Agrarian Law and Social Legislation by Paulino Ungos 2014 1 1

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 354
income.... 354
Effect of separation from employment........................... 355
The Social Security Benefits........................................... 356
Maternity Leave Benefit................................................. 357
Sickness Benefit............................................................. 359
Permanent Total Disability Benefits................................ 360
Permanent Partial Disability Benefits.............................. 362
Retirement Benefits........................................................ 362
Death Benefits................................................................ 362
Funeral Benefits............................................................. 363
The Primary Beneficiaries............................................... 363
The Secondary Beneficiaries.......................................... 364
The dependents............................................................. 364
The dependents’ pension............................................... 365
The Social Security System (SSS)................................... 366
Social Security System may sue and be sued................ 368
The Social Security Commission (SSC)........................... 368
Quasi-judicial functions of the SSC.................................
Appeal from decisions of the SSC...................................
CHAPTER 18
THE GOVERNMENT SERVICE INSURANCE
SYSTEM ACT OF 1997
369
Coverage of the Government Service Insurance 369
System (GSIS)........................................................
370
Compulsory membership...............................................
370
Employees not subject to compulsory coverage
371
of the GSIS.............................................................
Classes of GSIS membership..........................................
371
Effective date of GSIS membership................................
371
Separation from the sendee does not terminate
372
GSIS membership...................................................
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 Law 3 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 Act1 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
’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.
/'
“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 unconstitu-
tional 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, farm-
workers 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, pro-
duction, marketing and other support services.
The State shall recognize and enforce, consistent with
existing laws, the rights of rural women to own and control
land, taking into consideration the substantive equality
between men and women as qualified beneficiaries, to
receive a just share of the fruits thereof, and to be
represented in advisory or appropriate decision-making
bodies. These rights shall be independent of their male
relatives and of their civil status.
The State shall apply the principles of agrarian reform,
or stewardship, whenever applicable, in accordance with
law, in the disposition or utilization of other natural
resources, including lands of the public domain, under lease
or concession, suitable to agriculture, subject to prior
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 farmwork-
ers in its own agricultural estates, which shall be distributed
to them in the manner provided by law.
By means of appropriate incentives, the State shall
encourage the formation and maintenance of economic-size
family farms to be constituted by individual beneficiaries
and small landowners.
The State shall protect the rights of subsistence fisher-
men, especially of local communities, to the preferential use
of communal marine and fishing resources, both inland and
offshore. It shall provide support to such fishermen through
appropriate technology and research, adequate financial,
production and marketing assistance and other services.
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 beneficia-
ries 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
DAR Administrative Order No. 02, series of
2009.
‘“Hacienda Luisita Inc. v. PARC, 653 SCRA
154.
“Sec. 166 (20), Code of Agrarian Reforms,
as amended.
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 agri-
cultural activity as defined in this Act and not classified
as mineral, forest, residential, commercial or industrial
land.
(d) Agrarian Dispute refers to any controversy
relating to tenurial arrangements, whether leasehold,
tenancy, 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.
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 pub-
lic 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, developmental 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.
18
DAR 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 agri-
culture.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
Sec. 4, Comprehensive Agrarian Reform Law, as

20
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
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
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
32
Daez545.
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
Rodriguez v. Salvador, 651 SCRA 429.

34
Sec. 6, Comprehensive Agrarian Reform Law as

36
Sec. 23, Code of Agrarian Reforms, as amended.

36
Sec. 24, ibid.

37
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 obliga-
tions:
(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 land-
holding by the lessee; or
Sec. 11, ibid.

39
Sec. 12, ibid.

40
Sec. 26, Code of Agrarian

4,
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 agricul-
tural 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
Sec.8,9,
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
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, fur-
ther, That collective ownership by the farmer beneficiaries
shall be subject to Section 25 of Republic Act No. 6657, as
amended: Provided, furthermore, That rural women shall
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 attri-
butes 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,
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 agro-
forest, 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;
<3
0 (iv) all private agricultural lands which have
already been subjected to a Notice of Coverage issued
on or before December 10, 2008; and
(v) all remaining private agricultural lands regard-
less as to whether they have been subjected to notices
of coverage.
J
(c) Lands with an area of more than ten (10) hectares
up to twent3'-four (24) hectares, to be completed by June 30,
2013; and
(d) Lands from the retention limit up to ten (10)
hectares, to be completed by June 30, 2014.
Only farmers (tenants or lessees) and regular farm-
workers actually tilling the lands, as certified under oath by
the Barangay Agrarian Reform Council (BARC) and attested
under oath by the landowners, can be considered as qualified
beneficiaries.
The intended beneficiary shall state under oath before
the judge of the city or municipal court that he/she is willing
to work on the land to make it productive and to assume the
obligation of paying the amortization for the compensation of
the land and the land taxes thereon.
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 con-
tracts 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 agree-
ments 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 cor-
porations, owned by private individuals and private non-
governmental 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 in-
dividual 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’ co-
operative or association and the corporation or business as-
sociation or any other proper party, any agreement existing
at the time this Act takes effect between the former and the
previous landowner shall be respected by both the workers’
cooperative or association and the corporation, business,
association or such other proper party. In no case shall the
implementation or application of this Act justify or result in
the reduction of status or diminution of any benefits re-
ceived 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 treat-

ment where feasible.
In no case shall a foreign corporation, association, en-
tity 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 indi-

viduals, families, and clans who are members of the indigenous
cultural communities or indigenous peoples since time
immemorial, by themselves or through their predecessors-in-
interest, under claims of individual or traditional group ownership,
continuously, to the present except when interrupted by war,
force majeure or displacement by force, deceit, stealth, or as a
consequence of government projects and other voluntary dealings
entered into by 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 Administrative 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 indus-
trial use by the Housing and Land Use Regulatory Board prior to the
effectivity of the Comprehensive Agrarian Reform Law (CARL) are
not subject to agrarian reform.59
In the case of Natalia Realty v. DAR, 225 SCRA 278, the Supreme
Court held that:
“Based on the foregoing, it is clear that the undeveloped

portions of the Antipolo Hills Subdivision cannot in any
language be considered as ‘agricultural lands.’ These lots were
intended for residential use. They ceased to be agricultural
lands upon approval of their inclusion in the Lungsod Silangan
Reservation. Even today, the areas in question continued to be
developed as low cost housing subdivision, albeit 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 out-
side the coverage of CARL. These include lands previously con-
verted to non-agricultural uses prior to the effectivity of CARL
by government agencies other than respondent DAR. x x x
Since the NATALIA lands were converted prior to 15 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
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 suf-
ficient to accommodate them.65
The following order of priority shall be observed in the distri-
bution:
(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 con-
tinuously 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 com-
mitted 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.
Sec. 5, DAR Administrative Order 09,
70
series
Sec. 2of(i),
7,
1998.
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.™
Sec. 3(i), ibid.

,z
"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 corpo-
rations;
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 manage-
ment 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 land-
owners 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 corre-
sponding 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
“As amended by R.A. No. 9700.

(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.
“As amended by R.A. No. 9700.
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 Com-

prehensive 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 Twenty-five percent (25%)

fifty (50) hectares, cash, the balance to be paid
insofar as the in government financial
excess hectarage is instruments negotiable at
concerned. any time.
Thirty percent (30%) cash,
(3) For lands above the balance to be paid in
twenty-four (24) government financial
hectares and up to instruments negotiable at
any time.
(a) For lands twenty- Thirty-five percent (35%)

four (24) hectares and below. cash, the 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 govern-
ment-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 com-
pensation 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
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-
Santos v. Land Bank, G.R. No. 137431, September 7, 2000.

102
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 govern-
ment;
(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 acquisi-
tion 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.
Sec. 25, Comprehensive Agrarian Reform Law.

lm
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 identifi-
cation, 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 amorti-
zations 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
As amended by R.A. No.
9700.
,09
Sec. 6, Comprehensive
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 fore-
going criteria, priority shall be given to those who have continu -
ously 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
DAR Administrative Order No. 2. series of 2009.

110
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 follow-
ing factors are to be considered:
(a) Type of crop;
(b) Type of soil;
(c) Weather patterns; and
(d) Other pertinent factors critical for the success of 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
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 ser-
vices;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
Agrarian
111
Ibid. Reform Law.
n8
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. — Bene-

ficiaries 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
Sec. 24, ibid- Pasco v. Pison-Areeo Agricultural Dev. Corp.,

123
485 SCRA
Sec.
i24
24, 514.
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 indi-
vidual 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 con-

ditions 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 coopera-
tive or collective organization as the case may be. If the cer-
tificates 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 individ-
ual 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.
Sec. 27, Comprehensive Agrarian
I26
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
Estate of the Late Encamacion Vda. De Panlilio v. Dizon, 536
,31
SCRA
132
DAR565.
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.
Sec. 44 (a) (3), Comprehensive Agrarian Reform Law.

133
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
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

landowners 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
DAR Administrative Order No. 12-91.

134
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 Com-
prehensive 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 farm-
workers.
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
*Luz Farms v. Secretary of Agrarian Reform, 192SCRA51.

13
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 con-
cessional and collateral-free loans, for agro-industrial-
ization 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 dissem-
ination of information on agrarian reform, plants and
crops best suited for cultivation and marketing, and low-
cost and ecologically sound farm inputs and technologies
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 agricul-

tural produce and products;
12) Create a credit guarantee fund for
agricultural landowners that will enhance the
collateral value of agricultural lands that are affected
or will be affected by coverage under the agrarian
reform program; and
13) Administration, operation, management and
funding of support services programs and projects
including pilot projects and models related to agrarian
reform as developed by the DAR.,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, nongovernmental 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
DAR Administrative Order No. 5,

139
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 sup-
port services referred to in Section 36 of Republic Act
No. 6657, as amended, shall be immediately set aside
and made available for agricultural credit facilities:
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 cooperatives 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 accredited
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,
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
(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 sup-
port 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
"Hbid..
Sec. 3 (1), Comprehensive Agrarian Reform Law.
,43
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 enter-
prise 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: Provid-
ed, 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
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 Adminis-
tration
— 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 determi-
nation 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 bur-

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

— existing farmers’ organizations,
1 representative each from agricultural cooperatives and
non-governmental organizations
in the 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
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
— cultural communities, in areas
1 representative from
where there are cultural
communities
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.

Sec. 47 CHAPTER 1
109
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 in-
volved in an agrarian dispute including matters related to
tenurial and financial arrangements;
(b) Assist in the identification of qualified benefi-
ciaries 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 prepara-
tion 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 implementa-
tion 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
REFORM 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 Com prehensive 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 arrange-
ments.
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
Sec. 3 (d), Comprehensive Agrarian Reform Law.

1B3
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 rea-
sonable and just compensation of lands acquired under Presi-
dential 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 lease-
holders;
(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 pay-
ments 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, amor-
tizing 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, member-
ship 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 corpo-
rations 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/
REFORM 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 includ-
ing the monitoring of cases in the Region;
(b) Conduct hearing and adjudication of agrarian dis-
putes 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 compensa-
tion 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
Sta. Ana v. Carpo, 572 SCRA 463; Magno v. Francisco, 616 SCRA 402.
168
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
159
Alangilan Realty v. Office of
the President, 616 SCRA 633.
'“Concha v. Rubio, 617 SCRA
Sec. 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 non-

existence 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 appro-
priated as and when needed to augment the Agrarian
Reform Fund in order to fully implement the provisions of
this Act during the five (5)-year extension period.
Sources of funding or appropriations shall include the
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
program. 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 securities: 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
16fl
CREBA v. Secretary of Agrarian Reform, 621
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 ap-

prove 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.
Sta. Rosa Realty v. Court of Appeals, G.R. No. 112526, October

170
171
CREBA v. Secretary12,
of 2001.
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 ope-
rated 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-
Sec. 4, DAK Administrative Order No. 01-99.

172
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
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
“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
180
Sec. 5, ibid.
t8l
Sec. 8, ibid.
lfl2
Sec. 8, DAR Administrative Order No.
01-00.
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 con-
sequence of the processing and payment of the land transfer
claim such as: Deed of Assignment, Warranties and Undertak-
ing, Deed of Transfer, Deed of Confirmation of Coverage and
Transfer, etc.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 con-
tracts covering private lands may continue under
their original terms and conditions until the
expiration of the same even if such land has, in the
meantime, been transferred to qualified beneficiaries.
(b) Mortgages and other claims registered with
the Register of Deeds shall be assumed by the
government up to an amount equivalent to the
landowner’s compensation value as provided in this
Act.
1B3
Se
c. Ibi
1849,
d.
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-beneficiaries;
(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 land-
owners;
(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
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
“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
7
8ec. 22, Comprehensive
Agrarian
"Sec. 26, Reform
ibid. Law.
CHAPTER 2 155
THE TENANT EMANCIPATION
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,
10 ibid.
Sec.
"Sec.
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;
13
Sec. 8,
E.O. No.
'Sec.
"Ibid.
16
Sec.
11, ibid.
CHAPTER 2 157
THE TENANT
EMANCIPATION 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
Sta. Ana v. Carpo, 572 SCRA 463; Magno v. Francisco, 616 SCRA 402.
22
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,
l2
Ibid.
13
Sec. 33,
ibid.
Term of the lease
The term of the lease is indefinite, i.e., until the lease is ter-
minated 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 security 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
Sec. 7,
14
ibid.
16
Secs. 16
and 34,
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 Extin-
guished by Death or Incapacity of the Parties. — In case of
death or permanent incapacity of the agricultural lessee to work his
landholding, the leasehold shall continue between the 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 ag-
ricultural 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 improve-
ment 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 auto-
matic. The landowner-lessor should file the corresponding
petition * 19
1H
Sec. 28, Code of Agrarian Reforms, as
amended.
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
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:
Sec. 29,
24
Code of
Agrarian
“Sec. 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 improve-
ments made by him on the landholding which are tangible and
have not yet lost their utility at the time of surrender and/or
abandonment of the landholding.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 land-
holding, 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 pre-
emption within the balance of one hundred eighty day's period
still available to him. but in any case not less than thirty days. He
must either tender payment of. or present a certificate from the
Land Bank that it shall make payment pursuant to section eighty
of this Code on. the price of the landholding to the agricultural
lessor. If the latter refuses to accept such tender or 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
X
MiTT*~ ....................................... ____________________________________________________________________________________
Rights of agricultural workers

Agricultural workers are entitled to the same rights and oppor-
tunities 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 land-
holding 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 culti-
vation; 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
“Sec. 20, supra. ed.
“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;
Scc. 38. ibid.

35
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 per-
sonal 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
Sec. 3, Title XI, Administrative Code of 1987.

36
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 instrumentalities which
are issued for or in connection with any project or enterprise;
(i) The provision of any law to the contrary notwith-
standing, 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 expansion 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 regulations 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
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
‘
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 avail-
able, 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
SS
13
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.
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
24
Sec. 25,Act.
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.
^Sec.
31,
29
Sec. 7,
ibid.
30
Sec.
8,Sec.
31
ibid.
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
(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
Sec. 28, ibid.

39
*°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
46
old;
(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. 4 (a)
and 15.
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
(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 insur-

ance 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 lia-
bilities."
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. 9Scc.
37-A, ibid.
“ftec. 37-A,
ibid.. ’'Sec. 37-
CHAPTER 5 199
THE MIGRANT WORKERS AND OVERSEAS FILIPINO ACT OF 1995
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
The following disabilities are deemed permanent total:

12
' 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 neces-
sary 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 disable-
ment.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.
Overseas Workers Welfare
zl
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 informa-
tion or document in relation to recruitment or employ-
ment;
• 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
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,
26
Sec.
6.
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 in-
volving employers, principals, contracting partners and over-
seas 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 estab-
lishment 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.19, Rule
**Sec.
^Sec. 18, Rule
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 dis-
ciplinary 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
(i)
them up to a welfare institution;
(i) A foster parent duly licensed by the Department of Social

Welfare and Development or a legal guardian appointed by the court,
who solely provides parental care and support to a child or children;
(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
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, restau-

rants, 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 con-
cerned; 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,
6 ibid.
Sec.
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 rehabilitation
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 work-

shops 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 dis-
ability.-”
(c) Establish medical rehabilitation centers in govern-
ment provincial hospitals, formulate and implement a program
to enable marginalized persons with disability to avail of free
rehabilitation services in government hospitals .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:
Sec. 32(h), Magna Carta of Persons With Disability, as amended; Sec. 6, Rule
18
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 dis-
charge 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 op-
portunities;
(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 adminis-

tration 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
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;
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:
Sec. 42 (c), ibid.

40
__________ .
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,
‘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,
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
(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
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)
15-18 YEARS OLD hours/
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 Discrimination Act, as amended.
'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
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 grand-
parents 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
(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- crimination Act, as amended.
(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 protec-
tive 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- crimination Act, as amended.
“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 Dis-
crimination 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;
Sec. 25, ibid.

32
"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
(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
4 andibid.
'.Sec. 22, Welfare
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
Sec. 52, Juvenile Justice and Welfare Act of 2006.

49
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:
protect girl-children from all forms of
(a)
abuse and exploitation;
(b) eliminate all forms of discrimination
against girl-children in education, health and
(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), Philip-
pine 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 schooled) 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 interna-
tional 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;
right to freely choose a profession or occupation;
(e)
right to enjoy same rights as their spouses or their common
(f)
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
(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 preg-
nancy 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
ls
Sec. 13 (c), Magna Carta of Women; Sec. 16, Rules and Regulations Imple-
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, fallo-
pian tubes, ovaries, breast, adnexa and pelvic floor, as
certified by a competent physician, including hysterectomy,
ovariectomy, and mastectomy, as certified by a competent
H
’Scc. 17, Magna Carta of Women.
17
Sec. 18, Magna Carta of Women; Sec. 7 (L), Rules and Regulations Imple-
menting 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 con-

tinuous 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 sur-
gery 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 as-
pects of management, training, production, information, dis-
semination, communication, and programming; and
(c) convene a gender equality committee that will pro-
mote gender mainstreaming as a framework and affirmative
action as a strategy, and monitor and evaluate the implemen-
tation 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
Sec. 22 (a), Magna Carta of Women.

22
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 capability-
building and leadership formation programs to enable grassroots
women leaders to effectively participate in decision and policy-
making 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 Manage-
ment Council (NFARMC) and its regional and local counter-
parts;
(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 vic-
tims and survivors of sexual and physical abuse, illegal recruit-
ment, 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
Secs. 30 and 31, Magna

3Z
Carta
Sec. of
33
33,Women.
ibid.
Sanctions
Public and private entities and individuals found to have com-
mitted 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'
Sec. 35, Magna Carta

3,
ofR.A.
3fi Women.
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 con-
tinuing 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.
Sec. 3. ibid.
4
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;
deprivation or threat of deprivation of
(c)
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

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. 1(
7
These acts if constituting attempted, frustrated or consummated parricide l:i ;]
r'i]
or murder or 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 correccional;
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 activity 1;
(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
l6
Sec. 6,(Sec.
ibid.6 [f],
,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 with-
in 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
Sec. 9, Anti-Violence Against Women and Their Children Act of
2004.
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 jurisdiction in the city or municipality and shall
be entered
31
Sec.in14,
a logbook for that
Anti-Violence purpose.
Against Women and Their Children Act of
2004.
32
Violence Against Women and Their Children.
11 jt-.
a;* nvifTiJzuy, against woitzs uta TKZIZ
CHllJjicZS A.C7 Of aX/4
If the Punonq Barangay 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 judgment44 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 commit-
ting or threatening to commit any act of violence, whether per-
sonally 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
45 Womenand Their Children).
Sec. 30, A.M. No. 04-10-11-SC, Rule on Violence Against Women and
Their Children.
46
Sec. 30, ibid.
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
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.
M
Set\ 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
B6
CHAPTER 12
ANTI-TRAFFICKING OF PERSONS ACT OF
2003
Meaning of Trafficking in Persons

“Trafficking in Persons” refers to the recruitment, transporta-
tion, transfer, harboring, or receipt of persons, within or across na-
tional borders, for the purpose of exploitation, such as prostitution,
forced labor, slavery, servitude, or the removal/sale of organs, with
or without the consent of the victim.
The law penalizes the following;
(a> acts of trafficking in persons;
<b) acts that promote trafficking in persons; and
(c) use of trafficked persons.
Trafficked persons are victims. As such, they are not liable for
crimes directly related to the acts of trafficking .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, involuntary servitude or debt bondage;
'Sec. 43, Rules and Regulations Implementing R.A. No. 9208.
299
(b) Introducing or matching for money, profit, or mate-

rial, economic or other consideration, any person or any Fili-
pino 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 trad-
ing 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 en-
gage 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;
Sec, 4, Anti-Trafficking ol Persons Act of 2003.

2
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,
9
Sec.
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
Sec. 7, Anti-Trafficking of Persona Act of 2003.

,2
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 privi-
leges;
(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 com-
mitted 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 em-
ployer;
(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;
Sec. 3 (b), ibid.

e
(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
and coaches;
(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
Sec. 7, Anti-Sexual Harassment

ll
Act
I2 of 8.
Sec. 1995.
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 be-
cause OXA and XTERRAS were not employed with the same
agency, hence, it cannot be said that XTERRAS used his posi-
tion 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 non-
prescription drugs, whether generic or branded,
including vitamins and mineral supplements
medically prescribed by the senior citizen’s phy-
sician.]
• 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 repositioning 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 appli-
cable 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 country7 clubs are independent
concessionaires and the foods sold are not
Sec. 3 (a), Art. 7, Implementing Rules And Regulations of R.A. No. 9994,
s
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
’“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.
22
Art. 9, ibid-
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
“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].31Group 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
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
(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,
swimming pools, artswhich
and may include
crafts, services
boating, such
walking as clubhouses,
trails, golf courses, active
retail and on-site medical services [Sec. 5.17, Art. 5, Rule III, Implementing
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 ranging
drug from
and2 years to
medicine
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.*>
Art. 23, Implementing Rules

37
and Regulations of R.A. No. 9994.

"Sec. 10,
"Sec. 3, Art.
R.A.22,
No.Rule VII,as
7432, ibid.
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
(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
Sec. 1, Art. 21, supra.

43
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
See. 6, R.A. No. 7432, as amended.

44
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 Presi-
dential 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 Develop-
ment Mutual Fund a body corporate and make its coverage manda-
tory upon all employers covered by the Social Security System and
Government Service Insurance System.'
Objective of the Law

The objective of the Home Development Mutual Fund Law is to
motivate the employed and other earning groups to better plan and
provide for their housing needs by membership in an integrated,
nationwide savings system for the said purposes, with contributory
support of the employers in the spirit of social justice and pursuit of
national development.* 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,
^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 govern-
ment, 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,
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
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 beneficiary9 must be
enrolled with the National Health Insurance Program in
accordance with the following policies:
(a) Persons currently eligible for benefits under Medi-
care 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 Phil-
ippine Health Insurance Corporation.13 30
30
Sec. 30, Revised Rules and Regulations
Implementing the National Health Insurance
Act of 1995. uSec. 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 — Adoption papers or court

children resolution/decision
For dependent parents — Birth/Baptismal certificate of
registrant
For dependent stepchildren 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.
14
Sec. 12, ibid.
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
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.
21
Sec. 34, ibid.
22
23
Sec. 36, Revised Rules and Regulations Implementing the National
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 faci-
lities;
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 Corpo -
ration 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, emergency
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
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 prac-
titioner 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 in-
digenous members of the community organized for the purpose
of improving the health status of that community through pre-
ventive, 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 requirements 36 and any of the
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 deter-
mined 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
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
(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 pharmaceu-
ticals, 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
member45 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 Prr'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 house-
hold 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,
15 ibid.
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.
19
Sec. 22 (a), ibid.
“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,
“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 simultane-
ously with sickness benefit.
Sickness Benefit37
Sickness benefit is not payment or reimbursement for hospital-
ization, medical treatment or medicine. Rather they are daily cash
allowances to help carry through the employee and his family 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,
asSSS
38 amended.
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 fol-
lowing 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 cred-
ited year of service in excess of ten (10) years; or
(b) Forty percent (40%) of the average monthly salary credit; or
(c) One thousand pesos (PI ,000.00) (Sec. 12, Social Security Act of1997, as
amended).
One thumb • One little finger • One foot • Hearing of one ear
• Hearing of both
One index finger • One big toe • One leg ears
One middle finger • One hand • One ear • Sight of one eye
• Both
One ring finger • One arm 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 chil-
dren, the illegitimate children will be entitled to one hundred per-
cent (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.
49
Sec.13-B,
8 (kl,Social
ibid. Security Act of 1997. as
CHAPTER 17 363
THE SOCIAL SECURITY ACT OF
1997
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 fre-
quently as may be necessary, and to undertake the necessary
actuarial studies and calculations concerning increases in ben-
efits and the financial stability of the SSS and to provide for
feasible increases in benefits every four (4) years, including the
addition of new ones under such rules and regulations as the
Commission may adopt subject to approval by the President;
(c) To establish offices of the SSS to cover as many pro-
vinces, cities and congressional districts, whenever and wher-
ever it may be expedient, necessary and feasible, and to
inspect or cause to be inspected periodically such offices;
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
Pobletc Construction v. SSC, 10 SCRA 1; Philamlife v. SSC, 20 SCRA

66
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 amortiza-
tions under such terms and conditions as it may prescribe;
(e) To authorize cooperatives registered with the Coop-
erative Development Authority or associations registered with
the appropriate government agency to act as collecting
agents of the SSS with respect to their members;
(f) To compromise or release, in whole or in part, any
interest, penalty or any civil liability to SSS in connection with
the investments authorized under Section 26 hereof, under
such terms and conditions as it may prescribe and approved
by the President of the Philippines; and
(g) 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 regula-
tions 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

6
Sec. 5, ibid. 1997.
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 sepa-
rated 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.
Sec 23.2,1 Revised Implementing Rules of the GSIS Act of 1997.
10
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 disabili-
ty.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 com-
pensation for each year of service in excess of fifteen (15) years: Provided, That the
basic monthly pension shall not exceed ninety percent (90%) of the average monthly
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:
• • leg
one an
• one oryboth ears
• hearing
finof one or both ears
• sight of
geone eye
• other rcases as may be determined by the GSIS27
The• permanent
an 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.

*Sec. 15, ibid.
2
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.
Sec. 23.4.2, Revised Implementing Rules and Regulations of the GSIS Act of
29
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
34
another.
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 com -
pensation for each year of service in excess of fifteen (15) years: Provided, That the basic
monthly pension shall not exceed ninety percent (90%) of the average monthly
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 pen-

sion, his legal heirs shall be entitled to the cash payment ben-
efit equivalent to 18 months of basic monthly pension, plus ac -
crued 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 com-
pensation for every year of service, under the following condi-
tions:
(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 contri-
butions, 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 em-

ployees, 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

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Rights and privileges of domestic workers............................

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

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

REPUBLIC ACT NO. 6657

4 ACUAKIAN LAW AND SOCIAL LKGISLATJON Sec.)

landlords and tenants on rice lands. Thereafter, the Sugar

On July 17, 1987, President Corazon C. Aquino, exercising her

On June 10, 1988, the Comprehensive Agrarian Reform

Meaning of Agrarian Reform

Gleaned from the foregoing definition, it can be seen that

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.

NATALIA REALTY V. DAR

“Sec. 3 (c), Comprehensive Agrarian Reform Law as amended; Luz Farms v.

Constitutionality of the Comprehensive Agrarian Reform Law

SECTION 2. Declaration of Principles and Policies — It

‘“Association of Small Landowners v. Secretary of Agrarian Reform, 175

8 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 2

as amended, and to the ecological needs of the nation, shall

THE COMPREHENSIVE ACiHAINAN REFORM l.AW OF 1998

rights, homestead rights of small settlers and the rights of

The Primary Objective of Agrarian Reform

The agrarian reform program is founded on the right of farmers

Meaning of Economic Family-Size Farm

SECTION 3. Definitions. — For the purpose of this Act,

(a) Agrarian Reform means the redistribution of lands,

stocks, which will allow beneficiaries to receive a just

immediate farm household, whether the land is owned by

'"As amended by R.A. No.

THE COMPREHENSIVE AGRARIAN REFORM LAW OF 19!>8

(b) All lands of the public domain in excess of

As amended by R.A. No. 9700.

Sec. 4, Comprehensive Agrarian Reform Law, as

amended. 2,Sec. 4, Ibid.

(c) Private lands actually, directly and exclusively

SECTION 5. Schedule of Implementation. — The

SECTION 6. Retention Limits. — Except as otherwise

size of which shall vary according to factors governing a

(3) months after the effectivity of this Act. Thereafter, all

Can a landowner who has already exercised his retention rights

Who has the right to choose the retention area?

The landowner should exercise his right of retention within sixty

Suppose the retention area chosen by the landowner is tenanted,

Effect if the tenant chooses to remain in the retained area

Rodriguez v. Salvador, 651 SCRA 429.

Sec. 6, Comprehensive Agrarian Reform Law as

Sec. 23, Code of Agrarian Reforms, as amended.

Sec. 24, ibid.

(g) Buy the agricultural landholding under reasonable

What is the term of the lease?

Sec. 11, ibid.

Sec. 12, ibid.

Sec. 26, Code of Agrarian

(b) Absence of successor (i.e., surviving spouse, eldest

Effect if the Tenant Chooses to be a Beneficiary

Children of the Landowner are Entitled to 3 hectares each