Problems:

1. Jurisdiction on Criminal Cases where Directors are Liable

under SS Law.
Garcia v. SSC
SSC found Garcia, the sole surviving director of Impact Corporation,
petitioner herein, liable for unremitted SSS contributions.
Issue is whether or not petitioner, as the only surviving director of
Impact Corporation, can be made solely liable for the corporate
obligations of Impact Corporation pertaining to unremitted SSS
premium contributions and penalties therefore.
Petitioner challenges the finding of the Court of Appeals that under
Section 28 (f) of the Social Security Law, a mere director or officer of
an employer corporation, and not necessarily a "managing" director or
officer, can be held liable for the unpaid SSS premium contributions.
Section 28 (f) of the Social Security Law provides the following:
(f)
If the act or omission penalized by this Act be
committed by an association, partnership, corporation or any other
institution, its managing head, directors or partners shall be liable to
the penalties provided in this Act for the offense.
SC:
This Court though finds no need to resort to statutory construction.
Section 28 (f) of the Social Security Law imposes penalty on:
(1)
the managing head;
(2)
directors; or
(3)
partners, for offenses committed by a juridical
person
The said provision does not qualify that the director or partner should
likewise be a "managing director" or "managing partner. The law is
clear and unambiguous.
Although a corporation once formed is conferred a juridical personality
separate and distinct from the persons comprising it, it is but a legal
fiction introduced for purposes of convenience and to subserve the
ends of justice. The concept cannot be extended to a point beyond its
reasons and policy, and when invoked in support of an end subversive
of this policy, will be disregarded by the courts.

Despite the insistence of petitioner that they were project

employees, the facts show that as masons, carpenters and fine
graders in petitioners various construction projects, they performed
work which was usually necessary and desirable to petitioners
business which involves construction of roads and bridges.

While it may be true that private respondents were initially

hired for specific projects or undertakings, the repeated re-hiring and
continuing need for their services over a long span of time the
shortest being two years and the longest being eight have
undeniably made them regular employees. This Court has held that an
employment ceases to be co-terminus with specific projects when the
employee is continuously rehired due to the demands of the
employers business and re-engaged for many more projects without
interruption.
Compulsory coverage (When)
1.
For an employee on the first day of employment
2.
For an employer on the first day the employer hires
employee/s.
Employer is given 30 days from date of employment to
report the employee for coverage to SSS.
3.
For self-employed upon payment of first valid contribution,
in case of initial coverage.

3.

Who are compulsorily covered under SS law?

Compulsory Coverage
Coverage of Employees
a. A private employee who is not over 60 years old
b. A household-helper earning at least P1,000 a month is covered
starting Sept. 1, 1993.
A household-helper is any person who renders domestic or household
services exclusively to a household employer such driver, gardener,
cook, governess, and other similar occupations.
c. A Filipino seafarer upon the signing of the standard contract or
employment between the
seafarer and the manning
agency which, together with the foreign ship owner, act as employers.
d. An employee of a foreign government, international organization or
their wholly-owned instrumentality based in the Philippines, which
entered into an administrative agreement with the SSS for the
coverage of its Filipino workers.

2. Business, there was a typhoon, contracted carpenters.

Who are compulsorily covered? And when are they covered?
Are laborers continuously assigned to construction projects as
carpenters, masons, etc. compulsorily covered under SS Law?
CASE: Chua v. CA, et al., GR no. 125837, Oct. 6, 2004:

The mandatory coverage of RA 1161, as amended, is

premised on the existence of an employer-employee relationship.

Private respondents are employees of petitioner, the latter

having control over the results of the work done, as well as the means
and methods by which the same were accomplished.

Xxx regardless of the nature of their employment, whether it

is regular or project, private respondents are subject of the compulsory
coverage under the SSS Law, their employment not falling under the
exceptions provided by the law. This rule is in accord with the Courts
ruling in Luzon Stevedoring Corp. v. SSS to the effect that all
employees, regardless of tenure, would qualify for compulsory
membership in the SSS except those classes of employees
contemplated in Section 8(j) of the Social Security Act.

Pointers
1. Res judicata
CASE: SSC v. Rizal Poultry and Livestock Association, Inc., et al.,
(GR no. 167050, June 1, 2011)
Issue:
Whether res judicata applies so as to preclude the SSC from resolving
anew the existence of employer-employee relationship, which issue
was previously determined in the NLRC case?
SC:
Res judicata in the concept of conclusiveness of judgment applies.
The judgment in the NLRC case pertaining to a finding of an absence
of employer-employee relationship between Angeles and respondents
is conclusive on the SSC case.
2.

Compulsory coverage

Compulsory Coverage
Coverage of Employees
a. A private employee who is not over 60 years old
b. A household-helper earning at least P1,000 a month is covered
starting Sept. 1, 1993.
A household-helper is any person who renders domestic or household
services exclusively to a household employer such driver, gardener,
cook, governess, and other similar occupations.
c. A Filipino seafarer upon the signing of the standard contract or
employment between the
seafarer and the manning
agency which, together with the foreign ship owner, act as employers.
d. An employee of a foreign government, international organization or
their wholly-owned instrumentality based in the Philippines, which
entered into an administrative agreement with the SSS for the
coverage of its Filipino workers.
Coverage of Employers
a.
An employer, or any person who uses the services of
another person in business, trade, industry or any undertaking.
A social, civil, professional, charitable and other non-profit organization
which hire the services of employees are considerable employers.
b.
A foreign government, international organization or its
wholly-owned instrumentality such as embassy in the Philippines, may
enter into an administrative agreement with the SSS for the coverage
of its Filipino employees.
Coverage of Self-Employed Persons
A self-employed person, regardless of trade, business or occupation,
with an income of at least P1,000 a month and not over 60 years old,
should register with the SSS. Included but not limited to are the
following self-employed persons: self-employed professionals;
business partners, single proprietors and board directors; actors,
actresses, directors, scriptwriters and news correspondents who do not
fall with the term employee; professional athletes, coaches, trainers
and jockeys; farmers and fisherfolks; and workers in the informal
sector such cigarette vendors, watch-your-car-boys, hospitality girls,
among others.
3.

Benefits under GSIS

"D. BENEFITS
"SECTION 9. Computation of the Basic Monthly Pension. (a) the
basic monthly pension is equal to:
"1) thirty-seven and one-half percent (37.5%) of the revalued average
monthly compensation; plus

years of service after the effectivity of this Act shall not be less than
Two thousand four hundred pesos (P2,400.00) a month.
"SECTION 10. Computation of Service. (a) The computation of
service for the purpose of determining the amount of benefits payable
under this Act shall be from the date of original appointment/election,
including periods of service at different times under one or more
employers, those performed overseas under the authority of the
Republic of the Philippines, and those that may be prescribed by the
GSIS in coordination with the Civil Service Commission.
"(b) All service credited for retirement, resignation or separation for
which corresponding benefits have been awarded under this Act or
other laws shall be excluded in the computation of service in case of
reinstatement in the service of an employer and subsequent retirement
or separation which is compensable under this Act.
"For the purpose of this section the term service shall include full time
service with compensation: Provided, That part time and other services
with compensation may be included under such rules and regulations
as may be prescribed by the GSIS.
"SEPARATION BENEFITS
"SECTION 11. Separation Benefits. The separation benefit shall
consist of: (a) a cash payment equivalent to one hundred percent
(100%) of his average monthly compensation for each year of service
he paid contributions, but not less than Twelve thousand pesos
(P12,000) payable upon reaching sixty (60) years of age or upon
separation, whichever comes later: Provided, That the member resigns
or separates from the service after he has rendered at least three (3)
years of service but less than fifteen (15) years; or
"(b) A cash payment equivalent to eighteen (18) times his basic
monthly pension payable at the time of resignation or separation, plus
an old-age pension benefit equal to the basic monthly pension payable
monthly for life upon reaching the age of sixty (60): Provided, That the
member resigns or separates from the service after he has rendered at
least fifteen (15) years of service and is below sixty (60) years of age
at the time of resignation or separation.
"SECTION 12. Unemployment or Involuntary Separation Benefits.
Unemployment benefits in the form of monthly cash payments
equivalent to fifty percent (50%) of the average monthly compensation
shall be paid to a permanent employee who is involuntarily separated
from the service due to the abolition of his office or position usually
resulting from reorganization
"RETIREMENT BENEFITS
"SECTION 13. Retirement Benefits. (a) Retirement benefit shall be:

"2) two and one-half percent (2.5%) of said revalued average monthly
compensation for each year of service in excess of fifteen (15) years:
Provided, That the basic monthly pension shall not exceed ninety
percent (90%) of the average monthly compensation.

"(b) The basic monthly pension may be adjusted upon the

recommendation of the President and General Manager of the GSIS
and approved by the President of the Philippines in accordance with
the rules and regulations prescribed by the GSIS: Provided, however,
That the basic monthly pension shall not be less than One thousand
and three hundred pesos (P1,300.00): Provided, further, That the basic
monthly pension for those who have rendered at least twenty (20)

"(1) the lump sum payment as defined in this Act payable at the time of
retirement plus an old-age pension benefit equal to the basic monthly
pension payable monthly for life, starting upon expiration of the fiveyear (5) guaranteed period covered by the lump sum; or
"(2) cash payment equivalent to eighteen (18) months of his basic
monthly pension plus monthly pension for life payable immediately with
no five-year (5) guarantee.
"(b) Unless the service is extended by appropriate authorities,
retirement shall be compulsory for an employee at sixty-five (65) years
of age with at least fifteen (15) years of service: Provided, That if he

has less than fifteen (15) years of service, he may be allowed to

continue in the service in accordance with existing civil service rules
and regulations.
"SECTION 13-A. Conditions for Entitlement. A member who retires
from the service shall be entitled to the retirement benefits in
paragraph (a) of Section 13 hereof: Provided, That:
(1) he has rendered at least fifteen (15) years of service;
(2) he is at least sixty (60) years of age at the time of retirement; and
(3) he is not receiving a monthly pension benefit from permanent total
disability.

Disability benefits
Permanent Total Disability

A member who becomes permanently and totally disabled

when he/she is in the service and has paid at least 180 monthly
contributions (monthly income benefit for life equivalent to basic
monthly pension plus cash payment equivalent to 18 times his basic
monthly pension effective on date of disability)
Permanent Total Disability

A member who becomes permanently and totally disabled

are eligible when (a) he is in the service at time of disability or (b)
separated from the service and has paid at least 36 monthly
contributions within the last 5 years immediately preceding the
disability or has paid a total of at least 180 monthly contributions
(monthly income benefit for life equivalent to the basic monthly
pension)

A member who becomes permanently and totally disabled

when he is separated from service with at least 3 years of service but
has not paid 36 monthly contributions within the last 5 years is still
eligible (cash payment equivalent to 100% of the AMC) for every year
of service but not less than P12,000)

Permanent Partial Disability

A member who becomes permanently and partially disabled

when
- when he is in the service at time of disability; or
- separated from service and has paid 36 monthly
contributions within the last 5 years immediately preceding the
disability or has paid a total of at least 180monthly contributions.
Temporary Total Disability
Accrues or arises when there is complete but
temporary incapacity to continue with a member's present employment
or engage in any gainful occupation due to the loss or impairment of
the normal function of the physical and/or mental faculties of the
member. In effect, this loss or impairment can be reversed to the point
where the member can continue with his previous employment or
engage in another gainful occupation
Gainful employment
Any productive activity that provides the member with income at least
equal to the minimum compensation of government employees (IRR,
Sec. 1.17)

Those granted to surviving and qualified

beneficiaries of the deceased member or pensioner to cushion them
against the adverse economic, psychological and emotional loss
resulting from the death of a wage earner or pensioner.
Survivorship
Who are eligible?

If at time of death, a member was in the service and has

rendered at least 3 years of service (primary beneficiaries to receive
survivorship pension plus cash payment; secondary beneficiaries or
legal heirs entitled to cash payment)
Survivorship

If at time of death, a member was in the service with less

than 3 years service or was separated from the service with at least 3
years of service and has paid 36 monthly contributions within the 5year period immediately preceding his death or has paid a total of at
least 180 monthly contributions prior to death (primary beneficiaries to
receive survivorship pension plus cash payment; secondary
beneficiaries or legal heirs entitled to cash payment)
Survivorship
Primary Beneficiaries

The legitimate spouse, until he/she remarries, and the

dependent children.
Secondary Beneficiaries
(a)
the dependent parents; and
(b)
the legitimate descendants
Who are dependents?
(a)
the legitimate spouse dependent for support;
(b)
any legitimate, legitimated and/or legally adopted child,
including any illegitimate child, who is unmarried, not gainfully
employed, who has not attained the age of majority, or being at 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.

GSIS v. Montesclaros
Facts:
SB member Nicolas Montesclaros married Milagros Orbiso. Nicolas
was a 72-year old widower when he married Milagros who was then 43
years old. Nicolas died. Milagros then filed with the GSIS a claim for
survivorship pension under PD 1146. The GSIS denied the claim
because under Section 18 of PD 1146, the surviving spouse has no
right to survivorship pension if the surviving spouse contracted the
marriage with the pensioner within three years before the pensioner
qualified for the pension.

SC:
Section 18 of Presidential Decree No. 1146 void for being violative of
the constitutional guarantees of due process and equal protection of
the law. The proviso is unduly oppressive in outrightly denying a
dependent spouse's claim for survivorship pension if the dependent
spouse contracted marriage to the pensioner within the three-year
prohibited period. There is outright confiscation of benefits due the
surviving spouse without giving the surviving spouse an opportunity to
be heard. The proviso also violated the equal protection clause
because it discriminates the dependent spouse who contracts
marriage to the pensioner within three years before the pensioner
qualified for the pension.

Survivorship

Funeral
Shall be paid upon the death of:
(a)
an active member; or
(b)
a member who has been separated from the service, but
who is entitled to future separation or retirement benefit; or
(c)
a member who is a pensioner (excluding survivorship
pensioners); or
(d)
a retiree who at the time of his/her retirement is at least 60
years old but opts to retire under RA 1616; or
(e)
a member who retired under RA 1616 prior to the effectivity
of RA 8282 with at 20 years service regardless of age.

Funeral
Amount is initially P12,000 but shall be increased to at least
P18,000 after five years.

Funeral
The funeral benefit shall be paid to one of the following in the order in
which they appear herein below:
(a)
the surviving spouse;
(b)
the legitimate child who spent for the funeral services; or
(c)
any other person who can show incontrovertible proofs of
having borne the funeral expenses.

Compulsory Life Insurance

All employees, including the members of the Judiciary and the
Constitutional Commissioners, but excluding the uniformed members
of the Armed Forces of the Philippines (AFP), the Philippine National
Police and the Bureau of Fire Protection (BFP) and Bureau of Jail
Management and Penology.

Life Insurance Benefits

Maturity Benefit. Upon maturity of the life insurance, the face
amount less any indebtedness against the policy, shall be paid to the
member;
Death Benefit. When a member dies prior to the maturity of his/her
insurance and during its continuance, the GSIS shall pay to the
designated Beneficiaries or to his/her legal heirs, as the case may be,
the face amount less any indebtedness thereon.

Life Insurance Benefits

Accidental Death Benefit When the death of the member is
accidental in accordance with Section 10.9.2 of IRR, the GSIS shall
pay the designated beneficiaries or the legal heirs, as the case may
be, an additional amount equivalent to the face amount of his/her
compulsory insurance;
Waiver of Premiums. When a member is separated due to total and
permanent disability, the contributions that may become due and
payable during the period of disability shall be deemed waived and
considered paid.
Life Insurance Benefits
Cash Surrender Value (CSV). After his/her insurance shall have
been in force for one (1) year, a member separated from the service
prior to the maturity of the insurance may be paid the cash value less
any indebtedness thereon unless the terms of his/her separation
provide otherwise;
Insurance Loans. Upon application, a member who has been
insured for at least one (1) year may be granted an insurance loan in

an amount not exceeding Fifty Percent (50%) of the cash value of

his/her insurance at the time of application.
4.

Appeal from SSC

Court Review The decision of the Commission upon any disputed

matter mat be reviewed both upon the law and the facts by the Court of
Appeals. For the purpose of such review, the procedure corcerning
appeals from the Regional Trial Court shall be followed as far as
practicable and consistent with the purposes of this Act. Appeal from a
decision of the Commission must be taken within fifteen (15) days from
notification of such decision. If the decision of the Commission involves
only questions of law, the same shall be reviewed by the Supreme
Court. No appeal bond shall be required. The case shall be heard in a
summary manner, and shall take precedence over all cases, except
that in the supreme Court, criminal cases wherein life imprisonment or
death has been imposed by the trial court shall take precedence. No
appeal shall act as a supersedeas or a stay of the order of the
Commission unless the Commission itself, or the Court of Appeals or
the Supreme Court, shall so order. [RA 8282, Sec. 5C]

How appeal is taken?

[1997]).

5.

By verified petition for review (The Revised Rules of SSC

Note: 1990 Rules of SCC state that it is by notice of appeal.
Technical rules does not apply.

CASE: Signey vs. SSS

SC:
SC will not disturb findings of fact of the SSS which are supported by
substantial evidence and affirmed by the SSC and the Court of
Appeals.
Moreover, petitioner ought to be reminded of the basic rule that this
court is not a trier of facts.
It is a well known rule that in proceedings before administrative bodies,
technical rules of procedure and evidence are not binding. The
important consideration is that both parties were afforded an
opportunity to be heard and they availed themselves of it to present
their respective positions on the matter in dispute.
It must likewise be noted that under section 2, Rule 1 of the SSC
Revised Rules of Procedure, the rules of evidence prevailing in the
courts of law shall not be controlling. In the case at bar, the existence
of a prior subsisting marriage between the deceased and Editha is
supported by the substantial evidence. Petitioner, who has fully availed
of her right to be heard, only relied on the waiver of Editha and failed to
present any evidence to invalidate or otherwise controvert the
confirmed marriage certificate registered under LCR Registry No. 2083
on 21 November 1967. She did not even try to allege and prove any
infirmity in the marriage between the deceased and Editha.
6.

Date of efficacy of compulsory coverage EE

Effectivity of Coverage
Compulsory coverage
1.
For an employee on the first day of employment

Prescriptive period survivorship

When the pensioner dies within the 5-year period after receiving the
five-year lump sum, the survivorship pension shall be paid only after
the end of the said five-year period. However, filing of claim for
survivorship benefit should be done before the end of the 4-year
prescription period.
Who are legal beneficiaries
When the pensioner dies within the 5-year period after receiving the
five-year lump sum, the survivorship pension shall be paid only after
the end of the said five-year period. However, filing of claim for
survivorship benefit should be done before the end of the 4-year
prescription period.
COA Disallowances
47.5. Exemption of all Funds of the GSIS from Tax, Attachment,
Execution, Levy or Other Legal Processes.- The funds and/or the
properties referred to herein as well as the benefits, sums or monies
corresponding to the benefits under this Act shall be exempt from
attachment, garnishment, execution, levy or other processes issued by
the courts, quasi judicial agencies or administrative bodies including
Commission on Audit (COA) disallowances and from all financial
obligations of the members, including his pecuniary accountability
arising from or caused or occasioned by his exercise or performance of
his official functions or duties, or incurred relative to or in connection
with his position or work except when his monetary liability, contractual
or otherwise, is in favor of the GSIS.

Survivors Benefits of Manlavi, SC defined dependent as one who

derives his or her main support from another [or] relying on, or subject
to, someone else for support, not able to exist or sustain oneself, or to
perform anything without the will power or aid of someone else.
SC declared in Aguas the obvious conclusion is that a wife who is
already separated de facto from her husband cannot be said to be
dependent for support upon the husband, absent any showing to the
contrary. Conversely, if it is proved that the husband and wife are still
living together at the time of his death, it would be safe to presume that
she was dependent on the husband for support, unless it is shown that
she is capable of providing herself. Hence, we held therein that the
wife- claimant had the burden to prove that all the statutory
requirements have been complied with, particularly her dependency on
her husband at the time of his death.
Portability of benefits
( Portability law RA 7699)

A member of GSIS who does not qualify for old age and
other benefits by reason of non-fulfillment of the required period of
service may be able to qualify for such benefits by making use of the
period during which he rendered services to a private employer and for
which contributions were paid to SSS. This is allowed under RA 7699
(approved May 1, 1994)
Are judges covered under GSIS?
10.2.1 The compulsory life policy of a regular member whose
membership classification has been converted to special member by
virtue of his appointment as a Judge, Justice or their equivalent, shall
be terminated upon separation from his old position. He shall be
provided LEP coverage upon assumption to duty to his new position.

Benefits employer needs to advance

Effect of separation for cause

Advance SS and EC sickness benefits once approved by

SSS

Advance SS maternity benefits due

File for reimbursement for all legally advanced sickness and

maternity benefits

Separation
IRR, Rule II, Sec. 2.5:
Member separated for cause

automatically forfeit

Unless terms of resignation or separation

Defenses of lack of criminal intent

Primary beneficiaries
Survivorship
Primary Beneficiaries

The legitimate spouse, until he/she remarries, and the

dependent children.
Who has jurisdiction over claims of SS?
SSC. Social Security Commission
Is the consent of SSS required before any criminal case may be filed?

No, because Section 28 (i) states that a Criminal action

arising from a violation of the provision of this Act may be commenced
by the SSS or the employee concerned either under this Act or in
appropriate cases under the Revised Penal Code xxx.

Is legal wife dependent of support under SS law?

SC found untenable Teresas assertion that being the legal wife, she is
presumed dependent upon Florante for support. In Re: Application for

On the part of the petitioners, they have not denied their fault in not
remitting the SSS contributions and loan payments of the respondents
in violation of Section 28, paragraphs (e), (f) and (h) of the SSS Law.
Instead, petitioners interposed the defenses of lack of criminal intent
and good faith, as their failure to remit was brought about by alleged
economic difficulties, and they have already agreed to settle their
obligations with the SSS through a memorandum of agreement to pay
in installments. As held by the Court of Appeals, the claims of good
faith and absence of criminal intent for the petitioners' acknowledged
non-remittance of the respondents' contributions deserve scant
consideration. The violations charged in this case pertain to the SSS
Law, which is a special law. As such, it belongs to a class of offenses
known as mala prohibita.
The law has long divided crimes into acts wrong in themselves called
acts mala in se; and acts which would not be wrong but for the fact that
positive law forbids them, called acts mala prohibita. This distinction is
important with reference to the intent with which a wrongful act is done.
The rule on the subject is that in acts mala in se, the intent governs;
but in acts mala prohibita, the only inquiry is, has the law been
violated? When an act is illegal, the intent of the offender is immaterial.

Thus, the petitioners' admission in the instant case of their violations of

the provisions of the SSS Law is more than enough to establish the
existence of probable cause to prosecute them for the same.
Project employees

Despite the insistence of petitioner that they were project

employees, the facts show that as masons, carpenters and fine
graders in petitioners various construction projects, they performed
work which was usually necessary and desirable to petitioners
business which involves construction of roads and bridges.

While it may be true that private respondents were initially

hired for specific projects or undertakings, the repeated re-hiring and
continuing need for their services over a long span of time the
shortest being two years and the longest being eight have
undeniably made them regular employees. This Court has held that an
employment ceases to be co-terminus with specific projects when the
employee is continuously rehired due to the demands of the
employers business and re-engaged for many more projects without
interruption.

earned or collected by them over and above the amount x x x which

they agreed to pay to the respondent, the owner of the jeeps, and the
fact that the gasoline burned by the jeeps is for the account of the
drivers. These two features are not, however, sufficient to withdraw the
relationship between them from the employer-employee, x x x. Not
having any interest in the business because they did not invest
anything in the acquisition of the jeeps and did not participate in the
management thereof, their service as drivers of the jeeps being their
only contribution o the business the relationship of lessor and lessee
cannot be sustained. In the lease of chattels the lessor loses control
over the chattel leased although the lessee cannot make sure thereof,
for he would be responsible for damages to the lessor should he do so.
In this case, there is a supervision and sort of control that owner of the
jeeps exercise over the drivers.. It is an attempt by ingenious scheme
to withdraw the the relationship between the owner of the laws enacted
to promote industrial peace."
As such employees, jeepney drivers are therefore covered under Sec.
10 of the Social Security Law.
independent contracting and labor-only contracting, substantial capital
as an element of independent contracting, who is obliged to report the
employees for membership?

Taxi Driver compulsorily covered?

Contractor
Based on an Article I found
Allow me, however to present the following comments and
observations relative to your proposal:
1. Legal basis for SSS coverage of drivers of public transport
The legal basis for the compulsory SSS coverage of drivers of public
transport may be derived from SSS Circular No. 79-T published on 03
April 1970 (Annex A). Said circular provides the bases of coverage,
premium contribution, and allowable daily deduction or earnings of
jeepney drivers of jeepney operators, salient features of which are as
follows:
a. Basis of Coverage - Jeepney drivers are employees of jeepney
operators and, as such are required under the Social Security Law to
be reported for coverage by their employee (Please refer to the
Supreme Court ruling in the case of the NATIONAL LABOR UNION vs.
DINGLASAN, L-7945, 23 March 1956).
b. Basis of Premium Contribution - If the earnings of jeepney driver
cannot be determined by records, then the basis of the premium
contribution to the SSS is the minimum wage as authorized by Law
(Please refer to Supreme Court ruling in the case of MALATE
TAXICAB 7 GARAGE, INC. vs. THE CIR AND NIU (G.R. NO. 1-8718,
PROM. May 11, 1956, 52 O.G, No. 6,p. 3034)

BASIS OF COVERAGE The Supreme Court held that jeepney drivers are employees of
jeepney operators in the case of the NATIONAL LABOR UNION vs.
DINGLASAN, L-7945, 23 March 1956. The Court RULED:
"...The drivers did not invest a single centavo in the business and the
respondent is the exclusive owner of the jeeps. The management of
the business is in the respondent's hands. For even if the drivers of the
jeeps take material possession of the jeeps, still the respondent as
owner thereof and holder of a certificate of public convenience is
entitled to exercise, as he does and under the law he must, supervision
over the drivers by seeing to it that they follow the route prescribed by
the Public Service Commission and rules and regulations promulgates
by its as regards their operation. X X X The only features that would
make the relationship of lessor and lessee between the respondent
and the drivers, x x x x are the fact that he does not pay them fixed
wage but their compensation is the excess of the total amount of fares

how many years prescriptive period under SSS law

Sickness Benefit

Prescribed period in filing a

claim of a member confined in
hospital/home:
o
For hospital, claim for
benefit must be filed
within 1 year from last
day of confinement;
o
For home, 1 year from
start of illness.
Failure to file the claim within the prescribed period will result
to denial of claim.

Disability Benefit

10 years from the date of

occurrence of disability
Right to Institute (NOT A CRIMINAL ACTION)

Sec. 22 - 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.
(normally from the time of
discovery)

memorize the requisites of Maternity Leave Benefits, in bar, even

the contribution requirement, 3 monthly contribution within the 12
month period immediately preceding the birth
1. She has paid at least three monthly contributions
within the 12-month period immediately preceding
the semester of her childbirth or miscarriage
2. She has given the required notification of her
pregnancy through her employer if employed, or to
SSS if separated, voluntary or self-employed.

For example: SSS member gives birth in

December 2006.
The semester of contingency would be from July 2006 to December
2006.
The 12-month period before the semester of contingency would be
from July 2005 to June 2006.
GSIS vs. NLRC,
o
Private respondents were security guards of a security
agency assigned to Tacloban branch of GSIS.
o
The security guards thereafter filed an illegal dismissal
against the agency and GSIS, separation pay, salary differential, 13th
month and unpaid salary
o
GSIS filed the present petition contending the error
committed because it is exempt from execution per charter.
o
SC:

The fact that there is no actual and direct employeremployee relationship between petitioner and respondents does not
absolve the former from liability for the latters monetary claims. When
petitioner contracted DNLs security services, petitioner became an
indirect employer of respondents, pursuant to Article 107 of the Labor
Code.

After DNL Security failed to pay the respondents the correct

wages and other monetary benefits, petitioner, as principal, became
jointly and severally liable, as provided in Articles 106 and 109 of the
Labor Code.

Citing GSIS vs. RTC of Pasig, SC did not agree with

petitioner that the enforcement of the decision is impossible because
its charter unequivocally exempts it from execution.

Petitioners charter should not be used to evade its liabilities

to its employees, even to its indirect employees, as mandated by the
Labor Code.