Social Legislation and Agrarian Reform Law 1

 
Kimberly Benazir May R. Codilla Notes
Some notes taken from Dexter Caligdong
***Caveat: Use this material at your own risk***

Republic Act 1161 as amended by RA 8282 there is an employer-employee

relationship: Provided, That a self-employed
Constitutionality of the Law person shall be both employee and employer at
- it is not a bilateral or consensual agreement between the the same time.
employer and the State, but a compulsory coverage of Remember the requisites for one to be called as
employers and employees under the system. It is an employee:
designed to provide security to the workingman to protect 1. A person must exert mental or physical
them against hazards of disability, sickness, old age and effort
death. It is in compliance with a lawful exercise of the 2. The person must have received
police power of the State. compensation for such service
3. the must be a valid employee-
Premiums not considered as taxes employer relationship -which is
Premiums are for the general welfare (police power), while CONTROL TEST: control is established
the taxes are deducted pursuant to the the state’s power of through the presence of control not only
taxation. as to the work but also as to the means
and methods to be used
The funds belong to the members who will receive the
benefit, as a matter of right, whenever the hazards There is NO Employer-Employee relationship
provided by the law occur (disability, death, sickness, old when:
1. The element of control is absent
age)
2. A person who works for another does so
more or less at his own pleasure and not
Benefits are not considered as the Estate of the subject to definite hours or condition of
Members work
SSS law are in the nature of a special privilege or an 3. Compensated according to the result of
arrangement secured by the law pursuant to the policy of his effort
the state to provide security for the workingman. Such
benefits cannot be considered as property earned by the SSS vs Court of Appeals and Manila Cosmos Aerated
member during his lifetime. Water Factory Inc.
In determining the existence of employer-employee
-such benefits are not transferable and exempt from tax, relationship, the following elements are generally
legal processes and liens. Beneficiaries are also designated considered, namely:
by law 1. Selection and engagement of employment
2. Payment of wages
Decisions of the SSS are appealable to the Court of 3. Power of dismissal
Appeal, not appealed to the RTC because it is a co- 4. Power to control employees conduct
equal branch.
Independent Contractors- one who exercise independent
  employment and contracts to do a piece of work according
• The Social Security Commission exercises quasi-judicial to his own methods and without being subject to control of
functions. his employer except as to the result of the work.

• The purpose in granting to the Commission the quasi-judicial "(e) Dependents - The dependents shall be the
power to settle conflicting claims is to expedite and to settle the following:
same within the shortest time possible. "(1) The legal spouse entitled by law to
receive support from the member;
• As long as no action has been filed in the regular courts putting "(2) The legitimate, legitimated or legally
in issue the validity of a second or subsequent marriage, the adopted, and illegitimate child who is
Commission may pass upon the question of who between two or unmarried, not gainfully employed, and
more women claiming the benefit is entitled thereto. has not reached twenty-one (21) years of
age, or if over twenty-one (21) years of
• While the Social Security Commission performs administrative as age, he is congenitally or while still a
well as quasi-judicial functions and that it can sue in the RTC minor has been permanently
either as regards its administrative actions, or in the enforcement incapacitated and incapable of self-
and protection of its private rights, the rule is otherwise when the support, physically or mentally; and
acts complained of form part of its quasi-judicial functions. "(3) The parent who is receiving regular
support from the member.
• In exercising its quasi-judicial powers, the Commission ranks "(j) Employment - Any service performed by an
with the RTC. It necessary follows that an RTC has no jurisdiction employee for his employer except:
to issue writs against the Commission. **VIP Section 8(j) paragraph 1 of the
Republic Act 1161 as amended by
• The Court of Appeals is the appellate jurisdiction of the Social Republic Act No. 8282
Security Commission. "(1) Employment purely casual and not
for the purpose of occupation or
business of the employer;
Section 8 of RA 1161 as amended by RA 8282 "(2) Service performed on or in
"(c) Employer- Any person, natural or juridical, connection with an alien vessel by an
domestic or foreign, who carries on in the employee if he is employed when such
Philippines any trade, business, industry, vessel is outside the Philippines;
undertaking, or activity of any kind and uses the "(3) Service performed in the employ of
services of another person who is under his the Philippine Government or
orders as regards the employment, except the instrumentality or agency thereof;
Government and any of its political subdivisions, "(4) Service performed in the employ of a
branches or instrumentalities, including foreign government or international
corporations owned or controlled by the organization, or their wholly-owned
Government: Provided, That a self-employed instrumentality: Provided, however, That
person shall be both employee and employer at this exemption notwithstanding, any
the same time. foreign government, international
organization or their wholly-owned
"(d) Employee - Any person who performs instrumentality employing workers in the
services for an employer in which either or both Philippines or employing Filipinos outside
mental or physical efforts are used and who of the Philippines, may enter into an
receives compensation for such services, where agreement with the Philippine
 Social Legislation and Agrarian Reform Law
Government for the inclusion of such
employees in the SSS except those
already covered by their respective civil
service retirement
systems: Provided, further, That the
terms of such agreement shall conform
with the provisions of this Act on
coverage and amount of payment of
contributions and
benefits: Provided, finally, That the
provisions of this Act shall be
supplementary to any such agreement;
and
"(5) Such other services performed by
temporary and other employees which
may be excluded by regulation of the
Commission. Employees of bona fide
independent contractors shall not be
deemed employees of the employer
engaging the service of said contractors.
IMPORTANT CONCEPT:
RA 8282 provides that casual employees engaged
by a person or entity for an undertaking not
related to the latter’s business, trade or industry is
exempted from the mandatory coverage of the
SSS Law.
***VIP (Section 8(k) of Republic Act No. 161 as
amended by Republic Act No. 8282
"(k) Beneficiaries - The (1) dependent spouse
until he or she remarries, (2)the dependent
legitimate, legitimated or legally adopted, and
illegitimate children, who shall be the primary
beneficiaries of the member: Provided, That the
dependent illegitimate children shall be entitled to
fifty percent (50%) of the share of the legitimate,
legitimated or legally adopted
children: Provided, further, That in the absence of
the dependent legitimate, legitimated children of
the member, his/her dependent illegitimate
children shall be entitled to one hundred percent
(100%) of the benefits. In their absence, (3) the
dependent parents who shall be the secondary
beneficiaries of the member. In the absence of all
the foregoing, any other person designated by the
member as his/her secondary beneficiary.
Primary beneficiaries:
i.Dependent spouse until he or she remarries
ii.Dependent children
Secondary beneficiaries:
i. In the absence of the primary beneficiaries, the dependent
parents
ii. In the absence of the foregoing, any other person
designated by the member.
Degree of Dependence – it has been held that a
spouse who lived separately from the deceased cannot
qualify as a beneficiary; she could not be considered a
dependent spouse.
Dependence required – entitlement to benefits as a
primary beneficiary requires not only legitimacy but
also dependence upon the member employee. Thus, a
spouse of deceased member, who cohabited with
another man, though legitimate, cannot be considered
dependent.
Discussion:
Wife as to the beneficiary
- No need for court of legal separation, as long as there is proof
that the spouse is unfaithful, he or she cannot claim benefits
- must be cohabiting
- did not give any ground to disqualify him or her
• Rule of exclusion applies – if there are primary beneficiaries, the
second beneficiaries cannot get anything.
• If no one will claim, the State will not be the heir of the
member; it will just revert back to the pension fund.
2
Kimberly Benazir May R. Codilla Notes
Some notes taken from Dexter Caligdong
***Caveat: Use this material at your own risk***
• Domestic services – that which is rendered in connection with
the maintenance of the residence of the employer and for the
purpose of ministering to his wants and those of the members of
his household.
• The nature of the services, and not the duration thereof, is
determinative of coverage and non-coverage under the Act.
• Non-coverage on the basis of casual employment:
i. Services must not be merely irregular, temporary or
intermittent, but the same must also be in connection with the
business or occupation of the employer.
ii. Engaged to perform tasks or services which are not usually
necessary and desirable in the usual trade.
*Irregular- no definite assurance.
*Intermittent- not continuous.
Dependent vs Beneficiary
- before the death of the member the wife, children,
parents are called as dependents. They are called
beneficiaries at the time of death or after the death of the
SSS member.
Beneficiaries of the SSS follow a rule of EXCLUSION
Funeral benefits can be claimed by anyone as long as there
is a receipt showing the expenses incurred.
Is it required that a dependent parent is a legitimate
parent?
- there is no distinction, as long as recognized by the
member he is entitled to receive benefits
- since the law is silent, as long as the law does not
distinguish we shall not distinguish
"(l) Contingency - The retirement, death,
disability, injury or sickness and maternity of the
member.
Scope of the Term Employer
In RE: Petition for exemption from coverage of the SSS
Roman Catholic Archbishop of Manila vs SSS
Under the law is sufficiently comprehensive as to include
religious entities not organized for profit. This is made
more evident by the fact that the law itself enumerates the
kinds of employment excepted; employment in the
aforesaid institutions or entities is not among them.
The funds contributed to the System are not public funds,
but funds belonging to the members which are merely held
in trust by the Government.
Payment shall be made to the priest not because he is a
priest but because he is an employee.
Test to Determine Existence of Employer- Employee
Relationship
Investment Planning Corporation vs SSS
Control Test – whether the employer controls or has
reserved the right to control the employee not only as to
result of the work to be done but also as to the means and
methods by which the same is to be accomplished.
Social Security System vs Court of Appeal and Manila
Cosmos Aerated waters Factory
4 factors in determining whether or not there is an
employer-employee relationship
1. Selection and engagement of employment
2. Payment of wages
3. Power of dismissal
4. Power to control employees conduct
** penumbral sui generis each case must be determined
on its own fact and all features of relationship are to be
considered.
Two Requirement of casual employee to be excluded in
the SSS Compulsory coverage
 Social Legislation and Agrarian Reform Law
1. Employment is irregular, temporary or intermittent
(no guarantee when such work arise, employment
not continuous but sporadic)
2. Employee engaged to task not necessary or
desirable to the trade or business of the employer
Casual vs Temporary Employment
Temporary not per se excluded, can only be excluded if
there is a regulation. It is just used to describe the nature
of employment. Not expressly excluded.
Casual Employees are expressly excluded.
• Temporary Employees – subject to compulsory coverage; they
are not casual employees for the reason that their work is in
furtherance of the business or occupation of the employer.
• “Once a member, Always a member”
Separation from employment does not terminate
membership with the Social Security System.
The member’s obligation to pay premiums arising from his
employment however ceases; after all, the contribution is
based on actual remuneration received during the month;
he is not also entitled to a refund of premium
contributions.
Casual employees are temporary employees, but not all
temporary employees are casual.
REPUBLIC ACT NO. 10361 Kasambahay Law
Domestic worker or "Kasambahay" refers to any person
engaged in domestic work within an employment
relationship such as, but not limited to, the following:
general househelp, nursemaid or "yaya", cook, gardener,
or laundry person, but shall exclude any person who
performs domestic work only occasionally or sporadically
and not on an occupational basis.
The term shall not include children who are under foster
family arrangement, and are provided access to education
and given an allowance incidental to education, i.e. "baon",
transportation, school projects and school activities.
Seafarers covered by SSS
- the extension of the coverage of the Social Security
System to Filipino seafarers arises by virtue of the assent
given in the contract of employment signed by the
employer and seafarer
- they are included in the SSS compulsory benefits. They
are employed by manning agencies – entities registered
under the Philippine Law
-Manning agencies are representatives of the foreign
employer. The foreign employer and the manning agency
are solidarily liable. – Sta Rita vs SSS
"SEC. 10. Effective Date of Coverage. -
Compulsory coverage of the employer shall take
effect on the first day of his operation and that of
the employee on the day of his
employment: Provided, That the compulsory
coverage of the self-employed person shall take
effect upon his registration with the SSS.
Disability Pensioner
- not necessary that the disability is caused by work
Sickness benefits
"SEC. 14. Sickness Benefit. - (a) A member who
has paid at least (1) three (3) monthly
contributions in the twelve-month period
immediately preceding the semester of sickness
or injury and is (2) confined therefor for more than
three (3) days in a hospital or elsewhere with the
approval of the SSS, shall, for each day of
compensable confinement or a fraction thereof, be
paid by his employer, or the SSS, if such person is
3
Kimberly Benazir May R. Codilla Notes
Some notes taken from Dexter Caligdong
***Caveat: Use this material at your own risk***
unemployed or self-employed, a daily sickness
benefit equivalent to ninety percent (90%) of his
average daily salary credit, subject to the following
conditions:
3. The employee member shall notify his
employer of the fact of his sickness or injury within
five (5) calendar days after the start of his
confinement unless such confinement is in a
hospital or the employee became sick or was
injured while working or within the premises of the
employer in which case, notification to the
employer is necessary: Provided, That if the
member is unemployed or self-employed, he shall
directly notify the SSS of his confinement within
five (5) calendar days after the start thereof unless
such confinement is in a hospital in which case
notification is also not
necessary: Provided, further, That in cases where
notification is necessary, the confinement shall be
deemed to have started not earlier than the fifth
day immediately preceding the date of notification.
Maternity Leave Benefits
SEC. 14-A. Maternity Leave Benefit. - A female
member who has paid at least three (3) monthly
contributions in the twelve-month period
immediately preceding the semester of her
childbirth or miscarriage shall be paid a daily
maternity benefit equivalent to one hundred
percent (100%) of her average daily salary credit
for sixty (60) days or seventy-eight (78) days in
case of caesarian delivery, subject to the following
conditions:
"(a) That the employee shall have notified her employer
of her pregnancy and the probable date of her childbirth,
which notice shall be transmitted to the SSS in
accordance with the rules and regulations it may
provide;
"(b) The full payment shall be advanced by the employer
within thirty (30) days from the filing of the maternity
leave application;
"(c) That payment of daily maternity benefits shall be a
bar to the recovery of sickness benefits Provided by this
Act for the same period for which daily maternity benefits
have been received;
"(d) That the maternity benefits Provided under this
section shall be paid only for the first four (4) deliveries
or miscarriages;
"(e) That the SSS shall immediately reimburse the
employer of one hundred percent (100%) of the amount
of maternity benefits advanced to the employee by the
employer upon receipt of satisfactory proof of such
payment and legality thereof; and
"(f) That if an employee member should give birth or
suffer miscarriage without the required contributions
having been remitted for her by her employer to the
SSS, or without the latter having been previously notified
by the employer of the time of the pregnancy, the
employer shall pay to the SSS damages equivalent to
the benefits which said employee member would
otherwise have been entitled to.
- did not qualify whether married or not as long as
maternity benefit shall be paid only for the first four
deliveries. If more than four deliveries, member can apply
for Sickness benefits (if qualified)
Sickness Benefits Qualifications
(1) three (3) monthly contributions in the twelve-
month period immediately preceding the semester
of sickness or injury and is
(2) confined therefor for more than three (3) days
in a hospital or elsewhere
(3) The employee member shall notify his
employer of the fact of his sickness or injury within
five (5) calendar days after the start of his
confinement unless such confinement is in a
hospital or the employee became sick or was
injured while working or within the premises of the
employer
RA 8187 Paternity Leave Act of 1996
- provide benefits for married employees
-7 days leave
- available for first four pregnancies
- must be legally married to the female who gave birth
 Social Legislation and Agrarian Reform Law
-married and cohabiting male members with his wife
Signey vs SSS
Case tells us who are to be considered as dependent
spouses and the requirements:
1. not enough that they are legally married
2. must cohabit with the husband
3. not given grounds for separation or have not given
grounds to be disqualified
Waiver not accepted
- benefits in the SSS law cannot be waived or transferred
under the SSS Law
Dycaico vs SSS
- issue is Section 12 B(d) of RA 8282: they cohabited for a
longer time but got married after the retirement of the SSS
member
SSS released new guidelines after the Dycaico case:
SSS Order 2010-025
1. Spouses are living together as husband and wife without
any legal impediment to marry each other prior to the
retirement of the member
2. Surviving spouse was recorded as the beneficiary spouse
recorded in the SSS forms prior to the retirement of the
member
3. Circumstance: A child was born during the existence of
the marriage between the retired pensioner and the
surviving spouse
4. Marriage shall be formed during the time the spouses
were living together as husband and wife has no legal
impediment to marry each other
5. Marriage between the surviving spouse and the
pensioner is established no to have been contracted not for
a fraudulent purpose. The branch concerned shall conduct
an appropriate investigation to satisfy such requirement
Indicator of a marriage celebrated in good faith:
Retired pensioner and the surviving spouse have
subsequently lived together as husband and wife.
"SEC. 17. Fee of Agents, Attorneys, Etc. - No
agent, attorney or other person in charge of the
preparation, filing or pursuing any claim for benefit
under this Act shall demand or charge for his
services any fee, and any stipulation to the
contrary shall be null and void. The retention or
deduction of any amount from any benefit granted
under this Act for the payment of fees for such
services is prohibited: Provided, however, That
any member of the Philippine Bar who appears as
counsel in any case heard by the Commission
shall be entitled to attorneys' fees not exceeding
ten percent (10%) of the benefits awarded by the
Commission, which fees shall not be payable
before the actual payment of the benefits, and any
stipulation to the contrary shall be null and void.
"SEC. 19. Employer's Contributions. - (a)
Beginning as of the last day of the month when an
employee's compulsory coverage takes effect and
every month thereafter during his employment, his
employer shall pay, with respect to such covered
employee, the employer's contribution in
accordance with the schedule indicated in Section
Eighteen of this Act. Notwithstanding any contract
to the contrary, an employer shall not deduct,
directly or indirectly, from the compensation of his
employees covered by the SSS or otherwise
recover from them the employer's contributions
with respect to such employees.
"SEC. 15. Non-Transferability of Benefits. - The SSS
shall promptly pay the benefits Provided in this Act to
such persons as may be entitled thereto in accordance
with the provisions of this Act: Provided, That the SSS
shall pay the retirement benefits on the day of
contingency to qualified members who have submitted
the necessary documents at least six (6) months
before: Provided, further, That the beneficiary who is a
national of a foreign country which does not extend
benefits to a Filipino beneficiary residing in the
4
Kimberly Benazir May R. Codilla Notes
Some notes taken from Dexter Caligdong
***Caveat: Use this material at your own risk***
Philippines, or which is not recognized by the
Philippines, shall not be entitled to receive any benefit
under this Act:Provided, further, That notwithstanding
the foregoing, where the best interest of the SSS will be
served, the Commission may direct payments without
regard to nationality or country of
residence: Provided, further, That if the recipient is a
minor or a person incapable of administering his own
affairs, the Commission shall appoint a representative
under such terms and conditions as it may deem
proper: Provided, further, That such appointment shall
not be necessary in case the recipient is under the
custody of or living with the parents or spouse of the
member in which case the benefits shall be paid to such
parents or spouse, as representative payee of the
recipient. Such benefits are not transferable and no
power of attorney or other document executed by those
entitled thereto in favor of any agent, attorney or any
other person for the collection thereof on their behalf
shall be recognized, except when they are physically
unable to collect personally such
benefits: Provided, further, That in case of death
benefits, if no beneficiary qualifies under this Act, said
benefits shall be paid to the legal heirs in accordance
with the law of succession.
Discussion:
Such benefits are non-transferable and no power of
attorney or other document executed by those entitled
thereto, in favor of any agent, attorney or any other person
for the collection thereof on their behalf shall be
recognized; except when the beneficiary is physically
unable to collect personally such benefits.
In case of death benefits, if no beneficiary qualifies under
this Act, said benefits shall be paid to the legal heirs in
accordance with the law on succession. (*descending
order)(*if minor or incompetent, there must be a guardian)
"SEC. 16. Exemption from Tax, Legal Process and Lien. --
All laws to the contrary notwithstanding, the SSS and all its
assets and properties, all contributions collected and all
accruals thereto and income or investment earnings
therefrom as well as all supplies, equipment, papers or
documents shall be exempt from any tax, assessment, fee,
charge, or customs or import duty; and all benefit payments
made by the SSS shall likewise be exempt from all kinds of
taxes, fees or charges, and shall not liable to attachments,
garnishments, levy or seizure by or under any legal or
equitable process whatsoever, either before or after receipt
by the person or persons entitled thereto, except to pay any
debt of the member to the SSS. No tax measure of
whatever nature enacted shall apply to the SSS, unless it
expressly revokes the declared policy of the State in
Section 2 hereof granting tax-exemption to the SSS. Any
tax assessment imposed against the SSS shall be null and
void.
• Sec. 19 (Employer’s Contributions)
Notwithstanding any contract to the contrary, an employer
shall not deduct, directly or indirectly, from the
compensation of his employees covered by the SSS or
otherwise recover from them the employer’s contributions
with respect to such employees.
• Sec. 22 (Remittance of Contributions)
The contributions payable under this Act in cases where an
employer refuses or neglects to pay the same shall be
collected by the SSS in the same manner as taxes are
made collectible under the NIRC.
Failure or refusal of the employer to pay or remit the
contributions herein prescribed shall not prejudice the right
of the covered employee to the benefits of the coverage.
• The imposition upon and payment by the delinquent
employer of the 3% penalty, for late remittance of
premium contributions, is mandatory and cannot be waived
by the System.
• The Act attaches greater importance to the
requirements that the employer makes a timely report of
the employee’s name and personal data for coverage under
the System than that of timely remittance of premiums.
 Social Legislation and Agrarian Reform Law 5
 
Kimberly Benazir May R. Codilla Notes
Some notes taken from Dexter Caligdong
***Caveat: Use this material at your own risk***

SEC. 22. Remittance of Contributions. -- (a) The contributions

imposed in the preceding Section shall be remitted to the SSS
within the first ten (10) days of each calendar month following the
month for which they are applicable or within such time as the
Commission may prescribe. Every employer required to deduct
and to remit such contributions shall be liable for their payment
and if any contribution is not paid to the SSS as herein
prescribed, he shall pay besides the contribution a penalty
thereon of three percent (3%) per month from the date the
contribution falls due until paid. If deemed expedient and
advisable by the Commission, the collection and remittance of
contributions shall be made quarterly or semi-annually in
advance, the contributions payable by the employees to be
advanced by their respective employers: Provided, That upon
separation of an employee, any contribution so paid in advance
but not due shall be credited or refunded to his employer.
"(b) The contributions payable under this Act in cases where an
employer refuses or neglects to pay the same shall be collected
by the SSS in the same manner as taxes are made collectible
under the National Internal Revenue Code, as amended. Failure
or refusal of the employer to pay or remit the contributions
herein prescribed shall not prejudice the right of the
covered employee to the benefits of the coverage.
"The right to institute the necessary action against the 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.
"(c) Should any person, natural or juridical, default in any
payment of contributions, the Commission may also collect the
same in either of the following ways:
"1. By an action in court, which shall hear and
dispose of the case in preference to any other civil
action; or
"2. By issuing a warrant to the Sheriff of any province
or city commanding him to levy upon and sell any
real and personal property of the debtor. The
Sheriff's sale by virtue of said warrant shall be
governed by the same procedure prescribed for
executions against property upon judgments by a
court of record.
"(d) The last complete record of monthly contributions paid by
the employer or the average of the monthly contributions paid
during the past three (3) years as of the date of filing of the
action for collection shall be presumed to be the monthly
contributions payable by and due from the employer to the SSS
for each of the unpaid month, unless contradicted and overcome
by other evidence: Provided, That the SSS shall not be barred
from determining and collecting the true and correct contributions
due the SSS even after full payment pursuant to this paragraph,
nor shall the employer be relieved of his liability under Section
Twenty-eight of this Act.

Prescriptive period is 20 years. When to reckon:

1. Time delinquency is known to the employee
2. Time assessment is made by the SSS
3. Time the benefit accrues

- Non-payment of contributions or remittance is punishable

by Reclusion Perpetua
- Employer is given all opportunities to settle the obligation

NOTE:
Read RA 8282
Kasambahay Law
Paternity Law

For the greater glory of God! Do it right the first time.

 Social Legislation and Agrarian Reform Law 6  
Kimberly Benazir May R. Codilla Notes
Some notes taken from Dexter Caligdong
***Caveat: Use this material at your own risk***

RULINGS  OF  CASES:   any  right  to  work  on  their  part.  All  these  considerations  
1. Investment  Planing  vs  SSS   clash  frontally  with  the  concept  of  employment.  

The   specific   question   of   when   there   is   "employer-­‐ 5. SSS  vs  Manila  Jockey  
employee   relationship"   for   purposes   of   the   Social  
Security   Act   has   not   yet   been   settled   in   this   jurisdiction   The  logic  of  the  situation  indeed  dictates  that  where  the  
by  any  decision  of  this  Court.  But  in  other  connections   element   of   control   is   absent;   where   a   person   who  
wherein   the   term   is   used   the   test   that   has   been   works  for  another  does  so  more  or  less  at  his  own  
generally   applied   is   the   so-­called   control   test,   that   pleasure   and   is   not   subject   to   definite   hours   or  
is,  whether  the  "employer"  controls  or  has  reserved   conditions   of   work,   and   in   turn,   is   compensated  
the   right   to   control   the   "employee"   not   only   as   to   according   to   the   result   of   his   efforts   and   not   the  
the  result  of  the  work  to  be  done  but  also  as  to  the   amount   thereof,   we   should   not   find   that   the  
means   and   methods   by   which   the   same   is   to   be   relationship  of  employer  and  employee  exists."  
accomplished.   6. Republic  vs  Asiapro  Cooperative  

It   is   stated   in   the   Service   Contracts   that   it   is   the  

A   long   line   of   decisions   holds   that   commission   sales  
respondent   cooperative   which   has   the  power   to  
representatives  are  not  employees  within  the  coverage  
investigate,   discipline   and   remove   the   owners-­
of   the   Social   Security   Act.   The   underlying  
members   and   its   team   leaders  who   were   rendering  
circumstances   of   the   relationship   between   the   sales  
services   at   Stanfilco.   Of   the   four   elements   of   the  
representatives   and   company   often   vary   widely   from  
employer-­‐employee  relationship,  the  control  test  is  the  
case  to  case,  but  commission  sales  representatives  have  
most   important.  In   the   case   at   bar,   it   is   the  respondent  
uniformly   been   held   to   be   outside   the   Social   Security  
cooperative   which   has   the   sole   control   over   the  
Act.  
manner   and   means   of   performing   the   services  
under   the   Service   Contracts   with   Stanfilco   as   well  
2. SSS  vs  Manila  Cosmos   as  the  means  and  methods  of  work.  
The   existence   of   an   employer-­employee  
In  determining  the  existence  of  employer-­employee   relationship   cannot   be   negated   by   expressly  
relationship,   the   following   elements   are   generally   repudiating   it   in   a   contract,   when   the   terms   and  
considered,   namely:   (1)   the   selection   and   surrounding   circumstances   show   otherwise.  The  
engagement   of   the   employee;   (2)   the   payment   of   employment   status   of   a   person   is   defined   and  
wages:   (3)   the   power   of   dismissal:   and   (4)   the   prescribed  by  law  and  not  by  what  the  parties  say  it  
power  to  control  the  employees'  conduct.   should  be.  
7. Pajarillo  vs  SSS  
On   the   other   hand,   an   independent   contractor   is  
"one   who   exercise   independent   employment   and   Under  the  law,  an  employer  is  a  "person,  natural  or  
contracts  to  do  a  piece  of  work  according  to  his  own   juridical,   domestic   or   foreign,   who   carries   on   in   the  
methods  and  without  being  subject  to  control  of  his   Philippines   any   trade,   business,   industry,  
employer  except  as  to  the  result  of  the  work".   undertaking,   or   activity   of   any   kind   and   uses   the  
services  of  another  person  who  is  under  his  orders  
3. SSS  vs  Quality  Tobacco   as  regards  the  employment."  

Where   the   element   of   control   is   absent;   where   a   In  the  case  at  bar,  the  pilots  are  not  under  the  orders  of  
person   who   works   for   another   does   so   more   or   less   the  boat-­‐owners  as  regards  their  employment.  They  go  
at   his   own   pleasure   and   is   not   subject   to   definite   out   to   sea   not   upon   direction   of   the   boat-­‐owners,   but  
hours   or   conditions   of   work,   and   in   turn   is   upon   their   own   volition   as   to   when,   how   long   and  
compensated   according   to   the   result   of   his   effort,   where   to   go   fishing.   Much   less   do   the   boat-­‐owners   in  
the   relationship   of   employer-­employee   does   not   any   way   control   the   crew-­‐members   with   whom   the  
exist.   former   have   no   relationship   whatsoever.   These   crew-­‐
members   simply   join   every   trip   for   which   the   pilots  
After   a   study   of   the   records   and   applying   the   "control   allow   them,   without   any   reference   to   the   owners   of   the  
tests,"   there   appears   to   be   no   question   that   the   vessel.  
existence   of   an   employer-­‐employee   relationship  
between  Romeo  Carreon  and  QTC  has  been  established.   8. Roman   Catholic   Archbishop   of   Manila   vs  
SSS  
4. Manila  Golf  &  Country  Club  vs  IAC  
In   the   case   at   bar,   the   definition   of   the   term  
Caddies   must   submit   to   some   supervision   of   their   "employer"  is,  we  think,  sufficiently  comprehensive  
conduct   while   enjoying   the   privilege   of   pursuing   their   as   to   include   religious   and   charitable   institutions  
occupation   within   the   premises   and   grounds   of   or   entities   not   organized   for   profit,   like   herein  
whatever   club   they   do   their   work   in.   For   all   that   is   appellant,  within  its  meaning.    
made   to   appear,   they   work   for   the   club   to   which  
they   attach   themselves   on   sufference   but,   on   the   This   is   made   more   evident   by   the   fact   that   it  
other   hand,   also   without   having   to   observe   any   contains  an  exception  in  which  said  institutions  or  
working  hours,  free  to  leave  anytime  they  please,  to   entities   are   not   included.   And,   certainly,   had   the  
stay  away  for  as  long  they  like.   Legislature   really   intended   to   limit   the   operation   of   the  
law   to   entities   organized   for   profit   or   gain,   it   would   not  
It   is   not   pretended   that   if   found   remiss   in   the   have   defined   an   "employer"   in   such   a   way   as   to   include  
observance   of   said   rules,   any   discipline   may   be   meted   the  Government  and  yet  make  an  express  exception  of  
them  beyond  barring  them  from  the  premises  which,  it   it.  
may   be   supposed,   the   Club   may   do   in   any   case   even  
absent   any   breach   of   the   rules,   and   without   violating   There   is   no   merit   in   the   claim   that   the   inclusion   of  
religious  organizations  under  the  coverage  of  the  Social  
 Social Legislation and Agrarian Reform Law 7  
Kimberly Benazir May R. Codilla Notes
Some notes taken from Dexter Caligdong
***Caveat: Use this material at your own risk***

Security   Law   violates   the   constitutional   prohibition   a   dependent,  the   only   requirements   are   that   he/she  
against   the   application   of   public   funds   for   the   use,   must   be   below   21   years   of   age,   not   married   nor  
benefit   or   support   of   any   priest   who   might   be   gainfully  employed.  
employed   by   appellant.   The   funds   contributed   to   the   Section  8(e)  and  (k)  of  R.A.  No.  8282  provides:  
System   created   by   the   law   are   not   public   funds,   but      
funds   belonging   to   the   members   which   are   merely   held   SEC.   8.  Terms   Defined.For   the  
in  trust  by  the  Government.     purposes   of   this   Act,   the   following  
terms   shall,   unless   the   context  
At   any   rate,   assuming   that   said   funds   are   impressed   indicates   otherwise,   have   the  
with   the   character   of   public   funds,   their   payment   as   following  meanings:                  
retirement   death   or   disability   benefits   would   not      
constitute   a   violation   of   the   cited   provisions   of   the   x  x  x                
Constitution,   since   such   payment   shall   be   made   to   the      
priest   not   because   he   is   a   priest   but   because   he   is   an   (e)  Dependents  The  
employee.   dependent  shall  be  the  following:  
   
   (1)   The  legal   spouse  
entitled   by   law   to   receive  
  support  from  the  member;  
   
2)  The  legitimate,  legitimated,  
9. Ben  Sta.  Rita  vs  SSS  
or   legally   adopted,   and  illegitimate  
child   who   is   unmarried,   not  
What   the   Memorandum   of   Agreement   did   was   to   gainfully   employed   and   has   not  
record   the   understanding   between   the   SSS   on   the   one   reached   twenty-­one   years   (21)   of  
hand   and   the   DOLE   on   the   other   hand   that   the   latter   age,  or   if   over   twenty-­‐one   (21)   years  
would   include   among   the   provisions   of   the   Standard   of  age,  he  is  congenitally  or  while  still  
Contract   of   Employment   required   in   case   of   overseas   a   minor   has   been   permanently  
employment,  a  stipulation  providing  for  coverage  of  the   incapacitated   and   incapable   of   self-­‐
Filipino  seafarer  by  the  SSS.   support,  physically  or  mentally;  and    
   
It   may   be   noted   that   foreign   shipowners   and   manning   3)   The   parent   who   is  
agencies   had   generally   expressed   their   conformity   to   receiving   regular   support   from   the  
the   inclusion   of   Filipino   seafarers   within   the   coverage   member.                    
of   the   Social   Security   Act   even   prior   to   the   signing   of      
the  DOLE-­‐SSS  Memorandum  of  Agreement.   x  x  x  
   
It   is   worthy   of   special   note   that   by   extending   the   (k)  Beneficiaries  The  
benefits   of   the   Social   Security   Act   to   Filipino   dependent   spouse   until   he   or   she  
seafarers   on   board   foreign   vessels,   the   individual   remarries,   the   dependent   legitimate,  
employment   agreements   entered   into   with   the   legitimated   or   legally   adopted,   and  
stipulation   for   such   coverage   contemplated   in   the   illegitimate   children,   who   shall   be  
DOLE-­SSS  Memorandum  of  Agreement,  merely  give   the  primary   beneficiaries  of   the  
effect   to   the   constitutional   mandate   to   the   State   to   member:  Provided,   That   the  
afford   protection   to   labor   whether   "local   dependent   illegitimate   children   shall  
or  overseas."     be   entitled   to   fifty   percent   (50%)   of  
the   share   of   the   legitimate,   legitimated  
10. Dycaico  vs  SSS   or   legally   adopted   children:Provided,  
further,   That   in   the   absence   of   the  
dependent   legitimate,   legitimated   or  
For   if   it   were   the   intention   of   Congress   to   prevent  
sham  marriages  or  those  entered  in  contemplation   legally   adopted   children   of   the  
of  imminent  death,  then  it  should  have  prescribed  a   member,   his/her   dependent  
illegitimate   children   shall   be   entitled  
definite   duration-­of-­relationship   or   durational  
to  one  hundred  percent  (100%)  of  the  
period   of   relationship   as   one   of   the   requirements  
for  entitlement  to  survivors  pension.   benefits.   In   their   absence,   the  
The  proviso  as  of  the  date  of  his  retirement  in  Section   dependent   parents   who   shall   be  
the  secondary   beneficiaries  of   the  
12-­‐B(d)   of   Rep.   Act   No.   8282   runs   afoul   of   the   due  
member.  In   the  absence   of   all   of   the  
process   clause   as   it   outrightly   deprives   the   surviving  
spouses  whose  respective  marriages  to  the  retired  SSS   foregoing,   any   other   person  
members   were   contracted   after   the   latters   retirement   designated   by   the   member   as  
his/her  secondary  beneficiary.                        
of   their   survivors   benefits.   There   is   outright  
   
confiscation   of   benefits   due   such   surviving   spouses  
SEC.   13.  Death   Benefits.   Upon   the   death   of   a   member  
without  giving  them  an  opportunity  to  be  heard.  
  who   has   paid   at   least   thirty-­‐six   (36)   monthly  
11. Signey  vs  SSS   contributions   prior   to   the   semester   of   death,  
his  primary   beneficiaries   shall   be   entitled   to   the  
monthly  pension  –xxx-­.  
Whoever   claims   entitlement   to   the   benefits   provided  
by   law   should   establish   his   or   her   right   thereto   by  
substantial  evidence.  Since  petitioner  is  disqualified  to  
be   a   beneficiary   and   because   the   deceased   has   no  
legitimate   child,   it   follows   that   the   dependent  
illegitimate   minor   children   of   the   deceased   shall   be  
entitled   to   the   death   benefits   as   primary   beneficiaries.  
The   SSS   Law   is   clear   that   for   a   minor   child   to   qualify   as