SSS 1987 Question No. 16: Philippine Daily News prints and publishes The Daily News, copies of which are circulated through dealers in Metro Manila. These dealers, who are single proprietors exclusively distributing The Daily News but handling competing dailies for a fixed amount per copy sold, engage the services of newsboys. These newboys are given a specified number of copies to sell every day within a six hour period in the morning. After this period, the newsboys are free to sell other newspapers or go to school or engage in other activities. Each newsboy is paid fifty centavos for every copy sold. As counsel for Philippine Daily News, would you advise your client to report the dealers and the newsboys as its employees pursuant to the Social Security Act? Answer: The System should not have denied the application for sickness benefits under the Social Security Act. The Act (in Sec. 14(b) provides that sickness benefits shall begin to be paid only after all sick leaves of absence with full pay to the credit of the employee shall have been exhausted. In the case, such sick leaves with full pay to the credit of the employee were exhausted when the 10-day company sick leaves were exhausted. The remaining five days of the 15-day sick leave under the CBA were to be accumulated and convertible into cash when employment is terminated for any cause although the accumulated sick leaves maybe used upon prior application with and approval of the Company. These conditions means that the 5-day sick leaves cannot be automatically used. Thus, it could not be first exhausted before the payment of sickness benefits under the Social Security Act. Question No. 18: Mona Lim, married employee of Realty Corporation, is paid a basic salary and in addition, a monthly living allowance separate from the statutory cost of living allowance. She receives quarterly bonuses, which are purely discretionary grants by the management; and, as part of company policy, gets reimbursements for all transportation expenses she incurs in connection with her sales duties. Her daily meal allowance is a fixed amount regardless of place of assignment. The company has been reporting Mona’s basic monthly salary as her compensation, which is less than one thousand pesos. When the SSS learned that Mona was receiving other forms of income, it assessed the company for everything paid or granted to the employee as part of her compensation. If you were consulted by the company, what advice would you give your client? Answer: We will advise Realty Corporation that pursuant to Exec. Order No. 102, compensation is now defined as including all actual remuneration for employment, including the mandated cost of living allowance, as well as the cash value of any remuneration paid in any medium other than cash, except that part of remuneration in excess of three thousand pesos received during the month.
Given the above very comprehensive definition of compensation, the SSS correctly assessed the company for everything it paid to the employee as part of compensation, including not only the basic salary, but also the monthly living allowance, the statutory cost of living allowance, quarterly bonuses and daily meal allowance which is a fixed amount regardless of place of assignment. But the reimbursement for all transportation expenses incurred by the employee in connection with her sales duties is not part of compensation. Question No. 19: Leonardo Marasigan started working for Madrid Development Corporation in August 1984 when it was being organized and had no fixed offices. The company did not ask for his Social Security registration number, nor did it report him to the SSS. He died a year later, and his widow filed a claim for death benefits with the Social Security System. While following up the claim, the widow discovered that it was only in November 1985 when he was reported by his employer to the Social Security System and the premiums covering the entire period from August 1984 were remitted. Leonardo’s widow came to you for assistance. What would your legal advice be? Answer: I will advise Leonardo’s widow that as the primary beneficiary, she is entitled to receive the death benefits from the Social Security System. Leonardo may have died in August 1985, and it was only in November 1985 when he was reported by his employer to the System. But premiums covering the entire period from August 1984 when remitted. Besides, according to the Social Security Act (in Sec. 24), the fact that the SSS has not previously received a report about an employee from his employer or a contribution paid in his name by his employer, is not fatal to his right to benefits. Leonardo had 12 monthly contributions in the 12 months that he was covered by the System before he died. He, therefore, has not paid at least thirty six (36) monthly contributions prior to the semester of death which under the Social Security Act (Sec. B) would have entitled the widow as primary beneficiary to a monthly pension. Nevertheless, according to the same provision of the Act, the widow, as primary beneficiary, is entitled to a lump sum benefit equivalent to thirty five times the monthly pension.
1988 Question No. 14: The facts in this problem will have a bearing on the solution of problem XV. Please keep the essential facts in mind. Pascual Pasacao was employed as a plumber by the Colossal Construction Corp. in 1965. He was then single. When he was registered with the SSS, he designated his father Juan and his mother Maria, who were over 60 and dependent on him for support, as his beneficiaries. Colossal religiously remitted all employee and company contributions required by the SSS law. He married Damiana de Juan in 1967, and also declared her as beneficiary. Even if he was married, and because he was making a lot of money on overtime, he continued supporting his parents. A son, Pedrito, was born to the couple in 1968, and a daughter, Marita, in 1970. He declared both to the SSS as his beneficiaries. In 1975, he was promoted as foreman to a project in Mountain Province. He stayed there for 2 years and during that time, he had a relationship
with Juliana Abay, by whom he had a child, Pascualito in 1976. He signed Pascualito's birth certificate. Unknown to him, Damiana had an affair while he was away and bore a daughter, Ariadne, in 1977. She represented to his employer that Ariadne was her child by Pascual and the personnel clerk of the company reported the child to the SSS as another beneficiary. When Pascual returned to Manila, he found out about Ariadne, and sent Damiana away from the conjugal home with the child. She left and lived with Ariadne s natural father. However, Pascual did not file legal separation proceedings against Damiana. Pascual did not know about the registration of Ariadne as an SSS beneficiary. He then brought Juliana to his home in Manila with their child, Pascualito. She was mother to all his children. In 1979 the then Ministry of Labor issued regulations on Occupation Health and Safety requiring construction workers to bear safety helmets on an approved design, while they worked in job sites. Colossal issued safety helmets imported from the United States to all its workers, including foreman. These helmets were guaranteed to resist impacts and absorb shocks for at least 5 years if constantly exposed to sunlight. Under company rules all workers on job sites must wear their safety helmets continuously. Pascual, being macho, would put on his helmet only when executives of the company were on the job site, or when labor inspectors would check compliance with labor rules. In 1987, Pascual was supervising the raising of a pallet filled with PVC pipes to the 12th floor of the building they were working on. A Colossal project engineer was around so Pascual had put on his 8-year old safety helmet. However, Pascual did not close the chin strap to secure the helmet to his head. A cable snapped and whiplashed. It missed the engineer by inches and smashed into Pascual's helmet. The helmet cracked but the cable did riot touch Pascual's head. However, because of the impact, Pascual lost his balance and fell to the ground. The helmet flew off and he hit his head on the pavement. As a result of the injuries that he sustained, he was paralyzed. While the attending physicians said that there was hope for his eventual recovery if he could follow a program of therapy, there was no certainty when that would be. Since Pascual was a valued employee, the company wanted to do all it could for him and his family. You are counsel of the company. The President of the firm, who has briefed you on the situation in Pascual’s family, asks you to help the personnel clerk file a claim for Pascual’s benefits so it could augment the disability pay that the company was paying him. In filling out the form, you find a blank for beneficiaries. (a) Whom should you write down as beneficiaries? Why? (b) To what benefits would Pascual be entitled? Explain your answer. (c) Under what conditions may the SSS suspend the grant of these benefits to Pascual? Answer: (a) The disability suffered by Pascual is work-connected. Thus the applicable law are the provisions in the Labor Code on employees compensation and the State Insurance Fund. (Arts. 166-208) In one of these provisions (Art. 167(8)) “beneficiaries” means the dependent spouse until he/she remarries and dependent children, (legitimate, legitimated, or legally adopted or acknowledged child) who are primary beneficiaries. In their absence, the dependent parents and subject to the restriction imposed on dependent children, the illegitimate children and legitimate descendants, who are secondary beneficiaries. Applying the above definition, Damiana, the legal spouse of Pascual could have been a primary beneficiary but since she is not living with Pascual, Damiana is not a dependent spouse.
Pedrito and Marita are primary beneficiary as dependent children if they are not yet over 21 years of age but they are unmarried and not gainfully employed. Pascualito, the illegitimate son, is a secondary beneficiary. Also secondary beneficiaries are the dependent parents Juan and Maria. (b) He would be entitled to permanent total disability benefit in the form of employees compensation. His paralysis of at least two limbs is considered permanent total disability (Art. 192(3)), and it is employees compensation that will be given because the disability is workconnected. It arose out of and in the course of employment. But he could not be entitled to this benefit if he has been notoriously neglected. There could be basis for notorious negligence. As a foreman he should be a model to his co-employee. He should follow very well about wearing a helmet while at work. (c) The grant of permanent total disability may be suspended if Pascual is again gainfully employed, or recovers from his permanent total disability or fails to present himself for examination at least once a year upon notice by the SSS.
1989 Question No. 15: Sapatilya Company, a manufacturer of wooden shoes started its operations on January 1, 1989. As of June 15, 1989, the company had in its payroll a general manager, an assistant general manager, three supervisors and forty rank and file employees, all of whom started with the company on January 1, 1989. On July 1, 1989, the company also had ten casual employees who had been with the company since February 16, 1989 and twelve contractual employees whose contracts of employment with the company is for the period from August 1, 1989 to September 30, 1989,. Who among the aforementioned employees are under coverage of the Social Security Law? When did their coverage under the said law take effect? Answer: All of the foregoing employees are covered by the Social Security Law, except the ten (10) casual employees. The coverage of the Social Security System is very comprehensive; it covers “all” employees not over sixty years of age except, among others those whose “employment is purely casual and not for the purpose of occupation or business of the employer.” But the casual employees in the question may not even be casual under the Social Security Law because they have been with the company since February 16, 1989. How could they be with the Company that long if their employment is not for the purpose of occupation or business of the employer? The coverage of the Social Security Law takes effect on the day of the employment of the employee.
1990 Question No. 8: A is an employee of B who in turn registered A with the Social Security System as required by law. Unfortunately, B did not remit A’s contributions to the System. In the course of his employment, A met a serious accident requiring his hospitalization.
Suppose he decides to retire from the firm because of the accident, is he entitled to recover retirement benefits under the System? Explain your answer. (2) Suppose that he died because of the accident, are his heirs entitled to death benefits under the System? Explain your answer. (1)
Answer: (1) A is entitled to receive benefits from the Social Security System even if his employer did not remit A’s contribution to the System because the Social Security Law provides (in Sec. 22(b) that the failure or refusal of the employer to pay or remit contributions shall not prejudice the right of the covered employee to the benefits of the coverage. But A is not entitled to retirement benefits in the form of a monthly pension unless at the time of the accident, he has reached the age of sixty years and has paid at least 120 monthly contributions prior to the semester of the accident. (Sec. 12-B, Social Security Law). (2) The heirs are not entitled, but his primary beneficiaries or in the absence of primary beneficiaries, his secondary beneficiaries are entitled.
1991 Question No. 3: Pedro Tortilla and his employer were covered by the Social Security System. Tortilla was legally married to Orpha de la Cruz, a plain housewife with whom he had two minor, unmarried and unemployed children. But for two years, he had been living with his common-law sife, Dora Tea, with whom he had two minor, unmarried and unemployed children. His jobless father stayed with him. In his SSS record, he designated as beneficiary his best friend, a 20- year-old student who was totally dependent on him for support. In a car accident. Tortilla. Orpha de la Cruz and their two children died. Who are entitled to the death benefits? Answer: The Social Security Law defines beneficiaries as “the dependent spouse until he remarries and dependent children, who shall be primary beneficiaries. In their absence, the dependent parents and, subject to the restrictions imposed on dependant children, the legitimate descendants and illegitimate children who shall be the secondary beneficiaries. In the absence of any of the foregoing, any other person designated by the covered employee as secondary beneficiary." Applying the above provision, when Tortilla died, he died with the persons who are his primary beneficiaries. Thus, Tortilla's secondary beneficiaris namely, his dependent jobless father and illegitimate children, who were minor, unmarried and unemployed are entitled to death benefits under the Social Security Law. Under the law, the common law wife is not among those who could be a beneficiary, either as primary or secondary beneficiary; As for the 20-year old student who was Tortilla's best friend, because he was designated by Tortilla as beneficiary, he could have been entitled to death benefits, in the absence of either primary and secondary beneficiaries, which is not the case, however, in the question given. Question No. 4:
Don Jose, a widower, owns a big house with a large garden. One day, his househelper and gardener left after they were scolded. For days, Don Jose, who lives alone in compound to look for someone who could water the plants in the garden and clean the house. He chanced upon Mang Kiko on the street and asked him to water the plants and clean the house. Without asking any question. Mang Kiko attended to the plants in the garden and cleaned the house. He finished the work in two days. a) Is there an employer-employee relationship between Don Jose and Mang Kiko? Answer: There is an employer-employee relationship between Don Jose and Mang Kiko because Mang Kiko, assuming payment of compensation, was rendering services for Don Jose and was under the orders of Don Jose as regards employment. b) Are they compulsorily covered by the Social Security System? Answer: No. In their employer-employee relationship. Don Jose and Mang Kiko are not compulsory covered by the Social Security System because Mang Kiko is rendering domestic service in a private home which is one of the kinds of employment excluded from the compulsory coverage of the Social Security System.
1992 Question No. 16: Eduardo Serangco. an SSS member for 20 years, died on May 1, 1992. The records of the SSS show that Serangco designated as his beneficiaries Marietta Uy. wife; Gloria Serangco. daughter, bom June 30. 1979; and Jose Serangco, son, bom July 16, 1981. On May 10. 1992, the SSS granted Marietta Uy funeral benefits. On May 16, 1992. Josefa Costa filed a claim for death benefits alleging that she was married to the late Eduardo Serangco on October 15, 1982 and depended upon him for support. She attached to her claim, copy of a marriage contract duly certified and sealed by the civil registrar of Pasig, Rizal. Marietta Uy opposed Josefa Costa’s claim, contending that she and her children, Gloria and Jose Serangco, are entitled to death benefits because they were the primary beneficiaries designated by the deceased Serangco. To whom shall the SSS award death benefits? Why? The primary beneficiaries of a deceased employee are the dependent spouse until he/she remarries and dependent children On the other hand, a dependent spouse is the legitimate spouse dependent for support upon the employee and dependent children are legitimate, legitimated or legally adopted children, who are unmarried, not gainfully employed and not over twenty one years of age, or over twenty one years of age, provided that they are congenitally incapacitated and incapable of self-support. (Article 8(e), (k). Social Security Law)
Considering the above provisions of the Social Security Law, Gloria and Jose Serangco are dependent children because they are still not over twenty one years of age assuming that they are also unmarried and are not gainfully employed. The legitimate wife of the deceased employee is Marietta Uy and not Josefa Costa. The marriage of the deceased employee to Costa is bigamous. Thus, Marietta is primary beneficiary together with her children Gloria and Jose. As such primary beneficiaries, the SSS should award to them the death benefits arising from the death of Eduardo Serangco.
1993 Question No. 3: Seventy (70) private security guards of TAPANG SECURITY AGENCY CORPORATION, assigned to guard the mining area of DAVAO GOLD CORPORATION, filed a complaint against both their direct employer. TAPANG SECURITY, and their indirect employer. DAVAO GOLD, when they discovered they could not avail of the benefits of the Social Security System law for the failure of respondents TAPANG or DAVAO GOLD to remit its contributions to the System. By way of answer to the complaint. TAPANG claims that there is no emplover-emplovee relationship, since it has only two (2) office employees whose duties are to monitor their assignment and hours of work and to pay the salaries under the agency contract of the security guards from the funds remitted by DAVAO GOLD, keeping a certain percentage of the amount for office expenses and supervisory fees, the true and real employer being DAVAO GOLD. On the other hand, DAVAO GOLD maintains that it has no employer-employee relationship with TAPANG’s security guards assigned to secure its mining area since it has no control over hiring/dismissal of its guards. TAPANG is a duly licensed security agency and a bona fide independent contractor. 1) Who is deemed an “employee" for purposes of coverage under the SSS law? 2) Under the above facts whose duty is it to bring the security guards for compulsory coverage pursuant to the SSS law? Discuss. Answer: 1) A person is deemed an employee" for purposes of coverage under the Social Security Law if such person performs services for an employer in which either or both mental and physical efforts are used and who received compensation for such services, where there is an employeremployee relationship. Also, a self-employed person is both an employee and employer at the same time. (Sec. 8(d). Social Security Law) . It is the duty of Tapang Security Agency Coip. to bring the security guards for compulsory coverage pursuant to the SSS law. Said law expressly provides that employees of bona fide independent contractors shall not be deemed employees of the employer engaging the services of said contractors. (Sec. 8(j), Social Security Law) Alternative Answers: a) The Social Security Law defines an employer as one who uses the services of another person who is under his orders as regards the employment. Under the facts of the case, it is very clear that it is Davao Gold that has control of the security guards. The security guards are under the orders of Davao Gold as regards their employment, meaning how they perform their work. It could be said that Tapang Security Agency Corp. was acting only like a labor-only contractor
and thus, was just an agent of Davao Gold who is the real employer. (Sec. 8(e), Social Security Law and Art. 106, Labor Code) b) If a company enters into a contract of services with a security agency whereby the latter htred security guards to work with the said company, then that company becomes the indirect employer of the guards hired by said security agency. The company and the security agency become jointly and severally liable to the security guards. Hence, it is the duty, of both the direct and indirect employer to bring the security guards for compulsory coverage pursuant to the SSS law.
1994 Question No. 20: Samson Security Agency (SAMSON) undertook to provide 24 hours security service to Jarillo Realty (JARILLO) in the latter’s construction operations. The contract between SAMSON and JARILLO expressly stipulated that Samson’s security guards are its employees and not that of JARILLO. SAMSON undertook to hold JARILLO free from any liability whatsoever resulting from injuries which its (SAMSON’s) guards may suffer or be exposed to suffer as guards of JARILLO’s construction operations. To facilitate payment, JARILLO undertook to pay directly to the guards the agreed wages, which are subsequently deducted from the monthly payments to SAMSON under its contract with JARILLO. JARILLO, in turn, charges SAMSON for the equipment supplied to the guards' such as uniforms, pistols and ammunition and cost of training of guards JARILLO wants replaced. During a storm, several scaffoldings of JARILLO fell and killed two (2) guards whose families later sued JARILLO. JARILLO, in turn, impleaded SAMSON as third-party defendant before the Arbiter. Decide who should be held liable. Answer: Liability lies against the State Insurance Fund administered by the SSS. This is a*case of death in connection with the employees’ work. Jarillo is deemed to be the employer of the guards in view of the direct payment of wages to the guards. Thus, if there are benefits arising from employer-employee relationship, Jarillo should be held answerable.
1995 Question No. 11: 1. What is the extent of an employer’s intervention in the compensation process and the payment of benefits to employees under the State Insurance Fund? Explain. Answer:
The new law establishes a State Insurance Fund built up by the contributions of employers based on the salaries of their employees. The employer does not intervene in the compensation process and it has no control over the payment of benefits. Unlike under the Workmen’s Compensation Act. employers are no longer directly liable for the income and medical and related benefits that are to be paid to covered employees if they should suffer from work connected injury or sickness or death. The payment of employees compensation is now from the State Insurance Fund which is constituted from the contributions collected from employers. 2.
Is it necessary for an employee to litigate in order to establish and enforce his right to compensation? Explain. Answer: No. All that an employee does to claim employee's compensation, is to file a claim for said benefits with the SSS (for those in the private sector) or GSIS (for those in the public sector). In the event that the claim is denied on the SSS/GSIS level, claimant may appeal to the Employees Compensation Commission where he may prove the causal connection between injury and nature of work. Question No. 16: Big Foot Company of Paete, Laguna, has been in the business of manufacturing wooden sandals for export since 5 November 1980. On 5 January 1994 it employed an additional labor complement of thirty workers, two supervisors and two department managers. On 5 February 1994 it hired five carpenters to fix the roof and walls of its factory which were destroyed by typhoon “Huanlng." Who among the aforementioned persons are compulsorily covered by the Social Security Law and when should they be considered effectively covered? Discuss fully. Answer: Assuming that all of them were not yet over sixty years of age, the additional labor complement of thirty workers, two supervisors and two department managers were compulsorily covered by the Social Security Law on 5 January 1994 when they were employed. According to said law, workers are covered on the day of their employment. But the five carpenters which the company hired to fix the roof and walls of its factory were not under the compulsory coverage of the Social Security Law because said carpenters are casual employees. The Social Security Law provides that employment purely casual and not for the purpose of occupation or the business of the employer are not under its compulsory coverage.
1997 Question No. 20: State the respective coverages of (a) the Social Security Law; (b) the Revised government Service Insurance Act and the Employees Compensation Act. Answer:
(a)
Coverage of SSS (Sec. 9, RA 8282) shall be compulsory upon all employees not over sixty years of age and their employers. Filipinos recruited in the Philippines by foreign-based employers for employment abroad maybe covered by the SSS on a voluntary basis. Coverage in the SSS shall also be compulsory upon all self-employed persons earning PI, 800 or more per annum. (b) Membership in the Government Service Insurance System (Art. 3, RA8291) shall be compulsory for all permanent employees below 60 years of age upon appointment to permanent status, and for all elective officials for the duration of their tenure. Any person, whether elected or appointed. In the service of an employer is a covered employee if he receives compensation for such service. (c) Coverage in the State Insurance Fund (Art. 168.' Labor Code) shall be compulsory upon all employers and their employees not over sixty (60) years of age; Provided, that an employee who is over (60) years of age and paying contributions to qualify for the retirement or life insurance benefit administered by the System shall be subject to compulsory coverage. The Employees Compensation Commission shall ensure adequate coverage of Filipino employees employed abroad, subject to regulations as it may prescribe. (Art. 170) Any person compulsorily covered by the GSIS Including the members of the Armed Forces of the Philippines, and any person employed as casual, emergency, temporary, substitute or contractual, or any person compulsorily covered by the SSS are covered by the Employees Compensation Program.
1999 VII FACTS: Marvin Patrimonio is a caddy rendering caddying services for the members and guests of the Barili Golf & I Country Club. As such caddy, he is subject to Barili golfs rules and regulations governing Caddies regarding conduct, dress, language, etc. However, he does not have to observe any working hours, he is free to leave anytime he pleases: and he can stay away for as long as he likes. Nonetheless, if he is found remiss in the observance of club rules, he can be disciplined by being barred from the premises of Barili Golf. Is Marvin within the compulsory coverage of the Social Security System? Why? (5%) SUGGESTED ANSWER: Because he is not an employee of the Barili Golf & Country Club, Marvin is net within the compulsory coverage of the Social Security System. Marvin is not an employee of the club because under the specific circumstances of his relations with the club, he is not under the orders of the club as regards employment which would have made him an employee of the club. (See Manila Golf 8t Country Club, Inc. v, LAC, 237 SCRA 207) Bui Marvin is within the compulsory coverage of the SSS as a self-employed person. (See Section 3-A, Social Security Law of 1957)
2000 Ms. Sara Mira Is an unwed mother with three children from three different fathers. In 1999, she became a member of the Social Security System. In August 2000, she suffered a miscarriage,
also out of wedlock, and again by a different father. Can Ms. Mira claim maternity benefits under the Social Security Act of 1997? Reason. (5%) SUGGESTED ANSWER: Yes, she can claim maternity benefit. Entitlement thereto is not dependent on the claimant's being legally married. (Sec. 14-A, Social Security Act of 1997). II The Collective Bargaining Agreement of the Golden Corporation Inc. and the Golden Corporation Workers Union provides a package of welfare benefits far superior in comparison with those provided for in the Social Security Act of 1997. The welfare plan of the company is funded solely by the employer with no contributions from the employees. Admittedly, it is the best welfare plan in the Philippines. The company and the union jointly filed a petition with the Social Security System for exemption from coverage. Will the petition for exemption from coverage prosper? Reason. (5%) SUGGESTED ANSWER: No, because coverage under the SSS is compulsory where employer-employee relations exist. However, if the private plan is superior to that of the SSS, the plan may be integrated with the SSS plan. Still, it is integration and net exemption from SSS law. [Philippine Blooming Mills Co.,. Inc. v. Social Security System, 17 SCRA 107 (1966): R.A. No. 1161 as amended by R.A. No. 8282].
2001 In 1960, Juan hired Pablo to drive for the former’s lumber company. In 1970, Pablo got sick and was temporarily laid-off. In 1972, Pablo recovered and resumed working for the same lumber company, now run by Juan's wife since Juan had already passed away. In 1996, Pablo retired. When Pablo applied for retirement benefits with the SSS that same year, he discovered that the lumber company never enrolled him as an employee, much less remitted his contributions that were deducted from his salary. The lumber company agreed to pay for Pablo's contributions plus penalties but maintained that most of Pablo’s claims had already prescribed under Art. 1150 of the Civil Code. (Art. 1150 provides "The time for prescription of all kinds of actions, when there is no special provision which ordains otherwise, shall be counted from the day they may be brought."). Is the Lumber Company’s contention correct? Why? (3%). (a)
SUGGESTED ANSWER: The lumber company's contention is not correct. The Social Security Law (in Sec. 22(b) provides that the right to institute the necessary action against an employer may be commenced within twenty (20) years from the time the delinquency is known or the assessment is made by the SSS, or from the time the benefit accrues, as the case may be.
2002 XII.
The owners of FALCON Factory, a company engaged in the assembling of automotive components, decided to have their building renovated. Fifty (50) persons, composed of engineers, architects and other construction workers, were hired by the company for this purpose. The work was estimated to be completed in three (3) years. The employees contended that since the work would be completed after more than one (1) year, they should be subject to compulsory coverage under the Social Security Law. Do you agree with their contention? Explain your answer fully. (5%) SUGGESTED ANSWER: No. Under Section 8 (j) of RA 1161, as amended, employment of purely casual and not for the purpose of the occupation or business of the employer are excepted from compulsory coverage. An employment is purely casual if it is not for the purpose of occupation or business of the employer. In the problem given, Falcon Factory is a company engaged in the assembling of automotive components. The fifty (50) persons (engineers, architects and construction workers) were hired by Falcon Factory to renovate its building. The work to be performed by these fifty (50) people is not in connection with the purpose of the business of the factory. Hence, the employ of these fifty (50) persons is purely casual. They are, therefore, excepted from the compulsory coverage of the SSS law. I agree with the contention that the employees hired by the owners of FALCON factory as construction workers in the renovation of its building should be under the compulsory coverage of the Social Security Law. It is true that in connection with FALCON Factory, which is engaged in the assembling of automotive components, the construction workers may be considered casual employees because their employment is not for the purpose of occupation of business of FALCON Factory. As such, In accordance with Section 8(j) of the Social Security Law, they are excepted form the compulsory coverage of the Social Security System. But they could also be considered project employees of FALCON Factory and as such could be under the compulsory coverage of the SSS, applying Art 4 of the Labor Code that provides that all doubts in the implementation and interpretation of the provisions of Labor Law shall be resolved in favor of labor. The employees here therefore, should be considered as under the compulsory coverage of the SSS.
2004 VII A. Gil Bates, a computer analyst and programmer of Hard Drive Company, works eight hours a day for five days a week at the main office providing customers information technology assistance. On Saturdays, however, the company requires him to keep his cellular phone open from 8:00 A.M. to 5:00 P.M. so that the Management could contact him in case of heavy work load or emergency problems needing his expertise.
May said hours on Saturdays be considered compensable working hours "while on call? If so, should said compensation be reported to the Social Security System? (5%) SUGGESTED ANSWER: Said hours on Saturdays should be considered as compensable working hours “while on call". In accordance with the Rules and Regulations Implementing the Labor Code, an employee v/ho is not required to leave word at his home or with company officials as to where he may be reached is not working while on call. But in the question, Gil Bates was required to keep his cell phone open from 8:00 A.M. to 5:00 P.M. Therefore, Bates should be considered as working while on call, if he cannot use effectively and gainfully for his own purpose the time from 8:00 A.M. to 5:00 P.M. on Saturdays when he is required to keep his cellphone open. The compensation actually received by Bates for working while on call on Saturdays should be reported to the Social Security System because under the Social Security Law, compensation means "all actual remuneration for employment.” ANOTHER SUGGESTED ANSWER: If Gil Bates can effectively utilize the Saturdays in his own interest even "while on call", said hours on Saturdays are not compensable. However, if during said hours on Saturdays, Bates is actually required to attend to urgent work to the extent of leaving what he is doing, then the same are compensable, working hours to the extent of the actual hours of work rendered by him. The compensation paid by the company to Bates for said hours worked on Saturdays should be reported to the SSS. This is so because the basis of computing the SSS contribution includes all actual, remuneration, including allowances and cash value of any compensation paid in any medium other than cash.
2007 XIV (5 POINTS) AB, single and living-in with CD (a married man), is pregnant with her fifth child. She applied for maternity leave but her employer refused the application because she is not married. Who is right? Decide SUGGESTED ANSWER: AB is right. The Social Security Law, which administers the Maternity Benefit Program does not require that the relationship between the father and the mother of the child be legitimate. The law is compensating the female worker because of her maternal function and resultant loss of compensation. The law is morality free. FIRST ALTERNATIVE ANSWER: Neither party is correct. The employer cannot refuse the application on the ground that she is only living with CD, as a legitimate marriage is not a precondition for the grant of maternity leave. Neither is AB correct, since maternity leave is only available for the first four deliveries or miscarriages.
2008
VII Tito Paciencioso is an employee of a foundry shop in Malabon, Metro Manila. He is barely able to make ends meet with his salary of P4.000.00 a month. One day, he asked his employer to stop deducting from his salary his SSS monthly contribution, reasoning out that he is waiving his social security coverage. If you were Tito’s employer, would you grant his request? Why? (6%) SUGGESTED ANSWER: No. As Tito’s employer, I am bound by law to remit to SSS Tito’s monthly contribution. The SSS law covers any person natural, juridical, domestic or foreign, carrying in the Philippines trade, business, industry, undertaking or activity and uses the services of another under his order as regards employment (Sec. 89[c]). The compulsory coverage of employers and employees under the SSS law is actually a legal imposition on the employers and employees, designed to provide social security to workingmen. Membership in SSS is in compliance with a lawful exercise of the police power of the State, and may not be Waived by agreement of any party (Phil. Blooming Mills, Co., Inc. v. SSS, 17 SCRA 1077(1966]). VIII Carol de la Cruz is the secretary of the proprietor of an auto dealership in Quezon City. She resides in Caloocan City. Her office hours start at 8 a.m. and end at 5 p.m. On July 30, 2008, at 7 a.m. while waiting for public transport at Rizal Avenue Extension as has been her routine, she was sideswiped by a speeding taxicab resulting in her death. The father of Carol filed a claim for employee’s compensation with the Social Security System. Will the claim prosper? Why? (6%) SUGGESTED ANSWER: Yes, the claim will prosper. In a line of cases, it has been held that an injury sustained by the employee while on his way to or from his place of work, and which is otherwise compensable, is deemed to have arisen out of and in the course of his employment (Lentejas v. Employees’ Compensation Commission, 197SCRA 44[1991]). Carol died while going to her place of work. As held in the case of Alano v. Employees’ Compensation Commission (158 SCRA 669(1988]), she was at the place where her job necessarily required her to be if she was to reach her place of work on time. There was nothing private or personal about Carol’s place being at the place of the accident. She was there because her employment required her to be there. ANOTHER SUGGESTED ANSWER: The claim will not prosper as a claim for employees compensation will prosper only in the event of work- connected disability or death and the death of Carol dela Cruz will be considered as work connected only if it was because of “any accident arising out of and in the course of employment.” This was not the case of Carol dela Cruz. She was not yet working when the accident that caused her death took place.
Assume that in Problem 5, Mario, an RSC member disgusted with the non-payment of his night shift differential and overtime pay, filed a complaint with the DOLE Regional Office against RSC and PizCorp. After inspection, It was found that indeed Mario was not getting his correct differential and overtime pay and that he was not declared an SSS member (so that no premiums for SSS membership were ever remitted). On this basis, the Regional Director issued a compliance order holding PizCorp and RSC solidarily liable for the payment of the correct differential and overtime pay and ordering PizCorp to report Mario for membership with SSS and remit the overdue SSS premiums. Who has the obligation to report the RSC members for membership with the SSS, with the concomitant obligation to remit SSS premiums? Why? (6%) SUGGESTED ANSWER: Ordinarily, if RSC is engaged in permissible job contracting, it would be RSC who would be the employer and, therefore, would have the obligation to report its employees to the SSS and remit its premiums. However, since RSC is only a “labor-only” contractor and, therefore, considered merely as agent of PizCorp, the latter (PizCorp) as the real employer has the legal obligation to report the RSC members as its employees for membership with the SSS and remit its premiums.
2009 Can a member of a cooperative be deemed an employee for purposes of compulsory' coverage under the Social Security Act? Explain. (2%) SUGGESTED ANSWER: Yes, an employee of a cooperative, not over sixty (60) years of age is, under the SSS Law, subject to compulsory coverage. The Section 8(d) SSS Law defines an employee as - “Sec. 8(d)— any person who performs services for an employer in which either or both mental and physical efforts are used and who receives compensation for such service, where there is an employer- employee relationship.”
2010 III A, single, has been an active member of the Social Security System for the past 20 months. She became pregnant out of wedlock and on her 7th month of pregnancy, she was informed that she would have to deliver the baby through caesarean section because of some complications. Can A claim maternity benefits? If yes, how many days can she go on maternity leave? If not, why is she not entitled? (3%) SUGGESTED ANSWER: YES. The SSS Law does not discriminate based on the civil status of a female memberemployee. As long as said female employee has paid at least three (3) monthly contributions in the twelve-month period immediately preceding the semester of her childbirth, she can avail of the maternity benefits under the law.
Since A gave birth through C-section, she is entitled to one hundred percent (100%) of her average salary credit for seventy-eight (78) days, provided she notifies her employer of her pregnancy and the probable date of her childbirth, among others (See Section 14-A, Rep. Act No. 8282). The same maternity benefits are ensured by Sec. 22 (b)(2) of the Magna Carta of Women (Rep. Act No. 9710).
2012 Q: Which of the following statements is the most accurate? (2012 Bar Question) a. Domestic helpers with monthly income of at least P3,000.00 are compulsory members of the SSS Law; b. House helpers with monthly income of at least P2,000.00 are compulsory members of the SSS Law; c. Domestic helpers, 55 years of age and who worked for at least five (5) years, are covered by the Retirement Pay Law under optional retirement, in the absence of a CBA; d. Domestic helpers in the personnel service of another are not entitled to 13 th month pay. SUGGESTED ANSWER: d)
Domestic helpers in the personnel service of another are not entitled to 13 th month
pay. Q: Jennifer, a receptionist at Company X, is covered by the SSS. She was pregnant with her fourth child when she slipped in the bathroom of her home and had a miscarriage. Meanwhile, Company X neglected to remit the required contributions to the SSS. Jennifer claims maternity leave benefits and sickness benefits. Which of these two may she claim? (2012 Bar Question) a. b. c. d.
None of them; Either one of them; Only maternity leave benefits; Only sickness benefits.
SUGGESTED ANSWER: b) Only maternity leave benefits [Sec. 14-A (c), RA 1161 (SSS Law) as amended by RA 8282]
2013
Q: Because of the stress in caring for her four (4) growing children, Tammy suffered a miscarriage late in her pregnancy and had to undergo an operation. In the course of the operation, her obstetrician further discovered a suspicious-looking mass that required the subsequent removal of her uterus (hysterectomy). After surgery, her physician advised Tammy to be on full bed rest for six (6) weeks. Meanwhile, the biopsy of the sample tissue taken from the mass in Tammy's uterus showed a beginning malignancy that required an immediate series of chemotherapy once a week for four (4) weeks. (A) What benefits can Tammy claim under existing social legislation? (2013 Bar Questions) SUGGESTED ANSWER: Assuming she is employed, Tammy is entitled to a special leave benefit of two months with full pay (Gynecological Leave) pursuant to RA 9710 or the Magna Carta of Women. She can also claim Sickness Leave Benefit in accordance with the SSS Law.
2014 Q: Luisito has been working with Lima Land for 20 years. Wanting to work in the public sector, Luisito applied with and was offered a job at Livecor. Before accepting the offer, he wanted to consult you whether the payments that he and Lima Land had made to the Social Security System (SSS) can be transferred or credited to the Government Service Insurance System (GSIS). What would you advice? (2014 Bar Question)
SUGGESTED ANSWER: Yes. Under RA 7699, otherwise known as the Portability Law, one may combine his years of service in the private sector represented by his contributions to the Social Security System (SSS) with his government service and contributions to the GSIS. The contributions shall be totalized for purposes of old-age, disability, survivorship and other benefits in case the covered member does not qualify for such benefits in either or both Systems without totalization. Q: Don Luis, a widower, lived alone in a house with a large garden. One day, he noticed that the plants in his garden needed trimming. He remembered that Lando, a 17-year old out-of-school youth, had contacted him in church the other day looking for work. He contacted Lando who immediately attended to Don Luis’s garden and finished the job in three days. (2014 Bar Question) (A)
Is there an employer-employee relationship between Don Luis and Lando?
SUGGESTED ANSWER: Yes. All the elements of employer-employee relationship are present, viz: 1. the selection and engagement of the employee; 2. the power of dismissal;
3. the payment of wages; and 4. the power to control the employee's conduct. There was also no showing that Lando has his own tools, or equipment so as to qualify him as an independent contractor.
SUGGESTED ALTERNATIVE ANSWER: None. Lando is an independent contractor for Don Luis does not exercise control over Lando's means and method in tending to the former's garden. (B)
Does Don Luis need to register Lando with the Social Security System (SSS)?
SUGGESTED ANSWER: Yes. Coverage in the SSS shall be compulsory upon all employees not over sixty (60) years of age . SUGGESTED ALTERNATIVE ANSWER: No. Lando is not an employee of Don Luis. What the parties have is a contract for a piece of work which, while allowed by Article 1713 of the Civil Code, does not make Lando an employee under the Labor Code and Social Security Act.
2015 Q: Luisa is an unwed mother with 3 children from different fathers. In 2004, she became a member of the Social Security System (SSS). That same year, she suffered a miscarriage of a baby out of wedlock from the father of her third child. She wants to claim maternity benefits under the SSS Act. Is she entitled to claim? (2015 Bar Question) SUGGESTED ANSWER: Yes. Provided Luisa has reported to her employer her pregnancy and date of expected delivery and paid at least three monthly contributions during the 12-month period immediately preceding her miscarriage then she is entitled to maternity benefits up to four deliveries. As to the fact that she got pregnant outside wedlock, as in her past three pregnancies, this will not bar her claim because the SSS is non-discriminatory. Q: Ador is a student working on his master's degree in horticulture. To make ends meet, he takes on jobs to come up with flower arrangements for friends. His neighbor, Nico, is about to get married to Lucia and needs a floral arranger. Ador offers his services and Nico agrees. They shake hands on it, agreeing that Nico will pay Ador :P20,000.00 for his services but that Ador will take care of everything. As Ador sets about to decorate the
venue, Nico changes all of Ador's plans and ends up designing the arrangements himself with Ador simply executing Nico's instructions. (a)
Is there an employer-employee relationship between Nico and Ador? (2015 Bar Question)
(b) Will Nico need to register Ador with the Social Security System (SSS)? (2015 Bar Question) SUGGESTED ANSWER: (a) Yes. With Ador’s simply executing Nico’s instruction, Nico, who now has control over Ador’s work, has become the employer of Ador. In Royale Homes Marketing Corp. v. Fidel Alcantara (G.R. No. 195190, July 28, 2014) the Supreme Court held that control is the most important determinant of employer-employee relationship. (b) Yes, as under Section 9 of the Social Security Law (Art. 1161 as amended), coverage in the SSS shall be compulsory upon all employees not over sixty (60) years of age and their employers. ANOTHER SUGGESTED ANSWER: (b) If Ador is a purely casual employee: No. Casual employees are not subject to the compulsory coverage of the SSS by express provision of law. (Section 8(5) (3), RA 1161, as amended) SUGGESTED ALTERNATIVE ANSWER: (a) There is no employer-employee relationship. The case at hand pertains to a civil law arrangement. There is no business undertaken by Lucia; what the parties have is a contract for a specific service.
GSIS 2015 Q: Luis, a PNP officer, was off duty and resting at home when he heard a scuffle outside his house. He saw two of his neighbors fighting and he rushed out to pacify them. One of the neighbors shot Luis by mistake, which resulted in Luis's death. Marian, Luis's widow, filed a claim with the GSIS seeking death benefits. The GSIS denied the claim on the ground that the death of Luis was not service related as he was off duty when the incident happened. Is the GSIS correct? (2015 Bar Question) SUGGESTED ANSWER: No. The GSIS is not correct. Luis, a policeman, just like a soldier, is covered by the 24-Hour Duty Rule. He is deemed on round-the-clock duty unless on official leave, in which case his death outside performance of official peace-keeping mission will bar death claim. In this case, Luis was not on official leave and he died in the performance of a peace-keeping mission. Therefore, his death is compensable.
2009 X [a]
State briefly the compulsory coverage of the Government Service Insurance Act. (2%)
SUGGESTED ANSWER: The following are compulsorily covered by the GSIS pursuant to Sec. 3 of R.A. No. 8291. 1.
All employees receiving compensation who have not reached the compulsory retirement age, irrespective of employment status. 2. Members of the judiciary and constitutional commissions for life insurance policy
2005 VIII (I) Odeck, a policeman, was on leave for a month. While resting in their house, he heard two of his neighbors fighting with each other. Odeck rushed to the scene intending to pacify the protagonists. However, he was shot to death by one of the protagonists. Zhop, a housemaid, was Odeck's surviving spouse whom he had abandoned for another woman years back. When she learned of Odeck's death,
Zhop filed a claim with the GSIS for death benefits. However, her claim was denied because (a) when Odeck was killed, he was on leave; and (b) she was not the dependent spouse of Odeck when he died. Resolve with reasons whether GSIS is correct in denying' the claim. (5%) SUGGESTED ANSWER: The GSIS is not correct in denying the claim, because Odeck was on leave when he was killed. The law only requires that the GSIS member was in the service at the time of his death so that his beneficiaries may claim survivorship benefits. Odeck was still in the service. He was just on leave. He intends to report back to work after his leave. ANOTHER SUGGESTED ANSWER: The GSIS is correct in denying the claim because Zhop was not the dependent spouse. Though she may still be the legal spouse who at the same time may not have remarried, she is no longer dependent of Odeck for support. Odeck left her years back. The law defines as primary beneficiary the spouse who is a legal and dependent of the member for support. ANOTHER SUGGESTED ANSWER: GSIS is wrong. Anent (a), for Zhop to be entitled to death benefit all that Sec. 21 (a). par. l(i} of the GSIS law requires is that Odeck be "in the service at the time of his death". It does not require that death occurs while Odeck is on duty. A leave of absence is in fact a benefit of an employee who is in service. Therefore, Odeck was "in service" at the time of his death. Regarding (b) what .section 21(a) provides is an entitlement of "primary beneficiaries", not dependents. In this regard, Sec. 2 (g) defines a primary beneficiary to mean - "The legal dependent spouse until he/she remarries xxx". Having been abandoned by Odeck does not necessarily mean that Zhop no longer depends on Odeck's support. She in fact, needs it all the more.
2004 A.
Atty. CLM, a dedicated and efficient public official, was the top executive of a government owned and controlled corporation (GOCC). While inspecting an ongoing project in a remote village in Mindanao, she suffered a stroke and since then had been confined to a wheelchair. At the time she stopped working because of her illness, in line of duty, Atty. CLM was only sixty years old but she had been an active member of the GSIS for thirty years without any break in her service record. What benefits could she claim from the GSIS? Cite at least five benefits. (5%) SUGGESTED ANSWER:
The benefits Atty. CLM could claim from the GSIS are: 1.
Employees compensation which shall include both income and medical and related benefits, including rehabilitation; 2. Temporary total disability benefit; 3. Permanent total disability benefit; 4. Separation benefit; and 5. Retirement benefit.
1999 XX FACTS: Pitoy Mondero was employed as a public school teacher at the Marinduque High School from July 1, 1983 until his untimely demise on May 27, 1997. On April 27, 1997, a memorandum was issued by the school principal, which reads: “You are hereby designated to prepare the MODEL DAM project, which will be the official entry of or school the forthcoming Division Search for Outstanding Improvised Secondary'Science Equipment forTeach- ers to be held in Manila on June 4, 1997. You are hereby instructed to complete this MODEL DAM on or before the scheduled date of the contest." Mordero complied with his superior’s instruction and constructed an improvised electric microdam, which he took home to enable him to finish it before the deadline. On May 27, 1997, while working on the MODEL DAM Project in his house, he came to contact with a live wire and was electrocuted. He was immediately brought to a clinic for emergency treatment but was pronounced dead on arrival. The death certificate showed that he died of cardiac arrest due to accidental electrocution. Pepay Palaypay (Pitoy Mordero's common-law wife for more than twenty years) and a Pitoy Mordero Jr. (his only son) filed a claim for death benefits with the Government Service Insurance System (GSIS), which was denied on the ground that Pitoy Mordeno’s death did not arise out of and in the course of employment and therefore not compensable because the accident occurred in his house and not in the school premises. 1. Is Pepay Palaypay entitled to file a claim for death benefits with the GSIS? Why? (2%) SUGGESTED ANSWER: The beneficiaries of a member of the GSIS are entitled to the benefits arising from the death of said member. Death benefits are called survivorship benefits under the GSIS Law. Not being a beneficiary, Pepay Palaypay is not entitled to receive survivorship benefits. She is not a beneficiary because she is a common-law wife and not a legal dependent spouse. 1. Is the cause of death of Pitoy Mordeno (cardiac arrest due to accidental electrocution in his house) compensable? Why? (3%).
SUGGESTED ANSWER: Yes. To be compensable under the GSIS Law, the death need not be work connected.
1997 Question No. 20: State the respective coverages of (a) the Social Security Law; (b) the Revised government Service Insurance Act and the Employees Compensation Act. Answer: (d)
Coverage of SSS (Sec. 9, RA 8282) shall be compulsory upon all employees not over sixty years of age and their employers. Filipinos recruited in the Philippines by foreign-based employers for employment abroad maybe covered by the SSS on a voluntary basis. Coverage in the SSS shall also be compulsory upon all self-employed persons earning PI, 800 or more per annum. (e)
Membership in the Government Service Insurance System (Art. 3, RA8291) shall be compulsory for all permanent employees below 60 years of age upon appointment to permanent status, and for all elective officials for the duration of their tenure. Any person, whether elected or appointed. In the service of an employer is a covered employee if he receives compensation for such service. (f)
Coverage in the State Insurance Fund (Art. 168.' Labor Code) shall be compulsory upon all employers and their employees not over sixty (60) years of age; Provided, that an employee who is over (60) years of age and paying contributions to qualify for the retirement or life insurance benefit administered by the System shall be subject to compulsory coverage. The Employees Compensation Commission shall ensure adequate coverage of Filipino employees employed abroad, subject to regulations as it may prescribe. (Art. 170) Any person compulsorily covered by the GSIS Including the members of the Armed Forces of the Philippines, and any person employed as casual, emergency, temporary, substitute or contractual, or any person compulsorily covered by the SSS are covered by the Employees Compensation Program.
1996 Question No. 14: Efrenia Reyes was a classroom teacher assigned by the Department of Education. Culture and Sports (DECS) in Panitan, Capiz. She has been in the government service since 1951 up to
November. 1985 when she retired at 55 due to poor health. In March, 1982, while she was teaching her Grade 1 pupils the proper way of scrubbing and sweeping the floor, she accidentally slipped. Herback hit the edge of a desk. She later complained of weak lower extremities and difficulty in walking. After an X-ray examination, she was found to be suffering from Pott's disease and was advised to undergo an operation. In 1985, she filed with the GSIS a claim for disability benefits under Presidential Decree No. 626, as amended. The GSIS granted the claim and awarded Efrenia permanent partial disability benefits. After she underwent a surgical operation on her spine in November. 1985, her condition worsened. In 1990, Efrenia filed with the GSIS a petition for conversion of her disability status to permanent total disabilities with corresponding adjustment of benefits. GSIS denied the claim stating that after Efrenia's retirement, any progression of her ailment is no longer compensable. Is the GSIS correct in denying the claim. Explain. Answer: Considering that the disability of Reyes is work connected the provisions of the Labor Code dealing with employees compensation should determine her right to benefits. According to said provisions, if any employee under permanent partial disability suffers another injury which results in a compensable disability greater than the previous injury, the State Insurance Fund shall be liable for the income benefit of the new disability even after her retirement. Was Reyes still an “employee” for the purpose of applying the above provision of the Labor Code? Liberally construing said provision, Reyes may be considered still as an employee so that she could receive additional benefits for the progression of her ailment. Alternative Answers: a)
No. When an employee is constrained to retire at an early age due to his illness and the illness persists even after retirement, resulting in his continued unemployment, such condition amounts to total disability which should entitle him to the maximum benefits allowed by law. Her disability which should entitle her to the maximum falls within the definition of permanent total disability. b)
No, the GSIS erred in denying the claim. Note,.that the original claim and grant of benefits was based on Presidential Decree No. 626, or Book IV, Title II of the Labor Code: Employees Compensation and State Insurance Fund. The same law does not provide for separation fee from employment as a basis for denial of benefits. The worsening of the school teacher’s condition is a direct result, or a continuing result of the first injury which was deemed work-connected by the GSIS and hence compensable. “Diopenes vs. GSIS. 205 SCRA 331 (1992), the Supreme Court cautioned against a too strict interpretation of the law which may be detrimental to claimants and advised the GSIS of the constitutional mandate on protection to labor and the promotion of social justice. Said the
Court: The GSIS and the ECC should be commended for their vigilance against unjustified claims that will only deplete the funds intended to be disbursed for the benefit only of deserving disabled employees. Nevertheless, we should caution against a too strict interpretation of the rules that will result in the withholding of full assistance from those whose capabilities have been diminished if not completely impaired as a compensation of their service in the government. A humanitarian impulse dictated by no less than the Constitution itself under the social justice policy, calls for a liberal and sympathetic approach to the legitimate appeals of disabled public servants. Compassion for them is not a dole but a right.
1995 Question No. 11: What is the extent of an employer’s intervention in the compensation process and the payment of benefits to employees under the State Insurance Fund? Explain. 3.
Answer: The new law establishes a State Insurance Fund built up by the contributions of employers based on the salaries of their employees. The employer does not intervene in the compensation process and it has no control over the payment of benefits. Unlike under the Workmen’s Compensation Act. employers are no longer directly liable for the income and medical and related benefits that are to be paid to covered employees if they should suffer from work connected injury or sickness or death. The payment of employees compensation is now from the State Insurance Fund which is constituted from the contributions collected from employers. 4.
Is it necessary for an employee to litigate in order to establish and enforce his right to compensation? Explain. Answer: No. All that an employee does to claim employee's compensation, is to file a claim for said benefits with the SSS (for those in the private sector) or GSIS (for those in the public sector). In the event that the claim is denied on the SSS/GSIS level, claimant may appeal to the Employees Compensation Commission where he may prove the causal connection between injury and nature of work.
1991 Question No. 2: Juan Sipay was elected councilor of the municipality of San Felipe. On the second year of his term, he left his legitimate wife. Josefa Asuwa, and their three minor, unmarried and
unemployed children and lived with a common-law wife, Maria Makupad, with whom he had two minor, unmarried and unemployed children. Immediately after he completed his term. Juan was appointed cashier in the office of the municipal treasurer of San Felipe. He was dishonorably discharged from the service upon being convicted of malversation of public funds. A year later, he died. Who are entitled to the GSIS survivorship benefits? Answer: None. When Sipay was dishonorably discharged from the service, having been convicted of malversation of public funds, he automatically forfeited his right to the benefits that he or his beneficiaries could have been entitled to received from the GSIS. Thus, Sipay’s death did not give rise to any right to survivorship benefits.
1988 Question No. 15: Pascual Pasacao was employed as a plumber by the Colossal Construction Corp. in 1965. He was then single. When he was registered with the SSS, he designated his father Juan and his mother Maria, who were over 60 and dependent on him for support, as his beneficiaries. Colossal religiously remitted all employee and company contributions required by the SSS law. He married Damiana de Juan in 1967, and also declared her as beneficiary. Even if he was married, and because he was making a lot of money on overtime, he continued supporting his parents. A son, Pedrito, was born to the couple in 1968, and a daughter, Marita, in 1970. He declared both to the SSS as his beneficiaries. In 1975, he was promoted as foreman to a project in Mountain Province. He stayed there for 2 years and during that time, he had a relationship with Juliana Abay, by whom he had a child, Pascualito in 1976. He signed Pascualito's birth certificate. Unknown to him, Damiana had an affair while he was away and bore a daughter, Ariadne, in 1977. She represented to his employer that Ariadne was her child by Pascual and the personnel clerk of the company reported the child to the SSS as another beneficiary. When Pascual returned to Manila, he found out about Ariadne, and sent Damiana away from the conjugal home with the child. She left and lived with Ariadne s natural father. However, Pascual did not file legal separation proceedings against Damiana. Pascual did not know about the registration of Ariadne as an SSS beneficiary. He then brought Juliana to his home in Manila with their child, Pascualito. She was mother to all his children. In 1979 the then Ministry of Labor issued regulations on Occupation Health and Safety requiring construction workers to bear safety helmets on an approved design, while they worked in job sites. Colossal issued safety helmets imported from the United States to all its workers, including foreman. These helmets were guaranteed to resist impacts and absorb shocks for at
least 5 years if constantly exposed to sunlight. Under company rules all workers on job sites must wear their safety helmets continuously. Pascual, being macho, would put on his helmet only when executives of the company were on the job site, or when labor inspectors would check compliance with labor rules. In 1987, Pascual was supervising the raising of a pallet filled with PVC pipes to the 12th floor of the building they were working on. A Colossal project engineer was around so Pascual had put on his 8-year old safety helmet. However, Pascual did not close the chin strap to secure the helmet to his head. A cable snapped and whiplashed. It missed the engineer by inches and smashed into Pascual's helmet. The helmet cracked but the cable did riot touch Pascual's head. However, because of the impact, Pascual lost his balance and fell to the ground. The helmet flew off and he hit his head on the pavement. As a result of the injuries that he sustained, he was paralyzed. While the attending physicians said that there was hope for his eventual recovery if he could follow a program of therapy, there was no certainty when that would be. Since Pascual was a valued employee, the company wanted to do all it could for him and his family. You are counsel of the company. The President of the firm, who has briefed you on the situation in Pascual’s family, asks you to help the personnel clerk file a claim for Pascual’s benefits so it could augment the disability pay that the company was paying him. In filling out the form, you find a blank for beneficiaries. (a)
If Pascual were covered by GSIS, who would be his dependents? Who are Pascual’s (a) primary, and (b) secondary beneficiaries under PD No. 1146, the Revised GSIS Act of 1977? (b)
Answer: (a) His dependent would be the legitimate children (Pedrito and Marita) and the illegitimate child (Pascualito) who are not yet 21 years of age, if they are unmarried, or not gainfully employed, and the legitimate parents (Juan and Maria) who are wholly dependent upon Pascual for support. Damiana, the legal spouse is not a dependent because she is not living with the Pascual and could therefore be considered as not dependent for support on Pascual (b) The primary and secondary beneficiaries listed for Pascual under SSS, will be the same beneficiaries of Pascual, if he is covered by GSIS, except that Pascualito, the illegitimate child, will be a primary beneficiary and not just secondary beneficiary.
1987 Question No. 20: Gregorio Reposo, a 59-year-old government employee and member of the Government Service Insurance System could not wait for his retirement benefits and thought of enjoying them in advance of his retirement at age 60 by borrowing 80% of the retirement benefits from a friendly money lender, assigning to him the entire amount of his expected benefits. He obtained the approval of the assignment from the GSIS.
Reposo spent the proceeds on a business venture that failed. A supplier sued Reposo for unpaid materials and attempted to proceed against his retirement benefits. Reposo seeks your assistance in an effort to shield his retirement benefits. What legal advice would you give? Answer: I will advise him that because he had assigned the entire amount of his expected benefits to a money lender from whom he borrowed money representing 80% of his retirement benefits, and had obtained the approval of the assignment from GSIS, said benefits are now duly assigned to said lender. The Revised Government Service Insurance Act (in Sec. 33) provides that the benefits granted by the Act shall not be subject, among others, to attachment, garnishment, levy or other processes. This, however, shall not apply to obligations of the member to the System, or to the employer, or when the benefits granted herein are assigned by the member with the authority of the System. But as the above provision of the Act states, the retirement benefit is not subject to attachment, garnishment, levy or other processes that the supplier may ask for.
