUSE
Handling of child’s income or property
The income of the working child belongs to him alone. It shall be used primarily
for his support, education or skills acquisition and secondarily to the collective needs of
the family to the extent of 20% of the income.
The income of the working child as well as any property acquired through the work
of the child shall be administered by both parents.
In the absence or incapacity of either of the parents, the other parent shall
administer the same.
In case both parents are absent or incapacitated, the income and property of the
child shall be administered by the following:
(a) The surviving grandparent. In case several grandparents survive, the
one designated by the court taking into account all relevant considerations,
especially the choice of the child over seven (7) years of age, unless the
grandparent chosen is unfit;
(b) The oldest brother or sister, over 21 years of age, unless unfit, or
disqualified; and
(c) The child’s actual custodian over 21 years of age, unless unfit or
disqualified.11 *
If the child earns at least P200,000.00 a year, the administrator is required to set
up at least thirty percent (30%) of the earnings as a trust fund, to be accounted for
twice a year. Full control over the trust fund should be turned over to the child upon
reaching the age of majority, i.e., 18 years old.15
If the child earns less than P200,000.00 a year, at least 30% of the income should
be deposited in a savings account.13
Child abuse - a criminal offense

To ensure that children are protected, child abuse and other acts of child
exploitation are declared as criminal offenses. Such criminal offenses can refer to:
n
Sec. 12-B, ibid.', Sec. 17, Rules and Regulations Implementing R.A. No. 9231.
,2
Sec. 12-C, Special Protection of Children Against Abuse, Exploitation and Discrimination Act,
as amended.
13
(a) Child prostitution or sexual abuse;

(b) Attempt to commit child prostitution;
(c) Child trafficking;
(d) Attempt to commit child trafficking;
(e) Obscene publication and indecent shows;
(0 Cruelty, physical abuse, neglect, psychological and
emotional maltreatment;
(g) Any act by deeds or words which debases, degrades or
demeans the intrinsic worth and dignity of a child as a human
being;
(h) Unreasonable deprivation of his basic needs for
survival, such as food and shelter; or
(i) Failure to immediately give medical treatment to an injured
child resulting in serious impairment of his growth and development or in
his permanent incapacity or death.14
Child prostitution or sexual abuse

Child prostitution and sexual abuse exist when a child, whether male or
female, indulges in sexual intercourse or lascivious conduct:
(.a) for money or any other consideration; or
(b) due to coercion or influence of any adult, syndicate or group .15
Criminal liability for child prostitution and other sexual abuse is imposed upon
the following:
(a) Persons who promote, facilitate, or induce child prostitution
through any of the following acts:
(i)Acting as a procurer of a child prostitute;
(ii)
Inducing a person to be a client of a child prostitute by
means of written or oral advertisements or other similar means; * 16
"See. 3 (b). Special Protection of Children Against Abuse, Exploitation and

Discrimination Act, as amended.
16
Sec. 5, ibid.
CHAPTER 9 247
(iii) Taking advantage of influence or relationship to

procure a child as prostitute;
(iv) Forcing a child to become a prostitute; or
(v) Giving monetary consideration, goods or other

pecuniary benefit to a child with intent to engage such child in
prostitution.
(b) Persons who engage in sexual intercourse or lascivious
conduct with a child prostitute.
NOTE: 1. Lascivious conduct is the intentional touching, either
directly or through clothing, of the genitalia, anus, groin, breast, inner
thigh, or buttocks, or the introduction of any object into the genitalia, anus
or mouth of any person, whether of the same or opposite sex, with an
intent to abuse, humiliate, harass, degrade, or arouse or gratify the sexual
desire of any person, bestiality, masturbation, lascivious exhibition of the
genitals or pubic area of a person.16
2. When the victim is under twelve (12) years of age, the perpetrator
shall be prosecuted for rape under Article 335, paragraph 3, and Article
336 of the Revised Penal Code, for rape or lascivious conduct, as the case
may be.
(c) Persons who derive profit or advantage from child prostitution,
whether as manager or owner of the establishment where the prostitution takes
place, or of the sauna, disco, bar, resort, place of entertainment or establishment
serving as a cover or which engages in prostitution in addition to the activity for
which the license has been issued to said establishment.
The penalty for the aforementioned criminal acts is reclusion temporal in its
medium period to reclusion perpetua. The penalty for lascivious conduct when the victim
is under twelve (12) years of age is reclusion temporal in its medium period.17
Attempt to commit child prostitution

Mere attempt to commit child prostitution is punishable under the law. Attempt to
commit child prostitution is committed in the following manner:
,6
Sec. 2 (h), Rules and Regulations Implementing R.A. No. 7610: People v. Ch- ingh, 645 SCRA 573.
'’Sec. 5, Special Protection of Children Against Abuse, Exploitation and Dis- crimination Act, as amended.
-18 AUKAUIAN LAW AND SOCIAL LMCISLATION
UO when any person who, not being u relative of a child, is found alone
with the said child inside the room or cubicle of a house, an inn, hotel, motel,
pension house, upartelle or other similar establishments, vessel, vehicle or any other
hidden or secluded area under circumstances which would lead a
reasonable person to believe that the child is about to be exploited
in prostitution and other sexual abuse.
(b) when any person is receiving services from a child in a sauna parlor
or bath, massage clinic, health club and other similar establishments.'"
The penalty for attempt to commit child prostitution is two (2) degrees lower than
that of the consummated child prostitution.
Child Trafficking
There is child trafficking when a person engages in trading and dealing children
including, but not limited to, the act of buying and selling of a child for money, or for
any other consideration, or barter.
The penalty for child trafficking is reclusion temporal to reclusion perpetua.
The penalty shall be imposed in its maximum period when the victim is under twelve
(12) years of age.8 19
Attempt to commit child trafficking

Just like child prostitution, attempt to commit child trafficking is punishable.
Attempt to commit child trafficking is committed in the following manner:
(a) When a child travels alone to a foreign country:
(i) without valid reason therefor; and
(ii) without clearance from the Department of Social Welfare
and Development or written permit from the child’s parents or legal
guardian.
(b) When a pregnant mother executes an affidavit of consent for
adoption of her child for a consideration;
(c) When a person, agency, establishment or child-care institution
recruits women or couples to bear children for the purpose of child trafficking;
l8
Sec.
6,Sec.
,!)
7.
CHAPTER 9 249
(d) When a doctor, hospital or clinic official or employee, nurse,

midwife, local civil registrar or any other person simulates birth for the purpose of
child trafficking; or
(e) When a person engages in the act of finding children among low-
income families, hospitals, clinics, nurseries, daycare centers, or other child-caring
institutions who can be offered for the purpose of child trafficking.
The penalty for attempt to commit child trafficking is two
(2) degrees lower than that prescribed for the consummated child trafficking .20
Obscene publications and indecent shows

What is punishable here is the act of hiring, employing, using, persuading, inducing or
coercing a child to:
(a) perform in obscene exhibitions, indecent shows, whether live or in video;
(b) act as model in obscene publications or pornographic materials; or
(c) sell or distribute obscene publications or pornographic materials.
The penalty for these acts is prision mayor in its medium period. If the child
used as a performer, subject or seller/distributor is below twelve ( 12) years of age, the
penalty is prision mayor in its maximum period.
Criminal liability extends to any ascendant, guardian, or person entrusted in any
capacity with the care of a child who causes or allows the child to be employed or to
participate in an obscene play, scene, act, movie or show.21
Other acts of child abuse
Aside from child prostitution, sexual abuse, and child trafficking, also punishable
are other acts of child abuse, such as:
(a) Keeping in his company a minor, twelve (12) years or under or who
is ten (10) years or more his junior in any
public or private place, hotel, motel, beer joint, discotheque, cabaret, pension
house, sauna or massage parlor, beach and/or other tourist resort or similar
places.
NOTE: 1. The penalty for this is prision mayor in its maximum period
and a fine of not less than Fifty thousand pesos (P50,000).
2. The owner, manager or one entrusted with the operation of such
public or private place, including residential places, who allows a person to take
along with him a minor to such places is also criminally liable .22
3. This provision does not apply to a person who is related to the child
within the fourth degree of consanguinity or affinity or any bond recognized by
law, local custom and tradition or acts in the performance of a social, moral or
legal duty.
(b) Inducing, delivering or offering a minor to any one prohibited to

keep or have in his company a minor;
NOTE: 1. The penalty for this is prision mayor in its medium period and
a fine of not less than Forty thousand pesos (P40,000).
2. If the perpetrator is an ascendant, stepparent or guardian of the minor,
the penalty is prision mayor in its maximum period, a fine of not less than Fifty
thousand pesos (P50,000), and the loss of parental authority over the minor.
(c) Forcing a street child or any other child to;
(i) Beg or use begging as a means of living;
(ii) Act as conduit or middlemen in drug trafficking

or pushing; or
(iii) Conduct any illegal activities.

NOTE: The penalty for this is prision correccional in its medium period
to reclusion perpetua.
(d) Commission by any parent or guardian of the acts covered by

Article 59 of Presidential Decree No. 603, to wit:
CHAPTER 9
251
THE SPECIAL PROTECTION OF CHILDREN AGAINST
(i) Concealment or abandonment of the child with intent to
make the child lose his civil status;
(ii) Abandonment of the child which deprives him of the
love, care, and protection he needs;
Selling the child to another person;
(iii)
(iv)Neglecting the child by not giving him the education
which the family’s station in life and financial conditions permit;
(v) Failing or refusing to enroll the child in an educational
institution without justifiable ground;
(vi) Allowing the child to be absent from school for more
than 20 school days without justifiable reason;
(vii) Inflicting cruel and unusual punishment upon the child
or deliberately subjecting the child to indignation and excessive
chastisement that embarrass or humiliate him;
(viii) Causing or encouraging the child to lead an immoral or
dissolute life;
(ix) Permitting the child to possess, handle or carry a deadly
weapon, regardless of its ownership; and
(x) Allowing or requiring the child to drive without a license or
with a license which the parent knows to have been illegally procured.23
NOTE: The penalty for this is prision mayor in its minimum period.
Sanctions for erring establishments

Establishments which promote or facilitate child prostitution and other sexual abuse, child
trafficking, obscene publications and indecent shows, and other acts of abuse shall be subjected to
the following sanctions:
(a) immediate closure;
”Sec. 10, Special Protection of Children Against Abuse, Exploitation and Dis-
(h) cancellation of their authority or license to operate;

and,
(c) prosecution of the owner or manager
Jurisdiction
Original jurisdiction over all cases involving offenses punishable under
Republic Act No. 7610, as amended, is vested with the family courts.
In cities or provinces where there are no family courts, the regional trial
courts and the municipal trial courts shall have concurrent jurisdiction depending on
the penalties prescribed for the offense charged. 23 *
Who may file a complaint

Complaints on cases of unlawful acts committed against children may be filed
by the following:
(a) Offended party;

(b) Parents or guardians;
(c) Ascendant or collateral relative within the third degree of
consanguinity;
(d) Officer, social worker, or representative of a licensed child-

caring institution;
(e) Officer or social worker of the Department of Social Welfare

and Development;
(f) Barangay chairman of the place where the violation occurred,

where the child is residing or employed; or
(g) At least three (3) concerned, responsible citizens where the

violation occurred.25
Protective custody of the child

The child-victim shall be immediately placed under the protective custody of the
Department of Social Welfare and Development
23
Sec. 11,
ibid.
“Sec. 26-A,
ibid.
CHAPTER 9 253
pursuant to Executive Order No. 56, series of 1986. Custody proceedings shall
be in accordance with the provisions of Presidential Decree No. 603.27
Confidentiality
It is unlawful for any editor, publisher, reporter or columnist in case of printed
materials, announcer or producer in case of television and radio broadcasting, producer
and director of the film in case of the movie industry, to cause undue and
sensationalized publicity of any case of violation of Republic Act No. 7610 which
results in the moral degradation and suffering of the offended party .28
Protection of children in situations of armed conflict

The Policy of the State
Children are declared as Zones of Peace. Therefore:
(a) Children shall not be the object of attack and shall be entitled to
special respect. They entitled to protection from any form of threat, assault,
torture or other cruel, inhumane or degrading treatment;
(b) Children shall not be recruited to become members of the Armed
Forces of the Philippines or its civilian units or other armed groups, nor be
allowed to take part in the fighting, or used as guides, couriers, or spies;
(c) Children are entitled to unhampered delivery of basic social
services such as education, primary health and emergency relief services;
(d) Persons who provide services to children, including those
involved in fact-finding missions, must be assured of safety and protection;
(e) Public infrastructure such as schools, hospitals and rural health
units shall not be utilized for military purposes such as command posts,
barracks, detachments, and supply depots; and
27
Sec. 28, Special Protection of Children Against Abuse, Exploitation and Dis-
“Sec. 29, ibid.
(f) All appropriate steps shall be taken to facilitate the reunion of

families temporarily separated due to armed conflict.29
Evacuation of Children During Armed Conflict

In case of armed conflict, children should be given priority during
evacuation. Existing community organizations shall be tapped to look after the
safety and well-being of children during evacuation operations. Measures shall be
taken to ensure that children evacuated are accompanied by persons responsible for
their safety and well-being.30
Whenever possible, members of the same family shall be housed in the same
premises and given separate accommodation from other evacuees and provided with
facilities to lead a normal family life.
In temporary shelters, expectant and nursing mothers and children shall be
given additional food in proportion to their physiological needs. Whenever feasible,
children shall be given opportunities for physical exercise, sports and outdoor
games.31
Rights of children arrested for reasons related to armed conflict
Children arrested for reasons related to armed conflict, either as combatant,

courier, guide or spy are entitled to the following rights:
(a) Separate detention from adults, except where families are
accommodated as family units;
(b) Immediate free legal assistance;
(c) Immediate notice of such arrest to the parents or guardian of

the child; and
(d) Release from detention on recognizance within twenty-four (24)
hours to the custody of the Department of Social Welfare and Development
or any responsible member of the community as determined by the court.
29
Sec. 22, ibid.
30
Sec. 23, ibid.
31
Sec. 24, Special Protection of Children Against Abuse, Exploitation and Discrimination Act, as amended.
CHAPTER 9 255
If after hearing the evidence in the proper proceeding the court should find that
the aforesaid child committed the acts charged against him, the court shall determine the
imposable penalty, including any civil liability chargeable against him.
However, instead of pronouncing judgment of conviction, the court shall suspend
all further proceedings and shall commit such child to the custody or care of the
Department of Social Welfare and Development or to any training institution operated by
the Government, or duly-licensed agencies or any other responsible person, until he has
had reached eighteen (18) years of age or, for a shorter period as the court may deem
proper, after considering the reports and recommendations of the Department of Social
Welfare and Development or the agency or responsible individual under whose care he
has been committed.
The child shall be subject to visitation and supervision by a representative of the
Department of Social Welfare and Development or any duly-licensed agency or such
other officer as the court may designate subject to such conditions as it may prescribe.
The aforesaid child whose sentence is suspended can appeal from the order of
the court in the same manner as appeals in criminal cases .32
Children in conflict with the law

Children in conflict with the law refers to a person under 18 years old who is
alleged as, accused of, adjudged, or recognized as, having committed an offense under
Philippine laws.33
Rights of a Child in Conflict With the Law

Children in conflict with the law are entitled to the following rights:
(a) Right against torture, cruel, inhuman or degrading,
treatment or punishment;
(b) Right against punishment with death penalty or life
imprisonment;
32
Sec. 25, ibid.
"Sec. 4 re), Juvenile Justice and Welfare Act of 2006.
(c) Right against unlawful or arbitrary deprivation of liberty;

(d) Right against detention together with adult offenders.
(e) Right to prompt access to legal and other appropriate assistance;
(f) Right to bail and recognizance, in appropriate cases;
(g) Right to testify as a witness in his own behalf under the rule on
examination of a child witness;
(h) Right to privacy at all stages of the proceedings;
(i) Right to diversion if he is qualified and voluntarily avails of the same;
NOTE: Diversion refers to an alternative child-appropriate process of

determining the responsibility and treatment of a child in conflict with the law
on the basis if his social, cultural, economic, psychological or educational
background without resorting to formal court proceedings.34
(j) Right to be imposed a judgment proportionate to the gravity of the

offense where his best interest, the rights of the victim and the needs of society are all
taken into consideration by the court, under the principle of restorative justice;
(k) Right to have restrictions on his personal liberty limited to the
minimum, and where discretion is given by law to the judge to determine whether to
impose fine or imprisonment, the imposition of fines being preferred as the more
appropriate penalty;
(l) Right to automatic suspension of sentence, in general;
(m) Right to probation as an alternative to imprisonment, if qualified under
the Probation Law;
(n) Right to be free from liability for perjury, concealment or
misrepresentation; and
“Sec. 4 (i), Juvenile Justice and Welfare Act of 2006.

CHAPTER 9 257
(o) Other rights as provided for under existing laws, rules and regulations.16
Minimum age of criminal responsibility

Fifteen (15) years old — exempted from criminal liabil- and below ity. However,
the child will be
subjected to an intervention program.
Above 15 years but below — exempted from criminal li- 18 years old ability
if he acted without dis
cernment. But the child will be subjected
to an intervention program.
— if the child acted with discernment, the child is no
longer exempt from criminal liability, and he will
be subjected to the appropriate proceedings.36
NOTE: 1. Intervention refers to a series of activities which are designed to

address the issues that caused the child to commit an offense. It may take the form
of an individualized treatment program which may include counseling, skills
training, education, and other activities that will enhance his psychological,
emotional and psycho-social well-being.37
2. The exemption is limited to criminal liability and not to the civil
liability.38
Determination of age
Children in conflict with the law enjoy the presumption of minority. He is entitled to
enjoy all the rights of a child in conflict with the law until he is proven to be eighteen (18)
years old or older.
The age of a child may be determined from the child's birth certificate, baptismal
certificate or anv other nertinent dnmrmmta
In the absence of these documents, age may be based on information from the child
himself, testimonies of other persons, the physical appearance of the child and other
relevant evidence. In case of doubt as to the age of the child, it shall be resolved in his
favor.
In all proceedings, law enforcement officers, prosecutors, judges and other

government officials concerned shall exert all efforts at determining the age of the child in
conflict with the law.39
Petition for Determination of Age

Prior to the filing of information with the appropriate court, any person contesting
the age of the child in conflict with the law, may file a petition for determination of age
before the Family Court. The petition shall be decided case within twenty-four (24) hours
from receipt of the appropriate pleadings of all interested parties .10
Motion for Determination of Age

If the case against the child in conflict with the law has already been filed in court,
a motion to determine the age of the child may be filed in the same court where the case is
pending. Pending hearing on the said motion, proceedings on the main case shall be
suspended.11
Children not criminally liable for certain offenses

Children below eighteen (18) years of age are exempt from prosecution for the
crime of:
(a) vagrancy and prostitution under the Revised Penal

Code;
(b) mendicancy under Presidential Decree No. 1563; and
(c) sniffing of rugby under Presidential Decree No. 1619.

Said children will just undergo appropriate counseling and treatment program .42
“Sec. 7,
ibid. "Sec.
7, ibid.
"Sec. 7,
ibid. "Sec.
f
CHAPTER 9 259
Procedure for taking the child in conflict with the law into custody
When a child in conflict with the law is taken into custody, the
law enforcement officer is obliged to do the following:
(a) Explain to the child in simple language and in a
dialect that he can understand the reason why he is being placed
under custody and the offense that he allegedly committed;
Cb) Inform the child of his constitutional rights in a
language or dialect understood by him;
(c) Properly identify himself and present proper identi-
fication to the child;
(d) Refrain from using vulgar or profane words and from
sexually harassing or abusing, or making sexual advances on
the child in conflict with the law;
(e) Avoid displaying or using any firearm, weapon,
handcuffs or another instruments of force or restraint, unless
absolutely necessary and only after all other methods of control
have been exhausted and have failed;
(f) Refrain from subjecting the child to greater restraint
than is necessary for his apprehension;
(g) Avoid violence or unnecessary force;
(h) Determine the age of the child through his birth certificate,
baptismal certificate or any other pertinent documents. In the absence of
these documents, age may be based on information from the child himself,
testimonies of
• other persons, the physical appearance of the child and other relevant
evidence. In case of doubt as to the age of the child, it shall be resolved in
his favor [Sec. 7.];
(i) Immediately (but not later than eight [8] hours after
apprehension), turn over custody of the child to the Social Welfare and
Development Office or other accredited NGOs, and notify the child’s
parents or guardians and Public Attorneys’ Office of the child’s
apprehension;
(k) Ensure that should detention of the child, if

necessary, is secure and separate from that of the
opposite sex and adult offenders;
(l) Record the following in the initial investigation:
(i) Whether handcuffs or other instruments of restraint
were used, and if so, the reason for such;
(ii) That the parents or guardian of a child, the Department of
Social Welfare and Development, and the Public Attorney’s Office
have been duly informed of the apprehension and the details thereof;
and
(iii) That measures to determine the age of the child have been
exhausted and the precise details of the physical and medical
examination or the failure to submit a child to such examination;
(m) Ensure that all statements signed by the child during
investigation are witnessed by the child’s parents or guardian, social worker,
or legal counsel in attendance who shall affix his/her signature to the said
statement.43
NOTE: The statement of the child should be taken in the

presence of the following:
(a) child’s counsel of choice or in the absence thereof, a
lawyer from the Public Attorney’s Office;
(b) the child’s parents, guardian, or nearest relative, as the
case may be; and
(c) the local social welfare and development officer.
In the absence of the child’s parents, guardian, or nearest
relative, and the local social welfare and development officer, the
investigation shall be conducted in the presence of a representative of
an NGO, religious group, or member of the BCPC.44 45
A child in conflict with the law shall only be searched by a law enforcement
officer of the same gender and shall not be locked up in a detention cell. 4*
43
Scc. 21, Juvenile Justice
and
4 Welfare
'.Sec. Act of 2006.
22, ibid.
45
Sec. 21, ibid.
CHAPTER 9 261

Treatment of children below the age of criminal responsibility

If it has been determined that the child taken into custody is fifteen (15) years old or below, the
authority which will have initial contact with the child is duty-bound to:
(a) immediately release the child to the custody of his/ her parents or guardian, or in
the absence thereof, the child’s nearest relative.
(b) give notice to the local social welfare and development officer who will
determine the appropriate programs in consultation with the child and to the person having
custody over the child.
If the parents, guardians or nearest relatives cannot be located, or if they refuse to take custody,
the child may be released to any of the following:
(a) a duly registered nongovernmental or religious organization;
(b) a barangay official or a member of the Barangay Council for the Protection of
Children;
(c) a local social welfare and development officer; or

(d) the Department of Social Welfare and Development, when and where
appropriate.
Petition for involuntary commitment

If the Local Social Welfare and Development Office finds that the child has been abandoned,
neglected or abused by his parents, or in the event that the parents will not comply with the prevention
program, the proper petition for involuntary commitment shall be filed by the Department of Social
Welfare and Development or the Local Social Welfare and Development Office pursuant to the Child
and Youth Welfare Code."
Detention pending trial

Children detained pending trial may be released on bail or recognizance. In all other cases and
whenever possible, detention pending trial may be replaced by alternative measures, such as
close supervision, intensive care or placement with a family or in an educational setting or

home. Institutionalization or detention of the child pending trial shall be used only as a
measure of last resort and for the shortest possible period of time.
Whenever detention is necessary, a child should be detained in youth detention
homes established by local governments in the city or municipality where the child resides.
In the absence of a youth detention home, the child in conflict with the law may be
committed to the care of the Department of Social Welfare and Development or a local
rehabilitation center recognized by the government in the province, city or municipality
within the jurisdiction of the court. The center or agency concerned shall be responsible for
the child’s appearance to court whenever required.47 48
Automatic suspension of sentence

Once the child who is under eighteen (18) years of age at the time of the
commission of the offense is found guilty of the offense charged, the court shall determine
and ascertain any civil liability which may have resulted from the offense committed.
However, instead of pronouncing the judgment of conviction, the court shall place
the child in conflict with the law under suspended sentence, without need of application.
The suspension of sentence shall still be applied even if the child has reached eighteen years
(18) of age or more at the time of the pronouncement of his/ her guilt.
Upon suspension of sentence and after considering the various circumstances of the
child, the court shall impose the appropriate disposition measures as provided in the
Supreme Court Rule on Juveniles in Conflict with the Law .49
Children in conflict with the law, whose sentences are suspended may, upon order
of the court, undergo any or a combination of disposition measures best suited to the
rehabilitation and welfare of the child as provided in the Supreme Court Rule on Juveniles
in Conflict with the Law.
47
Sec. 36, Juvenile Justice and Welfare Act of 2006.
Sec. 38, ibid.
48
CHAPTER 9 263
If the community-based rehabilitation is availed of by a child

in conflict with the law, he shall be released to parents, guardians,
relatives or any other responsible person in the community.
Under the supervision and guidance of the local social welfare
and development officer, and in coordination with his/her parents/
guardian, the child in conflict with the law shall participate in
community-based programs, which shall include, but not limited to:
(a) Competency and life skills development;

(b) Socio-cultural and recreational activities;
(c) Community volunteer projects;
(d) Leadership training;
(e) Social services;
(f) Homelife services;
(g) Health services;
(h) Spiritual enrichment; and
(i) Community and family welfare services.
In accordance therewith, the family of the child in conflict with
the law shall endeavor to actively participate in the community-
based rehabilitation.
Based on the progress of the youth in the community, a final
report will be forwarded by the local social welfare and development
officer to the court for final disposition of the case.
If the community-based programs are provided as diversion
measures under Chapter II, Title V, the programs enumerated
above shall be made available to the child in conflict with the law .49
Execution of judgment
If the child in conflict with the law has reached eighteen
(18) years of age while under suspended sentence, the court shall
determine whether:
(a) to discharge the child;
(b) to order execution of sentence; or
49
Sec. 52, Juvenile Justice and Welfare Act of 2006.
2l>4 AC,RAMAN l.AW AM) SOCIAL I.WIISI.ATION
(cl to extend the suspended sentence for « certain specified period or

until the child reuchos the muximum age of twenty-one t21) years.
If the court finds that the objective of the disposition measures imposed upon
the child in conflict with the law have not been fulfilled, or if the child in conflict
with the law hus willfully failed to comply with the conditions of his/her disposition
or rehabilitation program, the child in conflict with the law shall be brought before
the court for execution of judgment.10
A child in conflict with the law may, in lieu of confinement in a regular penal
institution, be made to servo his/her sentence in an agricultural camp and other
training facilities that may be established, maintained, supervised and controlled by
the BUCOR, in coordination with the DSWD.'1
>
n
CHAPTER 10
Objective of the Law

The Magna Carta of Women emphasizes the rights of women and
institutionalizes the substantive equality of men and women. The essence of the law is
not only to provide equal opportunities for women but also their empowerment.
Thus, the Magna Carta of Women mandates the State to:
(1) Abolish the unequal structures and practices that perpetrate
discrimination and inequality to women, such as the repeal of discriminatory
provisions of existing laws;' * (ii)
’Some laws considered to contain discriminatory provisions against women

are:
(a) the provisions of the Family Code on:
(i) giving preference to the father’s consent to the marriage of children between the ages of 18
and 21 (Art. 14);
(ii) giving preference to the husband’s decision, in case of disagreement with the wife, on the
administration and enjoyment of community and conjugal properties (Arts. 96 and 124);
(iii) giving preference to the husband’s decision, in case of disagreement with the wife, over the
persons of their common children (Art. 211);
(iv) giving preference to the husband’s decision, in case of disagreement with the wife, on the
exercise of legal guardianship over the property of un- emancipated common child (Art. 225);
(v) the requirement for repeated physical abuse and grossly abusive conduct to constitute a
ground for legal separation (Art. 55, No. 1);
(b) the provisions of the Revised Penal Code on:
(i) adultery and concubinage (Arts. 333 and 334);
(ii) the definition of vagrants and prostitution (Art. 202);

(iii) premature marriages (Art. 351); and
(iv) on death inflicted under exceptional circumstances (Art. 247);
(c) the provisions of Section 3 (jj), Rule 131 of the Rules of Court, on disputable presumptions;
(d) the Code of Muslim Personal Laws; and
265
7*
(2) Revise gender stereotypes and images in educational

materials and curricula.2
(3) Eliminate discrimination of women in the military, police,
and other similar services,3 including revision or abolition of policies
and practices that restrict women from availing of both combat and
non-combat training, or from taking on functions other than
administrative tasks, such as engaging in combat, security-related, or
field operations.'1
(4) Protect the rights of Moro and indigenous women to
practice, promote, and preserve their own culture, traditions, and
institutions which are not discriminatory to women.5
(5) Increase the number of women participating in
discussions and decision-making in the peace process, including
membership in peace panels;6
(6) Ensure the development and inclusion of women’s
welfare and concerns in the peace agenda and women’s participation
in the planning, implementation, monitoring, and evaluation of
rehabilitation and rebuilding of conflict- affected areas;7
(7) Give special consideration for the specific needs of
women in conflict-affected communities;8
(8) Adopt measures to:
(a) protect girl-children from all forms of abuse and
exploitation;
(b) eliminate all forms of discrimination against girl-
children in education, health and nutrition, and skills development;
(e) R.A. No. 8353, on removal of criminal liability of rapist when victim marries him (Sec.
15, Rules and Regulations Implementing the Magna Carta of Women).
2
Sec. 13, R.A. No. 9710.
3
Similar services include the Bureau of Fire Protection (BFP), Bureau of Jail Management and
Penology (BJMP), National Bureau of Investigation (NBI), Philippine Drug Enforcement Agency
(PDEA), other agencies with law enforcement functions, and private security agencies (Sec. 7 [W],
Rules and Regulations Implementing R.A. No. 9710).
4
Sec. 15, Magna Carta of Women.
5
Sec. 28, ibid.
6
Sec. 29 (a), ibid.
7
Sec. 29 (b), Magna Carta of Women.
8
Sec. 29 (c), ibid.
CHAPTER 10 26
(c) ensure equal access of Moro and indigenous girl-children in the

Madaris, schools of living culture and traditions, and the regular school-
ed) develop gender-sensitive curriculum and books in the Madaris and
schools of living culture and traditions; and
(e) ensure the sensitivity of regular schools to particular Moro and

indigenous practices, such as fasting in the month of Ramadan, choice of
clothing (including the wearing of hijab), and availability ofhalal food.9
The rights of women

In general, all women are entitled to enjoy all the rights under the Constitution,
including those rights recognized under international instruments duly signed and
ratified by the Philippines.10
Equal Rights in All Matters Relating to Marriage and Family Relations
Women are entitled to enjoy equal rights pertaining to marriage and family relations,
specifically;
(a) right to enter into and leave marriages or common law relationships
referred to under the Family Code, without prejudice to personal or religious
beliefs;
(b) right to freely choose a spouse and to enter into marriage only with
their free and full consent. The betrothal and the marriage of a child shall have no
legal effect;
(c) right to decide jointly with their partners on the number and spacing
of their children;
(d) right to enjoy the same personal rights as their spouses or their
common law spouses;
(e)right to freely choose a profession or occupation;
(f)right to enjoy same rights as their spouses or their common
law spouses with respect to ownership, acquisition, management,
administration, enjoyment, and disposition of property;
e
Sec. 32,
ibid.
1D
Sec. 8,
ibid.
(g) right to enjoy the same rights to properties, whether titled

or not, and inheritance, whether formal or customary; and
(h) right to enjoy equal rights with men in acquiring, changing,
or retaining their nationality. Neither marriage to an alien nor change of
nationality' by the husband during marriage can automatically change
the nationality of the wife, much less force upon her the nationality of
the husband, or render her stateless.11
Right to Be Protected From All Forms of Violence

All government agencies are mandated to give priority' to the defense
and protection of women against gender-based offenses. To attain this
objective, the law mandates the pursuance of the following measures:
(a) 50% of the personnel in the police force, legal services, forensics
and medico-legal services, and social services should be women, so that women who
are victims of gender-related violence cam properly be assisted;
(b) In situations of emergency, armed conflict, and militarization:

(i) women should not be required to take part in armed hostilities;
(ii) women should be given the opportunity to fully participate in the
planning and management of relief operations;
(iiij relief supplies should include the specific requirements of pregnant women,
lactating mothers, sick people, senior citizens, persons with disabilities, and children;
(iv) utmost priority should be given to cases involving pregnant, lactating
women, women with dependent children, and women with disabilities who are
detained for reasons related to armed conflict;
(v) civilian casualties should not be considered as collateral damage;
u
CHAPTER 10
269
(vi) local government units should provide tem-

porary shelters to women and children in situations of
armed conflict.
(vii) government personnel involved in the protection

and defense of women against gender-based violence should
regularly undergo mandatory training on gender and human
rights, particularly on the cycle and continuum of violence,
counseling and trauma healing;
(viii) barangays should establish a Violence Against
Women Desk to be manned by a person trained in handling
gender-sensitive cases.12
Right to he Protected in Times of Disasters, Calamities, and Other

Crisis Situations
Women are entitled to protection and security in times of disaster, calamities and other
crisis situations, especially in all phases of relief, recovery, rehabilitation, and reconstruction.
Responses to disaster situations should include psychological support, livelihood support,
education, and comprehensive health services.12
Right to Participation and Equitable Representation in All Spheres of

Society
Women have the right to participate in the formulation, implementation and evaluation of
policies, plans, and programs for national and local development. To accomplish this objective,
the State is mandated to:
(a) Ensure that 50% of 3rd level positions in the government are held by
women;
(b) Ensure that 40% of membership in all regional, provincial, city,

municipal, and barangay development councils are composed of women;
(c) Ensure that women are represented in international, national, and local
special and decision-making bodies;
l2
Sec. 9. Magna Carta of Women; Sec. 12, Rules and Regulations Implementing the
Magna Carta of Women.
13
Sec. 10, Magna Carta of Women; Sec. 13, Rules and Regulations Implementing the
Magna Carta of Women.
(d) Ensure that women are given the opportunity to represent the
government at the international level and to participate in the work of
international organizations;
(e) Provide incentives to political parties with women’s agenda; and
(0 Encourage women leadership in the private sector.1*
Right Against Dismissal or Expulsion From School Due to Pregnancy Out of

Wedlock
Expulsion or non-readmission of unmarried women teachers or faculty
members due to pregnancy is outlawed. Neither can educational institutions transfer, or
force unmarried teachers or faculty members to go on leave, simply because they got
pregnant.
Similarly, educational institutions cannot refuse admission, expel, suspend or
impose any disciplinary action against unmarried female students who get pregnant
during their term in school.
Pregnant students, teachers, faculty members, and other school personnel
should be accorded with a special leave of absence from school, upon advice of the
attending physician.16
Right to Health
This right entitles a woman to have access to the following
services:
(a) Pre-natal and post-natal services to address pregnancy and
infant health and nutrition;
(b) Promotion of breastfeeding;
(c) Ethical, legal, safe, and effective methods of family planning;
(d)
Youth sex education and health services;
(e)
Prevention and management of reproductive tract infections,
including sexually transmitted diseases, HIV, and AIDS; 14
14
Sec. 13 (c), Magna Carta of Women; Sec. 16, Rules and Regulations Imple-
ls
meriting the Magna Carta of Women.

CHAPTER 10
THE MAGNA CARTA OF WOMEN 271
(f) Prevention and management of reproductive tract cancers

like breast and cervical cancers, and other gynecological conditions
and disorders;
(g) Prevention of abortion and management of pregnancy-
related complications;
(h) Comprehensive health services for victims of violence
against women and children, such as psychosocial, therapeutic,
medical, and legal interventions and assistance towards healing,
recovery, and empowerment;
(i) Prevention and management of infertility and sexual
dysfunction pursuant to ethical norms and medical standards;
(j) Care of the elderly women beyond their child-bearing years; and
(k) Management, treatment, and intervention of mental health
problems of women."
Right to Special Leave Benefits

Women employees who have undergone surgery caused by gynecological
disorders are entitled to a special leave benefit of two ( 2) months with full pay based
on her gross monthly compensation, i.e., including mandatory allowances fixed by
the regional wage boards."
The special leave benefit for women is not cumulative and not convertible to
cash."
To be entitled to this special leave, the female employee:
(a) Must have undergone surgery due to gynecological disorder such
as, dilatation and curettage and those involving female reproductive organs,
like vagina, cervix, uterus, fallopian tubes, ovaries, breast, adnexa and pelvic
floor, as certified by a competent physician, including hysterectomy,
ovariectomy, and mastectomy, as certified by a competent physician.'*
H
’Scc. 17, Magna Carta of Women.
17
Sec. 18, Magna Carta of Women; Sec. 7 (L), Rules and Regulations Implementing the Magna
Carta of Women.
'"See. 21, Rules and Regulations Implementing the Magna Carta of Women. ’’’Department
Order No. 112-11.
/
(b) Must have rendered at least six ( 6) months continuous aggregate

employment service for the last twelve (12) months prior to surgery;
(c) Must file an application for special leave with the employer within
a reasonable time from expected date of surgery or within such period as may be
provided under company policies or collective bargaining agreement .20
Right Against Discriminatory and Derogatory Portrayal in Media and Film

To realize this right, all media organizations and corporations are required to:
(a) integrate into their human resource development components
regular training on gender equality and gender- based discrimination;
(b) create and use gender equality guidelines in all aspects of
management, training, production, information, dissemination, communication,
and programming; and
(c) convene a gender equality committee that will promote gender
mainstreaming as a framework and affirmative action as a strategy, and monitor
and evaluate the implementation of gender equality guidelines.21
Right to Decent Work

Decent work involves opportunities for work that are productive and fairly
remunerative as family living wage, security in the workplace, and social protection for
families, better prospects for personal development and social integration, freedom for
people to express their concerns, organize, participate in the decisions that affect their
lives, and equality of opportunity and treatment for all women and men .22
To enable women to balance their family obligations and work responsibilities,
employers in both public and private sectors are obliged to provide support services at
the workplace, such as:
(a) day care and child minding centers;
1;
Sec. 21, Rules and Regulations Implementing the Magna Carta of Women.
21
22
Sec. 22 (a), Magna Carta of Women.
CHAPTER 10 273
(b) breastfeeding or lactation stations with appropriate facilities;
(c) nursing/lactatlon breaks;

(d) health education;
(e) counseling on breastfeeding, seminars on responsible parenthood and
family planning;
(f) non-sexist child-rearing;
(g) shared parenting and family responsibility;
(h) annual family day;
(i) flexible work arrangements; and
(j) anti-sexual harassment initiatives.23
Right to Resources for Food Production

This right entails the following:
(a) Equal status for women in the titling of the land and issuance of stewardship
contracts or patents.
NOTE: Where the properties form part of the conjugal partnership of gains or
absolute community of property, the names of both spouses should be entered in the Certificate
of Title preceded by the word '*spouses.
If the parties are not legally married, the names of both parties should be entered in the
Certificate of Title with the conjunctive word “and” between their names.24
(b) Equal treatment to women-beneficiaries of the agrarian reform program, wherein the
vested right of a woman agrarian reform beneficiary is defined by a woman’s relationship to
tillage, i.e., her direct and indirect contribution to the development of the land;
(c) Equal rights to women in the enjoyment, use, and management of land, water, and
other natural resources within their communities or ancestral domains shall be guaranteed;
23
Sec. 25, A. 3, a, Rules Implementing the Magna Carta of Women.
2<
Sec. 23, B. I a, Rules and Regulations Implementing Che Magna Carta of Women.
(d) Equal access to the use and management of fisheries and aquatic
resources;
(e) Equal status for women in the issuance of stewardship or lease
agreements and other fishery rights that may be granted for the use and
management of coastal and aquatic resources;
(f) Equal treatment to women’s organizations as with other
marginalized fishers organizations in the issuance of stewardship or lease
agreements or other fishery rights for the use and management of such coastal
and aquatic resources which may include providing support to women-engaged
coastal resources;
(g) Equal rights to membership in farmers’ organizations to ensure
wider access to and control of the means of production;
(h) Recognition of the customary rights of women to the land,
including access to and control of the fruits and benefits, in circumstances
where private ownership is not possible, such as ancestral domain claims;
(i) Access at all times to information and assistance in claiming rights
to the land;
(j) Non-discrimination in the deputization of fish wardens;
(k) Women-friendly design for agriculture technology based on
accessibility and viability in consultation with women’s organizations;
(l) Access to small farmer-based and controlled seeds production and
distribution;
(m) Recognition, protection and encouragement of indigenous practices
of women in seed storage and cultivation;
(n) Opportunities for empowering women fishers to be involved in the
control and management, not only of the catch and production of aquamarine
resources but also, to engage in entrepreneurial activities which will add value to
production and marketing ventures; and
(o) Economic opportunities to indigenous women, particularly access
to market for their produce.25
25
CHAPTER 10
Right to Livelihood, Credit, Capital, and Technology This right

entails the following:
(a) Equal access to formal sources of credit and capital;

(b) Equal share to the produce of farms and aquatic resources; and
(c) Employment opportunities, skills and entrepreneur- ship development for
returning women migrant workers
Right to Education and Training This right entails the following:

(a) Skills training for women migrant workers before taking on a foreign
job, and possible retraining upon return to the country, if they so desire;
(b) Gender-sensitive trainings and seminars; and
(c) Equal opportunities in scholarships based on merit and fitness,
especially to those interested in research and development aimed towards women-
friendly farm technology,27
Right to Information
All government agencies, instrumentalities, and local government units are obliged to develop and
make available information, education and communication materials on their specific programs,
services and funding outlays on women’s empowerment and gender equality. These information shall be
translated in major Filipino dialects and disseminated to the public, especially in remote or rural areas.”
Right to Housing
This right mandates the State to develop housing programs for women that are:
(a) localized, simple, secure and accessible;
(b) with potable water and electricity;
”Soc. 23. ibid.

■'Sec. 24, Mngnn Carta of Women.
«“Soc. 29, Rules and Regulations Implementing the Magna Carta of Women.
(c) with viable employment opportunities; and

(d) affordable amortization."
Right to Representation and Participation in Policy-Making Bodies

Women are entitled to participate in policy-making or decisionmaking bodies
in the regional, national, or international levels .50
To fully realize this right, concerned agencies, in cooperation with women’s
organizations are required to implement capabilitybuilding and leadership formation
programs to enable grassroots women leaders to effectively participate in decision
and policymaking in agencies, like:
(a) Presidential Agrarian Reform Council (PARC), Provincial
Agrarian Reform Coordinating Committee (PARC- COM), or Barangay
Agrarian Reform Committee (BARC);
(b) National Agricultural and Fishery' Council (NAFC) and its
regional and local counterparts;
(c) National Fisheries and Aquatic Resources Management
Council (NFARMC) and its regional and local counterparts;
(d) National Commission on Indigenous Peoples (NCIP);
(e) Presidential Commission for the Urban Poor (PCUP) for
membership in its Board of Commissioners;
(f) Local Housing Boards (LHBs), whenever applicable;
(g) National Anti-Poverty Commission (NAPC) Basic Sectoral
Councils; and
(h) Community-based resource management bodies or mechanisms
on forest management and stewardship.
The NAPC shall ensure that its sectoral councils shall have at least thirty
percent (30%) women membership and shall have gender equality concerns
incorporated in their sectoral agenda." * 31
2
t
t31
Sec. 27, Rules and Regulations Implementing the Magna Carta of
Women.
——
CHAPTER 10 277
Rights of “Women in Especially Difficult Circumstances”

“Women in Especially Difficult Circumstances” refers to victims and
survivors of sexual and physical abuse, illegal recruitment, prostitution, trafficking,
armed conflict, women in detention, victims and survivors of rape and incest, and
such other related circumstances which have incapacitated them functionally.
This right mandates local government units to deliver the following
necessary services and interventions to WEDC under their respective jurisdictions:
(a) Temporary and protective custody;
(b) Medical and dental services;
(c) Psychological evaluation;
(d) Counseling;
(e) Psychiatric evaluation;
(f) Legal services:
(g) Productivity skills capability building;
(h) Livelihood assistance;
(i) Job placement;
(j) Financial assistance; and

(k) Transportation assistance.32
Right of Women Senior Citizens to Protection

Women senior citizens are entitled to be protected from neglect, abandonment, domestic
violence, abuse, exploitation, and discrimination. Towards this end, the State shall ensure special
protective mechanisms and support services against violence, sexual abuse, exploitation, and
discrimination of older women.33
3Z
Secs. 30 and 31, Magna Carta of
Women.
33
Sec. 33, ibid.
Sanctions
Public and private entities and individuals found to have committed
discrimination against women are subject to the sanctions. 34 *
If the Commission on Human Rights finds that a department, agency, or
instrumentality of government, government-owned and -controlled corporation, or
local government unit has violated any provision of the Magna Carta of Women and its
implementing rules and regulations, the sanctions under administrative law, civil
service, or other appropriate laws shall be recommend to the Civil Service Commission
and/or the Department of the Interior and Local Government. The person directly
responsible for the violation as well as the head of the agency or local chief executive
shall be held liable.
If the violation is committed by a private entity or individual, the person
directly responsible for the violation shall be liable to pay damages.
The filing a complaint under Magna Carta of Women will not preclude the
offended party from pursuing the remedies available under existing laws especially
those laws protecting women and children, such as the:
(a) Women in Development and Nation Building Act;36 37
(b) Special Protection of Children Against Child Abuse,
Exploitation and Discrimination Act;36
(c) Anti-Sexual Harassment Act of 1995
(d) Anti-Rape Law of 1997j38 *
(e) Rape Victim Assistance and Protection Act of 1998;”
(f) Anti-Trafficking in Persons Act of2003;40 41 and
(g) Anti-Violence Against Women and Their Children Act of 2004.4'
3,
Sec. 35, Magna Carta of
Women.
3fi
R.A. No. 7192.
”R.A. No. 7610.
37
R.A. No. 7877.
“R.A. No. 8353.
”R.A. No. 8505.
“R.A. No. 9208.
41
R.A. No. 9262.
CHAPTER 10 279
Aggravating Circumstance
Violence is perpetrated by agents of the State including, but not limited to,
extrajudicial killings, enforced disappearances, torture, and internal displacements, shall
be considered aggravating offenses with corresponding penalties depending on the
severity of the offenses.42
4I
rr-
u
CHAPTER 11
ANTI-VIOLENCE AGAINST WOMEN AND
THEIR
CHILDREN ACT OF 2004
REPUBLIC ACT NO. 9262 * (ii)
Violence against women and their children

Violence against women and their children refers to physical,
sexual, psychological, or economic abuse committed by a person:
(a) against a woman:

(i) who is his wife or former wife; or
(ii) with whom he has or had a sexual or dating
relationship; or
(iii) with whom he has a common child,

against her child, whether legitimate or illegitimate,
(b)
who is:
(i) below 18 years old; or

(ii) above 18 years old but are incapable of taking care of
himself.
Violence against women and their children is not confined to physical
violence. It includes sexual violence, psychological violence or economic abuse.
The victim need not necessarily be the wife or former wife — she could be any
woman whom the offender had:
(a) sexual relationship; or
(b) dating relationship.
Sexual relationship can exist even if there was only a single sexual act,
regardless of whether it resulted in the bearing of a common child.
280
CMAI'I Kk i 1 !sM
ANTI-VIOIJONCK AGAINST WOMBS AN I; niKIH
CHII.OkhN AO'I OK
Dating relationship neither refers to casual acquaintance nor to ordinary

Hociali/.ation in a business or social context, It refers to a situation where the parties:
(a) live as husband and wife without the benefit of marriage; or
(b) are romantically involved over time and on a continuing basis.'
Physical violence
Physical violence is the infliction of bodily harm. It could be in the form of
battery, assault, coercion, harassment, arbitrary deprivation of liberty.
Battery refers to an act of inflicting physical harm upon the woman or her child
resulting to physical and psychological or emotional distress .2
Sexual violence
Sexual violence can be in the form of:
(a) rape, sexual harassment, acts of lasciviousness;
(b) treating the woman/child as a sex object;
(c) making demeaning and sexually suggestive remarks;
(d) physically attacking the sexual parts of the body;
(e) forcing woman/child to watch obscene publications and indecent
shows;
(f) forcing the woman/child to do indecent acts or make films
thereof;
(g) forcing the wife and mistress/lover to live in the conjugal home or
sleep together in the same room with the abuser;
(h) acts causing or attempting to cause the victim to engage in any
sexual activity by force, threat of force, physical or other harm or threat of
physical or other harm or coercion;
‘See. 3, Anti-Violence Against Women and Their Children Act of 2004. 'Sec. 3, MiL
(i) prostituting the woman/child.3
Psychological violence
Psychological violence refers to acts or omissions causing or likely to cause mental
or emotional suffering of the victim such as:
(a) intimidation;
(b) harassment;
(c) damage to property;
(d) public ridicule or humiliation;
(e) repeated verbal abuse;
(f) marital infidelity;
(g) causing or allowing the victim to witness the physical, sexual or
psychological abuse of a member of the family to which the victim belongs;
(h) causing or allowing the victim to witness pornography in any form;
(i) causing or allowing the victim to witness abusive injury to pets;
(j) unwanted deprivation of the right to custody and/or visitation of
common children; or
(k) stalking.
NOTE: Stalking is the act of following the woman or her child or putting
the woman or her child under surveillance without justification .4
Economic abuse
Economic abuse refers to acts that are intended to make the woman financially
dependent, such as:
(a) withdrawal of financial support;
(b) preventing the woman from engaging in any legitimate profession,
occupation, business or activity, except in
3
Sec. 3, Anti-Violence Against Women and Their Children Act of 2004.
4
Sec. 3. ibid.
CHAPTER 11 283
ANTI-VIOLENCE AGAINST WOMEN AND THEIR
cases wherein the other spouse/partner objects on valid, serious and moral
grounds as defined in Article 73 of the Family Code;
(c) deprivation or threat of deprivation of financial resources,
including the right to the use and enjoyment of the conjugal, community
or property owned in common;
(d) destroying household property;
(e) controlling the victim's own money or properties or solely controlling

the conjugal money or properties.5
Remedies of victims of violence against women and their children

The remedies available to victims of violence against women and their children are
as follows:
(a) Criminal action;
(b) Criminal action with reservation of a separate civil action; or
(c) Civil action for damages;
(d) Protection order without claiming damages.6
The crime of violence against women and their children

The crime of violence against women and their children is
committed through any of the following acts:
(a) Causing physical harm to the woman or her child;7
B
Ibid.
8
Sec. 6, A.M. No. 04-10-11-SC, Rule on Violence Against Women and Their Children.
7
1(
These acts if constituting attempted, frustrated or consummated parricide or murder or l:i ;]
r'i]
homicide shall be punished in accordance with the provisions of the Revised Penal Code.
If the acts resulted in mutilation, it shall be punishable in accordance with the Revised Penal
Code;
If the acts constitute serious physical injuries the penalty is prision mayor;
If the acts constitute less serious physical injuries the penalty is prision cor-
reccional;
If the actB constitute slight physical injuries the penalty is a rres to mayor (Sec.
6 [a], Anti-Violence Against Women and Their Children Act of2004).
(b) Threatening to cause the woman or her child physical harm;8 9

(c) Attempting to cause the woman or her child physical harm;8
(d) Placing the woman or her child in fear of imminent physical
harm;10
(e) Compelling or attempting to compel the woman or her child:
(i) to engage in conduct which the woman/her child has the
right to desist from; or
(ii) to desist from conduct which the woman/her child has the
right to engage in.
(f) Restricting or attempting to restrict the freedom of movement
of the woman or her child by force, threat, or intimidation, such as:
(i) Threat to deprive or actually depriving the woman or
her child of custody or access to her/his family;
(ii) Threat to deprive or actually depriving the woman or
her child of financial support legally due her or her family;
(iii) Deliberately providing the woman’s children
insufficient financial support;
(iv) Threat to deprive or actually depriving the woman or
her child of a legal right;
8
The prescriptive period for these acts is 20 years (Sec. 24, Anti-Violence Against Women and Their
Children Act of2004).
These acts are punishable by imprisonment of two (2) degrees lower than the prescribed penalty for the
consummated crime as specified but shall in no case be lower than arresto mayor (Sec. 6 [a], Anti-Violence Against
Women and Their Children Act of2004).
The prescriptive period for these acts is 20 years (Sec. 24, Anti-Violence Against Women and Their
Children Act of2004).
9
The penalty for this is arresto mayor (Sec. 6 [b], Anti-Violence Against Women and Their Children
Act of2004).
The prescriptive period for these acts is 20 years (Sec. 24, ibid).
10
The penalty for this is arresto mayor (Sec. 6 [b], ibid).
The prescriptive period for these acts is 20 years (Sec. 24, ibid).
CHAPTER 11 285
(v) Preventing the woman from engaging in any legitimate profession,

occupation, business or activity1;
(vi) Controlling the money or properties of the woman or her child, or
solely controlling the conjugal or common money, or properties ;11
(g) Inflicting or threatening to inflict physical harm on oneself for the purpose
of controlling her actions or decisions;12
(h) Causing or attempting to cause the woman or her child to engage in any
sexual activity which does not constitute rape, by force or threat of force, physical harm,
or through intimidation directed against the woman or her child or her/ his immediate
family;13
(i) Engaging in purposeful, knowing, or reckless conduct, personally or
through another, that alarms or causes substantial emotional or psychological distress to
the woman or her child, such as:
(i) Stalking or following the woman or her child in public or private
places;
(ii) Peering in the window or lingering outside the residence of the
woman or her child;
(iii) Entering or remaining in the dwelling or on the property of the
woman or her child against her/his will;
(iv) Destroying the property and personal belongings or inflicting harm
to animals or pets of the woman or her child; and
(v) Engaging in any form of harassment or violence;14
(j) Causing mental or emotional anguish, public ridicule or humiliation to the
woman or her child, such as repeated
“The penalty for this is prision correctional (Sec. 6 [c], ibid). The prescriptive period is 20 years (Sec.
24, It.A. No. 9262).
“The penalty for this is arresto mayor (Sec. 6 [d], ibid).
The prescriptive period is 20 years (Sec. 24, ibid).
13
The penalty for this is prision mayor (Sec. 6 [e], ibid).
The prescriptive period is 10 years (Sec. 24, ibid).
“The penalty for this is prision mayor (Sec. 6[f], Anti-Violence Against Women nnd Their Children
Act of2004).
The prescriptive period is 10 years (Sec. 24, ibid.)
verbal and emotional abuse, and denial of financial support or custody of minor
children or denial of access to the woman’s child/children .* 16
Aggravating circumstances
The penalty shall be the maximum period of the prescribed penalty if the
foregoing acts were committed:
(a) while the woman or child is pregnant; or
(b) in the presence of her child.16
Prohibited defense
Being under the influence of alcohol, any illicit drug, or any other mind-
altering substance is not a defense cases involving violence against women and their
children.17
Battered woman syndrome is a defense for the woman

“Battered Woman Syndrome” refers to a scientifically defined pattern of
psychological and behavioral symptoms found in women living in battering
relationships as a result of cumulative abuse.18 *
Women who are suffering from battered woman syndrome do not incur any
criminal and civil liability, notwithstanding the absence of any of the elements for
justifying circumstances of self- defense under the Revised Penal Code.10
However, a woman is not disqualified from having custody of her children
simply because she is suffering from battered woman syndrome. In no case shall
custody of minor children be given to the offender of a woman who is suffering from
Battered Woman Syndrome.20
Public crime
Violence against women and their children is a public offense. Therefore, it may be
prosecuted upon the filing of a complaint by any
“The penalty for this

is prision mayor (Sec.
6Sec.
l6 [f], ibid.) The
6, ibid.
,7
Sec. 27, ibid.
"Sec. 3 (c), ibid.
"Sec. 26, ibid.
“Sec. 28, ibid.
CHAPTER 11 287
citizen having personal knowledge of the circumstances involving the commission of the
crime.21
Exemption from liability

Any person, private individual or police authority or barangay official who, acting
in accordance with law, responds or intervenes without using violence or restraint greater
than necessary to ensure the safety of the victim, is not liable for any criminal, civil or
administrative liability resulting therefrom .22
No compromise on crimes involving violence against women and their

children
Compromise on any act constituting the crime of violence against women and
their children is not allowed.23
Venue of criminal action

The Regional Trial Court designated as a Family Court has original and
exclusive jurisdiction over cases of violence against women and their children.
If there is no Family Court in the place where the offense was committed, the
case shall be filed in the Regional Trial Court where the crime or any of its elements
was committed.2*
Protection Order
Victims of violence against women and their children can apply for protection
order to prevent further acts of violence against them, minimize disruption in their
daily lives, and facilitate the opportunity and ability to independently regain control
over their lives.25
The protection orders that may be in the form of:
(a) Barangay protection order (BPO);
2,
Sec. 25, ibid.
22
Sec. 34, R.A. No. 9262.
23
Sec. 23, A.M. No. 04-10-11-SC, Rule on Violence Against Women and Their
Children.
M
2SS AGRARIAN LAW AND SOCIAL LEGISLATION
(b) Temporary protection order (TPO); or

(c) Permanent protection order (PPO). M
Who can file petition for protection order?

A petition for protection order may be filed by any of the following persons:
(a) offended party;
(b) parents or guardians of the offended party;
(c) ascendants, descendants or collateral relatives within the 4th
degree of consanguinity or affinity;
(d) officers or social workers of the Department of Social Welfare and
Development or social workers of local government units;
(e) police officers, preferably those in charge of women and
children’s desks;
(f) Punong Barangay or Barangay Kagawad;
(g) lawyer, counselor, therapist or healthcare provider of the
petitioner;
(h) at least two (2) concerned responsible citizens of the city or
municipality where the violence against women and their children occurred
and who has personal knowledge of the offense committed .26 27
How to obtain a protection order?

To obtain a protection order, a written petition for a protection order signed
and verified under oath by the petitioner must be filed using the standard
protection order application form which should contain, among others, the
following information:
(a) names and addresses of petitioner and respondent;
(b) description of relationships between petitioner and respondent;
(c) a statement of the circumstances of the abuse;
26
Ibid.
27
CHAPTER II 289
ANTI-VIOLENCE AGAINST WOMEN .AND THEIR
(dj description of the reliefs requested by petitioner;
fej request for counsel and reasons for such;
(ft request for waiver of application fees until hearing;

and
(g) an attestation that there is no pending application for a protection order

in another court.
The petition for protection order may be filed as an independent action or as an
incidental relief in the civil or criminal case.
If the applicant is not the victim, the application must be accompanied by an affidavit
of the applicant attesting to:
(a.) the circumstances of the abuse suffered by the victim; and
(h) the circumstances of consent given by the victim for the filing of the
application. When disclosure of the address of the victim will pose danger to her life,
it shall be so stated in the application. In such a case, the applicant shall attest that the
victim is residing in the municipality or city over which court has territorial
jurisdiction, and shall provide a mailing address for purposes of service processing.
An application for protection order filed with a court shall be considered an
application for both a TPO and PPO.
Barangay officials, and court personnel are obliged to assist applicants in the
preparation of the petition for protection order .28
Barangay Protection Order (BPO)

The application for a BPO should be filed with the barangay where the applicant
resides. The place of residence may include the place where the victim-survivor temporarily
resides or where she sought refuge/sanctuary to escape from and avoid continuing violence
from the respondent.29
The Purumg Barangay should issue the BPO on the date of filing of the application,
after an ex parte determination of the basis of the application.
“"Hoc. It, ibid.

au
8ec. IF,, RUICH and Regulations Implementing R.A. No. 9262.
If the Punong Barangay is not available, the application for BPO shall be
acted upon by any available Barangay Kagawad, in which case, the BPO must
contain an attestation by the Barangay Kagawad that the Punong Barangay was
unavailable at the time for the issuance of the BPO.
Immediately after the issuance of an ex parte BPO, the Punong Barangay or
Barangay Kagawad shall personally serve a copy of the same on the respondent,
or direct any barangay official to effect its personal service. 30
The BPO is effective for fifteen (15) days. It is enforceable within the barangay
that issued the BPO.
Within twenty-four (24) hours after the issuance of the BPO, the Punong
Barangay, or in his absence or inability, any available Barangay Kagawad shall assist
the applicant in filing an application for a TPO or PPO with the nearest court in the
place of residence of the victim-survivor.31 32
BPOs Must Be Recorded in a VA WC~2 Logbook

All BPOs must be recorded in a logbook specifically for cases of violence
against women and their children. The logbook is confidential and must be kept
from the public especially the media.
A quarterly report of all BPOs must be submitted to the local office of the
Department of the Interior and Local Government (DILG). The DILG shall submit
a summary report of the BPOs issued to the Secretariat of the Inter-Agency Council
on Violence Against Women and Their Children.
Remedy for Violation of a Barangay Protection Order

If the BPO is violated, the Punong Barangay or Kagawad who issued the
BPO must file a complaint for directly with any Municipal Trial Court,
Metropolitan Trial Court, or Municipal Circuit Trial Court that has territorial
jurisdiction over the barangay that issued the BPO.
30
The Punong Barangay shall also furnish a copy of all BPOs to the Philippine
National Police-Women and Children Protection Desks (PNP-WCPD) who has juris-
diction in the city or municipality and shall be entered in a logbook for that purpose.
31
32
Violence Against Women and Their Children.
11 jt-.
a;* nvifTiJzuy, against woitzs uta TKZIZ
CHllJjicZS A.C7 Of aX/4
If the PunonqBarangay or Ksigtvjxid or harengay orfscial refuses to file a
complaint for a violation of a BPO, the survivor/applicant can file such complaint,
without prejudice to the appropriate administrative, civil, or criminal action against
the barangay official concerned.
Violation of a BPO is punishable by imprisonment of thirty 1301 days
without prejudice to any other criminal or er.il action that the offended party may
file for any of the acts committed.
A judgment of violation of a BPO may be appealed axxordingto the Rules of
Court. During trial and upon judgment, the trial court where the petition is filed
may rnotu proprio issue a protection order as it deems necessary without need of an
application.13
Judicial Protection Order

The offended party can also ask for a judicial protection order by filing a verified
petition with the Family Court of the place where the offended party resides.
If there is no existing Family Court, the petition can be filed with the regional trial
court, metropolitan trial court, municipal trial court in cities, municipal trial court or municipal
circuit trial court with territorial jurisdiction over the place of residence of the offended
party.*4
The mere fact that there is a pending application for BPO or that the petitioner was
already able to obtain a BPO, does not bar the filing a petition for protection order with the
courts. Neither will it preclude the court from granting the petition for protection order.35
No docket fees and other fees shall be charged for petitions for protection order if the
offended party is:
fa) an indigent; or
fb) in imminent danger or threat of danger.36
»8<;c. 16, Rules and Regulations Implementing R.A. No. 9262.

’“Sec, 9, A.M. No. 04-10-11-SC, Rule on Violence Against Women and Their
Children.
“Sec. 8, Anti-Violence Against Women and Their Children Act of 2004.
^-Hec. 18, A.M. No. 04-10-11-SC, Rule on Violence Against Women and Their Children.
292 AGRARIAN I AW AND SOCIAL LEGISLATION
Issuance of Temporary Protection Order (TPO)

If the court is satisfied from the verified allegations of the petition that there is
reasonable ground to believe that an imminent danger of violence against women and
their children exists or is about to recur, the court may issue a TPO ex parte. The
TPO is effective for thirty (30) days from service on the person sought to be
enjoined.37
The respondent may file an opposition to the petition per sonally verified by
him, accompanied by the affidavits of his witnesses, but he cannot file the following
pleadings or motions:
(a) Counterclaim, cross-claim, or third-party complaint;
(b) Motion to dismiss the petition, except on the ground of lack of
jurisdiction over the subject matter or over the parties;
(c) Motion for extension of time to file opposition, affidavit, and
other pleadings;
(d) Dilatory motion for postponement;
(e) Motion for a bill of particulars;
(f) Third-party complaint;
(g) Reply;
(h) Motion to declare the respondent in default;
(i) Intervention;
(j) Memorandum;
(k) Petition for certiorari, mandamus or prohibition against any
interlocutory order issued by the court;
(l) Motion for new trial, or for reconsideration of a protection
order, or for reopening of trial; and
(m) Petition for relief from judgment.
Preliminary Conference
A mandatory preliminary conference shall be conducted during which, the propriety of issuing a
protection order will be determined.
ni
Soc. 15, ibid.
:w
Soch. 20 find 22, A.M. No. 04-10-21-SC, Rule on Violence Against Women and Their
Children.
CHAPTER 11 293
ANTI-VIOLENCE AGAINST WOMEN
AND THEIR
If the petitioner fails to personally appear during the preliminary conference, the
petition shall be dismissed, unless the counsel or a duly authorized representative of the
petitioner appears in court and gives a justifiable reason for the non-appearance of the
petitioner. However, if the petition is filed by a person other than the offended party, it
shall not be dismissed if the offended party is present and does not agree to its
dismissal.
On the other hand, if the respondent appears without counsel, the court shall
not reschedule or postpone the conference but shall appoint a lawyer for the respondent
and immediately proceed with the preliminary conference.
If the respondent has filed his opposition but fails to appear despite proper
notice, the petitioner shall be allowed to present evidence ex parte. The court shall then
render judgment on the basis of the pleadings and evidence on record .39
Hearing of the Petition

If the court finds it necessary to conduct a hearing, the Revised Rule on
Summary Procedure shall apply as far as practicable.40
The testimony of an adult female victim of violence may be taken by live-link
television, if it appears that she would suffer trauma if she were to testify in the
presence of the offender or perpetrator. Likewise, the testimony of an eyewitness-child
may be taken by live-link television if warranted by circumstances .41
History of respondent’s abusive conduct may be admitted in evidence even if
the same was not directed against the victim, as long as it is relevant .42
The court hearing a petition for a protection order cannot order or in any way
unduly influence the petitioner to compromise or abandon any of the reliefs sought in
the petition for protection.43
39
Sec. 23, ibid.
40
Sec. 23, ibid.
41
Sec. 28, ibid.
42
Sec. 26, ibid.
43
Sec. 33, Anti-Violence Against Women and Their Children Act of 2004; Sec. 27, A.M. No. 04-
10-1X-SC, Rule on Violence Against Women and Their Children.
Issuance of a Permanent Protection Order (PPO)

If the court finds the petition meritorious, the court will render a judgment 44
granting permanent protection against acts of violence and other necessary reliefs .45
The judgment ordering permanent protection is immediately executory .46
Reliefs that may he granted under a Protection Order

The following reliefs may be granted under the protection order:
(a) Directive prohibiting the respondent from committing or
threatening to commit any act of violence, whether personally or through
another;
(b) Directive prohibiting the respondent from harassing, annoying,
telephoning, contacting or otherwise communicating with the petitioner,
directly or indirectly;
(c) Directive removing or excluding of the respondent from the
residence of the petitioner, regardless of ownership of the residence, either
temporarily or permanently where no property rights are violated. If respondent
must remove personal effects from the residence, the court shall direct a law
enforcement agent to accompany the respondent to the residence, remain there
until respondent has gathered his things and escort respondent from the
residence;
(d) Directive for the respondent to stay away from petitioner and any
designated family or household member at a distance specified by the court,
and to stay away from the residence, school, place of employment, or any
specified place frequented by the petitioner and any designated family or
household member;
44
The judgment shall be rendered within thirty (30) days from the termination of the
hearing on the merits. If no hearing has been conducted, the court shall decide the petition within
ten (10) days from the termination of the preliminary conference (Sec. 29,A.M. No. 04-10-ll-SC,
Rule on Violence Against Womenand Their Children).
45
Sec. 30, A.M. No. 04-10-11-SC, Rule on Violence Against Women and Their Children.
Sec. 30, ibid.

46
CHAI'TBK 11 2&5
ANTI-VIOLENCK AGAINST WOMEN ANDTHEJK
CIIILDKEN ACT OK 2<M
(e) Directive for the petitioner to possess and use the automobile
and other essential personal effects, regardless of ownership, with order
for the appropriate Jaw enforcement officer to accompany the petitioner to
the residence of the parties to ensure that the petitioner is safely restored
to the possession of the automobile and other essential personal effects, or
to supervise the petitioner’s or respondent’s removal of personal
belongings;
(f) Directive granting temporary or permanent custody of
children to the petitioner;
(g) Directive for the respondent to provide support to the woman
and her child if entitled to legal support. Notwithstanding other laws to the
contrary, the court shall order an appropriate percentage of the income or
salary of the respondent to be withheld regularly by the respondent’s
employer for the same to be automatically remitted directly to the woman.
Failure to remit and/or withhold or any delay in the remittance of support to
the woman and/or her child without justifiable cause shall render the
respondent or his employer liable for indirect contempt of court;
(h) Directive prohibiting the respondent from any using or
possessing any firearm or deadly weapon and ordering him to surrender the
same to the court for appropriate disposition, including revocation of
license and disqualification to apply for any license to use or possess a
firearm. If the offender is a law enforcement agent, the court shall order the
offender to surrender his firearm and shall direct the appropriate authority
to investigate on the offender and take appropriate action on the matter;
(i) Restitution for actual damages caused by the violence
inflicted, including, but not limited to, property damage, medical expenses,
childcare expenses and loss of income;
(j) Directive for the Department of Social Welfare and
Development or any appropriate agency to provide petitioner temporary
shelter and other social services that the petitioner may need; and
(k) Provision of such other forms of relief as the court deems
necessary to protect and provide for the safety of the petitioner and any
designated family or household member,
296 AGRARIAN LAW AND SOCLAL LEGISLATION
provided petitioner and any designated family or hoosehoij

member consents to such relief.
Any of the foregoing reliefs can be granted even in the absent of a decree
of legal separation or annulment or declaration of absolute nullity of marriage.47
Lapse of time between the act of violence and the filing of the petition is
not a sufficient ground for the court to deny the issuance of a protection order,
unless barred by prescription.45
Acquittal of the respondent in the criminal case is not a ground to deny the
issuance of a protection order, unless it is clearly shown that the acts imputed
against the respondent were not actually committed.4*
Appeal
The aggrieved party may appeal the judgment by filing a notice of
appeal with the court that rendered the final order or judgment within fifteen
(15) days from notice. The appeal shall not stay the enforcement of the final
order or judgment.50
Bond to Keep the Peace

The Court may order the person against whom a protection order is issued
to present two (2) sufficient sureties who shall undertake that such person will not
commit the violence sought to be prevented.
Failure to post the bond as required, shall result in detention for a
period ranging from thirty (30) days to six (6) months, depending on the nature
of the act committed.61
Enforceability of protection orders

All TPOs and PPOs are enforceable anywhere in the Philip- pines.
"Sec. 8, Anti-Violence Against Women and Their Children Act of 2004.

“Sec. 23, A.M. No. 04-10-11-SC, Rule on Violence Against Women and Their Children.
"Sec. 16, Anti-Violence Against Women and Their Children Act of 2004.
'“Sec. 31, A.M. No. 04-10-11-SC, Rule on Violence Against Women and Their Children.
B1
CHAPTER XI 297
Violation of protection orders is punishable with a fine ranging from Five Thousand
Pesos (P5,000.00) to Fifty Thousand Pesos (P50,000.00i and/or imprisonment of six ( 6)
months.52
Confidentiality of Proceedings
Ail records of cases pertaining to violence against women and their children are
confidential. Whoever publishes or causes to be published, in any format, the name, address,
telephone number, school, business address, employer, or other identifying information of a
victim or an immediate family member, without the latter’s consent, shall be liable for
contempt of court and shall suffer the penalty of one Cl) year imprisonment and a fine of not
more than Five Hundred Thousand pesos (PSOO.OOO.OO).53
Custody of children
The woman victim of violence is entitled to the custody and support of her children.
The mere fact that the victim is suffering from battered woman syndrome does not disqualify
her from having custody of her children. In no case shall custody of minor children be given
to the perpetrator of a woman who is suffering from Battered Woman Syndrome.
Children below seven (7) years old or older with mental or physical disabilities shall
automatically be given to the mother, with right to support, unless the court finds compelling
reasons to order otherwise.''1
Leave for victims of violence against women and their children

Victims of violence against women and their children are entitled to take a paid
leave of absence up to ten ( 10) days in addition to other paid leaves under the Labor Code
and Civil Service Rules and Regulations, extendible when the necessity arises as specified in
the protection order.™
The leave is non-cumulative and not convertible to cash if unused.
ra
Scc. 12, ibid.
M
Scc. 44, ibid. MSet\
28, ibid. Br’Sec. 43,
ibid.
Conditions for Entitlement to Leave for Victims of Violence Against

Women and Their Children
To be entitled to the leave for victims of violence against women and their
children, the following conditions must be complied with
(a) The employee must present a certification from the Punong
Barangay /Kagawad, prosecutor or the Clerk of Court, as the case may be,
that a case for violence against women and their children is pending;
(b) The availment of the ten day-leave shall cover only the days
when she has to attend to medical and legal concerns.*
B6
CHAPTER 12
ANTI-TRAFFICKING OF PERSONS ACT OF
2003
Meaning of Trafficking in Persons

“Trafficking in Persons” refers to the recruitment, transportation, transfer,
harboring, or receipt of persons, within or across national borders, for the purpose of
exploitation, such as prostitution, forced labor, slavery, servitude, or the removal/sale
of organs, with or without the consent of the victim.
The law penalizes the following;
(a> acts of trafficking in persons;
<b) acts that promote trafficking in persons; and
(c) use of trafficked persons.
Trafficked persons are victims. As such, they are not liable for crimes directly
related to the acts of trafficking.1
Acts of Trafficking in Persons

The following are considered acts of trafficking in persons which are subject
to criminal sanctions;
(a) Recruiting, transporting, transferring, harboring, providing, or
receiving a person by any means (including those done under the pretext of
domestic or overseas employment, training or apprenticeship), for the purpose
of prostitution, pornography, sexual exploitation, forced labor, slavery, invo-
luntary servitude or debt bondage;
'Sec. 43, Rules and Regulations Implementing R.A. No. 9208.
299
(b) Introducing or matching for money, profit, or material,

economic or other consideration, any person or any Filipino woman to a
foreign national for marriage and ultimately for the purpose of acquiring,
buying, offering, selling or trading her to engage in prostitution,
pornography, sexual exploitation, forced labor, slavery, involuntary servitude
or debt bondage;
(c) Offering or contracting marriage, real or simulated, for the
purpose of acquiring, buying, offering, selling, or trading them to engage in
prostitution, pornography, sexual exploitation, forced labor or slavery,
involuntary servitude or debt bondage;
(d) Organizing tours and travel plans consisting of tourism packages
or activities for the purpose of utilizing and offering persons for prostitution,
pornography or sexual exploitation;
(e) Maintaining or hiring a person to engage in prostitution or
pornography;
(f) Adopting or facilitating the adoption of persons for the
purpose of prostitution, pornography, sexual exploitation, forced labor,
slavery, involuntary servitude or debt bondage;
(g) Recruiting, hiring, adopting, transporting or abducting a
person, by means of threat or use of force, fraud, deceit, violence,
coercion, or intimidation for the purpose of removal or sale of organs of
said person; and
(h) Recruiting, transporting or adopting a child to engage in armed
activities in the Philippines or abroad.2
Acts that promote Trafficking in Persons

The following acts which promote or facilitate trafficking in persons are also
subject to criminal sanctions:
(a) Knowingly leasing, subleasing, using or allowing the use of
any house, building or establishment for the purpose of promoting
trafficking in persons;
2
Sec, 4, Anti-Trafficking ol Persons Act of 2003.
The penalty for this is 20 vears imprisonment and a fine ranging from
PI,000,000.00 to P2.000,000.00 (Sec. 10. [a], R.A. No. 9208).
CHAPTER 12 301
(b) Producing, printing, issuing or distributing unissued, tampered

or fake counseling certificates, registration stickers or certificates of any
government agency as proof of compliance with government regulatory and
pre-departure requirements for the purpose of promoting trafficking in
persons;
(c) Advertising, publishing, printing, broadcasting, distributing, or
causing the advertisement, publication, printing, broadcasting or distribution
of any brochure, flyer, or propaganda material that promotes trafficking in
persons, including the use of information technology and the internet to
promote trafficking in persons;
(d) Assisting in the conduct of misrepresentation or fraud for
purposes of facilitating the acquisition of clearances and necessary exit
documents from government agencies that are mandated to provide pre-
departure registration and services for departing persons for the purpose of
promoting trafficking in persons;
(e) Facilitating or assisting in the exit from and entry to the
country at international and local airports, territorial boundaries and
seaports of persons who are in possession of unissued, tampered or
fraudulent travel documents for the purpose of promoting trafficking in
persons;
(f) Confiscating, concealing, or destroying the passport, travel
documents, personal documents or belongings of trafficked persons in
furtherance of trafficking or to prevent them from leaving the country or
seeking redress from the government or appropriate agencies; and
(g) Knowingly benefitting from or making use of, the labor or
services of a person held to a condition of involuntary servitude, forced
labor, or slavery.3
Qualified Trafficking in Persons

The following are considered as qualified trafficking in persons which will
subject the offender to a heavier penalty:
(a) When the trafficked person is a child;
3
Sec. 5, Anti Trafficking of Persons Act of 2003.
The penalty for this is 15 years imprisonment and a fine ranging from
P500.000.00 to PI,000,000.00 (Sec. 10, [b], R.A. No. 9208).
(b) When the adoption is effected through Republic Act No. 8043,
otherwise known as the “Inter-Country Adoption Act of 1995” and said
adoption is for the purpose of prostitution, pornography, sexual exploitation,
forced labor, slavery, involuntary servitude or debt bondage;
(c) When the offender is an ascendant, parent, sibling, guardian ora
person who exercises authority over the trafficked person or when the
offense is committed by a public officer or employee;
(d) When the crime is committed by a syndicate, or in large scale;
NOTE: Trafficking is deemed committed by a syndicate if carried out by a

group of three (3) or more persons conspiring or confederating with one another.
Trafficking is deemed committed in large scale if committed against three (3) or more
persons, individually or as a group.
(e) When the trafficked person is recruited to engage in

prostitution with any member of the military or law enforcement agencies;
(f) When the offender is a member of the military or law
enforcement agencies; and
(g) When by reason or on occasion of the act of trafficking in
persons, the offended party dies, becomes insane, suffers mutilation or is
afflicted with Human Immunodeficiency Virus (HIV) or the Acquired
Immune Deficiency Syndrome (AIDS).*
Use of Trafficked Persons

Any person who buys or engages the services of trafficked persons for
prostitution shall be penalized as follows:
(a) First offense — six (6) months of community service as may
be determined by the court and a fine of Fifty thousand pesos (P50,000.00);
and
*Sec. 6, Anti-Trafficking of Persons Act of 2003.

The penalty for this is life imprisonment and a fine ranging from P2,000,000.00
to P5,000,000.00 (Sec. tO, [b], Rji. No. 9208).
T *
CHAPTER 12 303
ANTI-TRAFFICKESG OF PERSONS ACT OF 2003
(b) Second and subsequent offenses — Imprisonment of one (1) year and
a fine of One hundred thousand pesos fPl00,000.00
Venue of criminal action

Criminal action arising from violation of the Anti-Trafficking in Persons Act should
be filed in the place where:
(a) the offense was committed;
(b) any of its elements occurred; or
(c) the trafficked person actually resides at the time of the commission of
the offense.
The court where the criminal action is first filed shall acquire jurisdiction to the
exclusion of other courts.6
Who may file a complaint?
Complaints for violations of the Anti-Trafficking Act may be filed by the
following:
(a) Any person who has personal knowledge of the commission of the
offense;
(b) The trafficked person or the offended party;
(c) Parents or legal guardians;
(d) Spouse;
(e) Siblings; or
(f) Children.7
Immunity from criminal prosecution

Any person who has personal knowledge in the commission of any of the
offenses penalized under the Anti-Trafficking in Persons Act and who voluntarily
gives material information relative thereto and willingly testifies against the offender
shall be exempt from prosecution for the offense with reference to which his
information and testimony were given, subject to the following conditions:
“Sec. 11, Anti-Trafficking of Persons Act of 2003.

"Ibid.
7
(a) The information and testimony are necessary for the

conviction of the accused; and
(b) Such information and testimony are not yet in the
possession of the State.8
Institution of Criminal and Civil Actions

Pursuant to the Revised Rules on Criminal Procedure, when a criminal action
is instituted, the civil action arising from the offense charged is deemed instituted with
the criminal action, unless the offended party waives the civil action, reserves the
right to institute it separately, or institutes the civil action prior to the criminal action .9
When the trafficked person institutes a separate civil action for the recovery of
civil damages, he/she shall be exempt from the payment of filing fees .10
Prescriptive period
As a general rule, trafficking cases prescribe in ten (10) years. However,
trafficking cases committed by a syndicate or in a large scale prescribe in twenty ( 20)
years.
The prescriptive period commences to run from the day on which the
trafficked person is delivered or released from the conditions of bondage and shall be
interrupted by the filing of the complaint or information and shall commence to run
again when such proceedings terminate without the accused being convicted or
acquitted or are unjustifiably stopped for any reason not imputable to the accused .11
Confidentiality of proceedings
Law enforcement officers, prosecutors, judges, court personnel and medical
practitioners, as well as parties to the case, are obliged to recognize the right to
privacy of the trafficked person and the accused. Towards this end, law enforcement
officers, prosecutors and judges to whom the complaint has been referred may order a
8
Sec. 45,
ibid.
9
Sec. 39,
10
Sec.
"Sec.
12.
CHAITFU 12 305
closed-door investigation, prosecution or trial, whenever necessary to ensure a

fair and impartial proceeding, and after considering all circumstances for the
best interest of the parties.
The name and personal circumstances of the trafficked person or of the
accused, or any other information tending to establish their identities and such
circumstances or information shall not be disclosed to the public.
In case of closed-door hearing or trial, it is unlawful for any person to
cause the publication of any case involving trafficking in persons in print,
broadcast, movie or information technology.11
Violation of this confidentiality will subject the offender to a penalty of 6
years imprisonment and a fine of not less than P500,000.00 but not more than
PI,000,000.00.
,2
Sec. 7, Anti-Trafficking of Persona Act of 2003.
CHAPTER 13
Meaning of sexual harassment

Sexual harassment is the act of demanding or requesting sexual favor, by a person
having authority or moral ascendancy over another, regardless of whether the demand or
request is accepted or not.1
Sexual harassment is not about a man taking advantage of a woman by reason of

sexual desire — it is about power being exercised by a superior officer over his women
subordinates. The power emanates from the fact that the superior can remove the
subordinate from his workplace if the latter would refuse his amorous advances .2
The gravamen of the offense of sexual harassment is not the violation of sexuality
but the abuse of power by the superior.3
To fall within the ambit of sexual harassment, it is not necessary that the demand,
request or requirement for sexual favor be articulated in a categorical oral or written
statement — it may be discerned, with equal certitude, from the acts of the superior. It is not
even essential that the demand, request or requirement be made as a condition for continued
employment or for promotion — it is enough that the respondent’s acts result in creating an
intimidating, hostile or offensive environment for the employee .4
'Sec. 3, Anti-Sexual Harassment Act of 1995.

’Floralde v. Court of Appeals, 337 SCRA 371.
’Philippine Aeolus Automotive v. NLRC, 331 SCRA 237.
’Domingo v. Rayala, 546 SCRA 90.
306
CHAPTER 13 307
Where can sexual harassment be committed?

Sexual harassment can be committed in:
(i) a work-related environment; or
(ii) an education or training environment.
How is sexual harassment committed in a work-related environment?

In a work-related or employment environment, sexual harassment is
committed when:
(a) sexual favor is made as a condition for:
(i) hiring, re-employment, or continued employment of an
employee; or
(ii) granting favorable terms, conditions, or privileges;
(b) When sexual advances:
(i) impair the employee’s rights or privileges under existing labor
laws; or
(ii) result in an intimidating, hostile, or offensive environment for the
employee.
(c) When refusal to grant the sexual favor results in limiting,
segregating, or classifying the employee which in any way would
discriminate, deprive, or diminish employment opportunities or otherwise
adversely affect said employee.6
How is sexual harassment committed in an education or training

environment?
In an education or training environment, sexual harassment is committed when:
(a) the sexual favor is made as a condition for:
(i) giving of a passing grade;
(ii) granting of honors and scholarships; or
(iii) payment of benefits, privileges or considerations.
“Sec. 3 (a), Anti-Sexual Harassment Act of 1995.

(b) the sexual advances result in an intimidating, hostile or offensive

environment for the trainee or apprentice.*
Who can be victims of sexual harassment?

In a work-related environment, sexual harassment can be committed against an:
(a) employee; or
(b) applicant for employment.
In an education or training environment, sexual harassment can be committed
against a person:
(a) who is under the care, custody or supervision of the offender; or
(b) whose education or training is entrusted to the offender.
Who may be liable for sexual harassment?

The following persons may be liable for sexual harassment:
(a) employer, manager, supervisor, or agent of the employer;
(b) teacher, instructor, professor, coach, or trainor;
(c) any person was has authority, influence or moral ascendancy over
another in a work or training or education environment; and
(d) any person who directs, induces or cooperates with another to
commit any act of sexual harassment.7
Obligations of employer or head of educational or training institu-

tion
Employers and the heads of educational or training institution are obliged to:
(a) Create a committee on decorum and investigation to handle cases on
sexual harassment;
e
Sec. 3 (b), ibid.
(a) management;
(b) rank-and-file employees;
(c) supervisory employees; and
(d) union, if any.
For Educational or Training Institutions — The committee on

decorum and investigation shall be composed of at least one (1) representative from:
(a) the administration;
(b) trainors, teachers, instructors, professors or coaches;
and
(c) students or trainees.8
Liability of the employer, educational or training institutions

Employers, educational or training institutions are solidarity liable for
damages arising from the acts of sexual harassment committed in the employment,
education or training environment if they do not take immediate action on any sexual
harassment that has been reported to them by the offended party.10
"Sec. '1, Anti-Sexual Harassment Act of 1995.

“Sec. 4, ibid.
\
Penalties
The penalties for violation of the Anti-Sexual Harassment Act
are:
(a) imprisonment ranging from 1 month to 6 months;
(b) fine ranging from P10,000.00 to P20,000.00; or

(c) both such fine and imprisonment at the discretion of the court.11
Prescriptive period
Action arising from the violation of the provisions of this Anti-
Sexual Harassment Act prescribes in three (3) years.12
Illustrative Cases
CIVIL SERVICE COMMISSION V. NIERRAS

545 SCRA 316
FACTS: OLGA ONA was a Secretary at the Local Water Utilities

Administration (LUWA), while PETER NIERRAS was the Acting General
Manager of Metro Carigara Water District.
On July 17, 1994, ONA was ordered by his superior to go to Leyte to

assist in the formation of the San Isidro Water District. Upon arrival at
Tacloban City, ONA was endorsed by the LUWA management to PETER
NIERRAS. Thereafter, they proceeded to San Isidro, Leyte where they
conducted a briefing for the local officials. After the briefing, ONA asked
NIERRAS where the municipal mayor would accommodate her. NIERRAS
replied that he would accommodate her in his farm in Calubian.
They then took a motorcycle to Calubian where according to ONA, NIERRAS
already made passes at her.
In Calubian, they first deposited their personal belongings in the house

of NIERRAS’ cousin where he said they would stay for the night. Thereafter,
they proceeded to the farm where NIERRAS asked a tenant to purchase liquor
and invited the tenants to a drinking spree. At around 10:00 p.m., ONA, already
feeling tired and sleepy, reminded NIERRAS that they should go back to his
cousin’s house to retire for the night. But instead of going back, NIERRAS
gave her a sleeping mat, a blanket and
ll
Sec. 7, Anti-Sexual Harassment Act of
1995.
I2
Sec. 8. ibid.
CHAPTER13
THE, ’ 1995
— “ -l- mic j’es CNA then 3efi and chose a corner

--- -*u- wJ£jdcr3 TT hcdsE- m Trw XT-T—> =2eep.
A; £K>nd — ~r i OXA was awakened when XTERRAS
1^7 cCVE beside bsT and crept underneath her blanket. To DST surprise. see
saw that XTERRAS was half-naked with his psms already unzipped. OXA
cried to ran away but NIERRAS pc_fid her and cndsr&d her to go hack to
sleep. It was only when OXA streamed ‘Ayoko, Ayako, Ayoko” that
XTERRAS stopped grabbing and polling her.
ISSUE: Is XIEKRAS guilty of sexual harassment?
HELD: XTERRAS is not guilty of sexual harassment because OXA
and XTERRAS were not employed with the same agency, hence, it cannot be
said that XTERRAS used his position to procure sexual favors from OXA
However, XTERRAS is goxky of grave misconduct
FLORALDE V. COURT OF APPEALS

337 SCRA 371
FACTS: YOLAXDA FLORALDE, XTDA VELASCO, and
XORMTTA ALAMBRA all rank-and-file employees of the Agricultural
Training Institute filed sexual harassment charges against PAULIXO RESMA
the OIC.
YOLAXDA FLORALDE declared that at around 4:00 p.m. at the
anteroom of the Director’s Office, RESMA approached her and asked hen
“Ano yan, pagkatapos ako’y pinalapit sa kanyang
klnaroroonan x xx nanatili akong nakatayo ngunit
maya-maya ay bigla na lang siyang tumayo at dinakma
ang puwit ko ng papisilpisil.” She further declared that this was
not the only incident that RESMA sexually harassed her. RESMA would also
pinch her at her side close to her bust, and whenever they met at the corridors,
RESMA would make motion as though he would embrace her.
NIDA VELASCO declared that in 1990, RESMA made her first
advances toward her. According to VELASCO, “habang binubukuan ko
po and pinto ng refrigerator sa Orosa Hall, bigla pn nya ako niyakap at
hinawakan sa maselang parte ng aking difhjdib at bigla po akong
hinalikan sa bibig. Binantaan po nya ako na kapag nagsumbong ako
ay hindi niya irerenew ang aking appointment dahil casual lang po
ako.” VELASCO further testified that RESMA would often comment that
“mamula- mula ang iyong pag-aari at fresh na fresh ka pa” and she
would answer “lolo ka na nga eh, gago ka pa.” At one time, she was
wutching a volleyball game when she felt someone touch her
•''12 AGRARIAN LAW AND SOCIAL LEGISLATION
buttocks, and when she looked back, it was RESMA, who told her “nakakagigil
ka.”
NORMELITA ALHAMBRA declared that in 1990 at around 7:00 a.m.
RESMA suddenly embraced her. ALHAMBRA further declared that: “tuwing
maglalagay ako ng tubig sa baso xa loob ng (JR biglang xumuxulpot xi Mr. Resma at
dinadakma ang puwit ko at xinaxabing guxting-guxto nya ang malalaking puwit."
ALHAMBRA also declared that at one time, “nakasuot ako ng long xleeve na rod.
at white among pants gating ako sa CIt bigla akong binaggga ni Mr. Resma at
dinakma ang aking dibdib.”
HELD: RESMA is guilty of sexual harassment.
VTLLARAMA V. NLRC
236 SCRA 283
FACTS: X was the Materials Manager of Golden Donuts Inc. Y was
her clerk typist who was only five (5) months in the service. One day, X
invited Y and the other female employees of the Materials Department to a
dinner, but the other female employees were not able to join the group. After
taking their dinner, Y thought that X would bring her home. But instead of
taking her home, X brought Y to a motel. Because of this shocking
experience, Y tendered her resignation the following week. The events and
incidents that led to her resignation were narrated by Y in her resignation
letter. This prompted the employer to conduct an investigation wherein X was
required to submit an explanation. Failing to submit a satisfactory
explanation, Golden Donuts Inc. terminated the services of X.
ISSUE: Was the dismissal valid and justified?
HELD: The dismissal is valid and justified. As managerial employee, X

is bound by a more exacting work ethics. He failed to live up to this higher
standard of responsibility when he succumbed to his moral perversity. When
such moral perversity is perpetrated against his subordinate, he provided a
justifiable ground for his dismissal for lack of trust and confidence. It is the
right, nay, the duty of every employer to protect its employees from over sexed
superiors.
PHILIPPINE AEOLUS AUTOMOTIVE V. NLRC

331 SCRA 237
FACTS: WILLIAM CHUA was the Plant Manager of Philippine
Aeolus Automotive. ROSALINDA CORTEZ was its company nurse.
CHAPTER 13 313
According to CORTEZ, as early as the first year of her

employment, CHUA already manifested a special liking for her, so much
so that she was receiving special treatment from him. CHUA would
oftentimes invite her for a date which she would as often refuse. On
many occasions, CHUA would make sexual advances — touching her
hands, putting his arms around her shoulders, running his fingers on
her arms and telling her she looked beautiful.
The special treatment and sexual advances continued during her
employment for four (4) years but she never reciprocated his flirtations,
until finally, she noticed that his attitude towards her changed. He made
her understand that if she would not give in to his sexual advances he
would cause her termination from service. CHUA made good his threat.
Her table, which was equipped with telephone and intercom units and
containing her personal belongings, was transferred without her
knowledge to a place with neither telephone nor intercom, for which
reason, an argument ensued when she confronted CHUA, resulting in
her being charged with gross disrespect.
ISSUE: Was there sexual harassment on the part of CHUA?
HELD: There was sexual harassment because the sexual advances of
CHUA resulted in a hostile or offensive working environment for CORTEZ. The
NLRC’s ruling that the alleged sexual harassment is hardly believable because it
took her almost four (4) years to expose CHUA’s sexual harassment is not correct.
Strictly speaking, there is no time period within which an employee is expected to
complain about sexual harassment. The time to do so may vary depending upon the
needs, circumstances, and more importantly, the emotional threshold of the
employee. Not many women, especially in this country, are made of stuff that can
endure the agony and trauma of a public, even corporate, scandal.
CHAPTER 14

[as amended by R.A. 9257 and 9994]
Senior Citizen
Senior citizen refers to a resident citizen of the Philippines at least sixty (60)
years old.1 It includes Filipinos with “dual citizenship” status, provided they have at
least six (6) months residency in the Philippines. 2
Privileges of Senior Citizens

Senior citizens are entitled to the following privileges:
(1) 20% discount and exemption from the value-added
tax (VAT,) for their exclusive use and enjoyment 3 of the following goods and
services:
• purchase of medicines;
[This applies to both prescription and nonprescription
drugs, whether generic or branded, including vitamins and
mineral supplements medically prescribed by the senior
citizen’s physician.]
• professional fees of attending physician;
’Sec. 1. R.A. No. 7234 as amended.

2
Sec. 5.1, Art. V, Rule III Implementing Rules And Regulations of R.A. No.
9994.
^The phrase "exclusive use and enjoyment” means “for personal consumption” only (Sec 3
[d], Art. 7, Implementing Rules and Regulations ofR.A. No. 9994).
314
CHAPTER 14 316
[This applies to all private hospitals, medical facilities,

outpatient clinics and home health care services.]
• professional fees of health workers;
[This applies to health workers which provide home health
care services as endorsed by private hospitals or employed through
home health care employment agencies,]
• medical and dental services, diagnostic and laboratory fees;
[This applies to all private hospitals, clinics, and home health
care services. The medical and dental services referred to are
eyeglasses, hearing aids, dentures, prosthetics, artificial bone
replacements like steel, walkers, crutches, wheelchairs whether
manual or electric-powered, canes/quad canes, geriatric diapers,
and other essential medical supplies, accessories and equipment, 4
oral examination, cleaning, permanent and temporary filling;
extractions and gum treatments; restoration, replacement or repo-
sitioning of teeth; or alteration of the alveolar or periodontium
process of the maxilla and the mandible that are necessary for the
diagnosis or treatment of an illness or injury.]5
• actual fare for land transportation travel;
[This covers public utility buses, utility jeepneys, taxis, Asian
utility vehicles, shuttle services and public railways, including
Light Rail Transit, Mass Rail Transit, and Philippine National
Railways.]
• actual fare for air and sea transportation;
[This applies only to advanced booking for domestic air
transport services and sea shipping vessels.]
Sec. 1 (b), Art. 7, ibid.

4
Sec, 2, (d) R.A. No. 7234, as amended; and Sec. 3 (g), Art. 7, Implementing and Regulations of R.A.
No. 9994 .
• utilization of services in hotels, restaurants and

recreation centers;
[The term “hotel” includes beach, mountain
resorts,6 and lodging establishments. In hotels or
lodging establishments, the discount is applicable for
room accommodation and other amenities, such as
hotel-based parlors and barbershops, restaurants,
massage parlor, spa, sauna bath, aromatherapy
rooms, workout gyms, swimming pools, jacuzzis, ktv
bars, internet facilities, food, drinks and other
services offered.]7
[In restaurants the discount applies to fast food or fine
dining.8 9 It covers food, drinks, dessert, and other consumable
items,8 take-out or drive-thru orders, 10 and delivery orders. But
the discount does not apply to pre-contracted party packages or
bulk orders and children’s meals which are primarily prepared
and intentionally marketed for children.]11
[In recreational centers, the discount covers rental of sports
facilities or equipment, including golfcart rentals and green fees,
or venues for ballroom dancing, yoga, badminton courts, bowling
lanes, table or lawn tennis, workout gyms, martial arts facilities.]
[Non-profit, stock golf and country clubs which are not
open to the general public, and are private and for exclusive
membership only are not mandated to give the 20% senior
citizens discount. However, if restaurants and food
establishments inside these country 7 clubs are independent
concessionaires and the foods sold are not consumable items
under club member-
s
Sec. 3 (a), Art. 7, Implementing Rules And Regulations of R.A. No. 9994,
7
Sec. 3 (a), Art. 7, ibid.
°Sec. 5.8, Rule III, Art. 5, ibid.
9
Sec. 3 (b), Art. 7, ibid.
10
Sec. 3 (0, Art. 7, ibid.
"Sec. 3 (d), Ar. 7. ibid.
CHAPTER 14 317
ship dues, they are obliged to grant the 20% senior citizens’
discount.]12
• funeral and burial services;
[The discount accrues to the beneficiary or any person who
shouldered the funeral and burial expenses of the deceased senior
citizen. Funeral and burial expenses cover the cost of casket, urn,
embalming, cremation, pick-up from the hospital morgue, transport
of the body to intended burial site and other related services such as
wake cost. The discount does not cover obituary publication and
purchase of the memorial lot.].13
• admission fees charged by theaters, cinema houses and concert halls,
circuses, carnivals, and other similar places of culture, leisure and
amusement.
(2) exemption from the payment of individual income taxes.
[This applies only to senior citizens who are minimum wage earners. 11]
(3) 5% discount on the monthly utilization of water and electricity supplied
by public utilities;
[This is available only on a per household basis regardless of the number of
senior citizens residing therein. The discount will be granted if the following conditions
are met:
(i) the meters must be registered in the name of the senior citizen
residing therein;
(ii) the monthly consumption must not exceed one hundred (100)
kilowatt hours of electricity and thirty (30) cubic meters of water. 1']
12
Sec. 4, Art. 7, ibid.
1
S
e
(4) free medical and dental services in all government facilities, subject
to the guidelines to be issued by the DOH in coordination with the
PhilHealth;
(5) exemption from training fees for socio-economic programs;
(6) educational assistance for post secondary, tertiary, post
tertiary, vocational and technical education, as well as short-term courses
for retooling in both public and private schools through provision of
scholarships, grants, financial aids, subsidies, including support for books,
learning materials, and uniform allowance, to the extent feasible, if the
senior citizen meets the minimum admission requirements;
(7) to the extent practicable and feasible, the continuance of the
same benefits and privileges given by the Government Service Insurance
System (GSIS), the Social Security System (SSS) and the Pag-Ibig, as the
case may be, as are enjoyed by those in actual service;
(8) special discounts in special programs for senior citizens on
purchase of basic commodities,16 subject to the guidelines to be issued for the
purpose by the Department of Trade and Industry (DTI) and the
Department of Agriculture (DA);
(9) express lanes in all commercial and government establishments
or in the absence thereof, priority shall be given to them; and
(10) death benefit assistance of a minimum of Two thousand pesos
(Php2,000.00) to be given to the nearest surviving relative of a deceased
senior citizen which amount shall be subject to adjustments due to inflation
in accordance with the guidelines to be issued by the DSWD.17
’“Basic Necessities refer to rice, com, bread, fresh, dried and canned fish and other marine
products, fresh pork, beef and poultry, meat, fresh eggs, fresh and processed milk, fresh vegetables, root
crops, coffee, sugar, cooking oil, salt, laundry soap, detergents, and drugs classified as essential by the
DOH and other commodities as maybe classified by the Department of Trade and Industry (DTI) and
the Department of Agriculture (DA) according to R.A. No. 7581 or the Price Act [Sec. 5.22, Art. V,
Rule III, Implementing Rules and Regulations ofR.A. No. 9994],
17
Sec. 4, R.A. No. 7234 as amended.
CHAPTER 14 319
Senior Citizen Discount and VAT Exemption applies also to credit card
payments
The 20% discount and VAT exemption also apply to purchases of goods
and services paid through credit cards.18
Conditions for availment of the senior citizens’ privileges

In the availment of the senior citizens’ privileges, the senior citizen must
submit proof of his entitlement through any of the following:
(a) Senior citizen’s identification card issued by the Office of the
Senior Citizen Affairs;19
(b) Philippine passport of the senior citizen; and
(c) Other documents showing the age and Filipino citizenship, 20
such as driver’s license, voter’s ID, SSS/GSIS ID, PRC card, postal ID.21
No double discounts
If goods and services are on promotional discount, the senior citizen can
choose between the promotional discount or the 20% discount under the Senior
Citizens Act, whichever is higher and more favorable.
If the senior citizen is also a person with disability (PWD) entitled to the
20% discount under the Magna Carta of Persons With Disability Act, the senior
citizen may choose on whether to avail of his Senior Citizen Card or his PWD
card.22
The senior citizen’s discount can be claimed as tax deduction

The discounts granted by establishments to senior citizens may be claimed
as deductions from the gross income for the same taxable year that the discount
is granted, provided, that the total amount of
“Art. 8, Implementing Rules And Regulations of R.A. No. 9994.

19
This identification card is valid nationwide.
20
Sec. 4, R.A. No. 7234 as amended.
21
Sec. 5.5, Art. V, Rule III Implementing Rules And Regulations of R.A. No.
9994.
Art. 9, ibid-
22
I
320 AGRARIAN LAW AND SOCIAL LKOIS1.ATION
iho claimed tax deduction net of VAT. if applicable, shall be included tn their unv.»
«aW nxvipts for tax purposes and shall be subject to proper documentation and t<>
the provisions of the National Internal Revenue Code t NlRC>. as amended.”
Additional privileges for indigent senior citizens

Aside from the foregoing benefits, indigent senior citizens are entitled to the
following privileges:
(a' free vaccination from the Department of Health against the
influenza virus and pneumococcal disease for indigent senior citizens;'* *
(b) monthly stipend from the government in the amount of Five
Hundred Pesos (Php500.00) to augment their daily subsistence and other
medical needs, subject to a review every two (21 years by Congress, in
consultation with the Department of Social Welfare and Development;28
(c) Philhealth coverage;
'.The Local Government Unit where the indigent senior citizen
resides shall allocate the necessary funds to ensure the enrollment of their
indigent senior citizens, in accordance with the pertinent laws and
regulations.]M
(d) Death benefit assistance from the government in the amount
of at least Two Thousand Pesos (Php2,000.00) to be given to the nearest
surviving relative27 who took care of the deceased indigent senior citizen
until his death, or in his absence, the benefactor or the licensed foster
family of the deceased indigent senior citizen, which amount shall be
subject to adjustments every two years due to inflation, in accordance with
the guidelines to be issued by the Department of Social
“Art. 10, Implementing Rules And Regulations of R.A. No. 9994.

“Sec. 4, R-A- 7234 as amended, r'Sec. 5*hid), IBID.
*3ec. f> 'h> <21. ibid.

^Nearest surviving relative refers to the legal spouse who survives the deceased senior
citizen: Rmvidvd, That, where no spouse survives the decedent, this shall be limited to relatives
in the following order of degree of kinship: children, parents. siblings, grandparents,
grandchildren, uncles and aunts [See. 2. (f) H.A. No. 7234, ax amended by HA. Nan. 0257 and 0004J.
CHAPTER 14
THE SENIOR CITIZENS ACT 321
Welfare and Development and Department of Interior and Local

Government.28
Discount for DSWD-Accredited senior citizens center

DSWD-accredited senior citizens centers,29 residential care institutions,30 or
group homes31 that are government-run or organized and operated by non-stock,
non-profit domestic corporations, primarily for the purpose of promoting the well-
being of abandoned, neglected, unattached or homeless senior citizens, are entitled to
50% discount on all electricity, water, telephone consumption.
To be entitled to the discount, the senior citizens centers, residential care, or
group homes must have been in operation for at least six (6) months and must have a
separate meter for said utilities/services.32
“Sec. 4, Art. 20, Implementing Rules and Regulations of R.A. No. 9994.
“Senior Citizens Center refers to the place established by R.A. No. 7876 or the Senior
Citizens Center Act, with recreational, educational, health and social programs and facilities designed
for the full enjoyment and benefit of the senior citizens in the city or municipality accredited by the
DSWD. It can be any available structure, a spacious room in a private or public building, a room
attached to a community center, a barangay hall or chapel [Sec. 5.16, Art. V, Rule III, Implementing
Rules and Regulations of RA. No. 9994].
“Residential Care Institution refers to facility which provides twenty-four (24) hour
residential care services operated primarily for the purpose of promoting the well-being of
abandoned, neglected, unattached or homeless senior citizens. The facility may be run by
government or non-stock non-profit organization and is accredited by the DSWD to serve a
minimum of 10 clients. [Sec. 5.20, Art. V, Rule III, Implementing Rules and Regulations ofR.A.
No. 9994].
31
Group Homes refer to a community-based alternative living arrangement to institutional
care. It can be a transit home for a definite period for neglected older persons while the necessary
services of locating relatives and care management is ongoing. It envisions responding to the
needs of the senior citizens who have been abandoned, have no families to return to or to whose
family reunification is not suitable, and are assessed to be needing group living experience. The
program enables a minimum of 6 and a maximum of 10 clients discharged from a residential care
facility to live together and manage their group living activities with minimal supervision from
the agency social worker [Sec. 5.18, Art. V, Rule III, Implementing Rules a?id Regulations ofR.A.
No. 9994].
32
Sec. 5, (d), R.A. No. 7234 as amended; Sec. 2, Art. 12, Implementing Rules and Regulations
ofR.A. No. 9994.
Incentives for Foster Care”

Individual or non-governmental institutions, homes, residential
communities or retirement villages” caring solely for senior citizens are entitled to
the following incentives:
(a) realty tax holiday for the first five (5) years starting from the
first year of operation; and
(b) priority in the construction or maintenance of provincial or
municipal roads leading to the aforesaid home, residential community or
retirement village.”
Additional tax deduction for private entities that employ senior citizens
Private entities that will employ senior citizens are entitled to an additional
deduction from their gross income, equivalent to fifteen percent (15%) of the total
amount paid as salaries and wages to senior citizens, subject to the following
conditions:
(a) the employment shall continue for a period of at least six (6)
months; and
(b) the annual income of the senior citizen does not exceed the
latest poverty threshold as determined by the National Statistical
Coordination Board (NSCB) of the National Economic and Development
Authority (NEDA) for that year *
Criminal Offenses and Penalties

The following are considered as criminal offenses under the Senior Citizens
Act: * 31 * * * 35 36
“Foster Care refers to a social work intervention which provides for a planned
substitute or alternative family care by a licensed foster family to a neglected, abandoned,
unattached and poor older person [Sec. 5.19, Art. 5, Rule III, Implementing Rules and
Regulations of R.A. No. 9994],
31
Retirement village refers to an independent-living facility, often with continuing-
care amenities. It refers to a residential community offering separate or autonomous houses
for residents. It is a retirement habitat with a multi-residence housing facility that is planned,
designed and geared towards people who no longer work and are restricted to a certain age. It
has particular conveniences catering to the wishes and desires of retirees, which may include
services such as clubhouses,
swimming pools, arts and crafts, boating, walking trails, golf courses, active adult
retail and on-site medical services [Sec. 5.17, Art. 5, Rule III, Implementing Rules and
Regulations of R.A. No. 9994],
35
Sec. 5 (g), R.A. No. 7234 as amended.
36
Sec. 5 (a), ibid.
CHAPTER 14 323
(1) Refusal to honor the senior citizen card

This can be committed in the following manner:
(a) Pegging a maximum amount of food purchase sub-
ject to 20% discount and the VAT exemption or posting of no-
tice to that effect;
(b) Refusal to grant the 20% discount and VAT exemp-
tion on take-out/take-home/drive-thru orders it appearing that
the purchase is for the exclusive use and enjoyment of senior
citizens;
(c) Refusal to grant a discount for credit card payments;
(d) Refusal to grant a 20% discount and VAT exemption
on delivery orders it appearing that the purchase is for the
exclusive use and enjoyment of senior citizens; 37
(e) Making a distinction between branded and generic
drugs and medicines in giving the 20% discount;
(£) Posting notices that availment of the 20% discount
is limited to cash purchases only;
(g) . Limiting discountable drug and medicine purchases
to certain days of the week only; and
(h) Restricting the purchase time for senior citizens to
a particular hour each day only; i.e., refusing to grant senior
citizen discounts after a certain hour.38
■ Penalties: For the first violation — imprisonment
ranging from 2 years to 6

years; and
— fine of P50,000.00 to PI00,000.00;
For subsequent — imprisonment ranging

violation from 2 years to 6
years; and
— fine of P100,000.00
to P200, OOO.OO.*>
37
Art. 23, Implementing Rules and
Regulations of R.A. No. 9994. "Sec. 3,
Art. 22,
"Sec. 10,Rule
R.A.VII,
No.ibid.
7432, as amended.
(2) Abuse of senior citizen privileges This can

be committed by the following:
(a) Senior citizen, his representative or a person who misuses the
privileges by:
(i) using several purchase booklets;
(ii) availing of the discount to buy medicines, drugs,
medical accessories and supplies not for the use of the senior
citizen;
(iii) unauthorized use of the identification card of the senior
citizen.* *0
(b) Medical practitioner who gives prescription to other persons
in the name of the senior citizen or who gives anomalous prescription.*1
■ Penalties — imprisonment for 6 months; and

- fine of P50,000.00 to P100,000.00.42
The Office for Senior Citizens Affairs

All cities and municipalities are obliged to have an Office for Senior
Citizens Affairs (OSCA) to be headed by a senior citizen who shall be appointed
by the mayor for a term of three (3) years without reappointment but without
prejudice to an extension if exigency so requires. Said appointee shall be chosen
from a list of three (3) nominees as recommended by a general assembly of senior
citizens organization in the city or municipality.
The head of the OSCA shall not be removed or replaced except for
reasons of death, permanent disability, or ineffective performance of his duties to
the detriment of fellow senior citizens.
Qualifications of the OSCA Head

The following are the qualifications of the OSCA Head:
(a) Filipino citizen and resident of the municipality or city for at
least one (1) year;
"Sec. 1, Art. 22, Rule VII, Implementing Rules and Regulations of R.A. No.
9994.
41
Sec. 2, Art. 22, Rule VII, ibid.
2
* Sec. 10, R.A. No. 7432, ae amended.
CHAPTER 14
325
(1) ) Registered voter ofthe concerned city or municipality;
(c) Able to read and write;
(d) Physically and mentally capable of performing the tasks of
OSCAHead;
(e) Bona fide member of a duly registered senior citizens
organization which has a track record of at least three consecutive
years;
(f) Good moral character; and
tg) At least a high school graduate.43
Functions of the OSCA

The OSCA exercises the following functions:
la) To plan, implement and monitor yearly work programs in pursuance of
the objectives of the Senior Citizens Act;
(b) To draw up a list of available and required services which can be
provided by the senior citizens;
(c) To maintain and regularly update on a quarterly basis the list of senior
citizens and to issue national individual identification cards, free of charge, which
shall be valid anywhere in the country;
(d) To serve as a general information and liaison center for senior
citizens;
(e) To monitor compliance of the provisions of the Senior Citizens Act
particularly the grant of special discounts and privileges to senior citizens;
(f) To report to the mayor, any individual, establishments, business
entity, institution or agency found violating any provision ofthe Senior Citizens
Act; and
Ig) To assist the senior citizens in filing complaints or charges against any
individual, establishment, business entity, institution, or agency refusing to comply
with the privileges
43
Sec. 1, Art. 21, supra.
under this Act before the Department of Justice (DOJ), the Provincial
Prosecutor’s Office, the regional or the municipal trial court, the
municipal trial court in cities, or the municipal circuit trial court." 44
44
See. 6, R.A. No. 7432, as amended.
CHAPTER 15
THE HOME DEVELOPMENT MUTUAL FUND
LAW OF 1980
The Forerunner of the Present Home Development Mutual Fund

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

The objective of the Home Development Mutual Fund Law is to motivate the
employed and other earning groups to better plan and provide for their housing needs
by membership in an integrated, nationwide savings system for the said purposes, with
contributory support of the employers in the spirit of social justice and pursuit of
national development.* 2
'China Banking Corporation v. Home Development Mutual Fund, 307 SCRA 443, 450.
2
Sec. 2, P.D. No. 1752, as amended.
327
The Home Development Mutual Fund

The Home Development Mutual Fund is a provident savings system for
employees in the private and public sectors supported by matching contributions of their
respective employers, with housing as primary investment.
The system is also available to self-employed and other working groups.3 *
The Fund is private in character, owned wholly by the members, administered in
trust and applied exclusively for their benefit. All personal and employer contributions
shall be fully credited to each member, accounted for individually and transferable in
case of employment. They earn dividends to be paid to the employee, his estate or
beneficiaries upon termination of membership.*
Corporate Entity
The Home Development Mutual Fund is a corporate entity.'As such, it is vested
with the following corporate powers:
(a) To make policies and guidelines, as well as adopt, amend and
rescind such rules and regulations as may be necessary to carry out the
provisions and purposes of the law;
(b) To submit annually to the President of the Philippines not later
than March 15, a public report covering its activities in the implementation of
the Home Development Mutual Fund Law, as well as the state of the Fund
during the preceding year, including information and recommendations for the
development and improvement of the Fund, which report should be made
available to the members;
(c) To invest its fund, directly or indirectly, in accordance with the
provisions of the Home Development Mutual Fund Law;
(d) To acquire, utilize, or dispose of, in any manner recognized by
law, real or personal properties to carry out the purposes of the law;
3
Sec. 3,
ibid.
^Sec.
84,
CHAPTER 15 329
THE HOME DEVELOPMENT MUTUAL FUND
LAW OF 19S0
(e) To set up its own accounting and computer systems, conduct
continuing actuarial and statistical studies and valuations to determine the financial
liability of the Fund and its projects, require reports, compilations and analysis of
statistical and economic data, as well as make such other studies and surveys as may
be needed for the proper administration and development of the Fund;
(f) To have the power of succession; to sue and be sued; to adopt and use
a corporate seal;
(g) To enter into and earn - out contracts of every kind and description with
any person, firm or association or corporation, domestic or foreign;
(h) To borrow funds from any source, private or government, foreign
or domestic;
(i) To invest, own, or participate in equity in any establishment, firm
or entity; to form, organize, invest in or establish and maintain a subsidiary or
subsidiaries in relation to any of its purposes;
(j) To exercise such powers and perform such acts as may be
necessary, useful, incidental or auxiliary to carry out the provisions of the law.6 7
Coverage
Coverage of the Home Development Mutual F und is mandatory upon all
employers and employees covered by the Social Security System and the Government
Service Insurance System, and their respective employers. 1
Fund Contributions
For Employees: 1% — for employees earning not
more than PI,500.00 per month;
2% — for employees earning more than
PI,500.00 per month.
6
Sec. 10, P.D. No. 1752, as amended.
7
Sec. 4. ibid.
For Employers: 2% of the monthly compensation of

all covered employees.8
The contributions to the Home Development Mutual Fund shall be remitted

through the Social Security System and Government Service Insurance System.
Non-payment shall subject the employer to penalty of 3% per month of the

amounts payable from the date the contributions fall due until paid.9 10
Meaning of monthly compensation

Monthly compensation means the basic monthly salary plus cost of living
allowance (COLA). The maximum monthly compensation to be used in computing
employee and employer’s contributions shall not be more than Five thousand pesos
(P5,000.00).'°
Term of membership
Membership in the Home Development Mutual Fund shall be for a period of
twenty (20) years, unless, earlier terminated by reason of retirement, disability,
insanity, death, departure from the country or other causes as may be provided for by
the Board of Trustees.11
Suspension of contribution
The obligation to make contributions is suspended when the employee resigns,
is laid-off or suspended from employment.12
Withdrawal of contributions
Members who have no outstanding loans may withdraw the total accumulated
value of their contributions to the Fund after the 10th or 15th year of continuous
membership.
This option can be exercised only once and shall not prejudice the member’s
continuing membership in the Fund.13
8
Sec. 5, ibid.
9
Sec. 22, P.D. No. 1752, as
10
See. 5, ibid.
“See. 6, ibid.
,a
Sec. 6, ibid.
,3
Sec. 6, ibid.
CHAPTER 15
THE HOME DEVELOPMENT MUTUAL FUND LAW OF 1980
Housing features
A member of good standing may apply for a housing loan, under such terms
as may be authorized by the Board of Trustees, taking into account ability to pay.1*
Waiver and suspension of coverage from the Home Development

Mutual Fund
Employers or employee group who, at the time of the effectivity of the Home Development
Mutual Fund Law, have their own provident or employee housing plans, may register with the Fund, for
annual certification of waiver and suspension from coverage or for full or partial integration with the
Fund.
The establishment of a separate provident or housing plan after the effectivity of the
Home Development Mutual Fund Law is not a ground for waiver of coverage in the Fund.'5
An employer need not have both a superior retirement/ provident plan and a superior
employee housing plan in order to be entitled to a certificate of waiver and suspension of coverage
from the Home Development Mutual Fund.
CHINA BANKING CORPORATION V. HOME

DEVELOPMENT MUTUAL FUND
307 SCRA 443, 4S0-4S9
“xxx Section 19 of P.D. No. 1752 provides for waiver or suspension from coverage or
participation in the fund, thus;
‘SEC. 19. Existing Provident /Housing Plans —
An employer and/or employee group who, at the time this Decree becomes
effective have their own provident and/or employee housing plans, may
register with the Fund, for any of the following purposes:
(a) For annual certification of waiver or suspension from
coverage or participation in the Fund, which shall be granted on the
basis of verification that the waiver or suspension does not
contravene any effective collective bargaining agreement and that the
features of the plan or plans are superior to the Fund or continue to be
so; or 4
S
(b) For integration with the Fund, either fully or

partially.
The establishment of a separate provident and/ or housing
plan after the effectivity of this Decree shall not be a ground for
waiver of coverage in the Fund; nor shall such coverage bar any
employer and/or employee group from establishing separate
provident and/or housing plans,’
xxx xxx xxx
“The controversy lies in the legal signification of the words ‘and/or.’
“In the instant case, the legal meaning of the words ‘and/ or’ should be
taken in its ordinary signification, i.e., ‘either and or’, e.g., butter and/or eggs
means butter and eggs or butter or eggs.
The term ‘and/or’ means that effect shall be given to both
the conjunctive ‘and’ and the disjunctive ‘or; or that one word or
the other may be taken accordingly as one or the other will best
effectuate the purpose intended by the legislature as gathered from
the whole statute. The term is used to avoid a construction which by
the use of the disjunctive ‘or’ alone will exclude the combination of
several alternatives or by the use of the conjunctive ‘and’ will
exclude the efficacy of any one of the alternatives standing alone.’
“It is accordingly ordinarily held that the intention of the legislature in
using the term ‘and/or’ is that the word ‘and’ and the word ‘or’ are to be used
interchangeably.
“It seems to [the Court] clear from the language of the enabling law that
Section 19 of P.D. No. 1752, intended that an employer with a provident plan or an
employee housing plan superior to that of the fund may obtain exemption from
coverage. If the law had intended that the employee should have both a superior
provident plan and a housing in order to qualify for exemption, it would have used
the words ‘and’ instead of ‘and/ or.’ Notably, paragraph (a) of Section 19 requires
for annual certification of waiver or suspension, that the features of the plan or
plans are superior to the fund or continue to be so. The law obviously contemplates
that the existence of either plan is considered as sufficient basis for the grant of an
exemption; needless to state, the concurrence of both plans is more than sufficient.
To require the existence of both plans would radically impose a more stringent
condition for waiver which was not
CHAPTER 15 333
THE HOME DEVELOPMENT MUTUAL FUND LAW OF 1980
clearly envisioned by the basic law. By removing the disjunctive word ‘or* in
the implementing rules the respondent Board has exceeded its authority.
XXX XXX XXX
“While it may be conceded that the requirement of the concurrence of
both plans to qualify for exemption would strengthen the Home Development
Mutual Fund and make it more effective both as a savings generation and a
house building program, the basic law should prevail as the embodiment of the
legislative purpose, and the rules and regulations issued to implement said law
cannot go beyond its terms and provisions.
“[Th]e [Court] accordingly find[s] merit in petitioner’s contention that Section 1, Rule
VII of the Rules and Regulations Implementing R.A. 7742, and HMDF Circular No. 124-B
and the Revised Guidelines and Procedure for Filing Application for Waiver or Suspension of
Fund Coverage under P.D. 1752, as amended by R.A. 7742, should be declared invalid insofar
as they require that an employer must have both a superior retirement/ provident plan and a
superior employee housing plan in order to be entitled to a certificate of waiver and
suspension of coverage from the HMDF.”
ROMULO, MABANTA, BUENAVENTURA, SAYOC & DE

LOS ANGELES V. HDMF
333 SCRA 777
“It is without doubt that the HDMF Board has rule-making power as provided in
Section 5 of R.A. 7742 and Section 13 of P.D. 1752. However, it is well-settled that rules and
regulations, which are the product of a delegated power to create new and additional legal
provisions that have the effect of law, should be within the scope of the authority granted by
the legislature to the administrative agency. It is required that the regulation be germane to the
objects and purposes of the law, and be not in contradiction to, but in conformity with, the
standards prescribed by law.
“In the present case, when the Board of Trustees of the HDMF required in Section 1,
Rule VII of the 1995 Amendments to the Rules and Regulations Implementing R.A. No.
7742 that employers should have both providentt retirement and housing benefits for all its
employees in order to qualify for exemption from the Fund, it effectively amended Section
19 of P.D. No. 1752. And when the Board subsequently abolished that exemption through
the 1996 Amendments, it repealed Section 19 of P.D. No. 1752. Such amendment and
subsequent repeal of Section
19 are invalid, as they are not within the delegated power of the Board. The
HDMF cannot, in the exercise of its rule-making power, issue a regulation not
consistent with the law it seeks to apply. Indeed, administrative issuances must not
override, supplant or modify the law, but must remain consistent with the law they
intend to carry out. Only Congress can repeal or amend the law.
“While it may be conceded that the requirement of having both plans to
qualify for an exemption, as well as the abolition of the exemption, would enhance
the interest of the working group and further strengthen the Home Development
Mutual Fund in its pursuit of promoting public welfare through ample social
services as mandated by the Constitution, [th]e [Court] [is] of the opinion that the
basic law should prevail. A department zeal may not be permitted to outrun the
authority conferred by the statute.”
Substitute retirement plan

Private employers have the option to treat the coverage by the Fund as a
retirement plan for the employee concerned within the purview of the Labor Code of
the Philippines.16
Penal provisions
Refusal or failure register its employees, collect and remit employee
contributions as well as employer counterparts, or the correct amount due, will
subject the employer to:
(a) fine of not less, but not more than twice the amount involved; or
(b) imprisonment of not more than six (6) years; or
(c) both such fine and imprisonment, in the discretion of the Court.17
16
Sec. 21, P.D. No. 1752, as
amended.
,7
Sec. 23, ibid.
CHAPTER 16

The rationale behind the enactment of the National Health Insurance Act
The National Health Insurance Act was enacted to implement Section 11,
Article XIII of the 1987 Constitution of the Republic of the Philippines which
mandates the State to adopt an integrated and comprehensive approach to health
development and to make essential goods, health and other social services available to
all the people at affordable cost, with priority for the needs of the underprivileged,
sick, elderly, disabled, women, and children, and provide free medical care to
paupers.'
The National Health Insurance Program

This is a social insurance program intended to answer for utilization or
purchase of hcullh services by covered beneficiaries.
Consisted initially of Programs I1 and II' of the Medicare/ the National Health Insurance Program will
be expanded progressively a
to constitute one universal heulth insurance program for the entire population.
Being a social insurance, the Health Insurance Program it is prohibited from:
*3
‘Sec. 2 (b), R.A. No. 7871, as amended.

3
Program I covers members of the SSS and GSIS including their legal dependents.
3
Program II, refers to those not covered under Program I.
^Program I covers members of the SSS and GSIS including their legal dependents.
335
(a) providing direct health care;
(b) owning or investing in health care facilities;
(c) buying and dispensing drugs and pharmaceuticals;

and
(d) employing physicians and other professionals for the
purpose of directly rendering care.6
Coverage of the National Health Insurance Program

All citizens of the Philippines are covered by the National Health Insurance
Program.6 Coverage is compulsory. Therefore, all citizens of the Philippines are
required to enroll in the National Health Insurance Program. 7
However, the compulsory coverage in certain provinces and cities cannot be
effected until the Philippine Health Corporation is able to ensure that members in
such localities have reasonable access to adequate and acceptable health care services. 8
Enrollment of beneficiaries
To be entitled to the benefits, the beneficiary 9 must be enrolled with the National
Health Insurance Program in accordance with the following policies:
(a) Persons currently eligible for benefits under Medicare Program I,
including SSS and GSIS members, retirees, pensioners and their dependents, are
automatically enrolled in the Program;
(b) Persons eligible for benefits as members of local health insurance
plans established by the Philippine Health Insurance Corporation are also
deemed enrolled in the Program;
(c) Persons eligible for benefits under health insurance plans
established by local governments as part of the Program
6
Sec. 5, R.A. 7871, as amended.
6
Sec. 6, ibid.
7
Sec. 2 (I), ibid.
8
Sec. 6, ibid.
’Beneficiary is the person entitled to health care benefits under the National
Health Insurance Act (Sec. 4 fa], R.A. No. 7871, as amended).
CHAPTER 16 337
II of Medicare, including indigent members, should be enrolled in the Program; and

(d) Persons eligible for benefits as members of other government
initiated health insurance programs, community- based health care organizations,
cooperatives, or private nonprofit health insurance plans should be enrolled in the
Program upon accreditation by the Philippine Health Insurance Corporation.
Individually-paying members should enroll for membership through the offices of
the Philippine Health Insurance Corporation. 10
A member who is separated from employment may continue his membership by
enrolling as an individually paying member within three (3) months after separation,
otherwise, the benefit entitlement will be suspended."
Indigonts not enrolled in the National Health Insurance Program shall have
priority in the use and availment of the services and facilities of government hospitals,
health care personnel, and other health organizations. Such government health care
providers shall ensure that said indigents shall subsequently be enrolled in the Program. 12
Enrollment Requirements
To register with the National Health Insurance Program, the appropriate
PhilHealth membership registration form together with any of the following documents
must be submitted:
(a) Birth Certificate;
(b) Baptismal Certificate;
(c) GSIS/SSS Member’s ID;
(d) Passport;
(e) Any other valid ID/document acceptable to the Philippine Health
Insurance Corporation.13 30
30
Sec. 30, Revised Rules and Regulations
Implementing the National Health Insurance Act of 1995.
u
Sec. 31, ibid.
l2
J3
Sec. 9, Rule II Revised Rules and Regulations
Implementing the National Health Insurance Act of 1995.
Membership in. the National Health Insurance Program shall take effect upon payment of
the required premium contribution.’*
Declaration of dependents
Registrants who are declaring dependents14 15 should submit the following supporting
documents, whichever is applicable:
• For dependent spouse — Marriage Contract
• For dependent — Marriage Contract and
legitimate children Birth/Baptismal Certifi
cate
• For illegitimate — Birth/Baptismal Certifi-
children cate
For dependent adopted — children Adoption papers or court

For dependent parents — resolution/decision
Birth/Baptismal certificate of
For dependent stepchildren registrant
Marriage Contract of the parent and
stepfather/ stepmother and Birth
Certificate of the dependent
stepchildren
• Duly notarized joint affidavit of two (2) disinterested persons and other relevant
information (date of birth, etc.) attesting to the fact of the relationship of the dependents to
the supposed members.
Sec. 12, ibid.

14
15
The legal dependents of a member are:
(a) the legitimate spouse who is not a member;
(b) the unmarried and unemployed legitimate, legitimated, illegitimate, acknowledged
children as appearing in the birth certificate; legally adopted or stepchildren below twenty-one ( 21)
years of age;
(c) children who are twenty-one ( 21) years old or above but suffering from congenital
disability, either physical or mental, or any disability acquired that renders them totally dependent on
the member of our support;
(d) the parents who are sixty (60) years old or above whose monthly income is below an
amount to be determined by the Corporation in accordance with the guiding principles set forth in
Article I of the National Health Insurance Act (Sec. 4 [fj, R.A. No. 7871, as amended).
CHAPTER 16 339
• Certificate from the Department of Social Welfare and Development

(DSWD) or Barangay Captain attesting to the fact of the relationship of the dependents to
the supposed members.
* Any other valid ID or document acceptable to the Philippine Health
Insurance Corporation.16 17 18
Health insurance ID card

Upon enrollment, the Philippine Health Insurance Corporation through its local office shall
issue a health insurance ID which shall be used for purposes of identification, eligibility
verification, and utilization recording.17
Premium contributions
Members of the National Health Insurance Program are obliged to pay the premiums in
accordance with the following guidelines:
(a) Employees and their employers shall pay monthly contributions as
determined by the Philippine Health Insurance Corporation, the amount of which shall not
exceed 3% of the monthly salaries;18
(b) Self-employed members shall pay their contributions based primarily on
household earnings and assets but their total contributions for one year shall not exceed 3%
of their estimated actual net income for the preceding year;
(c) Contributions made in behalf of indigent members shall not exceed the
minimum contributions set for employed members. 19
16
Sec. 10, Rule II Revised Rules and Regulations Implementing the National Health Insurance Act of 1995.
17
I8
The premium contribution of employed members shall be paid on a monthly basis and should be remitted
by the employer on or before the tenth (10th) calendar day following the month for which the payment is due and
applicable. The member’s contribution shall be deducted and withheld automatically by the employer from the
former’s salary, wage or earnings.
For government agencies, it shall be mandatory and compulsory for the employers to include the payment
of contributions in their annual appropriations (Sec. 20, Revised Rules and Regulations Implementing
the National Health Insurance Act of 1995).
I9
ismti v .r"
Failure or refusal of the employer to deduct or remit the employees’

and employer’s premium contribution is not a ground for denial of a
properly filed claim. In such a case, the Philippine Health Insurance
Corporation shall be entitled to reimbursement of claims paid from the
erring or negligent employer, without prejudice to the criminal prosecution
and other liabilities.110
Premium contributions of individually-paying members

The premium contribution of individually-paying members (including self-employed
members of the SSS) shall be at a minimum of P75.00 per month and can be paid quarterly,
semi-annually, or annually.
Overseas Filipino Workers (OFWs) enrolled with the NHIP shall pay an annual
contribution in an amount to be set by the Corporation. 20 21
Persons not obliged to pay premium contributions

The following need not pay the monthly premium contributions:
(a) Retirees and pensioners of the SSS and GSIS prior to the effectivity of
the National Health Insurance Act;
(b) Members who reach the age of retirement as provided for by law and
have paid at least one hundred twenty (120) monthly contributions; and
(c) Enrolled indigents.22
Members who have reached the retirement age provided for by law and have paid at
least 120 monthly premium contributions shall register with the Philippine Health Insurance
Corporation as a non-paying member.
The age of retirement referred to is sixty (60) years old with the exception of those
covered by special laws.23
20
Sec. 20, Revised Rules and Regulations Implementing the National Health Insurance
Act of 1995.
Sec. 34, ibid.
21

22
Sec. 36, Revised Rules and Regulations Implementing the National Health Insurance
23
Act of 1995.
CHAPPEK 16 I
341
THE NATIONAL HEALTH INSURANCE ACT OK
I960
Premium contributions for indigent members
Premium contributions for indigent members shall be subsidized partially by the
local government unit where the member resides. The Philippine Health Insurance
Corporation shall provide counterpart financing equal to the locul government’s subsidy
for indigents.
In the case of 4th, 5th and 6th class municipalities, the National Government shall
provide up to 90% of the subsidy for indigents until such time that they shall have been
upgraded to 1st, 2nd or 3rd class municipalities. The share of the local governments shall
be progressively increased until such time that its share becomes equal to that of the
National Government.24
Benefits under the National Health Insurance Program
The benefits under the National Health Insurance Program are as follows:
(a) Inpatient hospital care:
1. room and board;
2. services of health care professionals;
3. diagnostic, laboratory, and other medical examination services;
4. use of surgical or medical equipment and facilities;
5. prescription drugs and biologicals;
6. inpatient education packages.
(b) Outpatient care:
1. services of health care professionals;
2. diagnostic, laboratory, and other medical examination services;
3. personal preventive services; and
4. prescription drugs and biological.
(c) Emergency and transfer services; and

(d) Such other health care services that the Philippine Health
Insurance Corporation shall determine to be appropriate and cost-
effective.”1
Health services not covered by the National Health Insurance Program

The National Health Insurance Program does not cover expenses for the
following services:25 26
(a) non-prescription drugs and devices;
(b) alcohol abuse or dependency treatment;

(c) cosmetic surgery;
(d) optometric services;
(e) fifth and subsequent normal obstetrical deliveries;
(f) cost-ineffective procedures, which shall be defined by the
Philippine Health Insurance Corporation.27 28
(g) outpatient psychotherapy and counseling for mental
disorders;
(h) home and rehabilitation services.26
Conditions for entitlement to the benefits
To be entitled to the benefits under the National Health Insurance Act,
the member/dependent should meet the following conditions:
(a) He must suffer illness or injury which requires treatment as
in-patient or out-patient in an accredited health care institution; 29
25
Sec. 10, R.A. No. 7871, as amended. The Philippine Health Insurance Corporation also provides
outpatient services to its members such as chemotherapy, radia tion therapy, dialysis, cataract extraction and
minor surgical procedures performed in an operating room complex of an accredited facility. For the
purposes of this Rules, the operating room fee shall cover services availed of in the operating room, emer-
gency room, delivery room, dialysis, and chemotherapy and radiation rooms (Sec. 41, Revised Rules
and Regulations Implementing the National Health Insurance Act of 1995).
26
Except when the Philippine Health Insurance Corporation, after actuarial studies, recommends
their inclusion subject to the approval of the Board.
27
28
Sec, 45, Revised Rules and Regulations Implementing the National Health Insurance Act of
1995.
29
Sec. 46, ibid.
CHAPTER 16 343
(a) He must have paid premium contributions for at least three (3)
months within the 6-month period prior to the first day of his or his dependents’
availment.
(b) He must show that he contributes thereto with sufficient regularity,
as shown in their health insurance ID card;
(c) He must not be currently subject to the penal sanctions under the
law.30
The series of confinements/procedures for the same illness at intervals not
exceeding ninety (90) calendar days within the calendar year shall be considered as a
single period of confinement. Hence, the member shall only be entitled for the remainder
of the benefit ceilings set by the Philippine Health Insurance Corporation for that period
for drugs and medicines, x-rays, laboratories, and others.31
Members/dependents can avail of benefits while they are outside the country as
long as they meet the conditions for entitlement and the following requirements are
submitted:
(a) Official receipt of payment or statement of account from the health
care institution where the member/dependent was confined; and
(b) Certification of the attending physician as to the final diagnosis,
period of confinement and services rendered.
The benefits to be granted shall be paid in the equivalent local rate based on the
tertiary hospital category.32
Health care providers

Health care provider refers to:
(a) a duly licensed health care institution devoted primarily to the'
maintenance and operation of facilities for health promotion, prevention,
diagnosis, treatment, and care of individuals suffering from illness, disease,
injury, disability
or deformity, drug addiction or in need of obstetrical or other medical and nursing

care;”
(b) a health care professional, who is any doctor of medicine, nurse,
midwife, dentist, or other health care practitioner duly licensed to practice in the
Philippines;
(c) a health maintenance organization which provides, offers, or
arranges for coverage of designated health services needed by plan members for a
fixed prepaid premium; or
(d) a community-based health care organization of indigenous members
of the community organized for the purpose of improving the health status of that
community through preventive, promotive and curative health services.33 34
Health care providers should be accredited

To participate in the National Health Insurance Program, the health care provider
must be accredited by the Philippine Health Insurance Corporation .35
To qualify for accreditation, the health care provider must have operated for at
least three (3) years.
Health care providers which have not operated for at least three
(3) years may apply and qualify for accreditation if it complies with all the other
accreditation requirements36 and any of the following conditions:
33
This refers to hospitals, out-patient clinics, infirmaries, nurseries, dispensaries,
rehabilitation centers and such other similar names by which they may be designated.
^Sec. 4 (o), R.A. No. 7871, as amended.

35
Sec. 31, ibid.
36
The minimum accreditation requirements for health care providers are as follows:
(a) human resource, equipment and physical structure in conformity with the
standards of the relevant facility, as determined by the Department of Health;
(b) acceptance of formal program of quality assurance and utilization review;
(c) acceptance of the payment mechanisms specified in the following section;
(d) adoption of referral protocols and health resources sharing arrangements;
(e) recognition of the rights of patients; and
(f) acceptance of information system requirements and regular transfer of
information (Sec. 33, R.A. No. 7871, as amended).
CHAPTER 16 345
(a) Its managing health care professional has had a working experience in
another accredited health care institution for at least three (3) years;
fbj It operates as a tertiary facility or its equivalent; or
(c) It operates in a local government unit where the accredited health care
provider cannot adequately or fully service its population .37 *
The 3-year operation requirement is reckoned from the effectivity date of the initial
business permit issued by the office of the local chief executive in the case of private
hospitals, or such date as certified by the local chief executive or the Department of
National Defense fDND), in case of government and military hospitals respectively. K
Payment of claims
Payment of a health care provider shall be made through any of the following
mechanisms:
(a) Fee for service;
(b) Capitation of health care professionals, institutions or networks of
the same, including health maintenance organizations, medical cooperatives, and
other legally formed health service groups;39
(c) Such other mechanisms as may hereafter be determined by the
Philippine Health Insurance Corporation."
Health care institutions cannot charge processing fees from the member when
claiming reimbursement from the Corporation.
Direct payment to the member is not allowed except in the following cases:
(a) If the member or dependent was confined abroad;
“’See. 32, R.A No. 7871, as amended.

““Sec. 60, Revised Rules and Regulations Implementing the National Health Insurance Act of
1995.
39
Capitation is a payment mechanism where a fixed rate, whether per person, family,
household, or group, is negotiated with a health care provider (Sec. 4, R.A. No. 7871).
"Sec. 51, Revised Rules and Regulations Implementing the National Health Insurance Act of
1995.
(b) If drugs, medicines and other medical supplies were bought and
used by the member within the confinement period with supporting official
receipts;
(c) If member advanced the payment because of failure to submit the
required documents;
(d) If the member paid professional fees directly.
Grounds for denial or reduction of claims

The Philippine Health Insurance Corporation may deny or reduce a claim under
the following circumstances:
(a) over-utilization and under-utilization of services;
(b) unnecessary diagnostic and therapeutic procedures and
intervention;
(c) irrational medication and prescriptions;
(d) fraud;
(e) gross, unjustified deviations from currently accepted standards of
practice and/or treatment protocols;
(f) inappropriate referral practices;
(g) use of fake, adulterated or misbranded pharmaceuticals, or
unregistered drugs; or
(h) use of drugs other than those recognized in the latest PNDF and
those for which exemptions were granted by the Board.
When the claim is reduced or denied, the amount thus reduced or denied cannot
be charged, directly or indirectly, to the beneficiary involved.
Compensability of confinement for less than 24 hours

Hospital confinement of less than twenty-four (24) hours are not compensable,
except in the following instances:
(a) when the patient died;
(b) when the patient is transferred to another health care institution; or
CHAPTER 16 347
(c) in emergency cases.11 *
The Philippine Health Insurance Corporation

The Philippine Health Insurance Corporation is a tax-exempt government
corporation attached to the Department of Health for policy coordination and guidance .13
Basically, it administers the National Health Insurance Program.13 *
The Philippine Health Insurance Corporation is vested not only with administrative
powers but also quasi-judicial powers, to wit:
(a) to conduct investigations for the determination of a question,
controversy, complaint, or unresolved grievance brought to its attention, and render
decisions, orders, or resolutions thereon;
(b) to summon the parties to a controversy, issue subpoenas requiring the
attendance and testimony of witnesses or the production of documents and other
materials necessary to a just determination of the case under investigation;
(c) to suspend temporarily, revoke permanently, or restore the accreditation
of a health care provider11 or the right to benefits of a member 45 and/or impose fines after
due notice and hearing.
Decisions of the Philippine Health Insurance Corporation are immediately be executory,
even pending appeal, when the public interest so requires.16
11
Sec. 52, Revised Rules and Regulations Implementing the National Health Insurance Act of 1995.
“Sec. 14, R.A. No. 7871, as amended.

13
Sec. 16, ibid.
“Suspension of accreditation of a health care provider shall not exceed twenty- four (24) months.
“Suspension of the rights of members shall not exceed six (6) months.
16
CHAPTER 17

(As amended by Republic Act Nos. 1792, 2658, 3839, 4482, 4857,
Presidential Decree Nos. 24, 177, 347, 735,1202,1636,
Executive Order Nos. 28,102, Republic Act Nos. 7322 and 8282)
Development of the Law

Republic Act No. 1161, otherwise known as the Social Security Act of 1954
was approved on July 18, 1954, but it was not implemented until September 1, 1957.
It has undergone several amendments throughout the years.
The first amendatory act was Republic Act No. 1792 which deleted the
provisions on unemployment benefits. Thereafter, Republic Act No. 2658 was
enacted wherein the coverage of the Social Security System was broadened, the
benefits increased and the enjoyment thereof liberalized. Three (3) years thereafter,
Republic Act No. 3839 was promulgated wherein the retirement benefits were
increased and the minimum age requirement for coverage was removed. On June 19,
1965, Republic Act No. 4482 was enacted wherein the reimbursable amount of
sickness benefits advanced by employers was increased. Thereafter, several other
laws increasing the amount of social security benefits were promulgated, namely;
Republic Act No. 4857, Presidential Decree Nos. 24, 177, 347, 735, 1202, 1636,
Executive Order Nos. 28, 102, Republic Act Nos. 7322 and 8282, the latter having
been approved on May 1, 1997.
Rationale behind the enactment of the Social Security Law

The Social Security Law was enacted pursuant to the policy of the State to
establish, develop and promote a sound and viable tax-exempt social security system
suitable to the needs of the people
348
OKAFTEE. 17 -
THi SOClAjL SECURITY ACT O? l“fl
itrvsgbcrai th* * Philippir^es and pro-ride mesnlngf-ui protection to r*~''*f* their oetAficiaries
against the hazards of disabilitv. i i « c r a t a t A r n : t v , old age and death, and other
coatiagencies ra*?„tir_g hi loss of ir-corne or financial harden.
/aJidfty of the Social Security Law

The enactment of the Social Security Law is a legitimate * KTCM* rif
police jxr/rer. It is in full accord with the constitutional P rr'r‘ i>1/yn-i; r>n the
“promotion of social justice to insure the well-being and economic security of
all the people.”*
Construction of the Social Security Lav/
The provision- of the Social Security Law are to be liberally construed

in favor of those seeking its benefits.*
Social Security Lav/ is not a lav/ on succession
The Social Security System is not a law of succession. It is not the heirs of the
employee but the designated beneficiaries who are to receive the social security benefits. It is
only when the beneficiary ia the estate, or when there is no designated beneficiary or if the
designation of beneficiary is void, that the Social Security System is required to pay the
employee’s heirs.*
Social Security Law is not part of the taxation system
The Social Security Law is not part of the taxation system because it is not intended for
raising revenues but for the promotion of the general welfare/
The funds of the Social Security System are private funds
The funds contributed to the Social Security System are not public inndn. The funds
belong to the members and are merely held in trust, by the Government. Thus, the inclusion of
religious
’ B 2 , Boric) Security Act of i 997, as amended; Roman Catholic Archbishop of Manila v.

SBC, I SCRA 10; CMS Rotate V. KBS, 132 SCRA 108.
*lConnifi Catholic Archbishop of Manila v. SBC, 1 SCRA 10.
‘Ji'rofiklin (hiker Co. of the Philippines v. SSS, 7 SCRA 836, 840.
‘Tociion v. BHB, 3 BCR A 735, 738; SSS v. Davac, 17 SCRA 863.
'■Conn Rotate v. HSH, 132 SCRA 108.
organizations under the coverage of the Social Security Law does not violate the
constitutional prohibition against the application of public funds for the use, benefit or
support of any priest who may be employed by the church .6
Coverage of the SSS Law

It used to be that, the coverage of the Social Security Law is predicated on the
existence of an employer-employee relationship.7 This is no longer true because the
policy now is to encourage even the self-employed to become SSS members .8
Compulsory coverage
Coverage in the SSS is compulsory upon:
(a) All employers engaged in business in the Philippines, including
religious, charitable or non-profit institutions;8 10 *
(b) All employees not over sixty (60) years of age;'0
(c) Domestic helpers receiving Pl,000.00/month;"
(d) Aliens employed in the Philippines;12
(e) Self-employed persons, including, but not limited to the following:
(i) Self-employed professionals;
(ii) Partners and single proprietors of businesses;
(iii) Actors, actresses, directors, scriptwriters, and news
correspondents;
(iv) Professional athletes, coaches, trainers, and jockeys; and
(v) Individual farmers and fishermen.13
‘Homan Catholic Archbishop of Manila v. SSS, 1 SCRA 10.

'Roman Catholic Archbishop of Manila v. SSC, 1 SCRA 10; LUSTEVECO v. SSS, 16 SCRA
6.
"Corporal v. NLRC 341 SCRA 658, 667.
"Sec. 8 (c), Social Security Act of 1997, as amended; Roman Catholic Archbishop of Manila
v. SSC, 1 SCRA 10.
10
Sec. 9, (a) Social Security Act of 1997, as amended.
1J
Sec. 9-A, ibid.
'"Philippine Blooming Mills v. SSS, 17 SCRA 1077, 1080.
'"Sec. 9-A, Social Security Act of 1997, as amended.
CHAPTER 17 351
Effective date of coverage

(a) For employers — on the first day of his operation
(b) For employees — on the first day of his employment
(c) For the self-employed — upon his registration with the SSS'<
Voluntary coverage
The following may be covered by the SSS on a voluntary basis:
(a) Spouses who devote full time to managing the household and
family affairs; and
(b) Filipinos recruited for overseas employment by foreign-based
employers.111
When a person has secured an SSS number does it mean that he is

already an SSS member?
No. Securing an SSS number does not automatically make a person an SSS
member. He will be considered a member only when he has been reported for SSS
coverage and has paid at least one month contribution.
Can a member withdraw his membership with the SSS?
No. When a person registers for SSS membership, he becomes a member for life.
Therefore, during such time that the member failed to remit contributions, the benefits
and loan privileges provided by the SSS can still be availed as long as the member meets
the qualifying conditions for entitlement thereto.
Employees not covered by the SSS Law

The Social Security Law does not cover the following:
(a) Purely casual employees;
(b) Employees serving on an alien vessel, when such vessel is outside
of the Philippines; 14 15
14
Sec. 10,
ibid.
15
Sec. 9,
ibid.
(c) Employees of the Philippine government or any of its

instrumentalities and agencies;
(d) Employees of foreign government, international organization, and
their wholly-owned instrumentality;
(e) Temporary employees, if excluded by regulation of the SSC.‘«
In the absence of a regulation exempting temporary employees from coverage,
temporary employees are covered because there is no way of telling whether or not the
said employees belong to a group or class designated by regulation of the Social
Security Commission as exempt.17
Obligations of employer under the Social Security Law

Employers have two (2) distinct obligations under the Social Security Law,
namely:
(a) To make a timely report of its employees for coverage ;18 and
(b) To make timely remittance of premiums.19
Effect of non-reporting or non-remittance

If the employer fails to report the employee for SSS coverage or fails to remit
the premium contributions, such failure or refusal, by express provision of Section 22
(b) of the Social Security Act, shall not prejudice the right of the covered employee to
social security benefits. In short, the employee would still be entitled to the social
security benefits.
Therefore, if an employee dies, becomes disabled, gets sick or reaches the
retirement age without him being reported for coverage or without the premium
contributions being remitted, the SSS will still pay the employee the corresponding
benefits, but the SSS will hold the employer liable for damages equivalent to the
benefits the employee or his heirs are entitled to receive .20 Moreover, the employer will
be held criminally liable for such violation.
18
Sec. S (j), ibid.
■’LUSTEVECO v. SSS, 16 SCRA 6.
18
Sec. 24 (a), Social Security Act of 1997, as amended.
Sec. 22 (a), ibid.
19
“Machuca Tile Co. v. SSS, 30 SCRA 256.

CHAPTER 17 353
Effect of failure to make timely remittance of contributions

Failure to make a timely remittance of the premium contributions will hold the
employer liable to 3% monthly penalty from the date the contribution falls due until paid .21
The 3% prescribed penalty for failure to remit premium contributions is intended to ensure
that the employer complies with its obligation to remit premium contributions .22 Furthermore,
the employer will be held criminally liable for such violation.
Good faith is not a defense

The penalty for failure to remit premium contributions is punitive in character, hence,
good faith is not a defense. From the moment the remittance of premiums due is delayed, the
penalty immediately attaches to the delayed premium payments by force of law .23
Demand is not a condition precedent for remittance of premium

contributions
The employer is duty-bound to remit the contributions without need of any demand
from the employee. It is the legal obligation of every employer to remit within the first seven
(7) days of the month the contributions of the employee and the employer to the SSS failing in
which invites the imposition of a penalty of three percent (3%). With this mandate of the law,
demand on the part of the employee before the employer remits these contributions to the SSS
is not a condition precedent for such remittance. The Social Security System can collect such
contributions in the same manner as taxes are made collectible under the National Internal
Revenue Code.24
Contributions of the self-employed

The self-employed pays both the employer’s and employee’s contributions. The
monthly earnings declared by the self-employed member at the time of his registration shall
be the basis of his monthly salary credit, unless he makes another declaration of his
21
Sec. 22, Social Security Act of 1997, as amended.
“Santiago v. Court of Appeals, 133 SCRA 34.
“United Christian Missionary Society v. SSS, 30 SCRA 982.
24
Lantaco v. Llamas, 108 SCRA 502.
monthly earnings, in which case, such latest declaration becomes the new basis of
his monthly salary credit.25
Policy on the primacy of regular employment over self-

employment
If one is both an employee covered by the SSS and a self- employed person,
he shall pay the contributions under both status and coverage. However, when the
combined contributions paid to the SSS as a regular employee and as a self-
employed member exceed the maximum contributions based on the highest
monthly salary credit prevailing at the time of simultaneous coverage, the excess
shall be refunded accordingly to the member. The excess contributions to be
refunded shall come from the self-employed contributions.26 27 * *
Effect of interruption of business or professional income

If the self-employed member does not earn income in any given month,
he is not required to pay contributions for that month. He may, however, be
allowed to continue paying contributions under the same rules and regulations
applicable to separated employee- member. Retroactive payment of
contributions is not allowed.21
Effect of separation from employment
When an employee under compulsory coverage is separated from
employment, the obligation of the employer and the employee to pay
contributions arising from that employment ceases at the end of the month of
separation.2*
The Social Security Benefits
The benefits under the Social Security Act are as follows:
(a) Maternity leave benefit;2*
(b; Sickness benefit;30
(c) Permanent disability benefits;31
“Sec. 19-A, Social Security Act of 1997, as

amended.
“Circular No. 37-P, May 16, 2007.
27
Sec. 11-A, Social Security Act of 1997, as
“Sec. 11, ibid.
“Sec. 14-A, ibid.
“Sec. 14, ibid.
3,
Sec. 13-A, ibid.
CHAPTER 17 355
(d) Retirement benefits;3*

(e) Death benefits;* 33 (0
Funeral benefit.33 * * *
Maternity Leave Benefit33

The maternity leave benefit is available to a female SSS member who:
(a) gives birth or suffers miscarriage/abortion; and
(b) has paid at least three (3) monthly contributions in the 12-month period
immediately preceding the semester of her childbirth, abortion or miscarriage.
The maternity leave benefit is equivalent to 100% of the average daily salary credit .38
The duration of maternity leave is;
(a) sixty (60) days for normal delivery; or
(b) seventy-eight (78) days in case of caesarian delivery. Procedure for availment of
the maternity leave benefit;
(a) The employee should notify her employer of her pregnancy and the
probable date of her childbirth which notice shall be transmitted to the SSS;
(b) The employer shall advance the payment within thirty (30) days from the
filing of the maternity leave application; and
(c) The SSS shall reimburse the employer the amount paid upon receipt of
satisfactory proof of such payment and legality thereof;
32
Sec. 12-B, ibid.
*>Sec. 13, ibid.
“See. 13-B, ibid.
33
Sec. 14-A, Social Security Act of 1997, as amended.
33
Average daily salary credit is the result obtained by dividing the sum of the
six 16) highest monthly salary credits in the twelve-month period immediately pre
ceding the semester of contingency by one hundred eighty (180) (Sec. 8 [n], Social Security Act of 1997, as
amended).
Monthly salary credit is the compensation base for contributions and benefits
as indicated in the schedule in Section Eighteen of the Social Security Act (Sec. 8 [g],
Social Security Act of 1997, as amended).
The maternity leave benefit can be availed of only for the first four (4)
deliveries or miscarriage. It cannot be availed of simultaneously with sickness benefit.
Sickness Benefit37
Sickness benefit is not payment or reimbursement for hospitalization, medical
treatment or medicine. Rather they are daily cash allowances to help carry through the
employee and his family during his confinement. It is a stipend to enable the employee
and his family to provide themselves with the bare necessities for subsistence when he
is not receiving his wage or salary.38
The sickness benefit is equivalent to 90% of the average daily salary credit
payable for each day of compensable confinement or fraction thereof. The compensable
confinement begins on the first day of sickness.
The sickness benefit is available to an SSS member who:
(a) has paid at least three (31 monthly contributions in the 12-month
period immediately preceding the semester of sickness;
(b) was confined for more than three (3) days in a hospital or
elsewhere with the approval of the SSS; and
(c) has exhausted the company sick leave with pay, if
any.
The daily sickness benefit cannot be paid longer than 120 days in one calendar
year. It cannot be paid for more than two hundred forty (240) days on account of the
same confinement. Unused portion of the 120 cannot be carried forward to the
subsequent year.
Procedure for availment of sickness benefit by employees:
(a) The employee should notify his employer of the fact of his
sickness or injury within five (5) calendar days after the start of his
confinement.
NOTE: If the notice of sickness or injury was filed after five (5) days,
the confinement shall be deemed to have started not earlier than the fifth day
immediately preceding the date of notification.
37
See. 14, Social Security Act of 1997, as
amended.
38
SSS Circular No. 41, July 20, 1963.
CHAPTER 17 337
THE SOCIAL SECURITY ACT OF 19&7
If the SSS member is unemployed or self-employed, he shall

directly notify the SSS of his confinement within five 15/ calendar days
after the start thereof.
Notice is not necessary if the employee was confined is in a
hospital or if the employee became sick or was injured while working or
within the premises of the employer.
fb) The employer shall advance the sickness allowances and pay the
employee every regular payday;
fc) The SSS shall reimburse the amount paid by the employer upon
satisfactory proof of payment and legality thereof.
NOTE: If the notification to the SSS was made by the employer

after five (5) calendar days from receipt of the notification from the
employee, the employer shall be reimbursed only for each day of
confinement starting from the tenth calendar day immediately preceding
the date of notification to the SSS:
The SSS shall reimburse the employer only for confinement
within the one-year period immediately preceding the date of the claim
for reimbursement, except confinement in a hospital in which case the
claim for benefit or reimbursement must be filed within one (1) year
from the last day of confinement.
If the employee has given the required notification but the employer failed to
notify the SSS of the confinement or to file the claim for reimbursement within the
prescribed period, resulting in the reduction of the benefit or denial of the claim, the
employer cannot recover the daily allowance he advanced to the employee.
The claim of reimbursement shall be adjudicated by the SSS within two (2)
months from receipt thereof. If the employer does not receive the reimbursement within
one (1) month from the prescribed 2-month period for adjudication, the reimbursement
shall thereafter earn simple interest of one percent (1%) per month until paid.
Permanent Total Disability Benefits19

Permanent total disability does not mean a state of absolute helplessness. It
means disablement to do the same or similar kind
“Sec. 13-A, Social Security Act of 1997, as amended.

of work that the SSS member was trained for and accustomed to perform because of:
(a) Complete loss of sight of both eyes;
fb) Loss of two limbs at or above the ankle or wrists;
(c) Permanent complete paralysis of two limbs;

Id) Brain injury resulting in incurable imbecility or insanity; and
(e) Such cases as determined and approved by the SSS. The permanent
total disability benefits are as follows:

(a) Monthly pension40 — available if the SSS member has paid at least
thirty-six (36) monthly contributions prior to the semester of disability;
NOTE: The monthly pension and dependent’s pension shall be suspended:

1. upon the re-employment or resumption of self- employment;
2. upon recovery of the disabled member from his permanent total
disability; or
3. by failure to undergo examination at least once a year upon notice by the
SSS.
(b) Lump sum benefit — available if the SSS member’s contribution is

less than thirty-six (36) monthly contributions.
NOTE: The lump sum benefit is equivalent to the monthly pension

times the number of monthly contributions paid to the SSS or twelve (12)
times the monthly pension, whichever is higher. * (ii)
■"The monthly pension under the Social Security Act is the highest of the following amounts:
(a) The sum of the following:
(i) Three hundred pesos (P300.00), plus
(ii) Twenty percent (20%) of the average monthly salary credit, plus
(iii) Two percent (2%) of the average monthly salary credit for each credited year of
service in excess of ten (10) years; or
(b) Forty percent (40%) of the average monthly salary credit; or
(c) One thousand pesos (PI ,000.00) (Sec. 12, Social Security Act of1997, as amended).
One thumb • One little finger • One foot • Hearing of one ear
One index finger • One big toe • One leg • Hearing of both ears
One middle finger • One hand • One ear • Sight of one eye
One ring finger • One arm • Both ears
The permanent partial disability benefits are as follows:
(a) Percentage of the lump sum benefit — available if the

permanent partial disability occurs before thirty-six (36) monthly contributions
have been paid prior to the semester of disability;
(b) Monthly pension - available if the permanent partial disability
occurs after thirty-six (36) contributions, payable in accordance with the
following schedule:
““Equivalent to five years.

42
Sec. 13-A, Social Security Act of 1997, as amended.
Complete and Permanent Number of Months
Loss of the Use of
Loss of One little finger 3 months

Loss of One ring finger 5 months
Loss of One middle finger 6 months
Loss of One big toe 6 months
Loss of One index finger 8 months
Loss of One thumb 10 months
Loss of One ear 10 months

Loss of Hearing of one ear 10 months
Loss of Both ears 20 months
Loss of Sight of one eye 25 months

Loss of One foot 31 months
Loss of One hand 39 months
Loss of One leg 46 months

Loss of One arm 50 months
Loss of Hearing of both ears 50 months
NOTE: The monthly pension benefit for permanent partial

disability will be given in lump sum if it is payable in less than 12
months.
The partial disability pension ceases upon retirement or death.
Retirement Benefits43
The retirement benefit under the Social Security Act can be availed of by the
SSS member if he has:
(a) reached the age of 60 years or the compulsory retirement age of
65 years; and
(b) already retired from service or ceased to be self- employed.
^Sec. 12-B, Social Security Act of 1997, as amended.

Death Benefits16
The death benefits of a member of the SSS consist of a lump sum amount
computed as follows:
(a) Thirty-six (36) times the monthly pension - if
the member has paid at least thirty-six (36) monthly contributions*7 prior to
the semester of death;
(b) Monthly pension times the number of monthly
contributions paid or twelve (12) times the monthly pension, whichever
is higher — if the member has not paid the thirty-six (36) monthly
contributions.
Funeral Benefits48
This is granted to help defray the cost of funeral expenses of a member who
dies, including death of a permanently totally disabled member or retiree.
The funeral benefit is Twelve Thousand Pesos (P12,000.00) payable in cash
or in kind.
The Primary Beneficiaries

The primary beneficiaries under the Social Security Act are:
(a) the dependent spouse, until he or she remarries; and
(b) the dependent legitimate, legitimated or legally adopted, and
illegitimate children.
The existence of both legitimate/legitimated/legally adopted and illegitimate
children entitles the illegitimate children to fifty percent (50%) of the share of the
legitimate/legitimated/legally adopted children.
In the absence of legitimate/legitimated/legally adopted children, the
illegitimate children will be entitled to one hundred percent (100%) of the benefits."
If an SSS member while still unmarried, designates his brothers and sisters
as beneficiaries, his children would be entitled * 49
"Sec. 13, Social Security Act of 1997, as amended.

' ." .'"valent to three (3) years.
"Sec. 13-B, Social Security Act of 1997. as
amended.
49
Sec. 8 (kl, ibid.
CHAPTER 17 363
to the benefits under the Social Security Law, even if the covered member failed
to change the designation of beneficiaries after his marriage because the benefits
under the Social Security Law are vested only upon death of the member.
Brothers and sisters may not be designated as beneficiaries except in

default, not only of surviving spouse and children, but also of “legitimate parents
of the covered employee.”
The Secondary Beneficiaries
The secondary beneficiaries under the Social Security Act are:

(a) the dependent parents; or
(b) any other person designated by the member as his secondary
beneficiary."
The dependents
The dependents of an SSS member are the following:
(a) The legal spouse entitled by law to receive support from the
member;
(b) The legitimate, legitimated, legally adopted, and illegitimate child
who:
(i) is unmarried; and
(ii) has not reached twenty-one (21) years of age; or
(iii) if over twenty-one (21) years of age, he is congenitally
incapacitated or while still a minor has been permanently
incapacitated and incapable of self-support, physically or mentally;
(c) The parent who is receiving regular support from the
member."
"'Merced v. Vda. de Merced, 19 SCRA 423.

"'See. 8 (It), Sociul Security Act of 1997, as amended. “Sec. 8 (e), ibid.
The dependents’ pension”

This is granted to dependents in case of death, permanent total disability or
retirement of an SSS member.
The dependents’ pension is equivalent to ten percent ( 10%) of the monthly
pension or Two hundred fifty pesos (P250.00), whichever is higher, payable to each
dependent child conceived on or before the date of contingency but not exceeding five
(5) beginning with the youngest and without substitution.
Where there are legitimate and illegitimate children, the former shall be
preferred.
The Social Security System (SSS)

The SSS is the implementing arm of the Social Security Act. It is a corporate
body directed and controlled by the Social Security Commission.
The SSS exercises the following powers and duties:
(a) To submit annually not later than April 30, a public report to the
President of the Philippines covering its activities in the administration and
enforcement of the Social Security Act during the preceding year including
information and recommendations on broad policies for the development and
perfection of the program of the SSS;
(b) To require the actuary to submit a valuation report on the SSS
benefit program every four (4) years, or more frequently as may be necessary,
and to undertake the necessary actuarial studies and calculations concerning
increases in benefits and the financial stability of the SSS and to provide for
feasible increases in benefits every four (4) years, including the addition of new
ones under such rules and regulations as the Commission may adopt subject to
approval by the President;
(c) To establish offices of the SSS to cover as many provinces, cities
and congressional districts, whenever and wherever it may be expedient,
necessary and feasible, and to inspect or cause to be inspected periodically such
offices;
CHAPTER 17 365
(d) To enter into agreements or contracts for such service and aid,
as may be needed for the proper, efficient and stable administration of the
SSS;
(e) To adopt from time to time a budget of expenditures including
salaries of personnel, against all funds available to the SSS under the Social
Security Act;
(f) To set up its accounting system and provide the necessary
personnel therefor;
(g) To require reports, compilations and analyses of statistical and
economic data and to make investigations as may be needed for the proper
administration and development of the SSS;
(h) To acquire and dispose of property, real or personal, which may
be necessary or expedient for the attainment of the purposes of the Social
Security Act;
(i) To acquire, receive, or hold, by way of purchase, expropriation
or otherwise, public or private property for the purpose of undertaking
housing projects preferably for the benefit of low-income members and for
the maintenance of hospitals and institutions for the sick, aged and disabled,
as well as schools for the members and their immediate families;
(j) To sue and be sued in court; and
(k) To perform such other acts as it may deem appropriate for
proper enforcement of the Social Security Act.11
Social Security System may sue and be sued

The Social Security System is a juridical entity with a person ality separate
and distinct from the Government. The System’s own organic act specifically
provides that it can sue and be sued in Court. These words “sue and be sued”
embrace all civil process incident to a legal action. The law itself has given the
private citizen a remedy for the enforcement and protection of his rights. A private
citizen, therefore, may bring a suit against it for varied objectives, such as in this
case, to obtain compensation in damages arising from contract and even for tort .86
“Sec. 4, Social Security Act of 1997, as amended. “SSS v.

Court of Appeals, 120 SCRA 707,
The Social Security Commission (SSC)

The Social Security Commission is composed of the following:
(a) Secretary of Labor and Employment or his duly
designated undersecretary;
(b) SSS President; and
(c) Seven (7) members to be appointed by the President

of the Philippines, to wit:
(i) three (3), representing the workers’ group, at least one ( 1)
of whom shall be a woman;
(ii) three (3), representing the employers’ group, at least one
of whom shall be a woman; and
(iii) one (1), representing the general public who should have
adequate knowledge and experience regarding social security.
The six (6) members representing workers and employers shall be chosen
from among the nominees of workers’ and employers’ organizations, respectively.
The Chairman of the SSC shall be designated by the President from among its
members.
The term of the appointive members shall be three (3) years. They shall
continue to hold office until their successors shall have been appointed and duly
qualified. All vacancies, prior to the expiration of the term, shall be filled for the
unexpired term only.
The SSC is co-equal in rank with the Regional Trial Courts. Therefore, the
Regional Trial Court cannot issue writs of Injunction, Certiorari and Prohibition
against the SSC.M
The SSC performs administrative as well as quasi-judicial functions. It may
sue and be sued in the Regional Trial Courts only on matters connected with its
administrative functions, but not on matters connected with its quasi-judicial
functions. For this reason, Section 5(c) of said Act, explicitly provides in connection
with “decisions” of the Social Security Commission or the determinations thereof in
the exercise of said functions, that the same “may be 66
66
Pobletc Construction v. SSC, 10 SCRA 1; Philamlife v. SSC, 20 SCRA 162.
CHAPTER 17 367 {,
reviewed both upon the law and the facts by the Court of Appeals” or by the Supreme
Court if the decision involves questions of law.5;
The administrative functions are as follows:
(a) To adopt, amend and rescind, subject to the approval of the
President of the Philippines, such rules and regulations as may be necessary to
carry out the provisions and purposes of the Social Security Act.
fb) To establish a provident fund for its members which will consist of
voluntary contributions of employers and/or employees, self-employed and
voluntary members and their earnings, for payment of benefits to such
members or their beneficiaries, subject to such rules and regulations as it may
promulgate and approved by the President of the Philippines;
(c) To maintain a Provident Fund from the contributions made by
both the SSS and its officials and employees and their earnings, for the
payment of benefits under such terms and conditions as it may prescribe;
fd) To approve restructuring proposals for the payment of due but

unremitted contributions and unpaid loan amortizations under such terms and
conditions as it may prescribe;
(e) To authorize cooperatives registered with the Cooperative
Development Authority or associations registered with the appropriate
government agency to act as collecting agents of the SSS with respect to their
members;
(f) To compromise or release, in whole or in part, any interest,
penalty or any civil liability to SSS in connection with the investments
authorized under Section 26 hereof, under such terms and conditions as it may
prescribe and approved by the President of the Philippines; and
(g) To approve, confirm, pass upon or review any and all actions of
the SSS in the proper and necessary exercise of its powers and duties
hereinafter enumerated.”1
Quasi-judicial functions of the SSC

The SSC has jurisdiction over disputes arising under the Social Security Act
with respect to coverage, entitlement of benefits, collection and settlement of
contributions and penalties thereon, or any other matter related thereto .59
In the exercise of its quasi-judicial functions, the SSC can order motu proprio
the remittance of unpaid premium contributions discovered in the course of the
proceedings before it. The hearings before the Commission are administrative and are
not strictly governed by the technical rules of procedure that are applied to judicial
trials.60
However, the SSC has no authority to condone penalties for late payment.
Being a mere trustee of the funds of the SSS which actually belong to the members,
the SSC cannot legally perform any acts affecting the same, including condonation of
penalties, that would diminish the property rights of the owners and beneficiaries of
such funds without an express or specific authority therefor.61
The SSC has jurisdiction over claim for damages. Section 5(a) of the Social
Security Act provides that the “filing, determination and settlement of claim shall be
governed by the rules and regulations promulgated by the Commission; and the rules
and regulations thus promulgated state that the effectivity of membership in the
System, as well as the final determination and settlement of claims shall be vested in
the Commission. The term ‘claims’ is broad enough to include a claim for ‘damages’
under Section 24.”62
Appeal from decisions of the SSC

Decisions of the SSC are appealable to the Court of Appeals under Rule 43 of
the Rules of Court by filing a verified petition for review within fifteen (15) days
from notice of judgment. Judicial review thereof shall be permitted only after any
party claiming to be aggrieved thereby has exhausted his remedies before the
Commission.63
“See. 5 (a). Social Security Act of 1997, as amended, Sec. 1, Rule III, Rules of Pleading, Practice
and Procedure of the SSC.
“Oromega Lumber Co. v. SSC, L-14833 April 28, 1962: Jalotlot v. Marinduque Iron Mines, 14
SCRA 187.
31
United Christian Missionary Society v. SSC, 30 SCRA 982.
“'Poblete Construction v. Asian, 20 SCRA 1143.
“3Sec. 5 (b), Social Security Act of 1997, as amended.
CHAPTER 18
THE GOVERNMENT SERVICE INSURANCE SYSTEM
ACT OF 1997

■ _____________________________________________________________________________________________
Coverage of the Government Service Insurance System (GSIS)

The GSIS covers government employees, irrespective of employment
status, who are employed with:
(a) the national government, its political subdivisions, branches,
agencies or instrumentalities;
(b) government-owned or controlled corporations;
(c) government financial institutions with original charters;
(d) constitutional commissions; and
(e) the judiciary.1
Compulsory membership
Membership with the GSIS is compulsory upon:
(a) All government personnel who are receiving fixed monthly
compensation and have not reached the mandatory retirement age of 65
years, whether elective or appointive;
(b) Elective officials who will be more than 65 years old at the
end of his term (including the period of his re-election without
interruption);
'See. 3, GSIS Act of 1997.
369
(c) Officials appointed by the President of the Republic of the

Philippines who remain in office after reaching the age of 65;
(d) Contractual or casual employees who receive fixed monthly
compensation and render the required number of working hours for the
month.1
Employees not subject to compulsory coverage of the GSIS

The following employees are excluded from compulsory coverage of the
GSIS:
(a) Uniformed personnel of the Armed Forces of the Philippines,
Philippine National Police, Bureau of Fire Protection, and Bureau of Jail
Management and Penology;
ib) Barangay and Sanggunian Officials who are not receiving fixed
monthly compensation;
(c) Contractual Employees who are not receiving fixed monthly
compensation; and
(d) Employees who do not have monthly regular hours of work
and are not receiving fixed monthly compensation.3
Classes of GSIS membership

GSIS membership is classified as follows:
(a) Regular or Special
Regular Members — those employed by the government of the
Republic of the Philippines, national or local, legislative bodies,
government-owned and controlled corporations (GOCC) with original
charters, government financial institutions (GFIs), except uniformed
personnel of the Armed Forces of the Philippines, the Philippine National
Police, Bureau of Jail Management and Penology (BJMP) and Bureau of
Fire Protection (BFP), who are required by law to remit regular monthly
contributions to the GSIS;
Special Members — the constitutional commissioners, members of
the judiciary, including those with equivalent
2
Sec. 3, Rule II, Revised Implementing Rules of the GSIS Act of 1997.
■Sec. 2, ibid.
CHAPTER 18 371
THE GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997
ranks, who are required by law to remit regular monthly contributions for
life insurance policies to the GSIS in order to answer for their life insurance
benefits;
Cb) Active or Inactive

Active member — refers to a member of the GSIS, whether regular or
special, who is still in the government service and together with the
government agency to which he belongs, is required to pay the monthly
contribution.
Inactive member — a member who is separated from the service either

by resignation, retirement, disability, dismissal from the service,
retrenchment or, who is deemed retired from the service under this Act.*
Effective date of GSIS membership

GSIS membership takes effect on the date of assumption to office by
virtue of the original appointment or election .5 6
Separation from the service does not terminate GSIS

membership
A GSIS member who is separated from the service continues to be a
member, and therefore, entitled to whatever benefits he has qualified to in the
event of any compensable contingency.'
The GSIS benefits

Members of the GSIS are entitled to the following benefits:
(a) Separation benefits;7
(b) Unemployment or involuntary separation benefits;'
(c) Permanent total disability benefits;8 9
(d) Permanent partial disability benefits;1"
(e) Temporary total disability benefit;11
‘Sec. 2, Rule II, Revised Implementing Rules of the GSIS Act of 1997.
6
Sec. 5, ibid.
6
Sec. 4, GSIS Act of 1997.
7
Sec. 11, ibid.
B
Sec. 12, ibid.
9
Sec. 16, ibid.
10
“Sec. 18, ibid.
(f) Retirement Benefits;'-1

(g) Survivorship benefits;'-1
(h) Funeral benefit;'*
fi) Life insurance benefits
Separation benefits
The separation benefit consists of the following:
(a) For members who resign or are separated from the service after
rendering service for at least 3 years but less than 15 years:
Cash payment equivalent to 100% of the average monthly
compensation12 13 * 15 16 17 for each year of service he paid contributions, but not
less than P12,000.00 payable upon reaching the age of 60 years or upon
separation, whichever comes later.
(b) For members who resign or are separated from the service after
rendering at least 15 years of service and is below 60 years old at the time of
resignation or separation:
Cash payment equivalent to 18 times his basic monthly pension payable
at the time of resignation or separation, plus an old-age pension benefit equal to
the basic monthly pension payable monthly for life upon reaching the age of 60
years.11
Unemployment or involuntary separation benefits

This is available to permanent employees involuntarily separated from the
service due to the abolition of office.
The unemployment benefit is in the form of monthly cash payments equivalent
to 50% of the average monthly compensation payable for the following duration:
12
Sec. 13, ibid.
13
Sec. 20, ibid.
“Sec. 23, ibid.
“Sec. 24, ibid.
16
Average monthly compensation is the quotient arrived at after dividing the aggregate
compensation received by the member during his last thirty-six (36) months of service preceding his
separation/retirement/disability/death by thirty-six (36), or by the number of months he received such
compensation if he has less than thirty-six (36) months of service (Sec. 2 [l], GSIS Act of1997).
17
Sec. 11, supra.
CHAPTER IS 373
THE GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF VZH
(a) 2 months — if contributions have been made for 1

year but less than 3 years;
(bj 3 months — if contributions have been made for 3 years but
less than 6 years;
(c) 4 months — if contributions have been made for 6 years but
less than 9 years;
(d) 5 months — if contributions have been made for 9 years but
less than 11 years;
(e) 6 months — if contributions have been made for 11 years
but less than 15 years;
Conditions for Entitlement to Unemployment Benefit

GSIS members are entitled to the unemployment benefits if the
following conditions are met:
(a) he was a permanent employee at time of separation;
(b his separation was involuntary due to the abolition of his
office; and
(c) he has been paying the required premium contributions for
at least 1 year prior to separation.'8
Permanent Total Disability Benefits

Permanent total disability means disability caused by injury or disease
resulting in complete, irreversible and permanent incapacity to work or to
engage in any gainful occupation.18
The following disabilities shall be deemed total and permanent:
(a) complete loss of sight for both eyes;
(b) loss of two limbs at or above the ankle or wrists;
(c) permanent complete paralysis of two limbs; and
(d) brain injury resulting in incurable imbecility or insanity;
1B
Sec. 22, Revised Implementing Rules and Regulations of the GSIS Act of
1997.
10
Sec 23.2,1 Revised Implementing Rules of the GSIS Act of 1997.
x e> such other cases as may be determined and approved by the GSIST"
The permanent total disability benefits for GSIS members are as follows:
(a) If the permanent total disability was suffered while in the service
Lifetime monthly income benefit equal to the basic monthly pension11 plus
cash payment equivalent to 18 times his basic monthly pension, provided that a
total of at least 180 monthly contributions has been paid;n
lb) If the permanent total disability was suffered after separation from
service
Lifetime monthly income benefit equal to the basic monthly pension
effective from the date of disability, provided that the member has paid:
(i) 36 monthly contributions within the 5-year period
immediately preceding his disability, or
(ii) 180 monthly contributions, prior to his disability.23
(c) If the member has not paid the required minimum contributions
and the permanent total disability was suffered after separation from service
His separation benefit equivalent to 100% of his average monthly
compensation for each year of service (but not less than P12.000) shall be paid in
advance, provided that he has rendered at least three (3) years of service at the
time of his permanent total disability.2* * 21
M
Sec 23.2,1 ibid.
21
The basic monthly pension is equal to:
(a) thirty-seven and one-half percent (37.5%) of the revalued average monthly compensation; plus
(b) two and one-half percent (2.5%) of said revalued average monthly compensation for each year
of service in excess of fifteen (15) years: Provided, That the basic monthly pension shall not exceed ninety
percent (90%) of the average monthly compensation (Sec, 9, GSIS Act of1997).
^Sec. 16, GSIS Act of 1997,
M
^Sec. 16, ibid.
CHAPTER 18 375
NOTE: A member cannot simultaneously enjoy the monthly

income benefit for permanent disability and the old- age retirement. 2*
A member is not entitled to the benefit if the permanent total
disability was caused by his grave misconduct, notorious negligence,
habitual intoxication, or willful intention to kill himself or another. 26
Permanent Partial Disability Benefits

The disability is permanent and partial when the GSIS member is
incapacitated to work for a limited period of time because of complete and
permanent loss of any of the following body parts:
• any finger • one leg

• any toe • one or both ears
• one arm • hearing of one or both ears
• one hand • sight of one eye
• one foot • other cases as may be determined by the GSIS27
The permanent partial disability benefits consist in cash
payment in accordance with a schedule of disabilities prescribed by
the GSIS.28
A GSIS member is entitled to permanent partial disability benefit:
(a) if he was in the service at the time of disability; or

(b) if separated from the service, he has paid at least 36 months
contributions within the 5-year period immediately preceding his
disability; or has paid a total of at least 180 months contributions prior to
the disability; provided, that the following conditions are met:
1. he is gainfully employed prior to the commencement of

disability resulting in loss of income as evidenced by any
incontrovertible proof thereof;
Sec. 16, ibid.

2
*Sec. 15, ibid.
27
Sec. 17, ibid; Sec. 23.2.2, Revised Implementing Rules and Regulations of the
GSIS Act of 1997.
M
Sec. 17, ibid.
2. he is not a registered member of any social insurance

institution; and
3. he is not receiving any other pension either from GSIS or
another local or foreign institution or organization .29
NOTE: A member is not entitled to the benefit if the permanent partial disability
was caused by his grave misconduct, notorious negligence, habitual intoxication, or willful
intention to kill himself or another.™
Temporary Total Disability Benefits

The disability is temporary and total when the GSIS member is momentarily
incapacitated to work or engage in any gainful occupation as a result of impairment of
physical or mental faculties which can be rehabilitated or restored to their normal
functions.31
The temporary total disability benefit of GSIS members is:
75% of the current daily compensation for each day of disability for a period not
exceeding 120 days in one calendar year.
NOTE: If the disability requires more extensive treatment beyond 120

days, the payment of the temporary total disability benefit may be extended
by the GSIS for a period not exceeding 240 days.
A GSIS member is entitled to temporary total disability benefit under the

following conditions:
(a) The GSIS member must be in the service at the time of his
disability or, if separated, he has:
(i) rendered at least three (3) years of service; and
(ii) paid at least six (6) monthly contributions in the 12-month

period immediately preceding his disability.
29
Sec. 23.4.2, Revised Implementing Rules and Regulations of the GSIS Act of
1997.
30
31
1997.
\
(b) The GSIS member must have exhausted all his sick leave credits. 3*
NOTE: A GSIS member cannot enjoy the temporary total disability

benefit and sick leave pay simultaneously.32 33
A member is not entitled to the benefit if the permanent partial
disability was caused by his grave misconduct, notorious negligence,
habitual intoxication, or willful intention to kill himself or another. 34
Suspension of disability benefits

Unless the member has reached the minimum retirement age, disability
benefits shall be suspended when he:
(a) is reemployed or
(b) recovers from disability as determined by the GSIS-, or
(c) fails to present himself for medical examination when
required by the GSIS.35
Forfeiture of disability benefits

The disability benefits will be automatically forfeited if the GSIS member refuses or
fails:
(a) to have himself medically treated by a physician when required by the
GSIS;
(b) to take the prescribed medications;
(c) to have himself confined in a hospital, when such confinement is required
by the GSIS; or
(d) to avail himself of rehabilitation facilities as may be duly recommended by
the GSIS; or
32
33
Sec. 18, ibid.
34
1997.
35
(e) to observe such precautionary or preventive measures as prescribed

by a physician to prevent the aggravation or continuance of his disability .36 37
Retirement Benefits
To be entitled to the retirement benefits, the GSIS member must meet the following
conditions:
(a) he has rendered at least fifteen (15) years of service;
(b) he is at least sixty (60) years of age at the time of retirement; and
(c) he is not receiving a monthly pension benefit from permanent total
disability.31
A retiring GSIS member has the following options:
(a) 5-year lump sum equivalent to 60 months of basic monthly
pension.38 After the lapse of the 5-year period, old-age pension benefit equal to the
basic monthly pension payable for life; or
(b) Cash payment benefit equivalent to 18 times of the basic monthly
pension plus monthly pension for life;39
Effect of Death of the GSIS Member While the Retirement Claims Are
Being Processed
(a) If the deceased member opted for 5-year lump sum benefit, his legal
heirs shall be entitled to 5-year lump sum benefit equivalent to 60 months basic
monthly pension. But the survivorship pension shall be granted only after the end
of the 5-year guaranteed period;
36
1997.
37
Sec. 13-A, GSIS Act of 1997.
38
The basic monthly pension is equal to:
(a) thirty-seven and one-half percent (37.5%) of the revalued average monthly compensation; plus
(b) two and one-half percent (2.5%) of said revalued average monthly compensation for each year of
service in excess of fifteen (15) years: Provided, That the basic monthly pension shall not exceed ninety percent
(90%) of the average monthly compensation (Sec. 9, GSIS Act of 1997).
39
Sec. 20.2, Revised Implementing Rules and Regulations of the GSIS Act of
1997.
CHAPTER 18 379
(b) If the deceased member opted for immediate pension, his legal
heirs shall be entitled to the cash payment benefit equivalent to 18 months of
basic monthly pension, plus accrued pension up to the date of death of the
retiree.
(c) If the deceased member failed to indicate any retirement option,
the retirement benefit shall be computed as if he opted for immediate pension .*0
Survivorship Benefits
If the GSIS member dies, the primary beneficiaries'1 are entitled to the following
survivorship benefits, whichever is applicable:
(a) Survivorship pension, under the following conditions:
(i) The deceased was in the service at the time of his death; or
(ii) if separated from the service,
• has at least three (3) years of service at the time of his
death and has paid thirty-six (36) monthly contributions within the
five-year period immediately preceding his death; or
• has paid a total of at least one hundred eighty (180)
monthly contributions prior to his death;
(b) Survivorship pension plus a cash payment equivalent to one
hundred percent (100%) of average monthly compensation for every year of
service, under the following conditions:
(i) the deceased was in the service at the time of his death; and
(ii) must have rendered at least three (3) years of service.
(c) Cash payment equivalent to one hundred percent (100%) of his
average monthly compensation for each year
‘“Sec. 20.5, ibid.

"The primary beneficiaries are the legal dependent spouse until he/she remarries and the dependent
children (Sec. 2 [g], GSIS Act of 1997).
of service he paid contributions, but not less than Twelve thousand pesos
(P12,000.00), under the following conditions:
(i) the deceased has rendered at least three (3) years of service
prior to his death;
(ii) but does not qualify for survivorship pension mentioned
above.42
The survivorship pension shall be paid to:
(a) the dependent spouse - if she is the only survivor, to be enjoyed for
life or until he/she remarries;
(b) the dependent children43 — if they are the only survivors, to be
enjoyed for as long as they are qualified, plus the dependent children’s pension ;44 *
(c) the dependent spouse and the dependent children, if they are survivors
— the dependent spouse shall receive the basic survivorship pension for life or until
he/she remarries, while the dependent children shall receive the dependent
children’s pension equivalent to 10% of the basic monthly pension for every
dependent child not exceeding five (5), counted from the youngest and without
substitution.46
If there are no primary beneficiaries, the survivorship benefits shall be paid to the secondary
beneficiaries46 in the following amount:
(a) Cash payment equivalent to 100% of the average monthly compensation
for each year of service he paid contributions, but not less than Twelve thousand
pesos (P12,000), if the GSIS member:
(i) was in the service at the time of his death; and
“Sec. 21, GSIS Act of 1997.

“The dependent children are the unmarried the legitimate, legitimated, or legally adopted
child including the illegitimate child, not gainfully employed, not over the age of majority, or over
the age of majority but incapacitated and incapable of self-support due to a mental or physical defect
acquired prior to age of majority (Sec. 2/77, GSIS Act of1997).
44
The dependent children’s pension is 10% of the basic monthly pension for every
dependent child not exceeding five (5), counted from the youngest and without substitution.
“Sec. 21, GSIS Act of 1997.

“Secondary beneficiaries are the dependent parents and, subject to the restrictions on
dependent children, the legitimate descendants (Sec. 2 [h], GSIS Act of 1997).
CHAPTER 18 381
(ii) has at least three (3) years of service.

In the absence of secondary beneficiaries, the benefits shall be paid to his legal
heirs.41
Funeral Benefits
Funeral benefit is intended to help defray the expenses incident to the burial and
funeral of the deceased member, pensioner or retiree. It is payable to any qualified
individual, in accordance with the following order of priority:
(a) Legitimate spouse;

(b) Legitimate child who spent for the funeral services;
(c) Any other person who can show incontrovertible

proof that he shouldered the funeral expenses of the deceased .48
The funeral benefit is:
(a) The prevailing amount approved by the Board of Trustees at the time of
death of the member or pensioner;
(b) P10,000.00 — For uniformed members of the Philip-

pine National Police, Bureau of Jail Management and Peno-
logy, and Bureau of Fire Protection.49
The GSIS life insurance is compulsory and available to all employees, except for
Members of the Armed Forces of the Philippines and the Philippine National Police .50
Prescriptive period for filing claims

Claims for GSIS benefits except for life insurance and retirement must be filed
within 4 years from the date of contingency. Claims filed after 4 years will be barred by
prescription.61

Agrarian Law and Social Legislation by P Ungos

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Rights and privileges of domestic workers.............................................................................................................................................

Obligations of domestic workers.............................................................................................................................................................. 19l

Migrant Worker............................................................................................ 196

Purpose of the Law............................................................................................... 240

Violence against women and their children............................................................. 280

The Forerunner of the Present Home Development

THE NATIONAL HEALTH INSURANCE ACT OF 1995

The rationale behind the enactment of the National

Coverage of the Government Service Insurance 369

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

REPUBLIC ACT NO. 6657

4 ACUAKIAN LAW AND SOCIAL LKGISLATJON Sec.)

Meaning of Agrarian Reform

Applicability of the Comprehensive Agrarian Reform Law

6 AGRARIAN LAW AND SOCIAL LEGISLATION

Meaning of Agricultural Land

Agricultural land refers to land devoted to agricultural activities. It contemplates

NATALIA REALTY V. DAR

Constitutionality of the Comprehensive Agrarian Reform Law

SECTION 2. Declaration of Principles and Policies — It is the policy of

‘“Association of Small Landowners v. Secretary of Agrarian Reform, 175 SCRA

8 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 2

as amended, and to the ecological needs of the nation, shall be undertaken to

THE COMPREHENSIVE ACiHAINAN REFORM l.AW OF 1998

rights, homestead rights of small settlers and the rights of indigenous

The Primary Objective of Agrarian Reform

Meaning of Economic Family-Size Farm

(a) Agrarian Reform means the redistribution of lands, regardless of crops

immediate farm household, whether the land is owned by him'her, or by another

'"As amended by R.A. No. 9700. 111 Aa

THE COMPREHENSIVE AGRARIAN REFORM LAW OF 19!>8

SECTION 5. Schedule of Implementation. — The distribution of all

SECTION 6. Retention Limits. — Except as otherwise provided in this

size of which shall vary according to factors governing a viable family-size

Can a landowner who has already exercised his retention rights

Who has the right to choose the retention area?

Suppose the retention area chosen by the landowner is tenanted,

Effect if the tenant chooses to remain in the retained area

(g) Buy the agricultural landholding under reasonable terms and

What is the term of the lease?

(b) Absence of successor (i.e., surviving spouse, eldest direct

Effect if the Tenant Chooses to be a Beneficiary

Children of the Landowner are Entitled to 3 hectares each

22 AGRARIAN LAW AND SOCIAL LEGISLATION

Right of Homesteaders vis-a-vis Right of Tenants

Section 6 of the Comprehensive Agrarian Reform Law also provides that:

SECTION 6-A. Exception to Retention Limits. — Provincial, city and

“AJita v. Court of Appeals, 170 SCRA 706.

Expropriation of Private Agricultural Lands By Local Government

SECTION 6-B. Review of Limits of Land Size. — Within six

SECTION 7. Priorities. — The DAR, in coordination with the

shall be covered for purposes of agrarian reform upon the effectivity of

and planted to crops in accordance with Section 6, Article XIII of the

28 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 7

be given the opportunity to participate in the development planning and

Acquisition and Distribution Scheme

(iii) idle or abandoned lands;

(iv) private lands voluntarily offered by the owners for

“As amended by R.A. No. 9700.

(vi) lands acquired by the Presidential Commission on Good

30 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 8

SECTION 8. Multinational Corporations. — All lands of the public domain

such advanced technology will be given preferential treatment where feasible.