PHILIPPINE BLOOMING MILLS vs SSS Facts This suit is brought by the employer, Philippine Blooming Mills Co., Inc. (PBMC)and its alien employees against the Social Security System. PBMC is a dome PBMC domest stic ic corp corpor orat atio ion n sinc since e 1 1!" !" #hic #hich h has has empl employ oyed ed $apa $apane nese se technicians %or employment contracts ranging %rom & to ' months. rom *pril '+, 1!" to ctober '&, 1!+, it employed si- $apanese technicians. PBMC inuired #ith SSS i% the said aliens are sub/ect to compulsory co0erage under SSS, to #hich the latter replied that #hile they are compulsorily compulsorily co0ered, they are entitled to rebate a proport proportionat ionate e amount amount o% their SSS contribu contributions tions.. Their Their employers employers shall also be entitled to the same proportionate rebate. rebate. o#e o#e0e 0er, r, #hen #hen PB PBMC MC 2led 2led a clai claim m #ith #ith SSS SSS %or %or re%un e%und d o% its its prem premiu iums ms,, SSS SSS contro0 contro0erted erted it by saying saying that at least ' years o% membershi membership p in the system is reui euirred to be enti entitl tled ed to a rebat ebate. e. This This reui euirremen ementt #as #as made made thr through ough an amendment o% the SSS 3ules and 3egulations #hich became e4ecti0e on $anuary 1,, 1 1 1!+ !+55 55 be%o be%orre the the term termin inat atio ion n o% the the empl employ oyme ment nt o% the the sub/ sub/ec ectt alie aliens ns.. *ppellants contend that this amendment impaired their contract #ith SSS.
Issue (1) #hether or not the said amendment 0iolates the non5impairment clause (') #hether due process #as obser0ed in implementing the SSS la#, resulting in the denial o% appellants6 claim %or re%und o% their premium contributions Held (1) 7, there #as no 0iolation o% the non5impairment non5impairment clause (') 89S, 89S, due due proce process ss #as obser0 obser0ed. ed. *mendm *mendment ents s are are e4ecti e4ecti0e 0e %rom %rom the time time P3:I;9; %or by the statute, #hich in this case is the time o% appro0al o% the president. The date o% publication in the ette is material only #hen the statute does not pro0ide a speci2c date o% e4ecti0ity. Ratio (1) In0o?ing the non5impairment clause assumes the e-istence o% a contract, #hich is not the case here. Membership in SSS is not the result o% a bilateral, consensual agreement #here the rights and obligations o% the parties are de2ned by and sub/ect to their #ill. 3epublic *ct 11&1 reuires compulsory co0erage o% employers and employees under the System. It is actually a legal imposition, on said employers and employees, design designed ed to pro0i pro0ide de social social securi security ty to the #or?in #or?ingme gmen. n. Member Membership ship in the SSS is, there%ore, in compliance #ith a la#%ul e-ercise o% the police po#er o% the State, to #hich the principle o% non5impairment o% the obligation o% contract is not a proper de%ense.
(') 3ule I Section @ (d) and 3ule IA #as amended to read as %ollo#s (d) *liens #ho are employed in the Philippines shall also be compulsorily co0ered (Sec. @, 3ule I) 99CT S9P*3*TI7 3M 9MP8M97T
Dhen an employee under compulsory co0erage is separated %rom employment, his employer6s contribution on his account shall cease at the end o% the month o% separationE but such employee may continue his membership in the System and recei0e the bene2ts o% the *ct, as amended, in accordance #ith these rules. I% he continues paying the & per cent monthly premiums representing his as #ell as the employer6s contribution, based on his monthly salary at the time o% his separationE but i% at the time o% his separation the co0ered employee has been a member o% the System %or at least t#o years, he shall ha0e the option to choose any one o% the %ollo#ing ad/ustments o% his membership in the System 1. * re%und o% an amount eui0alent to his total contributions o% t#o and one5hal% per centum plus interests at the rate o% three per centum per annum, compounded annuallyE #hile the amendment to the 3ules may ha0e been la#%ully made by the Commission and duly appro0ed by the President on $anuary 1, 1!+, such amendment #as only published in the 7o0ember 1!+ issue o% the ette, and a%ter appellants6 employment had already ceased. Suette is material %or the purpose o% determining their e4ecti0ity, only if the statutes themselves do not so povide! In the present case, the oi"inal Rules and Re"ulations of the SSS speci#cally povide that any amendment theeto su$se%uently adopted $y the &ommission' shall ta(e e)ect on the date of its appoval $y the Pesident! Conseuently, the delayed publication o% the amended rules in the ette did not a4ect the date o% their e4ecti0ity, *hich is +anuay ,-' ,./0 , #hen they #ere appro0ed by the President. It %ollo#s that #hen the $apanese technicians #ere separated %rom employment in ctober, 1!+, the rule go0erning re%und o% premiums is 3ule IA o% the amended 3ules and 3egulations, #hich reuires membership %or ' years be%ore such re%und o% premiums may be allo#ed.
