memaid.125-132.labor.doc

7/28/2019 memaid.125-132.labor.doc

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124 2005 CENTRALIZED BAROPERATIONS

Social Welfare Legislation

A. Social Security Act; Government Service Insurance Act;

SSS GSIS

Policy Objectives:

To establish, develop, promote andperfect a sound and viable tax-exemptsocial security system suitable to theneeds of the people throughout thePhilippines which shall promote socialjustice and provide meaningfulprotection to members and theirbeneficiaries against the hazards ofdisability, sickness, maternity, old age,

and death, and other contingenciesresulting in loss of income or financialburden. (sec. 2 RA 8282)

Covered Employer:

1. Any persona. natural, juridical, domestic,

foreign who

b. carries on in the Philippinestrade, business, industry,undertaking

c. Uses services of another,

under his order as regardsemployment [8 (c)]

2. Self-employed both employer andemployee [8 (c) ]

1. National government,political subdivisions,branches, agencies,instrumentalities

2. Government ownedand/or controlledfinancial institutions withoriginal charters

3. ConstitutionalCommissions and thejudiciary [2 (c)]

Covered Employee:

1. Any person who performs servicesfor an employer in which either orboth mental and physical effortsare used and who receivedcompensation for such services,where there is an employer-employee relationship;

A self-employed person shall be bothemployee and employer at the sametime [8 (d)]

1. Any person, receivingcompensation while in theservice of an employer asdefined herein, whetherby election orappointment, irrespectiveof status of appointment

2. Barangay officials

3. Sanggunian Officials [sec.2(d)]

2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEEAND SUBJECTCHAIRPERSONS

Maricel Abarentos (Over-all Chairperson), Ronald Jalmanzar (Over-all Vice Chair), YolandaTolentino(VC-Acads), Jennifer Ang(VC- Secretariat),Joy Inductivo (VC-Finance), Elaine Masukat (VC-EDP), Anna Margarita Eres (VC-Logistics)Jonathan

Mangundayao (Political Law), Francis Benedict Rotutar (Labor Law), Romuald Padilla (Civil Law),Charmaine Torres (Taxation Law), Mark David Martinez (Criminal Law), Garny Luisa Alegre (CommercialLaw),Jinky Ann Uy (Remedial Law),Jackie Lou Bautista (Legal Ethics)


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Dependents:

1. SpouseLegal spouse entitled by law to

receive support [8 (e) (1)]2. Child

a. legitimateb. legitimatedc. Legally adoptedd. Illegitimate child who is

unmarried, and not gainfullyemployed and has notreached 21 years of age orhe is congenitallyincapacitated or while still aminor has been permanentlyincapacitated and incapable

of self-support, physically ormentally; [8(e)(2)]

3. ParentWho was receiving regular support

from the member. [8(e)(3)]

1. SpouseLegitimate and

dependent for support2. Child

a. legitimateb. .legitimatedc. Legally adoptedd. illegitimate who is

unmarried, notgainfully employed,not over the age ofmajority, or is overthe age of majoritybut incapacitatedand incapable ofself-support due toa mental or physical

defect acquiredprior to age of majority;

3. Parentslegitimate parents

dependent upon the memberfor support

Beneficiaries:

1. Primarya. Dependent spouse until he

or she remarriesb. Dependent legitimate,

legitimated, or legally

adopted, and illegitimatechildren, provided, that thedependent illegitimatechildren shall be entitled to50% of the share of thelegitimate, legitimated, orlegally adopted children,

c. In the absence of legitimate.Legitimated or legallyadopted child, the ill. childshall receive 100% benefit

1. Primarya. Legal dependent

spouse until he/ sheremarries and

b. The dependentchildren

2. SecondaryDependent parents

2. Secondarya. The dependent

parents andb. Subject to the

restrictions ondependent children,the legitimatedescendants

1. OthersIn the absence of all the foregoing,

any other person designated by thecovered employee as secondarybeneficiary. [8(k) and 15





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San Beda College of Law 126

MEMORYAIDIN LABOR LAW

Coverage

Compulsorya. Employees not over 60 years of age

and their employers; [9 (a)]b. Domestic helpers whose monthly

income shall not be less than Php1000 a month. [9 (a)].

c. Self-employed persons includingbut not limited to:

Self-employed professionals

Partners and single proprietors

of businesses

Actors, actresses, directors,

scriptwriters and news

correspondents Professional athletes, coaches,

trainers and jockeys

Individual farmer and

fishermen [9-A]

CompulsoryAll employees receiving

compensation who have notreached the compulsory

retirement age, irrespective ofemployment status,

Except:a. members of the

armed forces of thePhilippines and thePhilippine NationalPolice, subject tothe condition thatthey must settlefirst their financialobligation with theGSIS, and

b. Contractuals who

have no employerand employeerelationship withthe agencies theyserve.

c. Members of thejudiciary andconstitutionalcommissions whoshall have lifeinsurance only.

Voluntarya. Filipinos recruited by foreign-

based employers foremployment abroad [9 (c) ]

b. Spouses who devote full time tomanaging the household andfamily affairs, unless they arealso engaged in other vocationor employment which is subjectto mandatory coverage [9(b)]

c. Employees separated fromemployment may continue topay contributions to maintain hisright to full benefits.

d. Self-employed with no income(11-A)

By AgreementAny foreign govt, intl organization,

or their wholly-owned instrumentalityemploying workers in the Philippines, mayenter into an agreement with thePhilippine government for the inclusion ofsuch employees in the SSS except thosealready covered by their respective civilservice retirement systems.

LABOR LAW COMMITTEECHAIRPERSON: Francis Benedict Rotutar ASSISTANT CHAIRPERSON: Juanito Lim, Jr. SUBJECT HEADS: Aimee RoselleSabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws) EDP: Flora Sherry BasquiezASST. EDPS: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto


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Excluded employment:1. Employment purely casual and not

for the purpose of occupation orbusiness of the employer

2. Service performed on or inconnection with an alien vessel by anemployee if he is employed whensuch vessel is outside the Philippines.

3. Service performed in the employ ofthe Philippine government orinstrumentality or agency thereof.

4. Service performed in the employ of a

foreign government, internationalorganization, or their wholly ownedinstrumentality;

4. Services performed by temporaryemployees which may be excludedby regulation of the commission.

Effect ofSeparation from

Employment

1. Compulsory Covered Employeea. His employers contribution on his

account and his obligation to paycontribution arising from thatemployment shall cease at the endof the month of separation

b. Employee shall be credited with allcontributions paid on his behalf andentitled to benefits according to theprovisions of this Act and he may ,however, continue to pay the totalcontributions to maintain his right tofull benefit.

2. Effect of Interruption of Business orprofessional Income

a. If the self-employed realizes noincome in any given month, he shallnot be required to paycontributions for that month.

He may, however, be allowed to continuepaying contributions under the same rules

and regulations applicable to separatedemployee member; PROVIDED that noretroactive payment of contributions shallbe allowed other than as prescribed undersection 22-A hereof.

A member separated from theservice shall continue to be amember, and shall be entitledto whatever benefits he hasqualified to in the event of anycontingency compensableunder this act.





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Reporting Requirement

Each Employer shallimmediately report to the

SSS names, ages, civilstatus, occupations,salaries and dependents ofall his employees who aresubject to compulsorycoverage; [24 (a)]

Self-employed MemberEach covered self-employedperson, shall within 30 daysfrom the first day he startedthe practice of his professionor business operations,register and report to the SSS

his name, age, civil status,and occupation, averagemonthly net income and hisdependents.

The employer shall reportto the GSIS the names ofall its employees, theircorresponding employmentstatus, positions, salariesand such other pertinentinformation, includingsubsequent changestherein, if any, as may berequired by the GSIS.

Funding

Employees contribution

Employers contribution

Amount based on salarybracket

Compensation- all actualremuneration for employment,

including the mandated cost ofliving allowance, as well as thecash value of any remunerationpaid in any medium other thancash except that part of theremuneration received duringthe month in excess of themaximum salary credit asprovided under sec. 18 [8(f)]

Employer contribution

Member contribution

Government guarantees

the fulfillment of theobligations of the GSIS toits members as and whenthey fall due.

Effect of non-remittance

Where an employer refuses orneglects to pay the same shallbe collected by the SSS in the

same manner as taxes aremade collectible under theNational Internal RevenueCode, as amended. Failure orrefusal of the employer to payor remit the contributionsherein prescribed shall notprejudice the right of thecovered employee to thebenefits of the coverage.[22(b)]

Government guarantees thefulfillment of the obligations ofthe GSIS to its members as andwhen they fall due.



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Benefits

1. Monthly pension2. Dependents pension

3. Retirement benefits4. Death5. Permanent disability6. Funeral7. Sickness8. Maternity

All Members1. Life Insurance

2. Retirement3. Permanent disability4. Temporary disability5. Survivorship6. Separation7. Funeral

Judiciary & ConstitutionalCommissions Life insuranceonly

Basis of Claim

1. Non-work connected

disability, sickness2. Maternity3. Old Age4. Death

1. Non-work connected

disability, sickness, deathPermanent disability nobenefit if due to:

a. Gravemisconduct

b. Notoriousnegligence

c. Habitualintoxication

d. Willfulintention tokill himself oranother

2. Survivorship3. Separation4. Unemployment

Prescriptive PeriodTen years from the time the

right of action accrues obligation created by law (Art.1144 (2) Civil Code)

Claims for benefits under the

GSIS Act, except for life andretirement, shall prescribeafter four years from the dateof contingency

Benefit Protection

1. Benefits non-transferable paid only to such personsentitled

2. Personal claim/ collection power of attorney in

favor of another to collectnot recognized except ifthe beneficiary isphysically unable to collectpersonally

3. Beneficiary who is anational of a foreigncountry which does notextend benefits to aFilipino residing in thePhilippines, or which is notrecognized by thePhilippines shall not beentitled to receive any





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benefits;

But SS Commission may directpayments without regard tonationality or country of

residence if best interest of theSSS will be served.

Benefit Protection

TAXES / ATTACHMENTS1. Benefits exempt taxes,

fees or charges,2. Not liable to attachments,

garnishments, levy,seizures by or under legalor equitable processwhether before or afterreceipt except pay debts.

Benefits exempt taxes,assessments, fees or duties ofall kinds.

1. Exempt from attachment,garnishment, execution,levy or other processesissued by the courts, quasi-judicial agencies oradministrative bodies

2. COA disallowances andfrom all financial

obligations of themembers, including hispecuniary accountabilityarising from or caused oroccasioned by his exerciseor performance of hisofficial functions or duties,or incurred relative to or inconnection with hisposition or work exceptwhen his monetaryliability, contractyual orotherwise, is in favor ofthe GSIS.

FEESNo fees to agent, attorney

or other person-in-charge ofpreparation, filing or pursuingclaim. Any stipulation to thecontrary shall be void.

Any member of thePhilippine Bar who appears ascounsel in any case heard bythe SS Commission shall beentitled to 10% of the benefitsawarded. Any stipulation to thecontrary shall be void.

Exclusivity of Benefits

Whenever other laws provide

similar benefits for the samecontingencies covered by thisact,

The member who qualifiesto the benefits shall havethe option to choose whichbenefits will be paid tohim.

However, if the benefitsprovided by the law chosenare less than the benefitsprovided under this act,

the GSIS shall pay only the



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difference.

Disputes involving:a. Coverageb. Benefitsc. Contributionsd. Penaltiese. Any other matter related

thereto.

Any dispute arising under thisact and any other lawsadministered by the GSIS

Agency: Social SecurityCommission Agency: GSIS

Decided within the mandatoryperiod of 20 days after thesubmission of evidence

Decide the case within 30days from the receipt of thehearing officers findings andrecommendations or 30 daysafter submission for decision

Dispute settlement

Decision final and executory 15days after date of notification [5(b)]

Appeals3. Court of Appeals laws and

fact [5 (c)]4. Supreme Court questions of

law. [5 (c)]

Appeals

1. Court of Appeals Rule 43 (31)

2. Supreme Court Rule45 (31)

Appeals shall not staythe execution of theorder or award unlessordered by the board, CAor SC

Execution of Decision

Commission may, motu propioor on motion of any interestedparty, issue a writ of executionto enforce any of its decisions orawards, after it has become finaland executory.

Execution of DecisionWhen no appeal is

perfected and there is noorder to stay by the Board,CA, or by the SC, anydecision or award of theboard shall be enforced andexecuted in the samemanner as the decisions ofthe RTC.




memaid.125-132.labor.doc

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