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Prubankers Association v.

Prudential Bank and Trust Company 5 laid down the four elements of wage
distortion, to wit: (1.) An existing hierarchy of positions with corresponding salary rates; (2) A
significant change in the salary rate of a lower pay class without a concomitant increase in the salary
rate of a higher one; (3) The elimination of the distinction between the two levels; and (4) The
existence of the distortion in the same region of the country.

Sec. 9. Labor-only contracting (a) Any person who undertakes to supply workers to an employer
shall be deemed to be engaged in labor-only contracting where such person:
(1) Does not have substantial capital or investment in the form of
tools, equipments, machineries, work premises and other materials;
and
(2) The workers recruited and placed by such person are performing
activities which are directly related to the principal business or
operations of the employer in which workers are habitually employed.

. the selection and engagement of the employee;.


2. the payment of wages;
3. the power of dismissal; and
4. the power to control the employees' conduct.

"(f) Dependents Dependents shall be the following: (a) the legitimate spouse dependent for support upon the
member or pensioner; (b) the legitimate, legitimated, legally adopted child, including the illegitimate child, who is
unmarried, not gainfully employed, not over the age of majority, or is over the age of majority but incapacitated and
incapable of self-support due to a mental or physical defect acquired prior to age of majority; and (c) the parents
dependent upon the member for support;
"(g) Primary beneficiaries The legal dependent spouse until he/she
remarries and the dependent children;
"(h) Secondary beneficiaries The dependent parents and, subject to the restrictions on dependent children, the
legitimate descendants

Dependents - The dependents shall be the following:


"(1) The legal spouse entitled by law to receive support from the member;
"(2) The legitimate, legitimated or legally adopted, and illegitimate child who is unmarried,
not gainfully employed, and has not reached twenty-one (21) years of age, or if over
twenty-one (21) years of age, he is congenitally or while still a minor has been
permanently incapacitated and incapable of self-support, physically or mentally; and

"(3) The parent who is receiving regular support from the member.
"(o) Semester - A period of two (2) consecutive quarters ending in the quarter of contingency.
"(p) Quarter - A period of three (3) consecutive calendar months ending on the last day of March,
June, September and December.
SEC. 12-B. Retirement Benefits. - (a) A member who has paid at least one hundred twenty (120)
monthly contributions prior to the semester of retirement
"SEC. 13. Death Benefits. - Upon the death of a member who has paid at least thirty-six (36) monthly
contributions prior to the semester of death
"SEC. 13-A. Permanent Disability Benefits. - (a) Upon the permanent total disability of a member who has
paid at least thirty-six (36) monthly contributions prior to the semester
"SEC. 13-B. Funeral Benefit. - A funeral grant equivalent to Twelve thousand pesos (P12,000.00) shall be
paid, in cash or in kind, to help defray the cost of funeral expenses upon the death of a member, including
permanently totally disabled member or retiree.
"SEC. 14. Sickness Benefit. - (a) A member who has paid at least three (3) monthly contributions in the
twelve-month period immediately preceding the semester of sickness or injury and is confined therefor for
more than three (3) days in a hospital or elsewhere with the approval of the SSS,
"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

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