Posted by: Elmer Brabante | March 4, 2011

Two (2) Associate Lawyers


Kho Bustos Malcontento Argosino Law Offices

Advertised: 02-03-11 | Closing Date: 01-05-11

TWO (2) ASSOCIATE ATTORNEYS
PHP 420000 – 475000 Per Annum
(National Capital Reg)

Responsibilities:
Successful applicant must expect the following work:
 
  1. Will immediately handle active litigation cases including civil, criminal, labor and others (mostly NCR cases);
  2. Will do corporate work like drafting and review of contracts and rendering of written legal opinion, including in-house corporate servicing of a client based in Makati on a twice a week basis;
  3. Must work with less supervision from account partners.
Compensation:
 
PHP. 420,000.00 – 475,000.00 P.A.
(depending on experience and qualifications)
 
Requirements: 
 
With the following qualifications:
 
  1. A member of Philippine Bar, preferably a graduate of top law schools;
  2. Preferably with litigation experience of at least one (1) year;
  3. Willing to do full-time litigation work; and
  4. Willing to start immediately. 
NOTE: Previous Applicants need not submit a new application.
 
 
Please email your resume and submit sample of your best pleadings (Complaint, Appeal, Memorandum, Position Paper, etc., if applicable) at al_kbmalawoffices@yahoo.com or send the same in the address and name below.
 
ATTY. AL C. ARGOSINO
Kho Bustos Malcontento Argosino Law Offices
Suite1103, 11th Floor, Prestige Tower Condominium,
F. Ortigas Jr Ave., Ortigas Center, Pasig City
Tel. Nos. 634-1074 / 634-1491
Email: al_kbmalawoffices@yahoo.com

 

 
 
Posted by: Elmer Brabante | March 4, 2011

Posting for Lawyers (Project Basis)


York Philippines, Inc.- Global Workplace KnowledgeCenter

Advertised: 02-03-11 | Closing Date: 01-05-11

Johnson Controls is a Fortune 500 company, which have achieved excellence for more than 100 years. We are a global leader in automotive experience, building efficiency and power solutions. The company offers products and services that optimize energy use and improve comfort and building efficiencies. Established in 1885, we are today a global leader in building efficiency business. Locally, the organization is under York Philippines, Inc.

We are looking for customer-focused candidates who have a drive for excellence to join us for challenging and rewarding careers. We require candidates of the highest professional caliber who share our corporate philosophy of continually exceeding our customers’ expectations.

Lawyers [Project Basis]
(National Capital Reg)

 Requirements: 

 Experience:

 
a. Commercial Legal Division – Lawyers with at least 1 year experience handling clearing on compliance of red flags is an advantage.
 
b.Contracts Management Division – Lawyers with at least 1 year experience handling Contracts Management.
 
c. Recent board passers with no experience are welcome to apply.
 
d. Bachelors degree in Law are encouraged to apply.
 
Skills:
 
a. Excellent communicator, both in Verbal and Written
 
b. Fluency in Mandarin an advantage
 
c. Team player and self-starter, ambitious and self-motivated.
 
Preferably 1-4 Yrs Experienced Employees specializing in Law/Legal Services or equivalent.
7 Contract positions available.

 

 York Philippines, Inc.- Global Workplace KnowledgeCenter
40th Floor GT Tower International Ayala Avenue, cor HV dela Costa St. Makati City -.

 

Posted by: Elmer Brabante | March 3, 2011

Bar Testimonials


Am posting here an article by Janus Victoria that was first published at Inquirer.net on 13 April 2009, which I find valuable re-reading especially while waiting for the Bar Exams results.

Ahh, the bar

By Janus Victoria
Philippine Daily Inquirer

 

CRAMMING FOUR YEARS OF LAW school into six months of reviewing before the Philippine bar exams requires as much strategic planning as perseverance. But the road to the bar is paved not just with hard work. Many examinees of years past added prayers. Not to mention homespun tactics for luck.

“There are as many ways of preparing for the bar exam as there are examinees,” says Ricardo Chan of the Class of 2005, University of the Philippines College of Law. “To each his own.”

Here’s what others who have been there and done that have to say to those who are now counting the anxious days and sleepless nights leading to the bar exams in September.

The review

Harvey Dychiao, 2003, Ateneo de Manila University, No. 2 in the 2003 bar exams

I HAD A WELL-PLANNED AND rigorous schedule. I started early on in terms of getting the materials I would be reviewing. By the start of the bar exam preparation period, I already knew which books and reviewers I would be reviewing, why I would be reviewing them, how many times I would be reading them and at what points during the review process I would be doing so. The most important thing is to be prepared. It goes without saying that you have to be aware of how you best absorb knowledge and how fast. Once you’ve got everything under the lid, believe in yourself and take constructive criticism well. You must realize that this is your journey and you’ve got to carry yourself towards the finish line.

Gaby Roldan-Concepcion, 1990, University of the Philippines

SINCE MY DAD WAS TRAINING me to be a masseuse (believe it or not, all through my childhood and even when I was a working student in law school, I had to massage him for at least an hour-and-a-half each night, whether or not I had an exam), I knew I had to get out of the house to prepare for the bar. So I rented an apartment with two friends starting from graduation on through September. I didn’t review at any school as I thought it would be a waste of time to have to dress up and go to school every day (that would have taken about three hours in unnecessary prep time). It was largely a self-study type of preparation for me with a rigorous and regimented calendar for six months, where each day was marked and each hour of the day accounted for. Waking up, sleeping and break times were vigorously implemented. It was worse than being in military school!

Cyrille Merioles, 2004, Arellano University

THE REVIEW WAS THE most gruelling part of becoming a lawyer for me. It was complete self-isolation as I study better when I am alone, with nobody and nothing around but my books. My bible then were the Codals. I carried them with me wherever I went. Before starting to read I prayed for peace of mind. I went to sleep at 12 midnight and woke up at 6 in the morning. I took a break for an hour or two during the day. A nap, TV and music occupied those day breaks. I listened mostly to classical music because it relaxed my mind. I listened to classical music even in my sleep.

Anya Palileo, 2008, UP

I MADE PHOTOCOPIES OF everything that people said were good reads, from handwritten notes to reviewers from other schools and even all the textbooks of the rumored examiners. I made a huge Manila paper-sized calendar of the months of May to August and noted how long I would study each subject. If I fell behind schedule, I’d do all-nighters at McDonald’s or Jollibee on Katipunan or Starbucks on Quezon Avenue. But then I’d get sick and wouldn’t be able to study for the next two days, so I paid P750 for a flu shot. The week after I got the shot, I still got sick! By July, I was calling my calendar “isang mapangarap na konsepto.” In the end, I read only 10 percent of the stuff I xeroxed!

Aldrich del Rosario, 2007, San Beda College

MY MOM TOLD ME TO have everything that I was going to use for the bar blessed. So we brought around 10 tech pens, jeans, four shirts, four pieces of underwear, four pairs of socks, my shoes and my eyeglasses to Manaog (Pangasinan) to have blessed. My bag was so full the priest wittily said, “Bar ba? Akala ko aakyat ng Everest, e.”

Judy Lardizabal, 2008, San Sebastian College, No. 1 in 2008 bar exams

I THINK I’D BEEN PREPARING FOR THE bar since my first day in law school. The five months of review was purely a refresher. In the run-up to the exams I put more time on reading up on subjects where I knew I was not doing too well. I allocated more days on subjects that would be given more weight in the exams.

The day of reckoning

Larcy Grace C. Jocson- Zorilla, 2000, UP

YOU PACK YOUR LUNCH just so your brain has fuel for the afternoon exam, but you’re not really hungry. You just force yourself to eat food that to you tastes like chalk. At one point during lunch break, I had to look for a deserted corridor and put together scattered cardboards on the floor to lay on and rest.

One Sunday the proctor asked me to lead the prayer. I froze and couldn’t remember a single prayer. I guess that was how tired my brain was. So I groped with the Lord’s Prayer, much to the amusement of the rest who, thankfully, filled in the blanks.

Yet another Sunday, just a few minutes after the second subject started, a seatmate started to incessantly tap her pen on her desk while staring in front of her, into the void. I thought she was still thinking, but when she didn’t stop for the whole period, and never even wrote on her booklet, I knew she was having a breakdown. Times like that you just breathe a prayer for that person and keep going.

Marissa Saba, 2004, SBC

I WOULD USUALLY TAKE FIVE sleeping pills to help me sleep but for the first Sunday of the bar exams, I thought I should add more so I would be well-rested. I ended up sleepwalking! I was waiting by the elevator in my pajamas when my fraternity brothers found me.

Anya Palileo

RIGHT BEFORE THE EXAMS, I TOOK Brand’s Essence of Chicken and I had another one for lunch. It tastes like hell, but my Chinese friend had said it was the secret as to why the grades of Chinese school children were high. In fairness, even if I didn’t sleep the night before Sunday, I felt my mind was still alert during the exams.

The nerve-wracking wait

Judy Lardizabal

I ALWAYS STOPPED BY the St. Joseph Church along Aurora Boulevard in Quezon City and prayed a lot. I also heard mass three times a week—on Sundays, Wednesdays and Fridays. Prayers made it all possible.

Jazmin B. Banal, 1998, UP

UNLIKE MY CLASSMATES, I did not go to Manaoag because I felt doing so would be sacrilegious and might only offend God. On the night of the announcement itself, I hang out in Malate with a friend and ended up at the Office of the SC justice who headed the bar committee. And while everyone in the room, including the justice, was congratulating my friend for landing in the Top 10, I still did not know if I had made it or not. I started thinking of an exit line in case I failed. The funny thing is I also dreamt that I was in the Top 10 but Inquirer used a really ugly photo of me on the front page!

Anya Palileo

WHILE WAITING FOR THE RESULTS, I stocked up on good deeds—I refrained from backbiting, I was courteous to slow waiters, etc.—para walang bad karma. I begged everyone I knew to pray for me. I did everything the spam mail said: “Send to so and so and you will get 12 years of good luck.” I recited novenas. I climbed Kamay ni Hesus in Quezon. I prayed to my dead relatives. And, lastly, I made a pact with two fellow bar-takers that on the day of the results’ release, we’d be out of Manila. When the news broke out, we were in Angeles City—flying a plane!

Alfonso Miguel Siason, 2008, UP

I SPENT THE WAITING PERIOD CATCHING up with old friends and my family. After vacationing with blockmates and meeting up with my closest friends in Manila, I went home to Iloilo and hang out with my family and high school friends. This insulated me from “bar talk” until the month of March.

Friends who had taken the bar before me suggested I be in Manila during “release season” as it would be torture to not be around people who understood the stress.
The day of the release was the longest day of my life. I’ve been through a four-hour wisdom tooth pulling session and I can honestly say this felt far worse.

Vanessa Cancio Raymundo, 2008, SBC, No. 10 in 2008 bar exams

TWO DAYS BEFORE THE results came out, I could hardly sleep and eat. I was so afraid that I would not make it. The only thing I could do then was pray harder than ever. Several times I found myself teary-eyed at Holy Mass.

Honestly, after I took the bar exams, I thought to myself that, with the kind of answers I gave, I could only pray to pass the bar. All I asked for was [a score of] 75% because I feared that if I asked for more, it would be asking too much, if not the impossible. That was why I was very surprised and happy that I was among the Top 10!

My friends and I used to make these silly jokes about having our names and pictures posted on the topnotchers’ wall in our school library. A part of me then really wanted to be on the list, but a bigger part of me thought it could never happen. But it did! It was all so surreal.

Posted by: Elmer Brabante | March 3, 2011

Supreme Court Disbars Female Lawyer


Posted March 1 , 2011; By Darylle Evie Mae C. Catabay

The Supreme Court recently ordered the disbarment of a female lawyer for gross conduct and willful disobedience of the Court’s orders after finding that the latter continued to practice law despite a five-year suspension order, and failed to comply with its resolutions.

In a six-page En Banc per curiam decision, the Supreme Court ordered the name of Atty. Luna B. Avance stricken off from the Roll of Attorneys. It likewise directed that a copy of the decision be attached to her personal record with the Office of the Bar Confidant and be furnished to all chapters of the Integrated Bar of the Philippines and to all courts of the land.

Previously, Avance was suspended from the practice of law for five years and ordered to return P3,900 to her client in an En Banc decision dated December 11, 2003 after she was found guilty of gross misconduct for abandoning her client in bad faith and failing to comply with the Court’s orders.

While still suspended, however, Avance appeared in three cases as “Atty. Liezl Tanglao” as stated in a letter-report dated November 12, 2007 of Judge Consuelo Amog-Bocar, presiding Judge of the RTC of Iba, Zambales, Branch 71, to then Court Administrator Christopher O. Lock.

In a resolution dated April 9, 2008, the Court ordered Avance to comment on Judge Amog-Bocar’s letter-report. However, she failed to file the required comment. On June 10, 2009, Court reiterated its order. Despite receipt of the Court’s two resolutions, she still failed to comply.

On September 29, 2009, the Court thus issued a resolution finding Avance guilty of indirect contempt and ordering her to pay a fine amounting to P30,000. It also sternly warned her that a repetition of the same or similar infractions will be dealt with more severely. Despite due notice, she failed to pay the fine.

In view of the foregoing, the Court found Avance unfit to continue as a member of the bar. It held that “respondent’s conduct evidently fell short of what is expected of her as an officer of the court as she obviously possesses a habit of defying this Court’s orders. She willfully disobeyed this Court when she continued her law practice despite the five-year suspension order against her and even misrepresented herself to be another person in order to evade said penalty. Thereafter, when she was twice ordered to comment on her continued law practice while still suspended, nothing was heard from her despite receipt of two Resolutions form this Court. Neither did she pay the P30,000 fine imposed in the September 29, 2009 Resolution.” (A.C. No. 534, Santeco v. Avance et al, February 22, 2011)

Posted by: Elmer Brabante | March 3, 2011

Changes in the 2011 Bar Exams


By now, candidates to the 2011 Bar Examinations should already know the significant changes in the toughest national examinations in the Philippines.   For one, from the customary September, the examinations will now be held in the four Sundays of November. This would give longer and better preparations to the candidates and especially to the examiners to fine-tune the multiple-choice type of questions which will be used comprehensively for the first time. From the De La Salle University (DLSU), the venue will now be the University of Santo Tomas.

“B.M. No. 1161 (Re: Proposed Reforms in the Bar Examinations).- The Court Resolved, upon the recommendation of the Office of the Bar Confidant, to APPROVE the schedule of the filing of Petitions to Take the Bar Examinations to JULY 1, 2011 up to AUGUST 15, 2011, considering that in the resolution of January 18, 2011 in B.M. No. 2265, the date of the 2011 Bar Examinations was moved from September to November 2011.”

Of important concern for me are the subjects to be tested in the four Sundays of the Bar examinations. En Banc Resolution dated 8 February 2011 amends Section 11 of Rule 138 (Rules of Court), to read:

“Section 11. Annual examination. — Examinations for admission to the bar of the Philippines shall take place annually in the City of Manila.  They shall be held in four days to be designated by the chairman of the committee on bar examiners. The subjects shall be distributed as follows: First day: Political and International Law, and Labor and Social Legislation (morning) and Taxation (afternoon); Second day: Civil Law (morning) and Mercantile Law (afternoon); Third day: Remedial Law, and Legal Ethics and Forms (morning) and Criminal Law (afternoon); Fourth day: Trial Memorandum (morning) and Legal Opinion (afternoon).”

Take note of the additional subjects, Trial Memorandum and Legal Opinion. Honestly, if I were to take the Bar Exams this year, I would not be too confident to handle these subjects. I need more briefing on these ones. On the first Sunday, the examinee will already be confronted with three (3) heavy subjects, what with the often dread Taxation in the afternoon. The rigor intensifies as he reaches the second Sunday, this time to face the two giants that are Civil Law and Mercantile Law. It would be a defining moment whether or not to proceed to the third and fourth Sundays–if the examinee is ill-prepared, that is. Retaining the combination of Remedial Law and Legal Ethics is a rational decision, given the exceptional difficulty of Remedial law.

Good luck to the 2011 examinees!

 

Posted by: Elmer Brabante | March 2, 2011

Women in Legislation, Women in Politics


As we celebrate the International Women’s Day on March 8th, I’ve decided to post here a found article while browsing for a related literature on San Andres Ziga, as a fitting tribute to the immeasurable contributions of women leaders hereunder cited among the nameless thousands of Filipinas in building this great nation.

 

Mabuhay ang Filipina! Mabuhay ang Kalayaan !
A Celebration of Herstory: Women in Legislation, Women in Politics

(Historical Framework for the Centennial Celebration of Women in Politics and Legislation, Sponsored by Ugnayan ng Kababaihan sa Pulitika, National Centennial Commission – Women Sector and Committee on Women, House of Representatives, June 25, 1998, BayView Hotel, Manila)

Part I: Introduction

In a conference on women’s role in Philippine history last March 1989, feminist historians were excited over discussions on the etymology of the word bayani. They said the word bayani comes from the combination of two words – bayan which means community or village or settlement and babayi woman. This affirms of course the present day notion of usually referring to country in feminine terms – motherland , etc. More significant perhaps is the implication that the notion of woman in the Philippines is also affixed to the concept of nation, of heroism and valor – a revelation which seems to defy the western notion of referring to heroism, patriotism and valor usually in masculine terms.

The historical revelation on the word bayani is supported by a cursory review of the history of the Philippines. From pre-colonial Philippines to the present, women have played an important role in the development of the village and town until the emergence of the Filipino nation . From the pre-hispanic babaylan or katalonan – the chief priestess in the barangay to the women leader and advocate of recent times , history presents a tableau of the Filipinas bravely asserting their inherent rights to participate in the shaping of the community and nation equal to Filipino men.
 

Part II: The Suffragists

As we celebrate the centennial of Philippine independence, let us also celebrate the role of the Filipino women in history and nation-building. We celebrate the role of the babaylan as one of the most important if not the most important community leader of pre-colonial times, the active and prominent role of women in the Philippine revolution and succeeding historical events which liberated the Philippines from colonial and imperialist rule and shaped the present Filipino nation.

In the arena of politics and legislation, the role of women was first heightened by the Suffragist Movement (1898-1937) which gained for the Filipino women the right to vote and be voted upon. The suffragist movement brought to the fore the activism of such women as Concepcion Felix de Calderon who formed the Asociacion Feminista Filipina in June 1905, Rosa Sevilla de Alvero and a young Trinidad Almeda, Miss Constancia Poblete, founder of Liga Femenina de la Paz, Pura Villanueva Kalaw and Paz Mendoza Guazon, Pilar Hidalgo Lim, President of the National Federation of Women’s Clubs and Josefa Llanes Escoda, president of the Girl Scouts of the Philippines. Province-based women were represented by Maria C. Manzano of Pangasinan.

Organizations like the Woman’s Club of Manila later convened into the National Federation of Women’s Clubs, the National League of Filipino Women and the Philippine Association of University Women. The members of these groups attended the public hearings of the Committee on Suffrage of the Constitutional Convention of 1934, as well as published informative articles in the Liwayway and Taliba. To coordinate their activities, they formed a General Council of Women with Mrs. Escoda as secretary and Mrs. Hidalgo-Lim, president of the Federation of Women’s Clubs which was spearheading the suffragist movement, as head. Incidentally, it was with the Federation where the young Minerva Guysako-Laudico worked right after her master of arts degree in social work.

The advocates succeeded in their campaign because Article V of the 1934 Constitution extended suffrage to women, provided that 300,000 women qualified to vote would vote for the right. Of course, this meant another round of intensive campaigning by the General Council of Women for the plebiscite on April 30, 1937 but they managed to exceed the 300,000 ‘yes’ votes required by the Constitution. They rounded up a full 447, 725 ‘yes’ against 44, 307 ‘no’ votes. And so on September 17, 1937, Filipino women finally gained universal suffrage when its legal basis was signed by Manuel L. Quezon, President of the Philippine Commonwealth.
 

Part III. The Legislative Phase

The law-making body of our government underwent many periods of development, starting from the American Period when the First Philippine Legislature convened in 1907. Within these 27 years, ten Philippine Legislatures came and went without producing any woman member. It took the Philippine Commonwealth to get a woman elected to the National Assembly – the second of three such assemblies at that. In 1938, the Honorable Elisa Ochoa from the province of Agusan was elected to the House of Representatives. We should also note that in the national election of December 14, 1937, no less than 24 women were elected to various positions. Among them was Carmen Planas – “Manila’s Darling” – who became the first woman to be elected to the city council of Manila. But soon after women broke into electoral politics, World War II broke out. The Filipinos had another government, this time formed by the Japanese. In 1943 a Constitutional Commission composed of 20 members drafted a new Constitution but again, there was no woman member in the Commission or in the National Assembly that soon convened.

With the end of World War II, the First Congress of the Republic came together. Since then, a total of 10 Congresses have convened and the number of women getting elected has increased from one in the First Congress – in the person of the Honorable Remedios O. Fortich, lawyer, banker, rancher and social worker – but there were Congresses when there were no women elected to office. The highest number of Congresswomen: 22 in the Tenth Congress.

In the Senate there was only one woman senator in both the Third and Fourth Congresses – educator Geronima Pecson and social worker Pacita Madrigal-Gonzales; this number increased to three during the Sixth Congress of 1965-69 in the persons of Honorables Eva Estrada-Kalaw, her sister-in-law Maria Kalaw-Katigbak and Tecla San Andres-Ziga – the first woman bar topnotcher in the Philippines and the first congresswoman to be re-elected.

In the Senate the honor of re-election goes to Sen. Eva Estrada Kalaw who was re-elected in 1969 to the Seventh Congress even without the endorsement of the Marcos administration, a strong testimony to her political leadership and legislative achievements. Also in 1969, the Senate welcomed two more women: the Honorables Magnolia Wellborn Antonino and Helena Zoila Benitez. As some of us will recall, Congresswoman Antonino took over the candidacy of her husband when Sen. Gaudencio Antonino died in an aircrash as he was campaigning for re-election. Although she had only one stint, Mrs. Antonino did well as a senator. One of her successes was a law transforming private schools into tax-exempt foundations whose profits should fund the professional development of teachers and the improvement of facilities. Sen. Helena Benitez, on the other hand was a tall figure in the Senate introducing a series of laws on rent control, housing development and early legislation on protecting the environment.

The Eighth Congress resumed after the period of martial law and its unicameral legislative body known as the Batasang Pambansa. There were two women elected to the Senate of the Eighth Congress – the Honorables Senators Santanina Rasul and Leticia Ramos-Shahani , the first woman President Protempore in the Senate. The number doubled in the next Congress with Senators Gloria Macapagal-Arroyo and Anna Dominique `Nikki’ Coseteng joining our senior senators. And in the just-concluded Tenth Congress, elected were the Honorable Miriam Defensor-Santiago joining Senators Shahani, Arroyo and Coseteng.

Since 1935 the Philippines had already two Constitutions where women have participated as members. The first was the 1971 Constitution, the product of the Constitutional Convention composed of 320 delegates directly elected by the people. A number of women were elected to this body, including Congresswoman Mercedes Teodoro and Carmencita Reyes. The second Constitution was the 1987 Constitution, the product of a Constitutional Commission composed of 48 members appointed by President Corazon Aquino after the 1986 People Power Revolution. A number of women were again in the body. In fact, a woman became its President – Supreme Court Justice Cecilia Munoz Palma. The other women commissioners were Dr. Florangel Rosario-Braid, Sr. Christine Tan. women’s right advocates Ma. Teresa Feria-Nieva and Felicitas Aquino, and the late health activist-public health professor Minda Luz Quesada.

Our 1987 Constitution is unique for a number of reasons. For one, it guarantees equality between men and women – a right which is not enshrined in the United States Constitution and those of many other countries. Article II, Section 14, of the 1987 Constitution provides that ” The State recognizes the role of women in nation-building, and shall ensure the fundamental equality before the law of women and men.”

Secondly, 1987 Constitution enshrines the representation of marginalized sectors, including women, through the sectoral representatives and the Party-List System. Thirdly, it institutionalizes the role of nongovernment organizations and peoples organizations.

Part IV. Highlights of the Study

This study focused on the legislative contributions of women lawmakers of the post-war Congress by scrutinizing the bills and laws they had framed. We looked at the work of around 130 women legislators who had been elected to Congress in the 80 years of this legislative body and the Constitutional Commissions. Indeed the number is so few, through the years, only about 10 percent of the total number of men elected into office In fact women’s representation in policy-making from the start of our legislative history to the 1950s seems to be totally negligible. Until the start of the United Nations Women’s Decade (1976-1985) – congresswomen advocated generally for education and social amelioration rather than what are presently considered specific gender issues and concerns.Women’s Legislative AgendaThe earliest congressional records are on Rep. Medina Lacson de Leon of Bataan, and they show that she filed bills for social amelioration – to update the nursing profession; grant benefits to veterans; and establish the Women and Children’s Bureau of the Department of Labor and Employment (at the Third Congress this became a reality with RA 2714, which was authored by Sen. Ziga). Still on social amelioration, in the Sixth Congress , Sen. Kalaw pushed for the conversion of the Social Welfare Administration into a Department of Social Work, and Sen. Katigbak authored the Consumer Protection Act (RA 3765) as well as an law regulating financing companies.At the Seventh Congress (1969-72) Sen. Benitez authored the Medicare Law (RA 6111) and provided for the uplift of dislocated families (RA 6026). However, she started veering away from traditional concerns by a legislative agenda on housing, resettlement, forestry, energy and the environment. She filed laws amending the Home Financing Act (RA 5488); establishing forests, tree parks and watersheds in every city and municipality; widening the mandate of the People’s Homesite and Housing Corporation (RA 6091); establishing the Rental Control Law (RA 6124); and authorizing the Office of the President to contract loans for development projects (RA 6142). She followed these up at the Batasan Pambansa with laws on the National Building Code, the Ministry on Human Settlements and Ecology, the Oil Exploration Incentives and the Omnibus Mining Act, as well as laws protecting the monkey-eating eagle (RA 6147) and the tamaraw. The concerns of the senators for social amelioration were paralleled by the congresswomen. For instance, during the Fifth Congress from 1961 to 1965, Rep. Juanita Nepomuceno of Pampanga sponsored a major bill authorizing the construction of multi-tenement buildings for the poor and the homeless. For her home province, Congresswoman Aurora Abad provided Batanes with electricity, hospitals, schools, recreation centers and opportunities for economic development.

Education was the other concern of the lawmakers before 1975. In the Second Congress Rep. de Leon filed bills creating the Mindanao Institute of Technology and the Bataan School of Arts and Trades. In the same vein, the first woman senator – the Honorable Geronima Pecson – was responsible for the Free and Compulsory Education Act as well as for the Vocational Educational Act. She also worked for a law on training instructors in schools of arts and trades; upgrading the UP School of Forestry into a College; and establishing the Roxas Memorial Agricultural School, a fisheries school in Albay, local libraries through the Municipal Libraries Act and lastly, the UNESCO National Commission.

The woman senator who came after Mrs. Pecson, Sen. Ziga, continued the legislative emphasis on education by filing a law regulating the practice of dietetics (RA 2674). One of the two colleagues of Mrs. Ziga in the Sixth Congress, Senator Kalaw, worked for salary increases of public school teachers (RA 5158); the creation of Local School Boards (RA 5447) and of the Barrio High School Charter/Magna Carta for Private Schools (RA 6054); the Educational Financing Act (RA 6728) and the inclusion of the presidents of student councils in the Board of Regents of all state colleges and universities.

The third woman senator on the Sixth Congress, Sen. Katigbak, worked for the creation of the National Commission on Culture and the Philippine Executive Academy. In the Seventh Congress (1969-72) Sen. Benitez authored RA 5462, establishing the National Manpower and Youth Development Center and Program; RA 5919, giving the Philippine College of Commerce ownership of the land on which it stands; and RA 6014, creating the Student Loan Fund Authority. At the Batasan Pambansa she continued this concern for education with the Education for Development Act.

A Sea of Change: The International Women’s Decade

As we all know, the Philippines responded to the call of the United Nations for a decade-long action for the full development of women by a presidential decree in 1975 establishing the National Commission on the Role of Filipino Women (NCRFW) in preparation for the UN International Conference on Women which was held in Mexico City. Also in response to the women’s decade, the government ratified the United Nations Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) and committed to implement the Nairobi Forward Looking Strategies for the Advancement of Women.

With the impetus of other UN conferences in the late 1980s and throughout the 1990s – notably those hosted by Nairobi, Copenhagen, Cairo, Vienna and Beijing and the parallel conferences run by NGOs – and with the globalization of issues, women activists started widening their concerns and issues. To their credit, women in the post-People Power Congress promoted a legislative agenda that reflected these concerns – women in development, gender and development, gender equality, women’s reproductive health, the indivisibility of women’s rights and human rights, action on various forms of violence against women – rape, sexual harassment and trafficking in women, and the protection of and increasing number of women in overseas contract work.

True, some of the laws took almost a decade and three Congresses to pass – but this only stresses the tenacity, solidarity and creativeness of women legislators in shepherding key bills through the legislative treadmill. To their credit too, women in the post-EDSA Congress worked to establish a Commitee on Women with its own secretariat staff as well as to exercise an oversight function over the implementation of laws they had painstakingly passed. Last but not the least, they established with their male colleagues a network of women’s resource and livelihood training centers strategically placed throughout the country.

The Eighth Congress was notable for a number of things but one of the most notable was for giving women a day for celebrating their achievements – the Women’s Day Law (RA 6949) which was sponsored in 1990 by Senator Santanina Rasul. The Eighth Congress also passed the Women in Development and Nation-Building Act of 1995 (RA 7192) which recognizes the role of women in nation building; gives women the right to enter into contracts without having to seek their husbands’ permission; opens the Philippine Military Academy to women; and reserves for women’s projects 5% of the budget of government departments.

Each year and each Congress have brought legislative gains for women – among them, increasing maternity benefits for women in the private sector (RA 7322) in 1992, the Accessibility Act filed by the late Rep. Estelita Juco on behalf of the disabled, the Women in Small Business Enterprises Act (RA 7882) in 1995, Anti-Sexual Harassment Law (RA 7877) and the Overseas Workers’ Rights Protection in 1996, the Anti-Rape Law in 1997 (RA 8353) , the Child and Family Courts Act, the Rape Victim Assistance and Protection Act and the National AIDS Policy Act – all in 1998.

These laws have limitations, as has been rightfully pointed out by the Oversight Sub-Committee of the Committee on Women of the House of Representatives . For instance, the Anti-Sexual Harassment Law applies only to employer-employee situations in office and school settings but not to colleagues. The Anti-Rape Law implicitly recognizes that rape may occur within marriage but its forgiveness clause absolves husbands of the crime of rape once they are forgiven by their wives.

Limited as they night be, these laws are victories for women and guideposts for future legislation. For indeed, Congress could not pass certain bills even with the vigilance and diligence of its women members – the National Commission on Women bill, the new population policy bill, a comprehensive program on wife beating, the bill against the trafficking and commercial exploitation of women, the Women Empowerment Act of 1993 reserving for qualified women at least of third of appointive positions in national and local government; and an enabling bill for elections to local board.

Indeed, herstory is a great teacher. For women in legislation and politics, there are still many lessons to learn, obstacles to overcome, challenges to confront and gains to reap. There are persistent demands for electoral reform and further democratization of the political system that seems to favor men and the socio-economic elite for political positions. There is still so much poverty and underdevelopment among majority of our women and rampant violence is a common feature of daily life for an increasing number. In sum , there is still so much to be done and it is for the women legislators and women in politics of the future to respond to the expectations of our people which have remained great and unfulfilled.

 
Posted by: Elmer Brabante | March 2, 2011

Tecla San Andres Ziga, First Woman Bar Topnotcher


 

San Andres Ziga (LP, with glasses) with Doy Laurel (NP), Arturo Tolentino (LP), Jovy Salonga (LP), Eva Estrada Kalaw (NP) and Ninoy Aquino (NP)

Sen. San Andres with Senate giants Salonga, Aquino and Diokno

 

 

To Senator Tecla San Andres Ziga belongs the privileged distinction of being the first woman to top the bar examinations in the Philippines, and the first Congresswoman to have been re-elected. That she was counted as one of the more sobering influences in the Senate was due in large measure to her rich background and successful practice in the field of law.

The Senator was born in Naga City on August 28, 1906. She had her first schooling at the Santa Isabel College and her high school at the Catholic Central School. She finished her Liberal Arts and obtained her law degree from the University of the Philippines in 1930. The same year she took the bar and became the first woman to top it. Her score in remedial law was 99%. Immediately, she was taken in as assistant attorney in the DeWitt law office where she worked for seven years.

In 1937 she took the civil service examination for lawyers and after topping it, was employed in the department of justice where she stayed for several years.

In November 1955, she was elected to Congress to serve the unfinished term of her brother – in – law who had died in an accident. In the halls of Congress, she distinguished herself for her vigilant fiscalizing and genuine concern for women and children. Towards this end she sponsored measures for the protection of women and children, regulation of practice in dietetics, etc.

Before her election to the Senate, she served as administrator of the Social Welfare Administration.

In 1963, she was elected to the Senate where she became a member of the following committees: agriculture and natural resources, education, foreign affairs, blue ribbon, community development, social justice and welfare, etc. She was a recipient of varied and countless awards.

She was married to Venancio Ziga, former governor and congressman from the first district of Albay, by whom she only had one son Victor, who himself served as a Senator.

 

From the Senate website.

Posted by: Elmer Brabante | March 2, 2011

Law Degree Equivalent to Master’s Degree


Republic of the Philippines

 Supreme Court

 Manila   

MEMORANDUM

FOR:  All Concerned Office
   

For your information, attached is a photocopy of the letter dated February 19, 2001 of Ms. Ester A. Garcia, Chairperson, Commission on Higher Education (CHED) informing the Honorable Chief Justice that the CHED has accredited the degree of Bachelor of Laws with corresponding Bar eligibility as equivalent to a relevant Master’s Degree per its en banc Resolution No. 038-2001, a copy of which is likewise attached. Parenthetically, the said Resolution includes the degree of Doctor of Medicine with corresponding board eligibility as equivalent to a relevant Master’s degree.

March 15, 2001
  

EDEN T. CANDELARIA

Deputy Clerk of Court and Chief Administrative Officer     

 

Copy furnished:

    Office of the Chief Justice
    Offices of the Associate Justices
    Philippine Judicial Academy
    Judicial and Bar Council
    Office of the Court Administrator
    Office of the Clerk of Court
    Offices of the Division Clerks of Court
    Office of Administrative Services
    Office of the Chief Attorney
    Office of the Reporter
    Judicial Records Office
    Office of the Bar Confidant
    Management Information Systems Office
    Fiscal Management & Budget Office
    Medical and Dental Services
    Library Services
    Printing Services

Republic of the Philippines

OFFICE OF THE PRESIDENT

COMMISSION ON HIGHER EDUCATION    
   

February 19, 2001

HONORABLE HILARIO DAVIDE, JR.
Chief Justice
Supreme Court of the Philippines
Padre Faura Street corner Taft Avenue
Ermita, Manila

Dear Chief Justice Davide:

I am pleased to inform your good office of the en banc decision of the Commission on Higher Education on the accreditation of Bachelor of Laws (LI.B.) with bar eligibility as equivalent to a relevant Master’s Degree per attached Resolution No. 038, Series of 2001. The rationale behind this is that Bachelor of Laws is a higher degree requiring completion of a first bachelor’s degree before proceeding to the professional degree program.

The Civil Service Commission (CSC) as per Memorandum Circular No. 1-A, Series of 1997, likewise recognizes degree holders of Bachelor of Laws with bar eligibility for permanent appointment to Division Chief positions provided that applicants meet other requirements of the post. This is further supported by an earlier ruling of the CSC which considers an applicant who is at least a holder of a Master’s Degree qualified for the post of Division Chief.

In view of the above CHED policy and rationale, any other master’s degree earned by the individual relative to the discipline of law is considered equivalent to a second or third Master’s degree as the case may be.

Thank you and best regards.

   

Very truly yours,     

ESTER A. GARCIA

Chairperson

 

  See this related article by Dean Mariano F. Magsalin, Jr.

Posted by: Elmer Brabante | March 2, 2011

Ten Commandments in Answering Bar Exams Questions


The Ten Commandments

in Answering Bar Exam Questions

by Atty. Ralph A. Sarmiento (10th placer, 1997 Bar Exams)

 

I.

Thou shall not abandon your common sense.

II.

Thou shall leave your personal biases at home.

III.

Thou shall answer only what is being asked.

IV.

Thou shall not invent facts.

V.

Thou shall write legibly and clearly.

VI.

Thou shall not write unduly long answers.

VII.

Thou shall not brag about your legal knowledge.

VIII.

Thou shall not criticize the problem.

IX.

Thou shall always state the legal basis of your answer.

X.

Thou shall not make an unjustified conclusion.

 

 

 

Posted by: Elmer Brabante | February 28, 2011

Legal Dictionary: Dac – Dyi


Dacion En Pago. A juridical concept, couched in Spanish, whereby a debtor discharges his obligation to his creditor through the transfer or conveyance of his property as the equivalent of payment. The delivery and transmission of ownership of a thing by the debtor to the creditor is an accepted equivalent of the performance of the obligation. (The Philippine Lawin Bus Co. vs. CA, 374 SCRA 332)

Daisy Chain. A price manipulation scheme in securities trading which involves a series of purchases and sales of the same issue at successively higher or lower prices by the same group of people for the purpose of attracting unsuspecting investors into the market, leaving them defrauded of their money or securities.

Damages. Generally refers to a monetary award or recompense for a legal wrong which the law awards to the person prejudiced or damages thereby. It can result from a crime, quasi-delict, or breach of contract. (Arts. 2195-2235, Civil Code)

Damno Absque Injuria. A Latin phrase which translates “damage without injury,” it means acts do not give rise to any injury.

Dangerous Drugs. Narcotic drugs and other prohibited substances listed in the Schedules annexed to the 1961 Single Convention on Narcotics Drugs, as amended by the 1972 Protocol, and in the Schedules annexed to the 1971 Single Convention on Psychotropic Substances as enumerated in the attached annex which is an integral part of Comprehensive Dangerous Drugs Act of 2002, RA 9165. 

Dangerous Tendency Rule. A test for inciting to sedition, the words uttered or published have a tendency to easily produce disaffection among the people and a state of feeling in them that is incompatible with a disposition to remain loyal to the government and obedient to the laws. (People vs. Peres, 45 Phil. 599)

Dating Relationship. Refers to a situation wherein the parties live as husband and wife without the benefit of marriage or are romantically involved over time and on a continuing basis during the course of the relationship. It does not refer to a casual acquaintance or ordinary socialization between two individuals in a business or social context. (Sec. 3 (e), RA 9262, Anti-Violence Against Women and Children Act of 2004)

Day Certain. In contract law, refers to that day which will necessarily arrive, although it may not be known when. (Art. 1193, Civil Code)

Day in Court. Refers to a person’s opportunity to be heard concerning a matter under investigation or in litigation.

De Facto. Latin term which means “in point of fact.”

De Facto Government. Type of government which actually exercises power or control but without legal title (Lawyers League for a Better Philippines v. Aquino, G.R. No. 73748, May 22, 1986)

De Jure. Latin term which means “from the law” or “by right”, valid and legal.

De Jure Government. Type of government which has a rightful title but has no power of control either, because the same has been withdrawn from it or because it has not yet actually entered into the exercise thereof.

De Mesne. Lating term which connotes possession of real property in one’s own name.

De Minimis. Latin adjective for describing something that is too insignificant or trifling for the courts to bother with.

Dead Man’s Statute. A rule in evidence which disqualifies a witness from testifying with regard to matters covered by privileged communication. (Sec. 24, Rule 130)

Dealer. A person who buys and sells securities for his own account in the ordinary course of business.

Death or Physical Injuries under Exceptional Circumstances. A situation where any legally married person who, having surprised his spouse in the act of committing sexual intercourse with another person, kills any of them or both of them in the act or immediately thereafter, or inflicts upon them any serious physical injury, and thereby suffers the penalty of destierro. (Art. 247, RPC)

Debt Bondage. The pledging by the debtor of his her personal services or labor or those of a person under his or her control as security or payment for a debt, when the length and nature of services are not clearly defined or when the values of the services as reasonably assessed are not applied toward the liquidation of the debt. (Sec. 3(g), RA 9208, Anti-Trafficking in Persons Act of 2003)

Decedent. A person whose property is transmitted through succession, whether or not he left a will. Note that if he left a will, he is called the Testator.

Deceit. The false representation or misrepresentation of a factual matter, whether by words or conduct, by untrue or misleading allegations, or by concealment of that which should have been disclosed which deceives or is intended to deceive another into acting upon it to his legal injury. (People vs. Menil, Jr., 340 SCRA 125; Pable vs. People, 442 SCRA 146)

Decentralization of Administration – delegation of administrative powers to local government unit in order to broaden the base of governmental powers.

Decision. The adjudication or settlement of a controversy by a court of law. It goes into the roots of the controversy, makes a searching examination of the facts and issues of the case, applies the law and considers the evidence presented, and finally determines the rights of the parties. (Philamlife vs. SSS, 20 SCRA 163)

Decentralization of Powers. Abdication of political power in the favor of local governments units declared to be autonomous. (Limbonas v. Mangelin, 170 SCRA 786)

Declaration Against Interest. The declaration made by a person deceased, or unable to testify, against the interest of the declarant, if the fact asserted in the declaration was at the time it was made so far contrary to declarant’s own interest, that a reasonable man in his position would not have made the declaration unless he believed it to be true, may be received in evidence against himself or his successors in interest and against third persons. (Sec. 38, Rule 130)

Declaratory Relief. A special civil action brought by a person interested under a deed, will, contract, or other written instrument, whose rights are affected by a statute, executive order or regulation, ordinance, or any other governmental regulation for the purpose of determining any question of construction or validity arising, and for a declaration of his rights and duties thereunder, before any breach or violation thereof occurs. (Rule 63)

Deductible Expense. To qualify as such from income taxation, it must be ordinary and necessary trade, business or professional expense paid or incurred to carry on, or which is directly attributable to, the development, management, operation or conduct of the trade, business or exercise of a profession. (Sec. 34, NIRC of 1997)

Default. The failure of a defending party to file his answer within the time allowed under the Rules of Court. Such failure will make him lose his standing in court, that is, he cannot appear therein, adduce evidence and heard, nor take part in the trial or hearing of the case. (Sec. 3, Rule 9)

Defendant. The person who is sued by the plaintiff in a civil suit or the person who is being accused in a criminal proceeding. He may also be referred to as a respondent.

Delito Continuado. See Continuing Crime.

Demand Deposits. All of the liabilities of the Bangko Sentral ng Pilipinas and of other banks which are denominated in Philippine currency and are subject to payment in legal tender upon demand by the presentation of checks. (Sec. 58, RA 7653, The New Central Bank Act)

Demurrage. In maritime law, refers to the compensation provided for in the contract of affreightment for the detention of the vessel beyond the period of time agreed on for the loading or unloading of cargo.

Demurrer of Evidence. After the plaintiff has completed the presentation of his evidence, the defendant may move for dismissal on the ground that upon the facts and the law, the plaintiff has shown no right to relief. If his motion is granted but on appeal the order of dismissal is reversed, he shall be deemed to have waived the right to present evidence. (Rule 33)

Deposit Substitutes. An alternative form of obtaining funds from the public, other than deposits, through the issuance, endorsement, or acceptance of debt instruments for the borrower’s own account, for the purpose of relending or purchasing of receivables and other obligations, e.g., banker’s acceptances, promissory notes, participations, certificates of assignment and similar instruments with recourse, and repurchase agreements. (Sec. 95, RA 7653, New Central Bank Act)

Depositary. An individual or entity, such as a bank, which is authorized to receive and hold a deposit, with an obligation to return the same object which is received as a deposit.

Deposition. The written testimony made under oath by a witness who is unable to testify in person concerning facts known to him, and which sworn statement is generally supposed to be substitute for his actual testimony in open court. (Rule 23)

Derivative Citizenship. Philippine citizenship which is automatically devolved to the unmarried child of a parent who has reacquired Philippine citizenship after having lost it by becoming a naturalized citizen of a foreign country. The child, whether legitimate, illegitimate or adopted, must be below 18 years of age. It is also a condition that the parent is originally a natural-born Filipino. (RA 9225, Citizenship Retention and Reacquisition Act of 2003)

Derivative Suit. A common law doctrine adopted in our jurisdiction whereby a stockholder may sue on behalf of the corporation itself and other stockholders to redress any wrongdoing committed by the corporation’s management or board of directors. (See Class Suit)

Destierro. A penalty imposed on the offender which prohibits him from entering the place or paces designated in the sentence, nor within the radius specified therein, which shall not be more than 250 and not less than 25 kilometers from the place designated. (Art. 87, RPC)

Develop-Operate-and-Transfer. A contractual arrangement whereby favorable conditions external to a new infrastructure project which is to be built by a private project proponent are integrated into the arrangement by giving that entity the right to develop adjoining property, and thus, enjoy some of the benefits which may result from that investment, such as higher property or rent values. (Sec. 2(h), RA 7718)

Devise. A bequest of real property in a will to a person called the devisee. (Art. 782, par. 2, Civil Code)

Devisee. The person named in a will to receive a gift consisting or real property.

Devolution. Under the Local Government Code, refers to the act by which the National Government confers power and authority upon the various local government units or LGUs to perform specific functions and responsibilities. (Sec. 17, RA 7160, Local Government Code of 1991)

Dilatory Tactic. Motion or plea that is designated to delay the court proceedings, e.g., a second motion for reconsideration in the Supreme Court, or a motion for postponement of a hearing for flimsy reasons.

Diligence of a Good Father. That degree of diligence which a prudent person would exercise with regard to his own family or property. This extends to the degree of diligence required in selecting and supervising one’s employees, in the concept of master and servant under tort law. (Art. 2180, Civil Code)

Diplomatic Asylum. The refuge extended to a fugitive in the residence of a diplomat in the host state in which the residence is located on the fiction that it is an extension of that diplomat’s own territorial state.

Direct Assault. A crime committed by any person who, without a public uprising shall employ force or intimidation for the attainment of any of the purposes of rebellion and sedition, or shall attack, employ force, or seriously intimidate or resist any person in authority, or any of his agents, while engaged in the performance of official duties. (Art. 148, RPC)

Direct Bribery. A crime committed by any public officer who performed an act which constitutes a crime, in connection with the performance of his official duties, in consideration of any offer, promise, gift or present received by him personally or through the intercession of another. This is committed if the public officer refrained from doing something which it was his official duty to do for a similar consideration. (Art. 210, RPC)

Direct Contempt. Misbehavior in the presence of or so near a court of justice as to obstruct or interrupt the proceedings before the same, including disrespect toward the court, offensive personalities toward others, or refusal to be sworn or to answer as a witness or to subscribe an affidavit or deposition when lawfully required to do so. (Sec. 1, Rule 71)

Direct Examination. The examination-in-chief of a witness by the party presenting him on the facts relevant to the issue. (Sec. 5, Rule 132)

Direct Taxes. Taxes for which a taxpayer is directly liable on the transaction or business he is engaged in. Personal income tax is an example of direct taxes.

Disbarment. The disciplinary process or removing a member of the Bar from the Roll of Attorneys and revoking his license and privilege to practice law. (Rule 139-B)

Discernment. As applied to juvenile cases, it means the mental capacity to understand the difference between right and wrong and its consequences.

Discharge of Debtor. In the law of Insolvency, refers to the release of the debtor from his debts which were or might be proved in the insolvency proceedings such that they are no longer a charge upon him. (Sec. 64, Act 1956, The Insolvency Law)

Disclaimer. A person’s denial or responsibility or repudiation of a claim or assertion over a right or thing so as to defend against any potential liability.

Discounting Easement. An easement or servitude which is used at intervals only and depends upon the acts of man. (Art. 615, Civil Code)

Discretion. The act or the liberty to decide, according to the principles of justice and one’s ideas of what is right and proper under the circumstances, without willfulness or favor, “but guided and controlled in its exercise by fixed legal principles. It is not a mental discretion to be exercised ex gratia, but a legal discretion to be exercised in conformity with the spirit of the law, and in a manner to subserve and not to impede or defeat the ends of substantial justice.” (Lambs vs. Phipps, 22 Phil. 488; PLDT vs. CA, 463 SCRA 418)

Discretionary Execution. In judicial parlance, it is also called execution pending appeal which is the execution of a judgment or final order before it attains finality. (Sec. 2, Rule 39)

Disinheritance. An act affected through a will by the testator by which a compulsory heir is deprived of his legitime, for causes expressly stated by law, e.g., an attempt against the life of the testator, a groundless accusation by a child or descendant, refusal without justifiable cause to support the testator, etc. (Arts. 915, 916 and 919, Civil Code)

Dispositive Portion. That part of a court decision which contains the judgment or resolution of the issues subject of the complaint or petition. It usually appears as the very last paragraph in a decision as in “Petition is hereby dismissed for lack of merit.”

Disputable Presumption. As assertion of a fact which, unless contradicted and overcome by other evidence, is deemed to be true. That a person is “innocent unless proven guilty” is an example of a disputable presumption. (Sec. 3, Rule 131)

Dissenting Opinion. A separate opinion written by an appellate justice who differs from the opinion of the majority in deciding a case.

Distressed Employer. An employer who may qualify for exemption in granting any newly-enacted labor benefit to its employees as a result of substantial losses that it is incurring in its operations.

Disturbance Compensation. The amount of compensation to which an agricultural lessee is entitled when being lawfully ejected from his landholding. (Sec. 36, RA 3844, Agricultural Land Reform Code)

Dividend. An amount corresponding to a share in corporate profits that is distributed to a stockholder in proportion to his subscription to the capital stock of the corporation. It may take the form of cash or additional shares of stock. (Sec. 73(A), NIRC of 1997)

Dividends in Insolvency. The amounts paid, upon order of the court, to the creditors of an insolvent out of the capital or assets of the insolvent’s estate for the purpose of liquidating or discharging a debt. (Sec. 45, Act 1956, The Insolvency Law)

Doctrine of Comparative Injury. A rule in equity which states that although a person is entitled to injunctive relief, if the injury done to the respondent or the public would be disproportionate, then injunctive relief must be denied.

Doctrine of Equivalents. The rule stating that an infringement also takes place when a device appropriates a prior invention by incorporating its innovative concept and, although with some modification and change, performs substantially the same function in substantially the same way to achieve substantially the same result. (Smith Kline and Beckman Corporation vs. CA, 409 SCRA 33)

Doctrine of Fair Comment. A doctrine in the law of libel, which means that while in general every discreditable imputation publicly made is deemed false, because every man is presumed innocent until his guilt is judicially proved, and every false imputation is directed against a public person in his public capacity, it is not necessarily actionable. In order that such discreditable imputation to a public official may be actionable, it must either be a false allegation of fact or a comment based on a false supposition. If the comment is an expression of opinion, based on established facts, then it is immaterial that the opinion happens to be mistaken, as long as it might reasonably be inferred from the facts. (Borjal vs. CA, 361 Phil. 1999)

Doctrine of Incorporation. A doctrinal precept which involves incorporating in a nation’s municipal law generally accepted principles of international law as part of its own municipal law without the need of further legislation. This doctrine has been adopted in the 1987 Constitution under the “declaration of principles.”

Doctrine of Indelible Allegiance. An individual may be compelled to retain his original nationality notwithstanding that he has already renounced or forfeited it under the laws of the second state whose nationality he has acquired.

Doctrine of Last Clear Chance. If the accused in a prosecution for negligence could have avoided the dire consequences to which the offended party might have contributed himself by his own negligence, had he observed reasonable care and precaution, he had the “last clear chance” to prevent the injury or damage and, therefore, could not escape criminal liability.

Doctrine of Parens Patriae. Government as guardian of the rights of People (Government of Philippines Islands v. El  Monte de Piedad, 35 SCRA 738).

Doctrine of Primary Jurisdiction. The legal tenet that precludes a court arrogating unto itself the authority to resolve a controversy the jurisdiction over which is initially lodged with an administrative body of special competence. For example, the Department of Agrarian Reform, or DAR, will have “primary jurisdiction” over agrarian disputes. (Gala vs. Ellice Agro-Industrial Corporation, 418 SCRA 431)

Doctrine of Strained Relations. A labor case law principle which states that where reinstatement of an illegally dismissed employee is no longer feasible, expedient or practical because it would only exacerbate the tension and strained relations between the parties, or where the relationship between the employer and employee has been unduly strained by reason of irreconcilable differences, particularly where the employee held a managerial position in the company, it would be more prudent to order the payment of separation pay instead of reinstatement. (Quijano vs. Mercury Drug, 292 SCRA 109; Globe-Mackay vs. NLRC, 206 SCRA 701)

Doctrine of Supervening Event. Prosecution for another offense if subsequent development changes character of the first indictment under which he may have already been charged or convicted.

Documentary Evidence. Documents as evidence consist of writings or any material containing letters, words, numbers, figures, symbols or other modes of written expressions offered as proof of their contents. (Sec. 2, Rule 130)

Doing Business. This phrase includes soliciting orders, selling products, service contracts, opening offices, appointing representatives or distributors domiciled in the Philippines, or staying in the country for 180 days or more, or participating in the management or control of any domestic business or enterprise in the Philippines, or any other act that implies a continuity of commercial dealings as a business organization. It does not, however, include mere investment as a stockholder by a foreign entity in domestic corporations, nor having a nominee director or officer to represent its interest in such corporation, or having a representative or distributor domiciled in the Philippines which transacts business in its own name and for its own account. (Sec. 3(d), RA 7042, Foreig Investments Act of 1991)

Domestic Air Carrier. An air carrier who is a citizen of the Philippines, including one who is not a citizen of the Philippines but is authorized by the Civil Aeronautics Act to engage in domestic air transportation. (Sec. 3(t), RA 776, Civil Aeronautics Act)

Domestic Air Commerce. Air commerce that is carried on within the territorial limits of the Philippines. (Sec. 3(g) and Sec. 3(u), RA 776, Civil Aeronautics Act)

Domestic Air Transportation. The conduct of air transportation within the territorial limits of the Philippines. (Sec. 3(v), RA 776, Civil Aeronautics Act)

Domestic Arbitration. An arbitration involving a local dispute, i.e., not international as this is understood in the Model Law adopted by the United Nations, which means that it is to be governed by RA 875, the Arbitration Law of the Philippines.

Domestic Law. The internal law of the forum, that is, the local law as applied to purely domestic cases.

Domestic Market Enterprise. As this is understood in the Foreign Investments Act of 1991 (RA 7042), it means an enterprise which produces goods for sale, or renders services to the domestic market entirely or, if exporting a portion of its output, fails to consistently export at least sixty percent thereof.

Domestic Servant. See Househelper.

Domicile. The place where a person’s habitual residence is located, and to which he intends to return whenever he is absent therefrom, no matter how long. For a juridical person, such as a corporation, it is where it is legally registered and where, normally, it conducts its principal business or function.

Dominant Estate. The immovable in favor of which an easement or servitude is established. (Art. 613, Civil Code)

Dominion. A legal concept which embodies both ownership and possession as being exclusively lodged in the same person or entity.

Donation. An act of liberality whereby a person disposes gratuitously of a thing or right in favor of another, who accepts it.

Donation Inter Vivos. A donation that takes effect during the lifetime of the donor, though the property shall not be delivered until after the donor’s death. The fruits of the property from the time of the acceptance of the donation shall pertain to the donee, unless the donor provides otherwise. (Art. 729, Civil Code)

Donation Mortis Causa. A donation or gift which is to become effective only upon the donor’s death, as opposed to a donation inter vivos.

Donation Propter Nuptias. A donation which is given by reason of marriage and given before its celebration, in consideration of that same, and in favor of one or both of the future spouses. (Art. 82, Family Code)

Donor’s Tax. A tax on the privilege of transmitting one’s property or property rights to another or others without adequate and full valuable consideration.

DOSRI. An acronym that refers to “directors, officers, stockholders and their related interests” such that their transactions are closely supervised and monitored by the Bangko Sentral ng Pilipinas. A bank’s credit accommodation to its DOSRI, for example, must not be on terms which are mote favorable than those extended to non-DOSRI borrowers. (Sect. 36, RA 7653, New Central Bank Act)

Double Insurance. One where the same person is insured by several insurers separately in respect to the same subject and interests.

Double Jeopardy. The constitutional right of the accused against being prosecuted for the same offense, for which he has been either previously acquitted or convicted. As explained under the Revised Rules of Criminal Procedure, when an accused has been convicted or acquitted, or the case against him dismissed or terminated without his express consent by a court of competent jurisdiction, upon a valid complaint or information or other formal charge sufficient in form and substance to sustain a conviction and after he has pleaded to the charge, the conviction or acquittal of the accused or the dismissal of the case shall be a bar to another prosecution for the offense charged, or for any attempt to commit the same or frustration thereof, or for any offense which necessarily included in the offense charged in the former complaint or information. (Sec. 7, Rule 117, as revised)

Double Taxation. Taxing the same property twice when it should be taxed only once, that is, “taxing the same person twice by the same jurisdiction for the same thing.”

Draft. An instrument ordinarily used in international commercial transactions to effect payment. It is also referred to as a bill of exchange.

Dragnet Clause or Blanket Clause. A clause in a mortgage contract which is specifically phrased to include all debts of past or future origins. Such a clause enables the parties to provide continuous dealings, the nature or extent of which may not be known or anticipated at the time, thus avoiding the expenses and inconvenience of executing a new security on each new transaction. However, such a clause will not be extended to cover future advances if the lender gives and the borrower accepts other securities for the subsequent loans. (Prudential Bank vs. Alviar, 464 SCRA 353)

Drug Dependence. A cluster of physiological, behavioral and cognitive phenomena of variable intensity, in which the use of psychoactive drug takes on a high priority thereby involving, among others, a strong desire or a sense of compulsion to take the substance—and the difficulties in controlling substance—taking behavior in terms of its onset, termination, or levels of use. (Sec. 3(n), RA 9165, Dangerous Drugs Act of 2002)

Drug Syndicate. Any organized group of two or more persons forming or joining together with the intention of committing any offense which is in violation of the Dangerous Drugs Act of 2002.

Dual Citizen. A natural-born Philippine citizen who has also become a naturalized citizen of another country but who is deemed not to have lost his Philippine citizenship by taking the prescribed oath of allegiance to the Philippines. A dual citizen can exercise absentee voting rights for President, Vice President, Senators and Party-List Representatives. (RA 9225, Citizenship Retention and Reacquisition Act; Loida Nicolas-Lewis, et al. vs. COMELEC, GR 162759, August 4, 2006)

Due Process of Law. A sacred principle embodied in Section 1, Article III of the Constitution which mandates that “no person shall be deprived of life, liberty or property without due process of law, nor shall any person be denied of the equal protection of laws.” It is a law which hears before it condemns, which proceeds upon inquiry and renders judgment only after trial.

Duel. An illegal act which involves an agreement between two persons to settle scores by killing or injuring each other in the presence of their seconds or others to witness the duelers’ observance of the formalities of their combat. (Art. 260, RPC)

Dumping. The act of importing into the Philippines any product, commodity, or article of commerce at an export price that is less than its normal value in the ordinary course of trade for a like product, commodity, or article in the exporting country that tends to cause material injury to a domestic industry. (RA 8752, Anti-Dumping Act of 1999)

Duplicate Original. A copy of a document which is made at the same time as the original of that document such as a carbon copy.

Duplicity of Charges. Also Diplicitous Information, this situation exists when a single information charges more than one offense. The Rules on Criminal Procedure prohibits the filing of such information to avoid confusing the accused in preparing a proper defense. (Loney vs. People, 481 SCRA 194)

Dura Lex Sed Lex. Latin phrase which means “the law may be harsh, but that is the law.” It must be obeyed regardless.

Dying Declaration. An exception to the hearsay rule, refers to the declaration of a dying person, made under the consciousness of an impending death, may be received in any case wherein his death is the subject of inquiry, as evidence of the cause and surrounding circumstances of such death. (Sec. 37, Rule 130)

Posted by: Elmer Brabante | February 28, 2011

Quiz No. 7 (Taxation)


Please click the box/link below to get started. Get 8/10 correct answers to pass. Good luck and have fun!

Posted by: Elmer Brabante | February 25, 2011

Moral Law


MORAL LAW

(originally posted on 1 February 2008, at Elmer at Random)
  
I. Definition and Nature of Moral Law

 

Moral law may be defined as that kind of nonjural law which sets the standards of good and commendable conduct. It is that rule to which moral agents ought to conform all their voluntary actions, and is enforced by sanctions equal to the value of the precept. It is the rule for the government of free and intelligent action, as opposed to necessary and unintelligent action. It is the law of liberty, as opposed to the law of necessity–of motive and free choice, as opposed to force of every kind. Moral law is primarily a rule for the direction of the action of free will, and strictly of free will only. But secondarily, and less strictly, it is the rule for the regulation of all those actions and states of mind and body that follow the free actions of will by a law of necessity. Thus, moral law controls involuntary mental states and outward action, only by securing conformity of the actions of free will to its precept.

Moral law may be said to resemble divine and natural law. Divine law is the law of the religious faith. Moral law, while also concerned with the precepts of good and right conduct as the basis of its norms, is not necessarily concerned with the law of religious faith. For a person may not be religious and yet still be ethical. Moral and natural laws apply equally to all persons everywhere and yet they are not identical: moral law is ethical in foundation; natural law is strictly metaphysical. Physical law is the totality of uniformities and orders of sequence which combine together to govern physical phenomena. Moral law differs from jural law insofar as enforcement is concerned. While jural law is enforceable in the courts, moral law is enforced only by indefinite authority for there are no courts in which it is administered as such.

 

II. Essential Attributes of Moral Law

Subjectivity. It is an idea of reason, developed in the mind of the subject; an idea, or conception, of that state of will, or course of action, which is obligatory upon a moral agent. No one can be a moral agent, or the subject of moral law, unless he has this idea developed; for this idea is identical with the law. It is the law developed, or revealed within himself. Thus he becomes “a law to himself,” his own reason affirming his obligation to conform to this idea, or law.

Objectivity. Moral law may be regarded as a rule of duty, prescribed by the supreme Lawgiver, and external to self. If man has been given an objective final end by the Creator, he will be under the obligation to strive for it. And when he looks to that objective, an order which has to be followed will become visible to him: the moral order. This moral order is shown to us through the moral law.
 
Liberty, as opposed to Necessity. Kant formulated the idea of an autonomous, independent morality. It means an ethics which is not only free from any considerations of happiness and profit, but also free from any demands imposed upon man by God. Moral goodness is the value in itself, and it merits to be realized for the sake of its own dignity, not for the sake of any external authority who wills it, be it even the authority of God.
 
Fitness. Its precept must prescribe and require only those actions of the will which are suitable to the nature and relations of moral beings. Here, the social order must constantly yield to the good welfare of the person. It strives for the fulfillment of the basic needs of food, clothing, housing, and a life in peace and liberty. This is confirmed by the conventions on human rights.
 
Universality. The conditions and circumstances being the same, it requires, and must require, of all moral agents, the same things, in whatever world they may be found.
 
Impartiality. Moral law is no respecter of persons–knows no privileged classes. It demands one thing of all, without regard to anything, except the fact that they are moral agents. By this it is not intended, that the same course of outward conduct is required of all; but the same state of heart in all–that all shall have one ultimate intention–that all shall consecrate themselves to one end–that all shall entirely conform, in heart and life, to their nature and relations.
 
Justice. That which is unjust cannot be law. Justice, as an attribute of moral law, must respect both the precept and the sanction. Sanctions belong to the very essence and nature of moral law. A law without sanctions is no law; it is only counsel, or advice. Sanctions are the motives which the law presents, to secure obedience to the precept. Consequently, they should always be graduated by the importance of the precept; and that is not properly law which does not promise, expressly or by implication, a reward proportionate to the merit of obedience, and threaten punishment equal to the guilt of disobedience. Law cannot be unjust, either in precept or sanction: and it should always be remembered, that what is unjust, is not law, cannot be law. It is contrary to the true definition of law. Moral law is a rule of action, founded in the nature and relations of moral beings, sustained by sanctions equal to the merit of obedience, and the guilt of disobedience.
 
Practicability. The moral demand must be possible to the subject. A law must be physically and morally possible. It is physically impossible if it commands actions that are completely beyond the forces and means of a person. Thus, a lunatic cannot be required to vote, and a dumb person cannot be obliged to sing the national anthem. If however only a part of a law is impossible, then the possible part must be fulfilled, as in the case of taxation.
 
Independence. It is founded in the self-existent nature of God, independent from the will of any being. It is an eternal and necessary idea of the divine reason and the self-existent rule of the divine conduct.
 
Immutability. Moral law can never change, or be changed. It always requires of every moral agent a state of heart, and course of conduct, precisely suited to his nature and relations. Moral law is not a statute, an enactment, that has its origin or its foundation in the will of any being. It is the law of nature, the law which the nature or constitution of every moral agent imposes on himself, and which God imposes upon us because it is entirely suited to our nature and relations, and is therefore naturally obligatory upon us. It is the unalterable demand of the reason, that the whole being, whatever there is of it at any time, shall be entirely consecrated to the highest good of universal being.
 
Unity. Moral law proposes but one ultimate end of pursuit: love or benevolence. It is the idea of perfect, universal, and constant consecration of the whole being, to the highest good of being.
 
Equity. Moral law demands that the interest and well-being of every member of the universal family shall be regarded by each according to its relative or comparative value, and that in no case shall it be sacrificed or wholly neglected, unless it be forfeited by crime. Laws must respect the demands of distributive justice. It must distribute burdens and privileges equally and according to the capacities of the subjects. This is particularly true for the laws of taxation.
 
Exclusiveness. That is, moral law is the only possible rule of moral obligation. A distinction is usually made between moral, ceremonial, civil, and positive laws. This distinction is in some respects convenient, but is liable to mislead and to create an impression that something can be obligatory, in other words can be law, that has not been the attributes of moral law. Every other rule is absolutely excluded by the very nature of moral law. Surely there can be no law that is or can be obligatory upon moral agents but one suited to, and founded in their nature, relations, and circumstances. This is the law of right.

 

III. Moral Law Discussed by Justice Vitug through His Dissenting Opinion in ESTRADA VS. ESCRITOR, AM O-02-1651; August 4, 2003

Philippine laws are veritable repositories of moral laws that sanction immoral conduct which, at first glance, could appear to be private and to cause no harm to larger society but nevertheless dealt with. Examples of such instances include general references to “good moral character” as a qualification and as a condition for remaining in public office, and sex between a man and a prostitute, though consensual and private, and with no injured third party, remains illegal in this country. Until just about a month ago, the United States Supreme Court has outlawed acts of sodomy or consensual sexual relations between two consenting males, even if done in the privacy of the bedroom. Are moral laws such as these justified? Do they not unduly impinge on one’s own freedom of belief?

Law and Morals

Law and morals, albeit closely connected, may proceed along different planes. Law is primarily directed at man’s behavior while morals are directed at his animus or state of mind. While the law often makes reference to one’s state of mind, it does not, however, punish the existence of immoral intent without more. It requires only that at the risk of punitive sanctions for disobedience, one must refrain from the temptation to act in accordance with such intent to the detriment of another. The ethical principle is generally cast, affirmatively or negatively, in the form of a direct command, whereas the legal rule peaks, generally, of the consequences that attend the violation of a duty. As to purpose, law and morals further diverge. Morals strive for individual perfection, while law aim at harmony in the community.

Not all societal mores are codified into laws. We have yet to see a law outlawing vanity, pride, gluttony or sloth. Nor are all laws necessarily moral. Slavery is outlawed but not so in our distant past. Laws allowing racial segregation prejudicial to blacks or denying the right to suffrage to women may seem to be relics of a long gone uncivilized society if one forgets that the abolition of these “immoral laws” is but less than a century ago.

The observation brings to the fore some characteristics of morals, which make it unwise to insist that it be, at all times, co-extensive with law — First, morals are not entirely error free. To insist that laws should always embody the prevailing morality without questioning whether the morals sought to be upheld are in themselves right or wrong would be a dangerous proposition. Second, morals continuously change over time, often too slowly to be immediately discerned. To ensure that laws keep pace with the ever-changing moralities would be quite a perplexed, if not a futile, an endeavor. Third, standards of morality vary. Modern society is essentially pluralist. People of different faiths owe common allegiance to the State. Different moral judgments flow from varying religious premises that, obviously, the law cannot all accommodate.

The Common Origin of Morality and the Law

That law and morals are closely intertwined is a traditionally held belief. One school of thought even go as far as calling a law without morality as not law at all; but naked power, and that human beings not only have a legal, but also the moral obligation to obey the law. It suggests that where law clashes with morality, it can impose no obligation, moral or otherwise, upon anyone to obey it; one may actually be morally bound to disobey such law. The ancient role held by the Christian Church as being the ruler of both spiritual and temporal affairs of men has laid that groundwork for the impression. The Judaic-Christian God is thought to be the source of both law and morality and man has come to know of His law and morals through the human soul, the human conscience and the human mind. With the rise of the secular state in the 16th and 17th centuries and the corresponding decline in the authority of the Church, legal thinkers such as Pufendorf, Vattel, and Burlamaqui would establish legal systems based on scientific principles deduced from the nature of men and things, that would guide the behavior of the metaphysical man in directions that promote political order and assure a measure of protected individual dignity. Such treatises on natural law have offered model political systems based on scientific principles logically deduced from the nature of man and the nature of things, serving to give a kind of scientific legitimacy to the newly formed nation states emerging in the 17th and 18th centuries under human sovereigns. Not surprisingly, sovereigns of that era promulgated natural law codes consisting of religious commandments, quasi-human moral values and civic virtues all couched in the language of legal proscriptions proclaimed and enforced by secular states. Human conduct condemned by God’s law and forbidden by the sovereign’s law would be said to be morally, as well as legally, reprehensible or malum in se.

As the law of the state became inexorably intertwined with higher moral law, based on both divine law and the law of nature, so, also, human law was seen to carry the moral authority of both. Jurisprudential ramifications could hardly be contained.

In the last 19th century, legal reformers have consciously inculcated moral concepts such as fault, intent, and extenuating circumstances into both civil and criminal law. Law and morals have been drawn closer together so that legal accountability, more accurately than not, would likewise reflect moral culpability. Vestiges of these reforms are still enshrined in our laws. In the Revised Penal Code, for example, mitigating, extenuating or aggravating circumstances that may either decrease or increase the penalties to be meted on an offender are all based on the moral attributes of the crime and the criminal.

The academic polemic

With the emergence of the secular state, the greatest contribution of liberals to the issue is not the discovery of a pre-existing, necessary distinction between law and morality; rather, it is their attempt at separation, the building of the wall to separate law from morality, whose coincidence is sublimely monstrous. Liberals attempt to divorce law from morality by characteristically adhering to some form of “harm” principle: public authority may justly use law as coercive factor only to prevent harm to non-consenting third parties. More specifically, the main distinguishing feature of liberalism is its opposition to morals law or the legal interference up to and including (sometimes) prohibition of putatively “victimless” immoralities such as sodomy, prostitution, fornication, recreational drug use, suicide and euthanasia. Liberals argue that moral laws are, in principle, unjust.

This surge of liberalism has set the trend in the courts to adopt a neutral and disinterested stand in cases involving moral issues, often at the expense of obscuring the values which society seeks to enforce through its moral laws. This matter brings to mind the case of Grisworld vs. Connecticut where the US Supreme Court, despite a presupposition that contraception is always wrong, nevertheless, has invalidated that state’s anti-contraceptive law. In so deciding, the US Supreme Court has not met head-on the issue of whether the use of contraception is immoral but instead has struck down the law as being invalid on the ground of marital privacy. Should Grisworld then be taken to sanction a moral right to do a moral wrong?

Into the Twentieth Century: the Devlin-Hart Debate

On September 1957 in England, the Committee on Homosexual Offenses and Prostitution chaired by Sir John Wolfenden has recommended in its report to the British Parliament that homosexual behavior between two consenting adults in private should no longer be a criminal offense. The thesis holds that it is not the duty of the law to concern itself with immorality as such. The report has proposed to resolve questions of the legitimacy of legally enforcing moral obligations by distinguishing immoralities that implicate public interests from immoralities that are merely private. The Wolfenden Report would spark an academic debate that persists to this day.

Patrick Devlin, then a High Court judge, has argued at the British Academy’s 1959 Maccabaean Lecture that it would be a mistake to posit a private sphere of immorality into which the law ought not to venture. Devlin’s legal moralism hinges on the theory that moral offenses insofar as they affect common good are fit subjects for legislation. Whether behavior, private or public may affect common good in such a manner that endanger the fabric of society and should thus be suppressed by law is a question of fact, which can be answered only after a full consideration of the conditions prevailing in a given society. To Devlin, morals are not merely a matter of private judgment; society should be in a position to enforce its moral standards as a means of self-preservation, “whatever its morality happens to be.” Devlin would thus become the forerunner of ethical relativism which suggests that there is no “right” and “wrong” in any absolute sense, that right or wrong depend entirely on the culture in which one happens to live. Devlin then would tolerate individual freedom only as far as possible and as long as it is consistent with the integrity of society. Hence, while privacy is respected, it may be forfeited where one person injures another.

H.L.A. Hart refutes Devlin’s suggestion that immorality, even if private, can be likened to treason, against which it is permissible for society to take steps to preserve itself. Hart sees Devlin’s view of people living in a single society as having common moral foundation as overly simplistic. To Hart, societies have always been diverse. With the rise of democracy, society could more accurately be called a collectivity of ideas and attitudes, an assemblage or gathering of people who live together and work together and govern themselves collectively in spite of the great diversities that divide them. Hart places emphasis on the right to privacy and freedom of action which ought to be protected and should be interfered with only when private behavior ceases to be private and becomes a menace to the public or to some part of the public. One may deduce from Hart’s arguments that private consensual moral offenses should not be legally prohibited because of the difficulties in enforcing such laws and the near impossibility of detecting most offenses without an unconscionable invasion of privacy.

Hart criticizes attempts to impose the morality of the majority on a few. Justification for punishment especially when applied to conduct not harmful to others represents a value to be pursued at the cost of human suffering, the bare expression of moral condemnation and treats the infliction of suffering as a uniquely appropriate mode of expression. The idea that we may punish offenders against a moral code not to prevent harm but simply as a means of venting or expressing moral condemnation is uncomfortably close to human sacrifice as a form of religious worship. To Hart, Vox populi does not necessarily translate to Vox Dei. Hart particularly singles out laws aimed at enforcing sexual morality as oppressive — “Laws designed to enforce sexual morality to the extent that they interfere with certain forms of sexual expression and restrict the sexual outlet that may be available, impose an acute form of suffering upon those who are thus deprived of the only outlet available to them.” Such laws and the coercive measures that may be used to enforce them “may create misery of quite a special degree. All restraints then must be justified by strong reasons.” Quoting John Stuart Mill in his essay “On Liberty”, Hart expounds — “The only purpose for which power can rightfully be exercised over any member of a civilized community against his will is to prevent harm to others. His own good, either physical or moral is not a sufficient warrant. He cannot be rightfully compelled to do or forbear because it will be better for him to do so, because it will make him happier, because in the opinion of others, to do so would be wise or right.”

Arriving at an Acceptable Middle Ground

But Hart is not without his critics, among them being Robert P. George. George acknowledges that laws per se cannot make men moral; laws can only succeed in commanding outward conformity to moral rules but cannot compel internal acts of reason. Such an instance would be a law requiring all people to contribute to the charities. While fear of sanctions would force one to make such contribution, the same does not necessarily make him charitable. George, however, contends that laws can be utilized to make men moral by: (1) preventing further self-corruption, (2) preventing bad example (3) helping to preserve the moral ecology and (4) educating people about right and wrong. Thus, to him, moral laws punishing victimless sexual immoralities, for example, proceed from the conviction that the acts are truly wrong and that they damage the characters of the people who perform them, block the path to virtue, and in specific ways offend against the common good. George cites Aristotle who, centuries ago, had long anticipated but criticized and firmly rejected the doctrine of mainstream contemporary liberalism, namely the belief that the law should merely be a guarantor of men’s rights against another — instead of being, as it should be, a rule of life such as will make the members of the polis good and just.

Robert George submits, and I agree, that while morality cannot be legislated, laws can help make men moral by creating a “moral ecology” and profoundly affecting notions in society about what is morally acceptable, forbidden and required. People shape their own lives and often treat others very differently in the light of these notions. The point is, “a good moral ecology benefits people by encouraging and supporting their efforts to be good, a bad moral ecology harms people by offering them opportunities and inducements to do things that are wicked.” To illustrate, the decision of US Supreme Court in Brown vs. Topeka Board of Education in 1954 and of the Civil Rights Act of 1964 has primarily been responsible in changing society’s perception on forced segregation or interracial marriage.

It might then be deduced that moral laws are justified when they (1) seek to preserve the moral value upheld by society and (2) when the morality enforced in a certain case, is true and correct. It is within these standards that the provision against “immorality” in the Administrative Code must be examined to the extent that such standards can apply to the facts and circumstances in the instant case before the Court. As a rule then, moral laws are justified only to the extent that they directly or indirectly serve to protect the interests of the larger society. It is only where their rigid application would serve to obliterate the value which society seeks to uphold, or defeat the purpose for which they are enacted, would a departure be justified.

The Morality of Marriage

Marriage is one area where law and morality closely intersect. The act of respondent Escritor of cohabiting with Quilapio, a married man, can only be called “immoral” in the sense that it defies and transgresses the institution of marriage. Society having a deep interest in the preservation of marriage, adultery is a matter of public, not merely private, concern, that cannot readily be ignored. This deep-seated interest is apparent in our Civil Code so replete with rules as in defining the parties’ legal capacity to marry, in laying down the essential requisites of the union, in regulating the rights and duties of the spouses, even their property relations, and in protecting the rights of children. Marriage has acquired a legal definition as early as the 12th century that has since grown towards a cherished institution with Gregorian Reform of the 11th and 12th centuries.

With the separation of the Church and State, marriage has retained its status as a legally protected viculum because it is perceived to be imbued with societal interest as a foundation of the family and the basic unit of society. While Islamic states recognize polygamous marriages and, in Western countries, divorce is acceptable, in the Philippines, however, absolute monogamy is still the order of the day. Societal interest in monogamous unions is grounded on the belief that the cohesiveness of the family is better protected, and children, prized for their role in the perpetuation of the future of the community, are better reared when spouses remain together. These societal interests are embodied in moral laws geared towards protecting the monogamous nature of Philippine marriages. But I do not endeavor to examine whether Philippine society is correct in viewing monogamy as the better means for the protection of societal interest on the family but I do would focus myself on, given the facts of the case, whether or not societal interest is rightly served.

Thus, I, in conscience, would take exception to the 1975 case of De Dios vs. Alejo. In De Dios, respondents Elias Marfil and Julieta O. Alejo, deputy sheriff and stenographer of the then Court of First Instance of Rizal, respectively, were administratively found guilty of immorality for living together despite Marfil’s prior existing marriage with another woman. Never mind if Marfil exerted valiant efforts to save his marriage by enduring the recriminations, unhappiness and extreme incompatibility he had with his wife. Never mind if notwithstanding his efforts, his wife abandoned him and their four children to live with another man. Never mind if Alejo took on the duties and responsibilities of being the mother to his children, rearing them as though they were her very own long after their natural mother had left them. Never mind if the children had, in fact, regarded her as their very own mother. Never mind if she was a good wife to the man she was living with, fulfilling the wifely duties long after the legal wife had abdicated them. Never mind if in all respects, they had become a family. Did not the Court in adjudging them guilty of immorality and in ordering them to put an end to their relationship, destroy a de facto family? Did not its narrow-minded view of marriage as a contractual transaction and its exacting application of the standards of monogamy, in effect, defeat the very moral purpose for which the law was put into place?

Are we not sacrificing the substance of marriage — that is a union of man and woman in a genuine, loving and respectful relationship and, in effect, the substance of a family, for a mere shell of intricate legality? Lest I be misunderstood, I am not advocating for a departure from the elevated concept marriage as being a legally protected union. I merely express concern that a blanket application of moral laws affecting marriage, without regard to the peculiarities of every case, might defeat the very purpose for which those laws are put into place.

IV. DIRECT SOURCES
Introduction to Philosophy; Crisolito Pascual. UP Law Center, Quezon City, 2003.
Christian Ethics; Karl Peschke, SVD. Logos Publications, Inc, Manila, 2004.
The Moral Law of God, Charles G. Finney. www.charlesfinney.com/ml/ml1.htm
Estrada vs. Escritor, AM 0-02-1651; August 4, 2003.

Posted by: Elmer Brabante | February 25, 2011

Cayetano S. Arellano, first Chief Justice of the Supreme Court


                                       CAYETANO S. ARELLANO (1847-1920)

 
                                                
First Filipino Chief Justice of the Supreme Court Arellano was born on 2 March 1847 in Orion, Bataan to Don Servando Arellano, a Spaniard, and Crisfora Lonzon, a native of Bataan. At a young age, Arellano was brought to San Juan de Letran as houseboy of the College (en calidad de famulo) and later a protégé of a Dominican friar who was in charge of the Parish of Binondo.

 

He finished his elementary and secondary at the Colegio de San Juan de Letran, and enrolled in the University of Santo Tomas, where he finished his Bachelor of Philosophy in 1862, his Bachelor of Theology in 1867, and Bachelor of Laws in 1876. After passing the Bar Examinations, he was offered to teach Civil Law in the said University. 

In 1887, Arellano won a seat in the Manila City Council, which he served until 1889 with the concurrent post as member of the Council of Administration. In 1893, he was  appointed member of the first Provincial Convention in Manila, wherein the provisions of the Maura Law, which he himself drafted, was discussed. In 1895, he was appointed Magistrado Suplente of the Audiencia Territorial of Manila and later as member of the Consultative Assembly. He never took part if the revolution that erupted in 1896. 

At the onset of the American regime, General Elwell Otis, who became Military Governor, requested Arellano to help in the organization of the courts of Justice and helped draft the Mercantile Law, the Code of Criminal Procedures, revision of marriage law and the measures governing the organization of the municipal government. 

When the Philippine Commission Act 136 dated 11 June 1901 established the Supreme Court, Arellano was appointed its first Chief Justice. In 1904, President Theodore Roosevelt appointed him to represent both the United States and the Philippines in the International Congress of Jurists at St. Louis. In the same year, the Yale University conferred on him the degree of Doctor of Laws (honoris causa). He received the same honor from the University of the Philippines in 1914. 

On 23 December 1920, Arellano passed away, leaving his wife, Rosa Berna, and their only daughter, Asuncion.

See the National Historical Institute and the Supreme Court eLibrary for more of CJ Cayetano’s profile.

Posted by: Elmer Brabante | February 22, 2011

The Social Security System Law of 1997 (RA 8282)


REPUBLIC ACT NO. 8282 

AN ACT FURTHER STRENGTHENING THE SOCIAL SECURITY SYSTEM THEREBY AMENDING FOR THIS PURPOSE, REPUBLIC ACT NO. 1161, AS AMENDED, OTHERWISE KNOWN AS THE SOCIAL SECURITY LAW.


SECTION 1.
Republic Act No. 1161, as amended, otherwise known as the “Social Security Law”, is hereby further amended to read as follows:

SECTION 1. Short Title. – This Act shall be known as the “Social Security Act of 1997.”

SEC. 2. Declaration of Policy. – It is the policy of the Republic of the Philippines to establish, develop, promote and perfect a sound and viable tax-exempt social security service suitable to the needs of the people throughout the Philippines which shall promote social justice and provide meaningful protection to members and their beneficiaries against the hazards of disability, sickness, maternity, old age, death, and other contingencies resulting in loss of income or financial burden. Towards this end, the State shall endeavor to extend social security protection to workers and their beneficiaries.

SEC. 3. Social Security System. – (a) To carry out the purposes of this Act, the Social Security System, hereinafter referred to as ‘SSS’, a corporate body, with principal place of business in Metro Manila, Philippines is hereby created. The SSS shall be directed and controlled by a Social Security Commission, hereinafter referred to as ‘Commission’, composed of the Secretary of Labor and Employment or his duly designated undersecretary, the SSS president and seven (7) appointive members, three (3) of whom shall represent the workers’ group, at least one of whom shall be a woman; three (3), the employers’ group, at least one (1) of whom shall be a woman; and one (1), the general public whose representative shall have adequate knowledge and experience regarding social security, to be appointed by the President of the Philippines. The six (6) members representing workers and employers shall be chosen from among the nominees of workers’ and employers’ organizations, respectively. The Chairman of the Commission shall be designated by the President of the Philippines from among its members. The term of the appointive members shall be three (3) years: Provided, That the terms of the first six (6) appointive members shall be one (1), two (2) and three (3) years for every two members, respectively: Provided, further, That they shall continue to hold office until their successors shall have been appointed and duly qualified. All vacancies, prior to the expiration of the term, shall be filled for the unexpired term only. The appointive members of the Commission shall receive at least two thousand five hundred pesos (P2,500.00) per diem for each meeting actually attended by them but not to exceed Ten thousand pesos (P10,000.00) a month:: Provided, That members of the Commission shall also receive a per diem of at least Two thousand five hundred pesos (P2,500.00) but not to exceed Fifteen thousand pesos (P15,000.00) a month: Provided , further, That said members of the Commission shall also receive reasonable transportation and representation allowances as may be fixed by the Commission, but not to exceed Ten thousand pesos (P10,000.00) a month.

“(b) The general conduct of the operations and management functions of the SSS shall be vested in the SSS President who shall serve as the chief executive officer immediately responsible for carrying out the program of the SSS and the policies of the Commission. The SSS President shall be a person who has had previous experience in the technical and administrative fields related to the purposes of this Act. He shall be appointed by the President of the Philippines and shall receive salary to be fixed by the Commission with the approval of the President of the Philippines, payable from the funds of the SSS.

“(c) The Commission, upon the recommendation of the SSS President, shall appoint an actuary, and such other personnel as may be deemed necessary, fix their reasonable compensation, allowances and other benefits, prescribe their duties and establish such methods and procedures as may be necessary to insure the efficient, honest and economical administration of the provisions and purposes of this Act: Provided, however, That the personnel of the SSS below the rank of Vice-President shall be appointed by the SSS President: Provided, further, That the personnel appointed by the SSS President, except those below the rank of assistant manager, shall be subject to the confirmation by the Commission: Provided, further, That the personnel of the SSS shall be selected only from civil service eligibles and be subject to civil service rules and regulations: Provided, finally, That the SSS shall be exempt from the provisions of Republic Act No. 6758 and Republic Act No. 7430.

SEC. 4. Powers and Duties of the Commission and SSS. – (a) The Commission. – For the attainment of its main objectives as set forth in Section 2 hereof, the Commission shall have the following powers and duties:

“(1) To adopt, amend and rescind, subject to the approval of the President of the Philippines, such rules and regulations as may be necessary to carry out the provisions and purposes of this Act;

“(2) To establish a provident fund for the members which will consist of voluntary contributions of employers and/or employees, self-employed and voluntary members and their earnings, for the payment of benefits to such members or their beneficiaries, subject to such rules and regulations as it may promulgate and approved by the President of the Philippines;

“(3) To maintain a provident fund which consists of contributions made by both the SSS and its officials and employees and their earnings, for the payment of benefits to such officials and employees or their heirs under such terms and conditions as it may prescribe;

“(4) To approve restructuring proposals for the payment of due but unremitted contributions and unpaid loan amortizations under such terms and conditions as it may prescribe;

“(5) To authorize cooperatives registered with the cooperative development authority or associations registered with the appropriate government agency to act as collecting agents of the SSS with respect to their members: Provided, That the SSS shall accredit the cooperative or association: Provided, further, That the persons authorized to collect are bonded;

“(6) To compromise or release, in whole or in part, any interest, penalty or any civil liability to SSS in connection with the investments authorized under Section 26 hereof, under such terms and conditions as it may prescribe and approved by the President of the Philippines; and

“(7) To approve, confirm, pass upon or review any and all actions of the SSS in the proper and necessary exercise of its powers and duties hereinafter enumerated.

“(b) The Social Security System. – Subject to the provision of Section four (4), paragraph seven (7) hereof, the SSS shall have the following powers and duties:

“(1) To submit annually not later than April 30, a public report to the President of the Philippines and to the Congress of the Philippines covering its activities in the administration and enforcement of this Act during the preceding year including information and recommendations on broad policies for the development and perfection of the program of the SSS;

“(2) To require the actuary to submit a valuation report on the SSS benefit program every four (4) years, or more frequently as may be necessary, to undertake the necessary actuarial studies and calculations concerning increases in benefits taking into account inflation and the financial stability of the SSS, and to provide for feasible increases in benefits every four (4) years, including the addition of new ones, under such rules and regulations as the Commission may adopt, subject to the approval of the President of the Philippines: Provided, That the actuarial soundness of the reserve fund shall be guaranteed: Provided, further, That such increases in benefits shall not require any increase in the rate of contribution;

“(3) To establish offices of the SSS to cover as many provinces, cities and congressional districts, whenever and wherever it may be expedient, necessary and feasible, and to inspect or cause to be inspected periodically such offices;

“(4) To enter into agreements or contracts for such service and aid, as may be needed for the proper, efficient and stable administration of the SSS;

“(5) To adopt, from time to time, a budget of expenditures including salaries of personnel, against all funds available to the SSS under this Act;

“(6) To set up its accounting system and provide the necessary personnel therefor;

“(7) To require reports, compilations and analyses of statistical and economic data and to make investigation as may be needed for the proper administration and development of the SSS;

“(8) To acquire and dispose of property, real or personal, which may be necessary or expedient for the attainment of the purposes of this Act;

“(9) To acquire, receive, or hold, by way of purchase, expropriation or otherwise, public or private property for the purpose of undertaking housing projects preferably for the benefit of low-income members and for the maintenance of hospitals and institutions for the sick, aged and disabled, as well as schools for the members and their immediate families;

“(10) To sue and be sued in court; and

“(11) To perform such other corporate acts as it may deem appropriate for the proper enforcement of this Act.

SEC. 5. Settlement of Disputes. – (a) Any dispute arising under this Act with respect to coverage, benefits, contributions and penalties thereon or any other matter related thereto, shall be cognizable by the Commission, and any case filed with respect thereto shall be heard by the Commission, or any of its members, or by hearing officers duly authorized by the Commission and decided within twenty (20) days after the submission of the evidence. The filing, determination and settlement of disputes shall be governed by the rules and regulations promulgated by the Commission.

“(b) Appeal to Courts. – Any decision of the Commission, in the absence of an appeal therefrom as herein provided, shall become final and executory fifteen (15) days after the date of notification, and judicial review thereof shall be permitted only after any party claiming to be aggrieved thereby has exhausted his remedies before the Commission. The Commission shall be deemed to be a party to any judicial action involving any such decision, and may be represented by an attorney employed by the Commission, or when requested by the Commission, by the Solicitor General or any public prosecutors.

“(c) Court Review. - The decision of the Commission upon any disputed matter may be reviewed both upon the law and the facts by the Court of Appeals. For the purpose of such review, the procedure concerning 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.

“(d) Execution of Decisions. – The Commission may, motu proprio or on motion of any interested party, issue a writ of execution to enforce any of its decisions or awards, after it has become final and executory, in the same manner as the decision of the Regional Trial Court by directing the city or provincial sheriff or the sheriff whom it may appoint to enforce such final decision or execute such writ; and any person who shall fail or refuse to comply with such decision, award or writ, after being required to do so shall, upon application by the Commission pursuant to Rule 71 of the Rules of Court, be punished for contempt.

“SEC. 6. Auditor and Counsel. - (a) The Chairman of the Commission on Audit shall be the ex-officio Auditor of the SSS. He or his representative shall check and audit all the accounts, funds and properties of the SSS in the same manner and as frequently as the accounts, funds and properties of the government are checked and audited under existing laws, and he shall have, as far as practicable, the same powers and duties as he has with respect to the checking and auditing of public accounts, funds and properties in general.

“(b) The Secretary of Justice shall be the ex-officio counsel of the SSS. He or his representative shall act as legal adviser and counsel thereof.

SEC. 7. Oaths, Witnesses, and Production of Records. - When authorized by the Commission, an official or employee thereof shall have the power to administer oath and affirmation, take depositions, certify to official acts, and issue subpoena and subpoena duces tecum to compel the attendance of witnesses and the production of books, papers, correspondence and other records deemed necessary as evidence in connection with any question arising under this Act. Any case of contumacy shall be dealt with by the Commission in accordance with law.

SEC. 8. Terms Defined. – For purposes of this Act, the following terms shall, unless the context indicates otherwise, have the following meanings:

“(a) SSS – The Social Security System created by this Act.

“(b) Commission - The Social Security Commission as herein created.

“(c) Employer- Any person, natural or juridical, domestic or foreign, who carries on in the Philippines any trade, business, industry, undertaking, or activity of any kind and uses the services of another person who is under his orders as regards the employment, except the Government and any of its political subdivisions, branches or instrumentalities, including corporations owned or controlled by the Government: Provided, That a self-employed person shall be both employee and employer at the same time.

“(d) Employee – Any person who performs services for an employer in which either or both mental or physical efforts are used and who receives compensation for such services, where there is an employer-employee relationship: Provided, That a self-employed person shall be both employee and employer at the same time.

“(e) 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.

“(f) Compensation - All actual remuneration for employment, including the mandated cost-of-living allowance, as well as the cash value of any remuneration paid in any medium other than cash except that part of the remuneration in excess of the maximum salary credit as provided under Section Eighteen of this Act.

“(g) Monthly salary credit - The compensation base for contributions and benefits as indicated in the schedule in Section Eighteen of this Act.

“(h) Monthly - The period from one end of the last payroll period of the preceding month to the end of the last payroll period of the current month if compensation is on hourly, daily or weekly basis; if on any other basis, ‘monthly’ shall mean a period of one (1) month.

“(i) Contribution – The amount paid to the SSS by and on behalf of the members in accordance with Section Eighteen of this Act.

“(j) Employment - Any service performed by an employee for his employer except:

“(1) Employment purely casual and not for the purpose of occupation or business of the employer;

“(2) Service performed on or in connection with an alien vessel by an employee if he is employed when such vessel is outside the Philippines;

“(3) Service performed in the employ of the Philippine Government or instrumentality or agency thereof;

“(4) Service performed in the employ of a foreign government or international organization, or their wholly-owned instrumentality: Provided, however, That this exemption notwithstanding, any foreign government, international organization or their wholly-owned instrumentality employing workers in the Philippines or employing Filipinos outside of the Philippines, may enter into an agreement with the Philippine 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.

“(k) Beneficiaries - The dependent spouse until he or she remarries, 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, 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.

“(l) Contingency - The retirement, death, disability, injury or sickness and maternity of the member.

“(m) Average monthly salary credit – The result obtained by dividing the sum of the last sixty (60) monthly salary credits immediately preceding the semester of contingency by sixty (60), or the result obtained by dividing the sum of all the monthly salary credits paid prior to the semester of contingency by the number of monthly contributions paid in the same period, whichever is greater: Provided, That the injury or sickness which caused the disability shall be deemed as the permanent disability for the purpose of computing the average monthly salary credit.

“(n) Average daily salary credit- The result obtained by dividing the sum of the six (6) highest monthly salary credits in the twelve-month period immediately preceding the semester of contingency by one hundred eighty (180).

“(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.

“(q) Credited years of service - For a member covered prior to January nineteen hundred and eighty five (1985) minus the calendar year of coverage plus the number of calendar years in which six (6) or more contributions have been paid from January nineteen hundred and eighty five (1985) up to the calendar year containing the semester prior to the contingency. For a member covered in or after January nineteen hundred and eighty five (1985), the number of calendar years in which six (6) or more contributions have been paid from the year of coverage up to the calendar year containing the semester prior to the contingency: Provided, That the Commission may provide for a different number of contributions in a calendar year for it to be considered as a credited year of service.

“(r) Member – The worker who is covered under Section Nine and Section Nine-A of this Act.

“(s) Self-employed - Any person whose income is not derived from employment, as defined under this Act, as well as those workers enumerated in Section Nine-A hereof.

“(t) Net earnings - Net income before income taxes plus non-cash charges such as depreciation and depletion appearing in the regular financial statement of the issuing or assuming institution.

“(u) Fixed charges – Recurring expense such as amortization of debt discount or rentals for leased properties, including interest on funded and unfunded debt.

SEC. 9. Coverage. - (a) Coverage in the SSS shall be compulsory upon all employees not over sixty (60) years of age and their employers: Provided, That in the case of domestic helpers, their monthly income shall not be less than One thousand pesos (P1,000.00) a month: Provided, further, That any benefit already earned by the employees under private benefit plans existing at the time of the approval of this Act shall not be discontinued, reduced or otherwise impaired: Provided, further, That private plans which are existing and in force at the time of compulsory coverage shall be integrated with the plan of the SSS in such a way where the employer’s contribution to his private plan is more than that required of him in this Act, he shall pay to the SSS only the contribution required of him and he shall continue his contribution to such private plan less his contribution to the SSS so that the employer’s total contribution to his benefit plan and to the SSS shall be the same as his contribution to his private benefit plan before the compulsory coverage: Provided, further, That any changes, adjustments, modifications, eliminations or improvements in the benefits to be available under the remaining private plan, which may be necessary to adopt by reason of the reduced contributions thereto as a result of the integration, shall be subject to agreements between the employers and employees concerned: Provided, further, That the private benefit plan which the employer shall continue for his employees shall remain under the employer’s management and control unless there is an existing agreement to the contrary: Provided, finally, That nothing in this Act shall be construed as a limitation on the right of employers and employees to agree on and adopt benefits which are over and above those provided under this Act.

“(b) Spouses who devote full time to managing the household and family affairs, unless they are also engaged in other vocation or employment which is subject to mandatory coverage, may be covered by the SSS on a voluntary basis.

“(c) Filipinos recruited by foreign-based employers for employment abroad may be covered by the SSS on a voluntary basis.

SEC. 9-A. Compulsory Coverage of the Self-Employed. – Coverage in the SSS shall also be compulsory upon such self-employed persons as may be determined by the Commission under such rules and regulations as it may prescribe, including but not limited to the following:

“1. All self-employed professionals;

“2. Partners and single proprietors of businesses;

“3. Actors and actresses, directors, scriptwriters and news correspondents who do not fall within the definition of the term “employee” in Section 8 (d) of this Act;

“4. Professional athletes, coaches, trainers and jockeys; and

“5. Individual farmers and fishermen.

“Unless otherwise specified herein, all provisions of this Act applicable to covered employees shall also be applicable to the covered self-employed persons.

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.

SEC. 11. Effect of Separation from Employment. – When an employee under compulsory coverage is separated from employment, his employer’s contribution on his account and his obligation to pay contributions arising from that employment shall cease at the end of the month of separation, but said employee shall be credited with all contributions paid on his behalf and entitled to benefits according to the provisions of this Act. He may, however, continue to pay the total contributions to maintain his right to full benefit.

“SEC. 11-A. Effect of Interruption of Business or Professional Income. - If the self-employed realizes no income in any given month, he shall not be required to pay contributions for that month. He may, however, be allowed to continue paying contributions under the same rules and regulations applicable to a separated employee member: Provided, That no retroactive payment of contributions shall be allowed other than as prescribed under Section Twenty-two-A hereof.

SEC. 12. Monthly Pension. – (a) The monthly pension shall be the highest of the following amounts:

“(1) The sum of the following:

“(i) Three hundred pesos (P300.00; plus

“(ii) Twenty percent (20%) of the average monthly salary credit; plus

“(iii) Two percent (2%) of the average monthly salary credit for each credited year of service in excess of ten (10) years; or

“(2) Forth percent (40%) of the average monthly salary credit; or

“(3) One thousand pesos (P1,000.00): Provided, That the monthly pension shall in no case be paid for an aggregate amount of less than sixty (60) months.

“(b) Notwithstanding the preceding paragraph, the minimum pension shall be One thousand two hundred pesos (P1,200.00) for members with at least ten (10) credited years of service and Two thousand four hundred pesos (P2,400.00) for those with twenty (20) credited years of service.

SEC. 12-A. Dependents’ Pension. – Where monthly pension is payable on account of death, permanent total disability or retirement, dependents’ pension equivalent to ten percent (10%) of the monthly pension or Two hundred fifty pesos (P250.00), whichever is higher, shall also be paid for each dependent child conceived on or before the date of the contingency but not exceeding five (5), beginning with the youngest and without substitution: Provided, That where there are legitimate or illegitimate children, the former shall be preferred.

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 and who: (1) has reached the age of sixty (60) years and is already separated from employment or has ceased to be self-employed; or (2) has reached the age of sixty-five (65) years, shall be entitled for as long as he lives to the monthly pension: Provided, That he shall have the option to receive his first eighteen (18) monthly pensions in lump sum discounted at a preferential rate of interest to be determined by the SSS.

“(b) A covered member who is sixty (60) years old at retirement and who does not qualify for pension benefits under paragraph (a) above, shall be entitled to a lump sum benefit equal to the total contributions paid by him and on his behalf: Provided, That he is separated from employment and is not continuing payment of contributions to the SSS on his own.

“(c) The monthly pension shall be suspended upon the reemployment or resumption of self-employment of a retired member who is less than sixty-five (65) years old. He shall again be subject to Section Eighteen and his employer to Section Nineteen of this Act.

“(d) Upon the death of the retired member, his primary beneficiaries as of the date of his retirement shall be entitled to receive the monthly pension: Provided, That if he has no primary beneficiaries and he dies within sixty (60) months from the start of his monthly pension, his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the total monthly pensions corresponding to the balance of the five-year guaranteed period, excluding the dependents’ pension.

“(e) The monthly pension of a member who retires after reaching age sixty (60) shall be the higher of either: (1) the monthly pension computed at the earliest time he could have retired had he been separated from employment or ceased to be self-employed plus all adjustments thereto; or (2) the monthly pension computed at the time when he actually retires.

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, his primary beneficiaries shall be entitled to the monthly pension: Provided, That if he has no primary beneficiaries, his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to thirty-six (36) times the monthly pension. If he has not paid the required thirty-six (36) monthly contributions, his primary or secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the monthly pension times the number of monthly contributions paid to the SSS or twelve (12) times the monthly pension, whichever is higher.

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 of disability, he shall be entitled to the monthly pension: Provided, That if he has not paid the required thirty-six (36) monthly contributions, he shall be entitled to a lump sum benefit equivalent to the monthly pension times the number of monthly contributions paid to the SSS or twelve (12) times the monthly pension, whichever is higher. A member who (1) has received a lump sum benefit; and (2) is reemployed or has resumed self-employment not earlier than one (1) year from the date of his disability shall again be subject to compulsory coverage and shall be considered a new member.

“(b) The monthly pension and dependents’ pension shall be suspended upon the reemployment or resumption of self-employment or the recovery of the disabled member from his permanent total disability or his failure to present himself for examination at least once a year upon notice by the SSS.

“(c) Upon the death of the permanent total disability pensioner, his primary beneficiaries as of the date of disability shall be entitled to receive the monthly pension: Provided, That if he has no primary beneficiaries and he dies within sixty (60) months from the start of his monthly pension, his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the total monthly pensions corresponding to the balance of the five-year guaranteed period excluding the dependents’ pension.

“(d) The following disabilities shall be deemed permanent total:

“1. Complete loss of sight of both eyes;

“2. Loss of two limbs at or above the ankle or wrists;

“3. Permanent complete paralysis of two limbs;

“4. Brain injury resulting to incurable imbecility or insanity; and

“5. Such cases as determined and approved by the SSS.

“(e) If the disability is permanent partial, and such disability occurs before thirty-six (36) monthly contributions have been paid prior to the semester of disability, the benefit shall be such percentage of the lump sum benefit described in the preceding paragraph with due regard to the degree of disability as the Commission may determine.

“(f) If the disability is permanent total and such disability occurs after thirty-six (36) monthly contributions have been paid prior to the semester of disability, the benefit shall be the monthly pension for permanent total disability payable not longer than the period designated in the following schedule:

COMPLETE
AND PERMANENT                     NUMBER OF
LOSS OF USE OF                         MONTHS

One thumb                                     10
One index finger                              8
One middle finger                            6
One ring finger                                5
One little finger                                3
One big toe                                     6
One hand                                       39
One arm                                        50
One foot                                         31
One leg                                          46
One ear                                         10
Both ears                                       20
Hearing of one ear                          10
Hearing of both ears                        50
Sight of one eye                              25

“(g) The percentage degree of disability which is equivalent to the ratio that the designated number of months of compensability bears to seventy-five (75), rounded to the next higher integer, shall not be additive for distinct, separate and unrelated permanent partial disabilities, but shall be additive for deteriorating and related permanent partial disabilities to a maximum of one hundred percent (100%), in which case, the member shall be deemed as permanently totally disabled.

“(h) In case of permanent partial disability, the monthly pension benefit shall be given in lump sum if it is payable for less than twelve (12) months.

“(i) For the purpose of adjudicating retirement, death and permanent total disability pension benefits, contributions shall be deemed paid for the months during which the member received partial disability pension: Provided, That such contributions shall be based on his last contribution prior to his disability.

“(j) Should a member who is on partial disability pension retire or die, his disability pension shall cease upon his retirement or death.

“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, shall, for each day of compensable confinement or a fraction thereof, be paid by his employer, or the SSS, if such person is unemployed or self-employed, a daily sickness benefit equivalent to ninety percent (90%) of his average daily salary credit, subject to the following conditions:

“(1) In no case shall the daily sickness benefit be paid longer than one hundred twenty (120) days in one (1) calendar year, nor shall any unused portion of the one hundred twenty (120) days of sickness benefit granted under this section be carried forward and added to the total number of compensable days allowable in the subsequent year;

“(2) The daily sickness benefit shall not be paid for more than two hundred forty (240) days on account of the same confinement; and

“(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.

“(b) The compensable confinement shall begin on the first day of sickness, and the payment of such allowances shall be promptly made by the employer every regular payday or on the fifteenth and last day of each month, and similarly in the case of direct payment by the SSS, for as long as such allowances are due and payable: Provided, That such allowance shall begin only after all sick leaves of absence with full pay to the credit of the employee member shall have been exhausted.

“(c) One hundred percent (100%) of the daily benefits provided in the preceding paragraph shall be reimbursed by the SSS to said employer upon receipt of satisfactory proof of such payment and legality thereof: Provided, That the employer has notified the SSS of the confinement within five (5) calendar days after receipt of the notification from the employee member: Provided, further, That if the notification to the SSS is made by the employer beyond five (5) calendar days after receipt of the notification from the employee member, said employer shall be reimbursed only for each day of confinement starting from the tenth calendar day immediately preceding the date of notification to the SSS: Provided, finally, That the SSS shall reimburse the employer or pay the unemployed member only for confinement within the one-year period immediately preceding the date the claim for benefit or reimbursement is received by the SSS, except confinement in a hospital in which case the claim for benefit or reimbursement must be filed within one (1) year from the last day of confinement.

“(d) Where the employee member has given the required notification but the employer fails to notify the SSS of the confinement or to file the claim for reimbursement within the period prescribed in this section resulting in the reduction of the benefit or denial of the claim, such employer shall have no right to recover the corresponding daily allowance he advanced to the employee member as required in this section.

“(e)The claim of reimbursement shall be adjudicated by the SSS within a period of two (2) months from receipt thereof: Provided, That should no payment be received by the employer within one (1) month after the period prescribed herein for adjudication, the reimbursement shall thereafter earn simple interest of one percent (1%) per month until paid.

“(f) The provisions regarding the notification required of the member and the employer as well as the period within which the claim for benefit or reimbursement may be filed shall apply to all claims filed with 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 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.

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 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.

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. (As amended by Sec. 9, P. D. No. 24, S. 1972; and Sec. 14, P. D. No. 735, S. 1975).

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.

“Any violation of the provisions of this Section shall be punished by a fine of not less than Five hundred pesos (P500.00) nor more than Five thousand pesos (P5,000.00), or imprisonment for not less than six (6) months nor more than one (1) year, or both, at the discretion of the court.

SEC. 18. Employee’s Contributions. - (a) Beginning as of the last day of the calendar month when an employee’s compulsory coverage takes effect and every month thereafter during his employment, the employer shall deduct and withhold from such employee’s monthly salary, wage, compensation or earnings, the employee’s contribution in an amount corresponding to his salary, wage, compensation or earnings during the month in accordance with the following schedule:

SALARY BRACKET

RANGE OF COMPENSATION

MONTHLY SALARY CREDIT

MONTHLY CONTRIBUTION OF EMPLOYER

MONTHLY CONTRIBUTION OF EMPLOYEE

TOTAL MONTHLY CONTRIBUTION

I

1,000.00 – 1,249.99

1000

50.70

33.30

84.00

II

1,250.00 – 1,749.99

1500

76.00

50.00

126.00

III

1,750.00 – 2,249.99

2000

101.30

66.70

168.00

IV

2,250.00 – 2,749.99

2500

126.70

83.30

210.00

V

2,750.00 – 3,249.99

3000

152.00

100.00

252.00

VI

3,250.00 – 3,749.99

4000

177.30

116.70

294.00

VII

3,750.00 – 4,249.99

4500

202.70

133.30

336.00

VIII

4,250.00 – 4,749.99

5000

228.00

150.00

378.00

IX

4,750.00 – 5,249.99

5500

253.30

166.70

420.00

X

5,250.00 – 5,749.99

6000

278.70

183.70

462.00

XI

5,750.00 – 6,249.99

6500

304.00

200.00

504.00

XII

6,250.00 – 6,749.99

7000

329.30

216.70

546.00

XIII

6,750.00 – 7,249.99

7500

354.70

233.30

588.00

XIV

7,250.00 – 7,749.99

8000

380.00

250.00

630.00

XV

7,750.00 – 8,249.99

8500

403.30

266.70

672.00

XVI

8,250.00 – 8,749.99

9000

430.70

283.30

714.00

XII

8,750.00 – OVER

9500

456.30

300.00

756.00

   “The foregoing schedule of contribution shall also apply to self-employed and voluntary members.

“The maximum monthly salary credit shall be Nine thousand pesos (P9,000.00) effective January Nineteen hundred and ninety six (1996); Provided, That it shall be increased by One thousand pesos (P1,000.00) every year thereafter until it shall have reached Twelve thousand pesos (P12,000.00) by Nineteen hundred and ninety nine (1999): Provided, further, That the minimum and maximum monthly salary credits as well as the rate of contributions may be fixed from time to time by the Commission through rules and regulations taking into consideration actuarial calculations and rate of benefits, subject to the approval of the President of the Philippines.

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.

“(b) The remittance of such contributions by the employer shall be supported by a quarterly collection list to be submitted to the SSS at the end of each calendar quarter indicating the correct ID number of the employer, the correct names and the SSS numbers of the employees and the total contributions paid for their account during the quarter.

SEC. 19-A. Contributions of the Self-Employed Member. - The contributions to the SSS of the self-employed member shall be determined in accordance with Section Eighteen of this Act: Provided, That the monthly earnings declared by the self-employed member at the time of his registration with the SSS shall be considered as his monthly compensation and he shall pay both the employer and the employee contributions: Provided, further, That the contributions of self-employed persons earning One thousand pesos (P1,000.00) monthly or below may be reduced by the Commission.

“The monthly earnings declared by the self-employed member at the time of his registration shall remain the basis of his monthly salary credit, unless he makes another declaration of his monthly earnings, in which case such latest declaration becomes the new basis of his monthly salary credit.

SEC. 20. Government Contribution. - As the contribution of the Government to the operation of the SSS, Congress shall annually appropriate out of any funds in the National Treasury not otherwise appropriated, the necessary sum or sums to meet the estimated expenses of the SSS for each ensuing year. In addition to this contribution, Congress shall appropriate from time to time such sum or sums as may be needed to assure the maintenance of an adequate working balance of the funds of the SSS as disclosed by suitable periodic actuarial studies to be made of the operations of the SSS.

SEC. 21. Government Guarantee. – The benefits prescribed in this Act shall not be diminished and to guarantee said benefits the Government of the Republic of the Philippines accepts general responsibility for the solvency of the SSS.

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.

SEC. 22-A. Remittance of Contributions of Self-Employed Member. – Self-employed members shall remit their monthly contributions quarterly on such dates and schedules as the Commission may specify through rules and regulations: Provided, That no retroactive payment of contributions shall be allowed, except as provided in this Section.

SEC. 23. Method of Collection and Payment. - The SSS shall require a complete and proper collection and payment of contributions and proper identification of the employer and the employee. Payment may be made in cash, checks, stamps, coupons, tickets, or other reasonable devices that the Commission may adopt.

SEC. 24. Employment Records and Reports. - (a) Each employer shall immediately report to the SSS the names, ages, civil status, occupations, salaries and dependents of all his employees who are subject to compulsory coverage: Provided, That if an employee subject to compulsory coverage should die or become sick or disabled or reach the age of sixty (60) without the SSS having previously received any report or written communication about him from his employer, the said employer shall pay to the SSS damages equivalent to the benefits to which said employee member would have been entitled had his name been reported on time by the employer to the SSS, except that in case of pension benefits, the employer shall be liable to pay the SSS damages equivalent to the accumulated pension due as of the date of settlement of the claim or to the five (5) years’ pension, including dependents’ pension: Provided, further, That if the contingency occurs within thirty (30) days from the date of employment, the employer shall be relieved of his liability for damages: Provided, further, That any person or entity engaging the services of an independent contractor shall be subsidiarily liable with such contractor for any civil liability incurred by the latter under this Act: Provided, finally, That the same person or entity engaging the services of an independent contractor shall require such contractor to post a surety bond to guarantee the payment of the worker’s benefits.

“(b) Should the employer misrepresent the true date of employment of the employee member or remit to the SSS contributions which are less than those required in this Act or fail to remit any contribution due prior to the date of contingency, resulting in a reduction of benefits, the employer shall pay to the SSS damages equivalent to the difference between the amount of benefit to which the employee member or his beneficiary is entitled had the proper contributions been remitted to the SSS and the amount payable on the basis of contributions actually remitted: Provided, That if the employee member or his beneficiary is entitled to pension benefits, damages shall be equivalent to the accumulated pension due as of the date of settlement of the claim or to the five (5) years’ pension, whichever is higher, including dependents’ pension.

“In addition to the liability mentioned in the preceding paragraphs (a) and (b) hereof, the employer shall also be liable for the corresponding unremitted contributions and penalties thereon.

“(c) The records and reports duly accomplished and submitted to the SSS by the employer or the member, as the case may be, shall be kept confidential by the SSS except in compliance with a subpoena duces tecum issued by the Court, shall not be divulged without the consent of the SSS President or any official of the SSS duly authorized by him, shall be presumed correct as to the data and other matters stated therein, unless the necessary corrections to such records and reports have been properly made by the parties concerned before the right to the benefit being claimed accrues, and shall be made the basis for the adjudication of the claim. If as a result of such adjudication the SSS in good faith pays a monthly pension to a beneficiary who is inferior in right to another beneficiary or with whom another beneficiary is entitled to share, such payments shall discharge the SSS from liability unless and until such other beneficiary notifies the SSS of his claim prior to the payments.

“(d) Every employer shall keep true and accurate work records for such period and containing such information as the Commission may prescribe, in addition to an “Annual Register of New and Separated Employees” which shall be secured from the SSS wherein the employer shall enter on the first day of employment or on the effective date of separation, the names of the persons employed or separated from employment, their SSS numbers, and such other data that the Commission may require and said annual register shall be submitted to the SSS in the month of January of each year. Such records shall be open for inspection by the SSS or its authorized representatives quarterly or as often as the SSS may require.

“The SSS may also require each employer to submit, with respect to the persons in his employ, reports needed for the effective administration of this Act.

“(e) Each employer shall require, as a condition to employment, the presentation of a registration number secured by the prospective employee from the SSS in accordance with such procedure as the SSS may adopt: Provided, That in case of employees who have been assigned registration numbers by virtue of a previous employment, such numbers originally assigned to them should be used for purposes of this Section: Provided, further, That the issuance of such registration numbers by the SSS shall not exempt the employer from complying with the provisions of paragraph (a) of this Section.

“(f) Notwithstanding any law to the contrary, microfilm, or non-erasable optical disk and other similar archival media copies of original SSS records and reports, duly certified by the official custodian thereof, shall have the same evidentiary value as the originals and be admissible as evidence in all legal proceedings.

“(g) Notwithstanding any law to the contrary, local government units shall, prior to issuing any annual business license or permit, require submission of certificate of SSS coverage and compliance with the provisions of this Act: Provided, That the certification or clearance shall be issued by the SSS within five (5) working days from receipt of the request.

SEC. 24-A. Report and Registration of the Self-Employed Member. – Each covered self-employed person shall, within thirty (30) days from the first day he started the practice of his profession or business operations register and report to the SSS his name, age, civil status, and occupation, average monthly net income and his dependents.

SEC. 25. Deposits and Disbursements. - All money paid to or collected by the SSS every year under this Act, and all accruals thereto shall be deposited, administered and disbursed in the same manner and under the same conditions and requirements as provided by law for other public special funds: Provided, That not more than twelve percent (12%) of the total yearly contributions plus three percent (3%) of other revenues shall be disbursed for operational expenses such as salaries and wages, supplies and materials, depreciation and the maintenance of offices of the SSS: Provided, further, That if the expenses in any year are less than the maximum amount permissible, the difference shall not be availed of as additional expenses in the following years.

SEC. 26. Investment of Reserve Funds. - All revenues of the SSS that are not needed to meet the current administrative and operational expenses incidental to the carrying out of this Act shall be accumulated in a fund to be known as the “Reserve Fund.” Such portions of the Reserve Fund as are not needed to meet the current benefit obligations thereof shall be known as the “Investment Reserve Fund” which the Commission shall manage and invest with the skill, care, prudence and diligence necessary under the circumstances then prevailing that a prudent man acting in like capacity and familiar with such matters would exercise in the conduct of an enterprise of a like character and with similar aims. Pursuant thereto, and in line with the basic principles of safety, good yield and liquidity, the Commission shall invest the funds to earn an annual income not less than the average rates of treasury bills or any other acceptable market yield indicator in any or in all of the following:

“(a) In bonds, securities, promissory notes or other evidence of indebtedness of the Government of the Philippines, or in bonds, securities, promissory notes or other evidence of indebtedness to which the full faith, credit and unconditional guarantee of the Government of the Philippines is pledged;

“(b) In bonds, securities, promissory notes or other evidence of indebtedness of the Government of the Philippines, or any agencies or instrumentalities to finance domestic infrastructure projects such as roads, bridges, ports, telecommunications, and other similar projects: Provided, That the instruments issued by an agency or instrumentality of the government shall be guaranteed by the Government of the Philippines or any government financial institution or acceptable multilateral agency: Provided, further, That the SSS shall have priority over the revenues of the projects: Provided, finally, That such investments shall not exceed thirty percent (30%) of the Investment Reserve Fund;

“(c) In bonds, securities, promissory notes or other evidence of indebtedness of government financial institutions or government corporations with acceptable credit or guarantee: Provided, That such investments shall not exceed thirty percent (30%) of the Investment Reserve Fund;

“(d) In bonds, securities, promissory notes or other evidence of indebtedness of any bank doing business in the Philippines and in good standing with the Bangko Sentral ng Pilipinas to finance loans to private corporations doing business in the Philippines, including schools, hospitals, small-and-medium scale industries, cooperatives and non-governmental organizations, in which case the collaterals or securities shall be assigned to the SSS under such terms and conditions as the Commission may prescribe: Provided, That in the case of bank deposits, they shall not exceed at any time the unimpaired capital and surplus or total private deposits of the depository bank, whichever is smaller: Provided, further, That said bank shall first have been designated as a depository for this purpose by the Monetary Board of the Bangko Sentral ng Pilipinas: Provided, finally, That such investments shall not exceed forty percent (40%) of the Investment Reserve Fund;

“(e) In bonds, securities, promissory notes or other evidence of indebtedness of shelter agencies of the National Government or financial intermediaries to finance housing loans of members; and in long-term direct individual or group housing loans giving priority to the low-income groups, up to a maximum of ninety percent (90%) of the appraised value of the properties to be mortgaged by the borrowers; and

“In short and medium term loans to members such as salary, educational, livelihood, marital, calamity and emergency loans: Provided, That not more than thirty five percent (35%) of the Investment Reserve Fund at any time shall be invested for housing purposes: Provided, further, That not more than ten percent (10%) of the Investment Reserve Fund shall be invested in short and medium term loans;

“(f) In bonds, securities, promissory notes or other evidence of indebtedness of educational or medical institutions to finance the construction, improvement and maintenance of schools and hospitals and their equipment and facilities: Provided, That such investments shall not exceed ten percent (10%) of the Investment Reserve Fund;

“(g) In real estate property, including shares of stocks involving real estate property, and investment secured by first mortgages on real estate or other collaterals acceptable to the SSS: Provided, That such projects and investments shall, in the determination of the Commission, redound to the benefit of the SSS, its members, as well as the general public: Provided, further, That investment in real estate property, including shares of stocks involving real estate property shall not exceed five percent (5%) of the Investment Reserve Fund: Provided, finally, That investments in other income earning projects and investments secured by first mortgages or other collaterals shall not exceed twenty five percent (25%) of the Investment Reserve Fund;

“(h) In bonds, debentures, securities, promissory notes or other evidence of indebtedness of any prime corporation or multilateral institutions to finance domestic projects: Provided, That the issuing or assuming entity or its predecessors shall not have defaulted in the payment of interest on any of its securities and that during each of any three (3) including the last two (2) of the five (5) fiscal years next preceding the date of acquisition by the SSS of such bonds, debentures or other evidence of indebtedness, the net earnings of the issuing or assuming institution available for its fixed charges, as defined in this Act, shall have been not less than one and one-quarter times the total of its fixed charges for such year: Provided, further, That such investments shall not exceed thirty percent (30%) of the Investment Reserve Fund;

“(i) In preferred or common shares of stocks listed or about to be listed in the stock exchange or options or warrants to such stocks or, subject to prior approval of the Bangko Sentral ng Pilipinas, such other risk management instruments of any prime or solvent corporation or financial institution created or existing under the laws of the Philippines with proven track record of profitability over the last three (3) years and payment of dividends at least once over the same period: Provided, That such investments shall not exceed thirty percent (30%) of the Investment Reserve Fund;

“(j) In domestic or foreign mutual funds in existence for at least three (3) years; Provided, That such investments shall not exceed twenty percent (20%) of the Investment Reserve Fund: Provided, further, That investments in foreign mutual funds shall not exceed one percent (1%) of the Investment Reserve Fund in the first year which shall be increased by one percent (1%) for each succeeding year, but in no case shall it exceed seven and one-half percent (7.5%) of the Investment Reserve Fund;

“(k) In foreign currency deposits or triple “A” foreign currency denominated debts, prime and non-speculative equities, and other Bangko Sentral ng Pilipinas approved financial instruments or other assets issued in accordance with the existing laws of the countries where such financial instruments are issued: Provided, That these instruments or assets are listed in bourses of the respective countries where these instruments or assets are issued: Provided, further, That the issuing company has proven track of record of profitability over the last three (3) years and a record of regular dividend pay-out over the same period: Provided, finally, That such investments shall not exceed one percent (1%) of the Investment Reserve Fund in the first year which shall be increased by one percent (1%) for each succeeding year, but in no case shall it exceed seven and one-half percent (7.5%) of the Investment Reserve Fund;

“(l) In loans secured by such collaterals like cash, government securities or guarantees of multilateral institutions: Provided, That such investments shall not exceed thirty percent (30%) of the Investment Reserve Fund; and

“(m) In other Bangko Sentral ng Pilipinas approved investment instruments with the same intrinsic quality as those enumerated in paragraphs (a) to (l) hereof, subject to the policies and guidelines which the Commission may formulate.

“No portion of the Investment Reserve Fund or income thereof shall accrue to the general fund of the National Government or to any of its agencies or instrumentalities, including government-owned or controlled corporations, except as may be allowed under this Act: Provided, That no portion of the Investment Reserve Fund shall be invested for any purpose or in any instrument, institution or industry over and above the prescribed cumulative ceilings as follows:

40% in private securities

35% in housing

30% in real estate related investments

10% in short and medium-term member loans

30% in government financial institutions and corporations

30% in infrastructure projects

15% in any particular industry

7.5% in foreign-currency denominated investments

SEC. 26-A. Fund Managers. - As part of its investment operations, the SSS may appoint local or, in the absence thereof, foreign fund managers to manage the Investment Reserve Fund, as it may deem appropriate.

SEC. 26-B. Mortgagor Insurance Account. - (a) As part of its investment operations, the SSS shall act as insurer of all or part of its interest on SSS properties mortgaged to the SSS, or lives of mortgagors whose properties are mortgaged to the SSS. For this purpose, the SSS shall establish a separate account to be known as the “Mortgagors’ Insurance Account.” All amounts received by the SSS in connection with the aforesaid insurance operations shall be placed in the Mortgagors’ Insurance Account. The assets and liabilities of the Mortgagors’ Insurance Account shall at all times be clearly identifiable and distinguishable from the assets and liabilities in all other accounts of the SSS. Notwithstanding any provision of law to the contrary, the assets held in the Mortgagors’ Insurance Account shall not be chargeable with the liabilities arising out of any other business the SSS may conduct but shall be held and applied exclusively for the benefit of the owners or beneficiaries of the insurance contracts issued by the SSS under this paragraph.

“(b) The SSS may insure any of its interest or part thereof with any private company or reinsurer. The Insurance Commission or its authorized representatives shall make an examination into the financial condition and methods of transacting business of the SSS at least once in two (2) years, but such examination shall be limited to the insurance operation of the SSS as authorized under this paragraph and shall not embrace the other operations of the SSS; and the report of said examination shall be submitted to the Commission and a copy thereof shall be furnished the Office of the President of the Philippines within a reasonable time after the close of the examination: Provided, That for each examination, the SSS shall pay to the Insurance Commission an amount equal to the actual expense of the Insurance Commission in the conduct of examination, including the salaries of the examiners and of the actuary of the Insurance Commission who have been assigned to make such examination for the actual time spent in said examination: Provided, further, That the general law on insurance and the rules and regulations promulgated thereunder shall have suppletory application insofar as it is not in conflict with this Act and its rules and regulations.

SEC. 27. Records and Reports. - The SSS President shall keep and cause to keep records of operations of the funds of the SSS and of disbursements thereof and all accounts of payments made out of said funds. During the month of January of each year, the SSS President shall prepare for submission to the President of the Philippines and to Congress of the Philippines a report of operations of the SSS during the preceding year, including statistical data on the number of persons covered and benefited, their occupations and employment status, the duration and amount of benefits paid, the finances of the SSS at the close of the said year, and recommendations. He shall also cause to be published in two (2) newspapers of general circulation in the Philippines a synopsis of the annual report, showing in particular the status of the finances of the SSS and the benefits administered.

SEC. 28. Penal Clause. - (a) Whoever, for the purpose of causing any payment to be made under this Act, or under an agreement thereunder, where none is authorized to be paid, shall make or cause to be made false statement or representation as to any compensation paid or received or whoever makes or causes to be made any false statement of a material fact in any claim for any benefit payable under this Act, or application for loan with the SSS, or whoever makes or causes to be made any false statement, representation, affidavit or document in connection with such claim or loan, shall suffer the penalties provided for in Article One hundred seventy-two of the Revised Penal Code.

“(b) Whoever shall obtain or receive any money or check under this Act or any agreement thereunder, without being entitled thereto with intent to defraud any member, employer or the SSS, shall be fined not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00) and imprisoned for not less than six (6) years and one (1) day nor more than twelve (12) years.

“(c) Whoever buys, sells, offers for sale, uses, transfers or takes or gives in exchange, or pledges or gives in pledge, except as authorized in this Act or in regulations made pursuant thereto, any stamp, coupon, ticket, book or other device, prescribed pursuant to Section Twenty-three hereof by the Commission for the collection or payment of contributions required herein, shall be fined not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00), or imprisoned for not less than six (6) years and one (1) day nor more than twelve (12) years, or both, at the discretion of the court.

“(d) Whoever, with intent to defraud, alters, forges, makes or counterfeits any stamp, coupon, ticket, book or other device prescribed by the Commission for the collection or payment of any contribution required herein, or uses, sells, lends, or has in his possession any such altered, forged or counterfeited materials, or makes, uses, sells or has in his possession any such altered, forged, material in imitation of the material used in the manufacture of such stamp, coupon, ticket, book or other device, shall be fined not less than Five thousand pesos (P5,000.00) non more than Twenty thousand pesos (P20,000.00) or imprisoned for not less than six years (6) and one (1) day nor more than twelve (12) years, or both, at the discretion of the court.

“(e) Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulations promulgated by the Commission, shall be punished by a fine of not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00), or imprisonment for not less than six (6) years and one (1) day nor more than twelve (12) years, or both, at the discretion of the court: Provided, That where the violation consists in failure or refusal to register employees or himself, in case of the covered self-employed or to deduct contributions from the employees’ compensation and remit the same to the SSS, the penalty shall be a fine of not less Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00) and imprisonment for not less than six (6) years and one (1) day nor more than twelve (12) years.

“(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 for the penalties provided in this Act for the offense.

“(g) Any employee of the SSS who receives or keeps funds or property belonging, payable or deliverable to the SSS and who shall appropriate the same, or shall take or misappropriate, or shall consent, or through abandonment or negligence, shall permit any other person to take such property or funds, wholly or partially, or shall otherwise be guilty of misappropriation of such funds or property, shall suffer the penalties provided in Article Two hundred seventeen of the Revised Penal Code.

“(h) Any employer who, after deducting the monthly contributions or loan amortizations from his employee’s compensation, fails to remit the said deduction to the SSS within thirty (30) days from the date they became due, shall be presumed to have misappropriated such contributions or loan amortizations and shall suffer the penalties provided in Article Three hundred fifteen of the Revised Penal Code.

“(i) Criminal action arising from a violation of the provisions 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: Provided, That such criminal action may be filed by the SSS in the city or municipality where the SSS office is located, if the violation was committed within its territorial jurisdiction or in Metro Manila, at the option of the SSS.

SEC. 29. Government Aid. - The establishment of the SSS shall not disqualify the members and employers from receiving such government assistance, financial or otherwise, as may be provided.

SEC. 30. Transitory Clause. - Any employer who is delinquent or has not remitted all contributions due and payable to the SSS may, within six (6) months from the effectivity of this Act, remit said contributions or submit a proposal to pay the same in installment within a period of not more than twelve (12) months from the effectivity of this Act without incurring the prescribed penalty, subject to the implementing rules and regulations which the Commission may prescribe: Provided, That the employer submits the corresponding collection lists together with the remittance or proposal to pay in installments: Provided, further, That in case the employer fails to remit contributions within the six-month grace period or defaults in the payment of any amortization provided the approved proposal, the prescribed penalty shall be imposed from the time the contributions first became due as provided in Section 22 (a) hereof.”

SEC. 2. Separability Clause. – If any provision of this Act is declared invalid, the other provisions not affected thereby shall remain valid.

SEC. 3. Repealing Clause. – All laws, proclamations, executive orders, rules and regulations or parts thereof inconsistent with this Act are hereby repealed, modified or amended accordingly: Provided, That no person shall be deemed to be vested with any property or other right by virtue of the enactment or operation of this Act.

SEC. 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at least two (2) national newspapers of general circulation whichever comes earlier.

Approved: May 01, 1997

Posted by: Elmer Brabante | February 22, 2011

The GSIS Law of 1997 (RA 8291)


REPUBLIC ACT NO. 8291

AN ACT AMENDING PRESIDENTIAL DECREE NO. 1146, AS AMENDED, EXPANDING AND INCREASING THE COVERAGE AND BENEFITS OF THE GOVERNMENT SERVICE INSURANCE SYSTEM, INSTITUTING REFORMS THEREIN AND FOR OTHER PURPOSES.

 

SECTION 1. Presidential Decree No. 1146, as amended, otherwise known as the “Revised Government Service Insurance Act of 1977″, is hereby further amended to read as follows:

“SECTION 1. Title. -The title of this Act shall be: “The Government Service Insurance System Act of 1997.”

“A. DEFINITIONS

“SEC. 2. Definition of terms.- Unless the context otherwise indicates, the following terms shall mean:

“(a) GSIS- The Government Service Insurance System created by Commonwealth Act No. 186;

“(b) Board- The Board of Trustees of the Government Service Insurance System;

“(c) Employer- The national government, its political subdivisions, branches, agencies or instrumentalities, including government-owned or controlled corporations, and financial institutions with original charters, the constitutional commissions and the judiciary;

“(d) Employee or Member- Any person receiving compensation while in the service of an employer as defined herein, whether by election or appointment, irrespective of status of appointment, including barangay and Sanggunian officials;

“(e) Active Member- A member who is not separated from the service;

“(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;

“(i) Compensation- The basic pay or salary received by an employee, pursuant to his election/appointment, excluding per diems, bonuses, overtime pay, honoraria, allowances and any other emoluments received in addition to the basic pay which are not integrated into the basic pay under existing laws;

“(j) Contribution- The amount payable to the GSIS by the member and the employer in accordance with Section 5 of this Act;

“(k) Current Daily Compensation- The actual daily compensation or the actual monthly compensation divided by the number of working days in the month of contingency but not to exceed twenty-two (22) days;

“(l) Average Monthly Compensation (AMC)- The quotient arrived at after dividing the aggregate compensation received by the member during his last thirty-six (36) months of service preceding his separation/retirement/ disability/death by thirty-six (36), or by the number of months he received such compensation if he has less than thirty-six (36) months of service: Provided, That the average monthly compensation shall in no case exceed the amount and rate as may be respectively set by the Board under the rules and regulations implementing this Act as determined by the actuary of the GSIS: Provided, further, That initially the average monthly compensation shall not exceed Ten thousand pesos (P10,000.00), and premium shall be nine percent (9%) and twelve percent (12%) for employee and employer covering the AMC limit and below and two percent (2%) and twelve percent (12%) for employee and employer covering the compensation above the AMC limit;

“(m) Revalued average monthly compensation- An amount equal to one hundred seventy percent (170%) of the first One thousand pesos (P1,000.00) of the average monthly compensation plus one hundred percent (100%) of the average monthly compensation in excess of One thousand pesos (P1,000.00);

“(n) Lump sum- The basic monthly pension multiplied by sixty (60);

“(o) Pensioner- Any person receiving old-age permanent total disability pension or any person who has received the lump sum excluding one receiving survivorship pension benefits as defined in Section 20 of this Act;

“(p) Gainful Occupation- Any productive activity that provided the member with income at least equal to the minimum compensation of government employees;

“(q) Disability- Any loss or impairment of the normal functions of the physical and/or mental faculty of a member which reduces or eliminates his/her capacity to continue with his/her current gainful occupation or engage in any other gainful occupation;

“(r) Total Disability- Complete incapacity to continue with his present employment or engage in any gainful occupation due to the loss or impairment of the normal functions of the physical and/or mental faculties of the member;

“(s) Permanent Total Disability- Accrues or arises when recovery from the impairment mentioned in Section 2 (Q) is medically remote;

“(t) Temporary Total Disability- Accrues or arises when the impaired physical and/or mental faculties can be rehabilitated and/or restored to their normal functions;

“(u) Permanent Partial Disability- Accrues or arises upon the irrevocable loss or impairment of certain portion/s of the physical faculties, despite which the member is able to pursue a gainful occupation.

 

“B. MEMBERSHIP IN THE GSIS

“SEC. 3. Compulsory Membership. - Membership in the GSIS shall be compulsory for all employees receiving compensation who have not reached the compulsory retirement age, irrespective of employment status, except members of the Armed Forces of the Philippines and the Philippine National Police, subject to the condition that they must settle first their financial obligation with the GSIS, and contractuals who have no employer and employee relationship with the agencies they serve.

“Except for the members of the judiciary and constitutional commissions who shall have life insurance only, all members of the GSIS shall have life insurance, retirement, and all other social security protections such as disability, survivorship, separation, and unemployment benefits.

“SEC. 4. Effect of Separation from the Service. - A member separated from the service shall continue to be a member, and shall be entitled to whatever benefits he has qualified to in the event of any contingency compensable under this Act.

 

“C. SOURCES OF FUNDS

“SEC. 5. Contributions. - (a) It shall be mandatory for the member and employer to pay the monthly contributions specified in the following schedule:

“Monthly Compensation              Percentage of Monthly
                                                     Compensation
                                                        Payable by
                                               Member             Employer

I.  Maximum Average
    Monthly Compensation
    (AMC) Limit and Below             9.0%                  12.0%

II. Over the Maximum
    AMC Limit

     -Up to the Maximum
      AMC Limit                             9.0%                  12.0%

    -In Excess of the
     AMC Limit                               2.0%                  12.0%

“Members of the judiciary and constitutional commissioners shall pay three percent (3%) of their monthly compensation as personal share and their employers a corresponding three percent (3%) share for their life insurance coverage.

“(b) The employer shall include in its annual appropriation the necessary amounts for its share of the contributions indicated above, plus any additional premiums that may be required on account of the hazards or risks of its employee’s occupation.

“(c) It shall be mandatory and compulsory for all employers to include the payment of contributions in their annual appropriations. Penal sanctions shall be imposed upon employers who fail to include the payment of contributions in their annual appropriations or otherwise fail to remit the accurate/exact amount of contributions on time, or delay the remittance of premium contributions to the GSIS. The heads of offices and agencies shall be administratively liable for non-remittance or delayed remittance of premium contributions to the GSIS.

“SEC. 6. Collection and Remittance of Contributions. – (a) The employer shall report to the GSIS the names of all its employees, their corresponding employment status, positions, salaries and such other pertinent information, including subsequent changes therein, if any, as may be required by the GSIS; the employer shall deduct each month from the monthly salary or compensation of each employee the contribution payable by him in accordance with the schedule prescribed in the rules and regulations implementing this Act.

“(b) Each employer shall remit directly to the GSIS the employee’s and employer’s contributions within the first ten (10) days of the calendar month following the month to which the contributions apply. The remittance by the employer of the contribution to the GSIS shall take priority over and above the payment of any and all obligations, except salaries and wages of its employees.

“SEC. 7. Interest on Delayed Remittances. - Agencies which delay the remittance of any and all monies due the GSIS shall be charged interests as may be prescribed by the Board but not less than two percent (2%) simple interest per month. Such interest shall be paid by the employers concerned.

“SEC. 8. Government Guarantee. - The government of the Republic of the Philippines hereby guarantees the fulfillment of the obligations of the GSIS to its members as and when they fall due.

 

“D. BENEFITS

“SEC. 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

“2) two and one-half percent (2.5%) of said revalued average monthly compensation for each year of service in excess of (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) years of service after the effectivity of this Act shall not be less than Two thousand four hundred pesos (P2,400.00) a month.

“SEC. 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

“SEC. 11. Separation Benefits. – The separation benefits 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 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 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.

“SEC. 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: Provided, That he has been paying integrated contributions for at least one (1) year prior to separation. Unemployment benefits shall be paid in accordance with the following schedules:

                        “Contributions Made                         Benefit Duration

                    1 year but less than 3 years                     2 months
                    3 or more years but less than 6 years       3 months
                    6 or more years but less than 9 years       4 months
                    9 or more years but less than 11 years     5 months
                    11 or more years but less than 15 years   6 months

“The first payment shall be equivalent to two (2) monthly benefits. A seven-day (7) waiting period shall be imposed on succeeding monthly payments.

“All accumulated unemployment benefits paid to the employee during his entire membership with the GSIS shall be deducted from voluntary separation benefits.

“The GSIS shall prescribe the detailed guidelines in the operationalization of this section in the rules and regulations implementing this Act.

 

“RETIREMENT BENEFITS

“SEC. 13. Retirement Benefits. – (a) Retirement benefits shall be:

“(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 five-year (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 of 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.

“SEC. 13-A. Conditions for Entitlement. - A member who retires from the service shall be entitled to the retirement benefits enumerated in paragraph (a) of Section 13 hereof: Provided, That:

(1) he has rendered at least fifteen 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.

“SEC. 14. Periodic Pension Adjustment. - The monthly pension of all pensioners including all those receiving survivorship pension benefits shall be periodically adjusted as may be recommended by the GSIS actuary and approved by the Board in accordance with the rules and regulations prescribed by the GSIS.

 

“PERMANENT DISABILITY BENEFITS

“SEC. 15. General Conditions for Entitlement. - A member who suffers permanent disability for reasons not due to his grave misconduct, notorious negligence, habitual intoxication, or willful intention to kill himself or another, shall be entitled to the benefits provided for under Sections 16 and 17 immediately following, subject to the corresponding conditions thereof.

“SEC. 16. Permanent Total Disability Benefits. - (a) If the permanent disability is total, he shall receive a monthly income benefit for life equal to the basic monthly pension effective from the date of disability: Provided, That:

(1) he is in the service at the time of disability; or

(2) if separated from the service, he has paid at least thirty-six (36) monthly contributions within the five (5) year period immediately preceding disability, or has paid a total of at least one hundred eighty (180) monthly contributions, prior to his disability: Provided, further, That if at the time of disability, he was in the service and has paid a total of at least one hundred eighty (180) monthly contributions, in addition to the monthly income benefit, he shall receive a cash payment equivalent to eighteen (18) times his basic monthly pension: Provided, finally, That a member cannot enjoy the monthly income benefit for permanent disability and the old-age retirement simultaneously.

“(b) If a member who suffers permanent total disability does not satisfy conditions (1) and (2) in paragraph (a) of this section but has rendered at least three (3) years of service at the time of his disability, he shall be advanced the 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 (P12,000.00) which should have been his separation benefit.

“(c) Unless the member has reached the minimum retirement age, disability benefit shall be suspended when:

“(1) he is reemployed; or

“(2) he recovers from his disability as determined by the GSIS, whose decision shall be final and binding; or

“(3) he fails to present himself for medical examination when required by the GSIS.

“(d) The following disabilities shall be deemed total and permanent:
 

“(1) complete loss of sight of both eyes;

“(2) loss of two (2) limbs at or above the ankle or wrist;

“(3) permanent complete paralysis of two (2) limbs;

“(4) brain injury resulting in incurable imbecility or insanity; and

“(5) such other cases as may be determined by the GSIS.

“SEC. 17. Permanent Partial Disability Benefits. - (a) If the disability is partial, he shall receive a cash payment in accordance with a schedule of disabilities to be prescribed by the GSIS: Provided, That he satisfies either conditions (1) or (2) of Section 16 (a);

“(b) The following disabilities shall be deemed permanent partial:

“(1) complete and permanent loss of the use of:

(i) any finger
(ii) any toe
(iii) one arm
(iv) one hand
(v) one foot
(vi) one leg
(vii) one or both ears
(viii) hearing of one or both ears
(ix) sight of both eyes
 

“(2) such other cases as my be determined by the GSIS.


“TEMPORARY DISABILITY BENEFITS

“SEC. 18. Temporary Total Disability Benefits. - (a) A member who suffers temporary total disability for reasons not due to any of the conditions enumerated in Section 15 hereof shall be entitled to seventy-five percent (75%) of his current daily compensation for each day or fraction thereof of temporary disability benefit not exceeding one hundred twenty (120) days in one calendar year after exhausting all his sick leave credits and collective bargaining agreement sick leave benefits, if any, but not earlier than the fourth day of his temporary total disability: Provided, That:

“(1) he is in the service at the time of his disability; or

“(2) if separated, he has rendered at least three (3) years of service and has paid at least six (6) monthly contributions in the twelve-month period immediately preceding his disability.

“Provided, however, That a member cannot enjoy the temporary total disability benefit and sick leave pay simultaneously: Provided, further, That if the disability requires more extensive treatment that lasts beyond one hundred twenty (120) days, the payment of the temporary total disability benefit may be extended by the GSIS but not to exceed a total of two hundred forty (240) days.

“(b) The temporary total disability benefit shall in no case be less than Seventy pesos (P70.00) a day.

“(c) The notices required of the member and the employer, the mode of payment, and the other requirements for entitlement to temporary total disability benefits shall be provided in the rules and regulations to be prescribed by the GSIS.

“SEC. 19. Non-scheduled Disability. - For injuries or illnesses resulting in a disability not listed in the schedule of partial/total disability provided herein, the GSIS shall determined the nature of the disability and the corresponding benefits therefor.

 

“SURVIVORSHIP BENEFITS

“SEC. 20. Survivorship Benefits. - When a member or pensioner dies, the beneficiaries shall be entitled to survivorship benefits provided in Sections 21 and 22 hereunder subject to the conditions therein provided for. The survivorship pension shall consist of:

(1) the basic survivorship pension which is fifty percent (50%) of the basic monthly pension; and

(2) the dependent children’s pension not exceeding fifty percent (50%) of the basic monthly pension
.

“SEC. 21. Death of a Member. - (a) Upon the death of a member, the primary beneficiaries shall be entitled to:

(1) survivorship pension: Provided, That the deceased:

(i) was in the service at the time of his death; or

(ii) if separated from the service, has at least three (3) years of service at the time of his death and has paid thirty-six (36) monthly contributions within the five-year period immediately preceding his death; or has paid a total of at least one hundred eighty (180) monthly contributions prior to his death; or

(2) the survivorship pension plus a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for every year of service: Provided, That the deceased was in the service at the time of his death with at least three (3) years of service; or

(3) 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 (P12,000.00): Provided, That the deceased has rendered at least three (3) years of service prior to his death but does not qualify for the benefits under item (1) or (2) of this paragraph.

(b) The survivorship pension shall be paid as follows:

(1) when the dependent spouse is the only survivor, he/she shall receive the basic survivorship pension for life or until he/she remarries;

(2) when only dependent children are the survivors, they shall be entitled to the basic survivorship pension for as long as they are qualified, plus the dependent children’s pension equivalent to ten percent (10%) of the basic monthly pension for every dependent child not exceeding five (5), counted from the youngest and without substitution;

(3) when the survivors are the dependent spouse and the dependent children, the dependent spouse shall receive the basic survivorship pension for life or until he/she remarries, and the dependent children shall receive the dependent children’s pension mentioned in the immediately preceding paragraph (2) hereof.

(c) In the absence of primary beneficiaries, the secondary beneficiaries shall be entitled to:

(1) the 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 (P12,000.00): Provided, That the member is in the service at the time of his death and has at least three (3) years of service; or

(2) in the absence of secondary beneficiaries, the benefits under this paragraph shall be paid to his legal heirs.

(d) For purposes of the survivorship benefits, legitimate children shall include legally adopted and legitimated children.

“SEC. 22. Death of a Pensioner. - Upon the death of an old-age pensioner or a member receiving the monthly income benefit for permanent disability, the qualified beneficiaries shall be entitled to the survivorship pension defined in Section 20 of this Act, subject to the provisions of paragraph (b) of Section 21 hereof. When the pensioner dies within the period covered by the lump sum, the survivorship pension shall be paid only after the expiration of the said period.

 

“FUNERAL BENEFITS

“SEC. 23. Funeral Benefits. - The amount of the funeral benefits shall be determined and specified by the GSIS in the rules and regulations but shall not be less than Twelve thousand pesos (P12,000.00): Provided, That it shall be increased to at least Eighteen thousand pesos (P18,000.00) after five (5) years and shall be paid upon the death of:

(a) an active member as defined under Section 2 (e) of this Act; or
(b) a member who has been separated from the service, but who may be entitled to future benefit pursuant to Section 4 of this Act; or
(c) a pensioner, as defined in Section 2 (o) of this Act; or
(d) a retiree who at the time of his retirement was of pensionable age under this Act but who opted to retire under Republic Act No. 1616.

“LIFE INSURANCE BENEFITS

“SEC. 24. Compulsory Life Insurance. - All employees except for Members of the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP) shall, under such terms and conditions as may be promulgated by the GSIS, be compulsorily covered with life insurance, which shall automatically take effect as follows:

(1) for those employed after the effectivity of this Act, their insurance shall take effect on the date of their employment;
(2) for those whose insurance will mature after the effectivity of this Act, their insurance shall be deemed renewed on the day following the maturity or expiry date of their insurance;
(3) for those without any life insurance as of the effectivity of this Act, their insurance shall take effect following said effectivity.

“SEC. 25. Dividends. - An annual dividend may be granted to all members of the GSIS whose life insurance is in force for at least one (1) year in accordance with a dividends allocation formula to be determined by the GSIS.

“SEC. 26. Optional Insurance. - Subject to the rules and regulations prescribed by the GSIS, a member may apply for insurance and/or pre-need coverage embracing life, health, hospitalization, education, memorial plans, and such other plans as may be designed by the GSIS, for himself and/or his dependents. Any employer may likewise apply for group insurance coverage for its employees. The payment of the premiums/installments for optional insurance and pre-need products may be made by the insured or his employer and/or any person acceptable to the GSIS.

“SEC. 27. Reinsurance. - The GSIS may reinsure any of its interests or part thereof with any private company or reinsurer whether domestic of foreign: Provided, That the GSIS shall submit an annual report on its reinsurance operations to the Insurance Commission.

 

“E. ADJUDICATION OF CLAIMS AND DISPUTES

“SEC. 28. Prescription. - Claims for benefits under this Act except for life and retirement shall prescribe after four (4) years from the date of contingency.

“SEC. 29. Facility of Payment. – The GSIS shall prescribe rules and regulations to facilitate payment of benefits, proceeds, and claims under this Act and any other laws administered by the GSIS. Payments made by the GSIS prior to its receipt of an adverse claim, to a beneficiary or claimant subsequently found not entitled thereto, shall not bar the legal and eligible recipient to his right to demand the payment of benefits, proceeds, and claims from the GSIS, who shall, however, have a right to institute the appropriate action in a court of law against the ineligible recipient.

“SEC. 30. Settlement of Disputes. - The GSIS shall have original and exclusive jurisdiction to settle any disputes arising under this Act and any other laws administered by the GSIS.

The Board may designate any member of the Board, or official of the GSIS who is a lawyer, to act as hearing officer to receive evidence, make findings of fact and submit recommendations, together with all documentary and testimonial evidence to the Board within thirty (30) working days from the time the parties have closed their respective evidence and filed their last pleading. The Board shall decide the case within thirty (30) days from the receipt of the hearing officer’s findings and recommendations. The cases heard directly by the Board shall be decided within thirty (30) working days from the time they are submitted by the parties for decision.

“SEC. 31. Appeals. - Appeals from any decision or award of the Board shall be governed by Rules 43 and 45 of the 1997 Rules of Civil Procedure adopted by the Supreme Court on April 8, 1997 which will take effect on July 1, 1997: Provided, That pending cases and those filed prior to July 1, 1997 shall be governed by the applicable rules of procedure: Provided, further, That the appeal shall take precedence over all other cases except criminal cases when the penalty of life imprisonment or death or reclusion perpetua is imposable.

The appeal shall not stay the execution of the order or award unless ordered by the Board, by the Court of Appeals or by the Supreme Court and the appeal shall be without prejudice to the special civil action of certiorari when proper.

“SEC. 32. Execution of Decision. - When no appeal is perfected and there is no order to stay by the Board, by the Court of Appeals or by the Supreme Court, any decision or award of the Board shall be enforced and executed in the same manner as decisions of the Regional Trial Court. For this purpose, the Board shall have the power to issue to the city or provincial sheriff or its appointed sheriff such writs of execution as may be necessary for the enforcement of such decision or award, and any person who shall fail or refuse to comply with such decision, award, writ or process after being required to do so shall, upon application by the GSIS, be punished for contempt.

“SEC. 33. Oaths, Witnesses, and Production of Records. - When authorized by the Board, an official or employee of the GSIS shall have the power to administer oath and affirmation, take deposition, certify to official acts, and issue subpoena ad testificandum and subpoena duces tecum to compel the attendance of witnesses and the production of books, papers, correspondences, and other records deemed necessary as evidence in connection with any question arising under this Act. Any case of contumacy shall be dealt with in accordance with the provisions of Section 580 of the Revised Administrative Code.

 

“F. FUNDS OF THE GSIS

“SEC. 34. Funds. - All contributions payable under Section 5 of this Act together with the earnings and accruals thereon shall constitute the GSIS Social Insurance Fund. The said fund shall be used to finance the benefits administered by the GSIS under this Act. In addition, the GSIS shall administer the optional insurance fund for the insurance coverage described in Section 26 hereof, the Employees’ Compensation Insurance Fund created under P.D. 626, as amended, General Insurance Fund created under Act No. 656, as amended, and such other special funds existing or that may be created for special groups or persons rendering services to the government. The GSIS shall maintain the required reserves to guarantee the fulfillment of its obligations under this Act.

The funds of the GSIS shall not be used for purposes other than what are provided for under this Act. Moreover, no portion of the funds of the GSIS or income thereof shall accrue to the General Fund of the national government and its political subdivisions, instrumentalities and other agencies including government-owned and controlled corporations except as may be allowed under this Act.

“SEC. 35. Deposits and Disbursements. - All revenues collected and all accruals thereto shall be deposited, administered and disbursed in accordance with the law. A maximum expense loading of twelve percent (12%) of the yearly revenues from all sources may be disbursed for administrative and operational expenses except as may be otherwise approved by the President of the Philippines on the basis of actuarial and management studies.

“SEC. 36. Investment of Funds. - The funds of the GSIS which are not needed to meet the current obligations may be invested under such terms and conditions and rules and regulations as may be prescribed by the Board: Provided, That investments shall satisfy the requirements of liquidity, safety/security and yield in order to ensure the actuarial solvency of the funds of the GSIS: Provided, further, That the GSIS shall submit an annual report on all investments made to both Houses of Congress of the Philippines, to wit:

(a) in interest-bearing bonds or securities or other evidence of indebtedness of the Government of the Philippines;

(b) in interest-bearing deposits or securities in any domestic bank doing business in the Philippines: Provided, That in the case of such deposits, there shall not exceed at any time the unimpaired capital and surplus or total private deposits of the depository bank, whichever is smaller: Provided, further, That the said bank has prior designation as a depository for the purpose by the Monetary Board of the Central Monetary Authority;

(c) in direct housing loans to members and group housing projects secured by first mortgage, giving priority to the low income groups and in short and medium term loans to members such as salary, policy, educational, emergency stock purchase plan and other similar loans: Provided, That no less than forty percent (40%) of the investible fund of the GSIS Social Insurance Fund shall be invested for these purposes;

(d) in bonds, securities, promissory notes or other evidence of indebtedness of educational or medical institutions to finance the construction, improvement and maintenance of schools and hospitals;

(e) in real estate property including shares of stocks involving real state property and investments secured by first mortgages on real estate or other collaterals acceptable to the GSIS: Provided, That such investment shall, in the determination of the Board, redound to the benefit of the GSIS, its members as well as the general public;

(f) in debt instruments and other securities traded in the secondary markets;

(g) in loans to, or in bonds, debentures, promissory notes or other evidence of indebtedness of any solvent corporation created or existing under the laws of the Philippines;

(h) in common and preferred stocks of any solvent corporation or financial institution created or existing under the laws of the Philippines listed in the stock exchange with proven track record of profitability over the last three (3) years and payment of dividends at least once over the same period;

(i) in domestic mutual funds including investments related to the operations of mutual funds; and

(j) in foreign mutual funds and in foreign currency deposits or foreign currency-denominated debts, non-speculative equities and other financial instruments or other assets issued in accordance with existing laws of the countries where such financial instruments are issued: Provided, That these instruments or assets are listed in bourses of the respective countries where these instruments or assets are issued: Provided, further, That the issuing company has proven track record of profitability over the last three (3) years and payment of dividends at least once over the same period.

“SEC. 37. Records and Reports. – The GSIS shall keep and cause to keep such records as may be necessary for the purpose of making actuarial studies, calculations and valuations of the funds of the GSIS including such data needed in the computation of rates of disability, mortality, morbidity, separation and retirement among the members and any other information useful for the adjustment of the benefits of the members. The GSIS shall maintain appropriate books of accounts to record its assets, liabilities, income, expenses, receipts and disbursement of funds and other financial transactions and operations.

“SEC. 38. Examination and Valuation of the Funds. - The GSIS shall make a periodic actuarial examination and valuation of its funds in accordance with accepted actuarial principles.

“SEC. 39. Exemption from Tax, Legal Process and Lien. - It is hereby declared to be the policy of the State that the actuarial solvency of the funds of the GSIS shall be preserved and maintained at all times and that contribution rates necessary to sustain the benefits under this Act shall be kept as low as possible in order not to burden the members of the GSIS and their employers. Taxes imposed on the GSIS tend to impair the actuarial solvency of its funds and increase the contribution rate necessary to sustain the benefits of this Act. Accordingly, notwithstanding any laws to the contrary, the GSIS, its assets, revenues including all accruals thereto, and benefits paid, shall be exempt from all taxes, assessments, fees, charges, or duties of all kinds. These exemptions shall continue unless expressly and specifically revoked and any assessment against the GSIS as of the approval of this Act are hereby considered paid. Consequently, all laws, ordinances, regulations, issuances, opinions or jurisprudence contrary to or in derogation of this provision are hereby deemed repealed, superseded and rendered ineffective and without legal force and effect.

“Moreover, these exemptions shall not be affected by subsequent laws to the contrary unless this section is expressly, specifically and categorically revoked or repealed by law and a provision is enacted to substitute or replace the exemption referred to herein as an essential factor to maintain or protect the solvency of the fund, notwithstanding and independently of the guaranty of the national government to secure such solvency or liability.

“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.

 

“G. ADMINISTRATION

“SEC. 40. Implementing Body. – The Government Service Insurance System as created under Commonwealth Act No. 186 shall implement the provisions of this Act.

“SEC. 41. Powers and Functions of the GSIS. - The GSIS shall exercise the following powers and functions:

(a) to formulate, adopt, amend and/or rescind such rules and regulations as may be necessary to carry out the provisions and purposes of this Act, as well as the effective exercise of the powers and functions, and the discharge of duties and responsibilities of the GSIS, its officers and employees;

(b) to adopt or approve the annual and supplemental budget of receipts and expenditures including salaries and allowances of the GSIS personnel; to authorize such capital and operating expenditures and disbursements of the GSIS as may be necessary and proper for the effective management and operation of the GSIS;

(c) to invest the funds of the GSIS, directly or indirectly, in accordance with the provisions of this Act;

(d) to acquire, utilize or dispose of, in any manner recognized by law, real or personal property in the Philippines or elsewhere necessary to carry out the purposes of this Act;

(e) to conduct continuing actuarial and statistical studies and valuations to determine the financial €condition of the GSIS and taking into consideration such studies and valuations and the limitations herein provided, re-adjust the benefits, contributions, premium rates, interest rates or the allocation or re-allocation of the funds to the contingencies covered;

(f) to have the power of succession;

(g) to sue and be sued;

(h) to enter into, make, perform and carry out contracts of every kind and description with any person, firm or association or corporation, domestic or foreign;

(i) to carry on any other lawful business whatsoever in pursuance of, or in connection with the provisions of this Act;

(j) to have one or more offices in and outside of the Philippines, and to conduct its business and exercise its powers throughout and in any part of the Republic of the Philippines and/or in any or all foreign countries, states and territories: Provided, That the GSIS shall maintain a branch office in every province where there exists a minimum of fifteen thousand (15,000) membership;

(k) to borrow funds from any source, private or government, foreign or domestic, only as an incident in the securitization of housing mortgages of the GSIS and on account of its receivables from any government or private entity;

(l) to invest, own or otherwise participate in equity in any establishment, firm or entity;

(m) to approve appointments in the GSIS except appointments to positions which are policy determining, primarily confidential or highly technical in nature according to the Civil Service rules and regulations: Provided, That all positions in the GSIS shall be governed by the compensation and position classification system and qualifications standards approved by the GSIS Board of Trustees based on a comprehensive job analysis and audit of actual duties and responsibilities: Provided, further, That the compensation plan shall be comparable with the prevailing compensation plans in the private sector and shall be subject to the periodic review by the Board no more than once every four (4) years without prejudice to yearly merit reviews or increases based on productivity and profitability;

(n) to design and adopt an Early Retirement Incentives Plan (ERIP) and/or financial assistance for the purpose of retirement for its own personnel;

(o) to fix and periodically review and adjust the rates of interest and other terms and conditions for loans and credits extended to members or other persons, whether natural or juridical;

(p) to enter into agreement with the Social Security System or any other entity, enterprise, corporation or partnership for the benefit of members transferring from one system to another subject to the provisions of Republic Act No. 7699, otherwise known as the Portability Law;

(q) to be able to float proper instrument to liquefy long-term maturity by pooling funds for short-term secondary market;

(r) to submit annually, not later than June 30, a public report to the President of the Philippines and the
Congress of the Philippines regarding its activities in the administration and enforcement of this Act during the preceding year including information and recommendations on board policies for the development and perfection of the programs of the GSIS;

(s) to maintain a provident fund, which consists of contributions made by both the GSIS and its officials and employees and their earnings, for the payments of benefits to such officials and employees or their heirs under such terms and conditions as it may prescribe;

(t) to approve and adopt guidelines affecting investments, insurance coverage of government properties, settlement of claims, disposition of acquired assets, privatization or expansion of subsidiaries, development of housing projects, increased benefit and loan packages to members, and the enforcement of the provision of this Act;

(u) any provision of law to the contrary notwithstanding, to authorize the payment of extra remuneration to the officials and employees directly involved in the collection and/or remittances of contributions, loan repayments, and other monies due to the GSIS at such rates and under such conditions as it may adopt: Provided, That the best interest of the GSIS shall be observed thereby;

(v) to determine, fix and impose interest upon unpaid premiums due from employers and employees;

(w) to ensure the collection or recovery of all indebtedness, liabilities and/or accountabilities, including unpaid premiums or contributions in favor of the GSIS arising from any cause or source whatsoever, due from obligors, whether public or private. The Board shall demand payment or settlement of the obligations referred to herein within thirty (30) days from the date the obligation becomes due, and in the event of failure or refusal of the obligor or debtor to comply with the demand, to initiate or institute the necessary or proper actions or suits, criminal, civil or administrative or otherwise, before the courts, tribunals, commissions, boards, or bodies of proper jurisdiction within thirty (30) days reckoned from the expiry date of the period fixed in the demand within which to pay or settle the account;

(x) to design and implement programs that will promote and mobilize savings and provide additional resources for social security expansion and at the same time afford individual members appropriate returns on their savings/investments. The programs shall be so designed as to spur socio-economic take-off and maintain continued growth; and

(y) to exercise such powers and perform such other acts as may be necessary, useful, incidental or auxiliary to carry out the provisions of this Act, or to attain the purposes and objectives of this Act.

“SEC. 42. The Board of Trustees; its Composition; Tenure and Compensation. - The corporate powers and functions of the GSIS shall be vested in and exercised by the Board of Trustees composed of the President and General Manager of the GSIS and eight (8) other members to be appointed by the President of the Philippines, one (1) of whom shall be either the President of the Philippine Public School Teachers Association (PPSTA) or the President of the Philippine Association of School Superintendents (PASS), another two (2) shall represent the leading organizations or associations of government employees/retirees, another four (4) from the banking, finance, investment, and insurance sectors, and one (1) recognized member of the legal profession who at the time of appointment is also a member of the GSIS. The Trustees shall elect from among themselves a Chairman while the President and General Manager of the GSIS shall automatically be the vice-chairman.

The Trustees, except the President and General Manager who shall cease as trustee upon his separation, shall hold office for six (6) years without reappointment, or until their successors are duly appointed and qualified. Vacancy, other than through the expiration of the term, shall be filled for the unexpired term only. The members of the Board shall be entitled to a per diem of Two thousand five hundred pesos (P2,500.00) for each board meeting actually attended by them, but not to exceed Ten thousand pesos (P10,000.00) a month and reasonable transportation and representation allowances as may be fixed by the Board.

“SEC. 43. Powers and Functions of the Board of Trustees. – The Board of Trustees shall have the following powers and functions:

“(a) to formulate the policies, guidelines and programs to effectively carry out the purposes of this Act;

“(b) to promulgate such rules and regulations as may be necessary or proper for the effective exercise of the powers and functions as well as the discharge of the duties and responsibilities of the GSIS, its officers and employees;

“(c) upon the recommendation of the President and General Manager, to approve the annual and supplemental budget of receipts and expenditures of the GSIS, and to authorize such operating and capital expenditures and disbursements of the GSIS as may be necessary or proper for the effective management, operation and administration of the GSIS;

“(d) upon the recommendation of the President and General Manager, to approve the GSIS organizational and administrative structure and staffing pattern, and to establish, fix, review, revise and adjust the appropriate compensation packages for the officers and employees of the GSIS and reasonable allowances, incentives, bonuses, privileges and other benefits as may be necessary or proper for the effective management, operation and administration of the GSIS, which shall be exempt from Republic Act No. 6758, otherwise known as the Attrition Law;

“(e) to fix and periodically review and adjust the rates of interest and other terms and conditions for loans and credits extended to its members or other persons, whether natural or juridical;

“(f) the provision of any law to the contrary notwithstanding, to compromise or release, in whole or in part, any claim or settle liability to the GSIS, regardless of the amount involved, under such terms and conditions as it may impose for the best interest of the GSIS;

“(g) to approve and adopt guidelines affecting investments, insurance coverage of government properties, settlement of claims, disposition of acquired assets, development of housing projects, increased benefit and loan packages to members, and the enforcement of the provisions of this Act;

“(h) to determine, fix, and impose interest upon unpaid or unremitted premiums and/or contributions; and

“(i) to do and perform any and all acts necessary, proper or incidental to the attainment of the purposes and objectives of this Act.

“SEC. 44. Appointment, Qualifications, and Compensation of the President and General Manager and of other Personnel. - The President and General Manager of the GSIS shall be its Chief Executive Officer and shall be appointed by the President of the Philippines. He shall be a person with management and investments expertise necessary for the effective performance of his duties and functions under this Act.

“The GSIS President and General Manager shall be assisted by one or more executive vice-presidents, senior vice-presidents and managers in addition to the usual supervisory and rank-and-file positions who shall be appointed and removed by the President and General Manager with the approval of the Board, in accordance with the existing Civil Service rules and regulations.

“SEC. 45. Powers and Duties of the President and General Manager. – The President and General Manager of the GSIS shall, among others, execute and administer the policies and resolutions approved by the Board and direct and supervise the administration and operations of the GSIS. The President and General Manager, subject to the approval of the Board, shall appoint the personnel of the GSIS, remove, suspend or otherwise discipline them for cause, in accordance with the existing Civil Service rules and regulations, and prescribe their duties and qualifications to the end that only competent persons may be employed.

“SEC. 46. Auditor. - (a) The Chairman of the Commission on Audit shall be the ex officio auditor of the GSIS, and the necessary personnel to assist said representative in the performance of his duties.

“(b) The Chairman of the Commission on Audit or his authorized representatives, shall submit to the Board soon after the close of each calendar year, an audited statement showing the financial condition and progress of the GSIS for the calendar year just ended.

“SEC. 47. Legal Counsel. - The Government Corporate Counsel shall be the legal adviser and consultant of the GSIS, but the GSIS may assign to the Office of the Government Corporate Counsel (OGCC) cases for legal action or trial, issues for legal opinions, preparation and review of contracts/agreements and others, as the GSIS may decide or determine from time to time: Provided, however, That the present legal services group in the GSIS shall serve as its in-house legal counsel.

“The GSIS may, subject to approval by the proper court, deputize any personnel of the legal service group to act as special sheriff in the enforcement of writs and processes issued by the court, quasi-judicial agencies or administrative bodies in cases involving the GSIS.

“SEC. 48. Powers of the Insurance Commission. - The Insurance Commissioner or his authorized representatives shall make an examination of financial condition and methods of transacting business of the GSIS at least once every three (3) years and the report of said examination shall be submitted to the Board of Trustees and copies thereof be furnished the Office of the President of the Philippines and the two houses of the Congress of the Philippines within five (5) days after the close of examination: Provided, however, That for each examination, the GSIS shall pay the office of the Insurance Commissioner an amount equal to the actual expenses incurred by the said office in the conduct of examination, including the salaries of the examiners and of the actuary of such examination for the actual time spent.

 

“H. GENERAL PROVISION

“SEC. 49. Dispensation of Social Insurance Benefits. - (a) The GSIS shall pay the retirement benefits to the employee on his last day of service in the government: Provided, That all requirements are submitted to the GSIS within a reasonable period prior to the effective date of the retirement;

“(b) The GSIS shall discontinue the processing and adjudication of retirement claims under R.A. No. 1616 except refund of retirement premium under R. A. No. 910. Instead, all agencies concerned shall process and pay the gratuities of their employees. The Board shall adopt the proper rules and procedures for the implementation of this provision.

“SEC. 50. Development and Disposition of Acquired Assets. - The GSIS shall have the right to develop and dispose of its acquired assets obtained in the ordinary course of its business. To add value to, improve profitability on, and/or enhance the marketability of an acquired asset, the GSIS may further develop/renovate the same either with its own capital or through a joint venture arrangement with private companies or individuals.

“The GSIS may sell its acquired assets in accordance with existing Commission on Audit (COA) rules and regulations for an amount not lower than the current market value of the property. For this purpose, the GSIS shall conduct an annual appraisal of its property or acquired assets to determine its current market value. All notices of sale shall be published in newspapers of general circulation.

“No injunction or restraining order issued by any court, commission, tribunal or office shall bar, impede or delay the sale and disposition by the GSIS of its acquired assets except on questions of ownership and national or public interest.

“SEC. 51. Government Assistance to the GSIS. - The GSIS may call upon any employer for such assistance as may be necessary in the discharge of its duties and functions.

 

“I. PENAL PROVISIONS

“SEC. 52. Penalty. - (a) Any person found to have participated directly or indirectly in the commission of fraud, collusion, falsification, or misrepresentation in any transaction with the GSIS, whether for him or for some other persons, shall suffer the penalties provided for in Article 172 of the Revised Penal Code.

“(b) Whoever shall obtain or receive any money or check invoking any provision of this Act or any agreement thereunder, without being entitled thereto with the intent to defraud any member, any employer, the GSIS, or any third party, shall be punished by a fine of not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00) or by imprisonment of not less than six (6) years and one (1) day to twelve (12) years, or both, at the discretion of the court.

“(c) Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulations adopted by the GSIS, shall be punished by a fine of not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00) or imprisonment of not less than six (6) years and one (1) day to twelve (12) years, or both, at the discretion of the court.

“(d) The treasurer, finance officer, cashier, disbursing officer, budget officer or other official or employee who fails to include in the annual budget the amount corresponding to the employer and employee contributions, or who fails or refuses or delays by more than thirty (30) days from the time such amount becomes due and demandable, or to deduct the monthly contributions of the employee shall, upon conviction by final judgment, suffer the penalties of imprisonment from six (6) months and one (1) day to six (6) years, and a fine of not less than Three thousand pesos (P3,000.00) but not more than Six thousand pesos (P6,000.00), and in addition, shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government.

“(e) Any employee or member who receives or keeps fund or property belonging, payable or deliverable to the GSIS and appropriates the same, or takes or misappropriates or uses the same for any purpose other than authorized by this Act, or permits another person to take, misappropriate or use said fund or property by expressly consenting thereto, or through abandonment or negligence, or is otherwise guilty of the misappropriation of said fund or property, in whole or in part, shall suffer the penalties provided in Article 217 of the Revised Penal Code, and in addition, shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government.

“(f) Any employee who, after deducting the monthly contribution or loan amortization from a member’s compensation, fails to remit the same to the GSIS within thirty (30) days from the date they should have been remitted under Section 6(a), shall be presumed to have misappropriated such contribution or loan amortization and shall suffer the penalties provided in Article 315 of the Revised Penal Code, and in addition, shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government.

“(g) The heads of the offices of the national government, its political subdivisions, branches, agencies and instrumentalities, including government-owned or controlled corporations and government financial institutions, and the personnel of such offices who are involved in the collection of premium contributions, loan amortization and other accounts due the GSIS who shall fail, refuse or delay the payment, turnover, remittance or delivery of such accounts to the GSIS within thirty (30) days from the time that the same shall have been due and demandable shall, upon conviction by final judgment, suffer the penalties of imprisonment of not less than one (1) year nor more than five (5) years and a fine of not less than Ten thousand pesos (P10,000.00) nor more than Twenty thousand pesos (P20,000.00), and in addition, shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government.

“(h) The officers and/or personnel referred to in paragraph (g) of this section shall be liable not only criminally but also civilly to the GSIS or to the employee or member concerned in the form of damages, including surcharges and interests.

“(i) For the charges or complaints referred to in paragraph (g) of this section, the liabilities therein set forth shall be construed as waiver of the State of its immunity from suit, hence, the above-mentioned officials and/or personnel may not invoke the defense of non-suability of the State.

“(j) Failure of the Members of the GSIS Board, including the chairman and the vice-chairman, to comply with the provisions of paragraph (w) of Section 41 hereof, shall subject them to imprisonment of not less than six (6) months nor more than one (1) year or a fine of not less than Five thousand pesos (P5,000.00) nor more than Ten thousand pesos (P10,000.00) without prejudice to any civil or administrative liability which may also arise therefrom.

“(k) Criminal actions arising from violations of the provisions of this Act may be commenced by the GSIS or by the aggrieved member, either under this Act or, in appropriate cases, under the Revised Penal Code.

“SEC. 53. Implementing Rules and Regulations. - The implementing rules and regulations to carry out the provisions of this Act shall be adopted and promulgated by the GSIS not later than ninety (90) days after the approval of this Act.

“SEC. 54. Non-impairment of Benefits, Powers, Jurisdiction, Rights, Privileges, Functions and Activities. - Nothing in this Act shall be construed to repeal, amend or limit any provision of existing laws, Presidential Decrees and Letters of Instructions, not otherwise specifically inconsistent with the provisions of this Act.

“SEC. 55. Exclusiveness of Benefits. - Whenever other laws provide similar benefits for the same contingencies covered by this Act, the member who qualifies to the benefits shall have the option to choose which benefits will be paid to him. However, if the benefits provided by the law chosen are less than the benefits provided under this Act, the GSIS shall pay only the difference.

“SEC. 56. Appropriations. - The amount necessary to carry out the provisions of this Act shall be included in the respective budgets of the agencies in the national government obligation program of the year following its enactment into law and thereafter.”

SEC. 2. Separability Clause. - Should any provision of this Act or any part thereof be declared invalid, the other provisions, so far as they are separable from the invalid ones, shall remain in force and effect.

SEC. 3. Repealing Clause. – All laws and any other law or parts of law specifically inconsistent herewith are hereby repealed or modified accordingly: Provided, That the rights under the existing laws, rules and regulations vested upon or acquired by an employee who is already in the service as of the effectivity of this Act shall remain in force and effect: Provided, further, That subsequent to the effectivity of this Act, a new employee or an employee who has previously retired or separated and is reemployed in the service shall be covered by the provisions of this Act.

SEC. 4. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in at least two (2) newspapers of general circulation.

This Act, which is a consolidation of Senate Bill No. 2013 and House Bill No. 8561, was finally passed by the Senate and the House of Representatives on May 29, 1997 and May 28, 1997, respectively.

Approved: May 30, 1997.

Posted by: Elmer Brabante | February 22, 2011

Expanded Senior Citizens’ Act of 2004 (RA 9257)


Republic Act No. 9257

AN ACT GRANTING ADDITIONAL BENEFITS AND PRIVILEGES TO SENIOR CITIZENS AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7432, OTHERWISE KNOWN AS “AN ACT TO MAXIMIZE THE CONTRIBUTION OF SENIOR CITIZENS TO NATION BUILDING, GRANT BENEFITS AND SPECIAL PRIVILEGES AND FOR OTHER PURPOSES”

(Further amended by Republic Act No. 9994)

SECTION 1. This Act shall be known as the “Expanded Senior Citizens Act of 2003.”

SECTION 2. Republic Act. No. 7432 is hereby amended to read as follows:

“SECTION 1. Declaration of Policies and Objectives. – Pursuant to Article XV, Section 4 of the Constitution, it is the duty of the family to take care of its elderly members while the State may design programs of social security for them. In addition to this, Section 10 in the Declaration of Principles and State Policies provides: “The State shall provide social justice in all phases of national development.” Further, Article XIII, Section 11 provides: ” The State shall adopt an integrated and comprehensive approach to health and other social services available to all the people at affordable cost. There shall be priority for the needs of the underpriviledged, sick, elderly, disabled, women and children.” Consonant with these constitution principles the following are the declared policies of this Act:

(a) To motivate and encourage the senior citizens to contribute to nation building;

(b) To encourage their families and the communities they live with to reaffirm the valued Filipino tradition of caring for the senior citizens;

(c) To give full support to the improvement of the total well-being of the elderly and their full participation in society considering that senior citizens are integral part of Philippine society;

(d) To recognize the rights of senior citizens to take their proper place in society. This must be the concern of the family, community, and government;

(e) To provide a comprehensive health care and rehabilitation system for disabled senior citizens to foster their capacity to attain a more meaningful and productive ageing; and

(f) To recognize the important role of the private sector in the improvement of the welfare of senior citizens and to actively seek their partnership.

In accordance with these policies, this Act aims to:

(1) establish mechanism whereby the contribution of the senior citizens are maximized;

(2) adopt measures whereby our senior citizens are assisted and appreciated by the community as a whole;

(3) establish a program beneficial to the senior citizens, their families and the rest of the community that they serve; and

(4) establish community-based health and rehabilitation programs in every political unit of society.”

“SEC. 2. Definition of Terms. – For purposes of this Act, these terms are defined as follows:

(a) “Senior citizen” or “elderly” shall mean any resident citizen of the Philippines at least sixty (60) years old;

(b) “Benefactor” shall mean any person whether related to the senior citizens or not who takes care of him/her as a dependent;

(c) “Head of the family” shall mean any person so defined in the National Internal Revenue Code, as amended; and

(d) “Geriatrics” shall refer to the branch of medical science devoted to the study of the biological and physical changes and the diseases of old age.”

“SEC. 3. Contribution to the Community. – Any qualified senior citizen as determined by the Office for Senior Citizens Affairs (OSCA) may render his/her services to the community which shall consist of, but not limited to, any of the following:

(a) Tutorial and/or consultancy services;

(b) Actual teaching and demonstration of hobbies and income generating skills;

(c) Lectures on specialized fields like agriculture, health, environment protection and the like;

(d) The transfer of new skills acquired by virtue of their training mentioned in Section 4, paragraph (d); and

(e) Undertaking other appropriate services as determined by the Office for Senior Citizens Affairs (OSCA) such as school traffic guide, tourist aide, pre-school assistant, etc.

In consideration of the services rendered by the qualified elderly, the Office for Senior Citizens Affairs (OSCA) may award or grant benefits or privileges to the elderly, in addition to the other privileges provided for under this Act.”

“SEC. 4. Privileges for the Senior Citizens. – The senior citizens shall be entitled to the following:

(a) the grant of twenty percent (20%) discount from all establishments relative to the utilization of services in hotels and similar lodging establishment, restaurants and recreation centers, and purchase of medicines in all establishments for the exclusive use or enjoyment of senior citizens, including funeral and burial services for the death of senior citizens;

(b) a minimum of twenty percent (20%) discount on admission fees charged by theaters, cinema houses and concert halls, circuses, carnivals, and other similar places of culture, leisure and amusement for the exclusive use or enjoyment of senior citizens;

(c. exemption from the payment of individual income taxes: Provided, That their annual taxable income does not exceed the poverty level as determined by the National Economic and Development Authority (NEDA) for that year;

(d) exemption from training fees for socioeconomic programs;

(e) free medical and dental service, diagnostic and laboratory fees such as, but not limited to, x-rays, computerized tomography scans and blood tests, in all government facilities, subject to the guidelines to be issued by the Department of Health in coordination with the Philippine Health Insurance Corporation (PHILHEALTH);

(f) the grant of twenty percent (20%) discount on medical and dental services, and diagnostic and laboratory fees provided under Section 4 (e) hereof, including professional fees of attending doctors in all private hospitals and medical facilities, in accordance with the rules and regulations to be issued by the Department of Health, in coordination with the Philippine Health Insurance Corporation;

(g) the grant of twenty percent (20%) discount in fare for domestic air and sea travel for the exclusive use or enjoyment of senior citizens;

(h) the grant of twenty percent (20%) discount in public railways, skyways and bus fare for the exclusive use and enjoyment of senior citizens;

(i) educational assistance to senior citizens to pursue post secondary, tertiary, post tertiary, as well as vocational or technical education in both public and private schools through provision of scholarship, grants, financial aid subsidies and other incentives to qualified senior citizens, including support for books, learning materials, and uniform allowance, to the extent feasible: Provided, That senior citizens shall meet minimum admission requirement;

(j) to the extent practicable and feasible, the continuance of the same benefits and privileges given by the Government Service Insurance System (GSIS), Social Security System (SSS) and PAG-IBIG, as the case may be, as are enjoyed by those in actual service.

(k) retirement benefits of retirees from both the government and private sector shall be regularly reviewed to ensure their continuing responsiveness and sustainability, and to the extent practicable and feasible, shall be upgraded to be at par with the current scale enjoyed by those in actual service.

(l) to the extent possible, the government may grant special discounts in special programs for senior citizens on purchase of basic commodities, subject to the guidelines to be issued for the purpose by the Department of Trade and Industry (DTI) and the Department of Agriculture (DA); and

(m) provision of express lanes for senior citizens in all commercial and government establishments; in the absence thereof, priority shall be given to them.

In the availment of the privileges mentioned above, the senior citizen or elderly person may submit as proof of his/her entitlement thereto any of the following:

(a) an ID issued by the city or municipal mayor or of the barangay captain of the place where the senior citizen or the elderly resides;

(b) the passport of the elderly person or senior citizen concerned; and

(c) other documents that establish that the senior citizen or elderly person is a citizen of the Republic and is at least sixty (60) years of age.

The establishment may claim the discounts granted under (a), (f), (g) and (h) as tax deduction based on the net cost of the goods sold or services rendered: Provided That the cost of the discount shall be allowed as deduction from gross income for the same taxable year that the discount is granted. Provided, further, That the total amount of the claimed tax deduction net of value added tax if applicable, shall be included in their gross sales receipts for tax purposes and shall be subject to proper documentation and to the provisions of the National Internal Revenue Code, as amended.”

“SEC. 5. Government Assistance. – The Government shall provided the following:

(a) Employment

Senior citizens who have the capacity and desire to work, or be re-employed, shall be provided information and matching services to enable them to be productive members of society. Terms of employments shall conform with the provisions of the labor code, as amended, and other laws, rules and regulations.

Private entities that will employ senior citizens as employees upon effectivity of this Act, shall be entitled to an additional deduction from their gross income, equivalent to fifteen percent (15%) of the total amount paid as salaries and wages to senior citizens subject to the provision of Section 34 of the National Internal Revenue Code, as

amended: Provided, however, That such employment shall continue for a period of at least six (6) months: Provider, further, that the annual income of a senior citizen does not exceed he poverty level as determined by the National Economic and Development Authority (NEDA) for that year.

The Department of Labor and Employment (DOLE), in coordination with other government agencies such as, but not limited to, the Technology and Livelihood Resource Center (TLRC) and the Department and Trade and Industry (DTI), shall assess, design and implement training programs that will provide skills and welfare or livelihood support for senior citizens.

(b) Education

The Department of Education (DepEd), Technical Education and Skill Development Authority (TESDA) and the Commission and Higher Education (CHED), in consultation of non-government organizations (NGOs) and people’s organizations (Pos) for senior citizen, shall institute a program that will ensure access to formal and non-formal education.

(c ) Health

The Department of Health (DOH), in coordination with local government units (LGUs), non-government organizations (NGOs) and people’s organizations (Pos) for senior citizens, shall institute a national health program and shall provide an integrated health service for senior citizens. It shall train community-based health workers among senior citizens and health personnel to specialize in the geriatric care health problems of senior citizens.

(d) Social Services

The Department of Social Welfare and Development (DSWD), in cooperation with the Office for Senior Citizen affairs (OSCA) and the local government units, non-government organizations and peoples organizations for senior citizens, shall develop and implement programs on social services for senior citizens, the components of which are:

(1) “self and social enhancement services” which provide senior citizens opportunities for socializing, organizing, creative expression, and improvement of self;

(2)” after care and follow-up services” which provide senior citizen who are discharged from the home/institutions for the aged, especially those who have problems of reintegration with family and community, wherein both the senior citizens and their families are provided with counseling;

(3)”neighborhood support services: wherein the community/family members provide care giving services to their frail, sick, or bedridden senior citizens; and

(4) “substitute family care” in the form of residential care/group homes for

the abandoned, neglected, unattached or homeless senior citizens and those incapable of self-care.

The grant of at least fifty percent (50%) discount for the consumption of electricity, water and telephone by the senior citizens center and residential care/group homes that are non-stock, non-profit domestic corporation organized and operated exclusively for the purpose of promoting of well-being of abandoned, neglected, unattached, or homeless senior citizens.

(e) Housing

The national government shall include in its national shelter program the special housing needs of senior citizens, such as establishment of housing units for the elderly;

(f) Access to Public Transport

The Department of Transportation and Communication (DOTC) shall develop a program to assist senior citizens to fully gain access in the use of public transport facilities.

Further, the government shall provide the following assistance to those caring for and living with the senior citizens:

(a)The senior citizen shall be treated as dependents provided for in the National Inter Revenue Code, as amended, and as such, individual taxpayers caring for them, be they relatives or not shall be accorded the privileges granted by the Code insofar as having dependents are concerned.

(b)Individuals or non-government institutions establishing homes, residential communities or retirement villages solely for the senior citizens shall be accorded the following:

(1) realty tax holiday for the first five (5) years starting from the first year of operation;

(2) priority in the building and/or maintenance of the provincial or municipal roads leading to the aforesaid home, residential community or retirement village.”

“SEC. 6. The Office for Senior Citizens Affairs (OSCA). – There shall be established in all cities and municipalities an OSCA to be headed by a senior citizen who shall be appointed by the mayor for

a term of three (3) years without reappointment from a list of three (3) nominees of the sangguniang panlungsod or the sangguniang bayan. The head of the OSCA shall be assisted by the City Social Welfare and Development Officer or the municipal social welfare and development officer, in coordination with the Social Welfare and Development Office.

The Office of the Mayor shall exercise supervision over the OSCA relative to their plans, activities and programs for senior citizens. The OSCA shall work together and establish linkages with accredited NGOs, Pos, and the barangays in their respective areas.

The office for senior citizens affairs shall have the following functions:

(a) To plan, implement and monitor yearly work programs in pursuance of the objectives of this Act;

(b) To draw up a list of available and required services which can provided by the senior citizens;

(c) To maintain and regularly update on a quarterly basis the list of senior citizens and to issue nationally uniform individual identification cards, free of charge, which be valid anywhere in the country;

(d) To service as a general information and liaison center to serve the needs of the senior citizens;

(e) To monitor compliance of the provisions of this Act particularly the grant of special discounts and privileges to senior citizens;

(f) To report to the mayor, establishment found violating any provision of this Act; and

(g) To assist the senior citizens in filing complaints or charges against any establishment, institution, or agency refusing to comply with the privileges under this Act before the Department of Justice or the provincial, city or municipal trial court.”

“SEC. 7. Municipal/ City Responsibility. – It shall be the responsibility of the municipal/city through the mayor to require all establishment covered by this Act to prominently display posters, stickers, and other notices that will generate public awareness of the right and privileges of senior citizens and to ensure that the provisions of this Act are implemented to its fullest.”

“SEC. 8. Partnership of the National and Local Government Units. – The national government and local government units shall explore livelihood opportunities and other undertaking to enhance the well-being of senior citizens. The shall encourage the establishment of grassroots organizations for the elderly in their respective territorial jurisdictions.”

“SEC. 9 Support for Non-Governmental Organizations (NGOs). – Non-governmental organizations or private volunteer organizations dedicated to the promotions, enhancement and support of the welfare of senior citizens are hereby encouraged to become partners of government in the implementation of program and projects for the elderly.

According, the government shall recognize the vital role of NGOs in complementing the government in the delivery of services to senior citizens. It shall likewise encourage NGOs for the senior citizens to develop innovative service models and pilots projects and to assist in the duplication of successful examples of these models elsewhere in the country.

“SEC. 10. Penalties. – Any person who violates any provision of this Act shall suffer the following penalties:

(1) For the first violation, a fine of not less than Fifty thousand pesos (P50,000.00) but not exceeding One hundred thousand pesos (P100,000.00) and imprisonment of not less than six (6) months but not more than two (2) years; and

(2) For any subsequent violation, a fine of not less than One hundred thousand pesos (P100,000.00) but exceeding Two hundred thousand pesos (P200,000.00) and imprisonment for not less than two (2) years but not less than six (6) years.

Any person who abuses the privileges granted herein shall be punished with a fine of not less than Five thousand pesos (P5,000.00) but not more than Fifty thousand pesos (P50,000.00), and imprisonment of not less than six (6) months.

If the offender is a corporation, organization or any similar entity, the official thereof directly involved shall be liable therefore.

If the offender is an alien or a foreigner, he shall be deported immediately after service of sentence without further deportation proceedings.

Upon filling an appropriate complaint, and after due notice and hearing, the proper authorities may also cause the cancellation or revocation of the business permit, permit to operate, franchise and other similar privileges granted to any business entity that fails to abide by the provisions of this Act.”

“SEC. 11. Monitoring and Coordinating Mechanism. – A monitoring and coordinating mechanism shall be established to be chaired by the DSWD, with the assistance of the Department of Justice (DOJ), Department of Health (DOH), Department of the Interior and Local Government (DILG), and five (5) accredited NGOs representing but not limited to, women, urban poor, rural poor, and the veterans.”

“SEC. 12. Implementing Rules and Regulations. – The Secretary of Social Welfare and Development, within sixty (60) days from the approval of this Act, shall promulgate the implementing, rules and regulations for the effective implementation of the provisions of this Act. In consultation and coordination with the following agencies and offices:

(a) Department of Health;

(b) Department of Labor and Employment;

(c) Department of Education;

(d) Depart of Transportation and Communications;

(e) Department of Justice;

(f) Department of Interior and Local Government;

(g) Department of Trade and Industry;

(h) Department of Finance;

(i) Commission of Higher Education;

(j) Technical Education and Skills Development Authority;

(k) National Economic and Development Authority;

(l) Housing and Urban Development Coordinating Council; and

(m) Five (5) non-governmental organizations of people’s organizations for the senior citizens duly accredited by the DSWD.”

SEC. 13. Appropriation. – The necessary appropriation for the operation and maintenance of the OSCA shall be appropriated and approved by the local government units concerned. The amount necessary to carry out the provisions of this Act upon its effectivity shall be charged out of the funds of the Office of the President. Thereafter, any such sum as shall be needed for the regular implementation of this Act shall be included in subsequent General Appropriations Act following its enactment into law.”

SECTION 3. All laws, presidential decrees, executive orders and rules and regulations or part thereof, contrary to, or inconsistent with the provisions of this Act, are hereby repealed or modified accordingly.

SECTION 4. Should any provision of this Act be found unconstitutional by a court of law, such provision shall be severed from the remainder of this Act, and such action shall not affect the enforceability of the remaining provisions of this Act.

SECTION 5. This Act shall take effect fifteen (15) days after its complete publication in any two (2) national newspapers of general circulation.

Approved: February 26, 2004

Posted by: Elmer Brabante | February 22, 2011

Senior Citizen’s Act of 1992 (RA 7432)


REPUBLIC ACT NO. 7432 

AN ACT TO MAXIMIZE THE CONTRIBUTION OF SENIOR CITIZENS TO NATION BUILDING, GRANT BENEFITS AND SPECIAL PRIVILEGES AND FOR OTHER PURPOSES

(Amended by Republic Act No. 9994)

Section 1. Declaration of Policies and Objectives. — Pursuant to Article XV, Section 4 of the Constitution, it is the duty of the family to take care of its elderly members while the State may design programs of social security for them. In addition to his, Section 10 in the Declaration of Principles and State Policies provides: “The State shall provide social justice in all phases of national development.” Further, Article XIII, Section 11 provides: “The State shall adopt an integrated and comprehensive approach to health development which shall endeavor to make essential goods, health and other social services available to all the people at affordable cost. There shall be priority for the needs of the underprivileged, sick, elderly, disabled, women and children.” Consonant with these constitutional principles the following are the declared policies of this Act:chan robles virtual law library

(a) to motivate and encourage the senior citizens to contribute to nation building; 
(b) to encourage their families and the communities they live with to reaffirm the valued Filipino tradition of caring for the senior citizens. 

In accordance with those policies, this Act aims to: 

(1) establish mechanisms whereby the contribution of the senior citizens are maximized; 

(2) adopt measures whereby our senior citizens are assisted and appreciated by the community as a whole; 

(3) establish a program beneficial to the senior citizens, their families and the rest of the community that they serve.

Sec. 2. Definition of Terms. — As used in this Act, the term “senior citizen” shall mean any resident citizen of the Philippines at least sixty (60) years old, including those who have retired from both government offices and private enterprises, and has an income of not more than Sixty thousand pesos (P60,000.00) per annum subject to review by the National Economic and Development Authority (NEDA) every three (3) years. 

The term “benefactor” shall mean any person whether related to the senior citizens or not who takes care of him/her as a dependent. 

The term “head of the family” shall mean any person so defined in the National Internal Revenue Code. chan robles virtual law library

Sec. 3. Contribution to the Community. — Any qualified senior citizen as determined by the Office for Senior Citizen Affairs (OSCA) may render his/her services to the community which shall consist of, but not limited to, any of the following: 

(a) tutorial and/or consultancy services; chan robles virtual law library;

(b) actual teaching and demonstration of hobbies and income generating skills;

(c) lectures on specialized fields like agriculture, health, environmental protection and the like; 

(d) the transfer of new skills acquired by virtue of their training mentioned in Section 4, paragraph d; 

(e) undertaking other appropriate services as determined by the Office of Senior Citizens Affairs (OSCA) such as school traffic guide, tourist aid, pre-school assistant, etc. 

In consideration of the services rendered by the qualified elderly, the Office for Senior Citizens Affairs (OSCA) may award or grant benefits or privileges to the elderly, in addition to the other privileges provided for under Section 4 hereof. 

Sec. 4. Privileges for the Senior Citizens. — The senior citizens shall be entitled to the following: 

(a) the grant of twenty percent (20%) discount from all establishments relative to utilization of transportation services, hotels and similar lodging establishment, restaurants and recreation centers and purchase of medicine anywhere in the country: Provided, That private establishments may claim the cost as tax credit; chan robles virtual law library;

(b) a minimum of twenty percent (20%) discount on admission fees charged by theaters, cinema houses and concert halls, circuses, carnivals and other similar places of culture, leisure, and amusement; 

(c) exemption from the payment of individual income taxes: Provided, That their annual taxable income does not exceed the property level as determined by the National Economic and Development Authority (NEDA) for that year;chan robles virtual law library

(d) exemption form training fees for socioeconomic programs undertaken by the OSCA as part of its work;

(e) free medical and dental services in government establishment anywhere in the country, subject to guidelines to be issued by the Department of Health, the Government Service Insurance System and the Social Security System; 

(f) to the extent practicable and feasible, the continuance of the same benefits and privileges given by the Government Service Insurance System (GSIS), Social Security System (SSS) and PAG-IBIG, as the case may be, as are enjoyed by those in actual service. 

Sec. 5. Government Assistance. — The Government shall provide the following assistance to those caring for and living with the senior citizen: 

(a) The senior shall be treated as dependents provided for in the National Internal Revenue Code and as such, individual taxpayers caring for them, be they relatives or not shall be accorded the privileges granted by the Code insofar as having dependents are concerned. 

(b) Individuals or non-governmental institutions establishing homes, residential communities or retirement villages solely for the senior citizens shall be accorded the following:

(1) realty tax holiday for the first five (5) years starting from the first year of operation;

(2) priority in the building and/or maintenance of provincial or municipal roads leading to the aforesaid home, residential community or retirement village. chan robles virtual law library

Sec. 6. Retirement Benefits. — To the extent practicable and feasible, retirement benefits from both the Government and the private sectors shall be upgraded to be at par with the current scale enjoyed by those in actual service. 

Sec. 7. The Office for Senior Citizens Affairs (OSCA). — There shall be established in the Office of the Mayor an OSCA to be headed by a Councilor who shall be designated by the Sangguniang Bayan and assisted by the Community Development Officer in coordination with the Department of Social Welfare and Development. The functions of this office are:

(a) to plan, implement and monitor yearly work programs in pursuance of the objectives of this Act; 

(b) to draw up a list of available and required services which can be provided by the senior citizens; chan robles virtual law library

(c) to maintain and regularly update on a quarterly basis the list of senior citizens and to issue nationally uniform individual identification cards which shall be valid anywhere in the country; 

(d) to service as a general information and liaison center to serve the needs of the senior citizens.

Sec. 8. Municipality Responsibility. — It shall be the responsibility of the municipality through the mayor to ensure that the provisions of this Act are implemented to its fullest. 

Sec. 9. Penalties. — Violation of any provision of this Act for which no penalty is specifically provided under any other law, shall be punished by imprisonment not exceeding one (1) month or a fine not exceeding One thousand pesos (P1,000.00) or both. 

Sec. 10. Implementing Rules and Regulations. — The Secretary of Social Welfare and Development, jointly with the Department of Finance, the Department of Tourism, the Department of Health, the Department of Transportation and Communications and the Department of Interior and Local Government shall issue the necessary rules and regulations to carry out the objectives of this Act. 

Sec. 11. Appropriation. — The necessary appropriation for the operation and maintenance of the OSCA shall be appropriated and approved by the local government units concerned. The National Government shall appropriate such amount, as may be necessary to carry out the objectives of this Act.chan robles virtual law library

Sec. 12. Repealing Clause. — All provisions of laws, orders, decrees, including rules and regulations inconsistent herewith are hereby repealed and/or modified accordingly. 

Sec. 13. Separability Clause. — If any part or provision of this Act shall be held to be unconstitutional or invalid, other provisions hereof which are not affected thereby shall continue to be in full force and effect. chan robles virtual law library

Sec. 14. Effectivity. — This Act shall take effect fifteen (15) days following its publication in one (1) national newspaper of general circulation.  
 
Approved: April 23, 1992

Posted by: Elmer Brabante | February 22, 2011

Expanded Senior Citizens’ Act of 2010 (RA 9994)


Republic Act No. 9994

 

 

 

 

 

 

AN ACT GRANTING ADDITIONAL BENEFITS AND PRIVILEGES TO SENIOR CITIZENS, FURTHER AMENDING REPUBLIC ACT NO. 7432, AS AMENDED, OTHERWISE KNOWN AS “AN ACT TO MAXIMIZE THE CONTRIBUTION OF SENIOR CITIZENS TO NATION BUILDING, GRANT BENEFITS AND SPECIAL PRIVILEGES AND FOR OTHER PURPOSES

 

Section 1. Title. – This Act Shall be known as the “Expanded Senior Citizens Act of 2010.”

Section 2. Section 1 of Republic Act No. 7432, as amended by Republic Act No. 9257, otherwise known as the “Expanded Senior Citizens Act of 2003″, is hereby further amended to read as follows:

“SECTION 1. Declaration of Policies and Objectives. – As provided in the Constitution of the Republic of the Philippines, it is the declared policy of the State to promote a just and dynamic social order that will ensure the prosperity and independence of the nation and free the people from poverty through policies that provide adequate social services, promote full employment, a rising standard of living and an improved quality of life. In the Declaration of Principles and State Policies in Article II, Sections 10 and 11, it is further declared that the State shall provide social justice in all phases of national development and that the State values the dignity of every human person and guarantees full respect for human rights.

Article XIII, Section 11 of the Constitution provides that the Sate shall adopt an integrated and comprehensive approach to health development which shall endeavor to make essential goods, health and other social services available to all the people at affordable cost. There shall be priority for the needs of the underprivileged, sick, elderly, disabled, women and children. Article XV, Section 4 of the Constitution Further declares that it is the duty of the family to take care of its elderly members while the State may design programs of social security for them.

Consistent with these constitutional principles, this Act shall serve the following objectives:

(a) To recognize the rights of senior citizens to take their proper place in society and make it a concern of the family, community, and government;

(b) To give full support to the improvement of the total well-being of the elderly and their full participation in society, considering that senior citizens are integral part of Philippine society;

(c) To motivate and encourage the senior citizens to contribute to nation building;

(d) To encourage their families and the communities they live with to reaffirm the valued Filipino tradition of caring for the senior citizens;

(e) To provide a comprehensive health care and rehabilitation system for disabled senior citizens to foster their capacity to attain a more meaningful and productive ageing; and

(f) To recognize the important role of the private sector in the improvement of the welfare of senior citizens and to actively seek their partnership.

In accordance with these objectives, this Act shall:

(1) establish mechanisms whereby the contributions of the senior citizens are maximized;

(2) adopt measures whereby our senior citizens are assisted and appreciated by the community as a whole;

(3) establish a program beneficial to the senior citizens, their families and the rest of the community they serve: and

(4) establish community-based health and rehabilitation programs for senior citizens in every political unit of society.”

Section 3. Section 2 of Republic Act No. 7432, as amended by Republic Act No. 9257, otherwise known as the Expanded Senior Citizens Act of 2003″, is hereby further amended to read as follows:

“SEC. 2. Definition of terms. – For purposes of this Act, these terms are defined as follows:

(a) Senior citizen or elderly refers to any resident citizen of the Philippines at least sixty (60) years old;

(b) Geriatrics refer to the branch of medical science devoted to the study of the biological and physical changes and the diseases of old age;

(c) Lodging establishment refers to a building, edifice, structure, apartment or house including tourist inn, apartelle, motorist hotel, and pension house engaged in catering, leasing or providing facilities to transients, tourists or travelers;

(d) Medical Services refer to hospital services, professional services of physicians and other health care professionals and diagnostics and laboratory tests that the necessary for the diagnosis or treatment of an illness or injury;

(e) Dental services to oral examination, cleaning, permanent and temporary filling, extractions and gum treatments, restoration, replacement or repositioning of teeth, or alteration of the alveolar or periodontium process of the maxilla and the mandible that are necessary for the diagnosis or treatment of an illness or injury;

(f) Nearest surviving relative refers to the legal spouse who survives the deceased senior citizen: Provided, That where no spouse survives the decedent, this shall be limited to relatives in the following order of degree of kinship: children, parents, siblings, grandparents, grandchildren, uncles and aunts;

(g) Home health care service refers to health or supportive care provided to the senior citizen patient at home by licensed health care professionals to include, but not limited to, physicians, nurses, midwives, physical therapist and caregivers; and

(h) Indigent senior citizen, refers to any elderly who is frail, sickly or with disability, and without pension or permanent source of income, compensation or financial assistance from his/her relatives to support his/her basic needs, as determined by the Department of Social Welfare and development (DSWD) in consultation with the National Coordinating and Monitoring Board.”

Section 4. Section 4 of Republic Act No. 7432, as amended by Republic Act No. 9257, otherwise known as the “Expanded Senior Citizens Act of 2003″, is hereby further amended to read as follows:

“SEC. 4. Privileges for the Senior Citizens. -

The senior citizens shall be entitled to the following:

(a) the grant of twenty percent (20%) discount and exemption from the value -added tax (VAT), if applicable, on the sale of the following goods and services from all establishments, for the exclusive use and enjoyment or availment of the senior citizen

(1) on the purchase of medicines, including the purchase of influenza and pnuemococcal vaccines, and such other essential medical supplies, accessories and equipment to be determined by the Department of Health (DOH).

The DOH shall establish guidelines and mechanism of compulsory rebates in the sharing of burden of discounts among retailers, manufacturers and distributors, taking into consideration their respective margins;

(2) on the professional fees of attending physician/s in all private hospitals, medical facilities, outpatient clinics and home health care services;

(3) on the professional fees of licensed professional health providing home health care services as endorsed by private hospitals or employed through home health care employment agencies;

(4) on medical and dental services, diagnostic and laboratory fees in all private hospitals, medical facilities, outpatient clinics, and home health care services, in accordance with the rules and regulations to be issued by the DOH, in coordination with the Philippine Health Insurance Corporation (PhilHealth);

(5) in actual fare for land transportation travel in public utility buses (PUBs), public utility jeepneys (PUJs), taxis, Asian utility vehicles (AUVs), shuttle services and public railways, including Light Rail Transit (LRT), Mass Rail Transit (MRT), and Philippine National Railways (PNR);

(6) in actual transportation fare for domestic air transport services and sea shipping vessels and the like, based on the actual fare and advanced booking;

(7) on the utilization of services in hotels and similar lodging establishments, restaurants and recreation centers;

(8) on admission fees charged by theaters, cinema houses and concert halls, circuses, leisure and amusement; and

(9) on funeral and burial services for the death of senior citizens;

(b) exemption from the payment of individual income taxes of senior citizens who are considered to be minimum wage earners in accordance with Republic Act No. 9504;

(c) the grant of a minimum of five percent (5%) discount relative to the monthly utilization of water and electricity supplied by the public utilities: Provided, That the individual meters for the foregoing utilities are registered in the name of the senior citizen residing therein: Provided, further, That the monthly consumption does not exceed one hundred kilowatt hours (100 kWh) of electricity and thirty cubic meters (30 m3) of water: Provided, furthermore, That the privilege is granted per household regardless of the number of senior citizens residing therein;

(d) exemption from training fees for socioeconomic programs;

(e) free medical and dental services, diagnostic and laboratory fees such as, but not limited to, x-rays, computerized tomography scans and blood tests, in all government facilities, subject to the guidelines to be issued by the DOH in coordination with the PhilHealth;

(f) the DOH shall administer free vaccination against the influenza virus and pneumococcal disease for indigent senior citizen patients;

(g) educational assistance to senior citizens to pursue pot secondary, tertiary, post tertiary, vocational and technical education, as well as short-term courses for retooling in both public and private schools through provision of scholarships, grants, financial aids, subsides and other incentives to qualified senior citizens, including support for books, learning materials, and uniform allowances, to the extent feasible: Provided, That senior citizens shall meet minimum admission requirements;

(h) to the extent practicable and feasible, the continuance of the same benefits and privileges given by the Government Service Insurance System (GSIS), the Social Security System (SSS) and the PAG-IBIG, as the case may be, as are enjoyed by those in actual service;

(i) retirement benefits of retirees from both the government and the private sector shall be regularly reviewed to ensure their continuing responsiveness and sustainability, and to the extent practicable and feasible, shall be upgraded to be at par with the current scale enjoyed by those in actual service;

(j) to the extent possible, the government may grant special discounts in special programs for senior citizens on purchase of basic commodities, subject to the guidelines to be issued for the purpose by the Department of Trade and Industry (DTI) and the Department of Agriculture (DA);

(k) provision of express lanes for senior citizens in all commercial and government establishments; in the absence thereof, priority shall be given to them; and

(l) death benefit assistance of a minimum of Two thousand pesos (Php2, 000.00) shall be given to the nearest surviving relative of a deceased senior citizen which amount shall be subject to adjustments due to inflation in accordance with the guidelines to be issued by the DSWD.1avvphi1

In the availment of the privileges mentioned above, the senior citizen, or his/her duly authorized representative, may submit as proof of his/her entitled thereto any of the following:

(1) an identification card issued by the Office of the Senior Citizen Affairs (OSCA) of the place where the senior citizen resides: Provided, That the identification card issued by the particular OSCA shall be honored nationwide;

(2) the passport of the senior citizen concerned; and

(3) other documents that establish that the senior citizen is a citizen of the Republic and is at least sixty (60) years of age as further provided in the implementing rules and regulations.

In the purchase of goods and services which are on promotional discount, the senior citizen can avail of the promotional discount or the discount provided herein, whichever is higher.

The establishment may claim the discounts granted under subsections (a) and (c) of this section as tax deduction based on the cost of the goods sold or services rendered: Provided, That the cost of the discount shall be allowed as deduction from gross income for the same taxable year that the discount is granted: Provided, further, That the total amount of the claimed tax deduction net of VAT, if applicable, shall be included in their gross sales receipts for tax purposes and shall be subject to proper documentation and to the provisions of the National Internal Revenue Code (NICR), as amended.”

Section 5. Section 5 of the same Act, as amended, is hereby further amended to read as follows:

“SEC. 5. Government Assistance. – The government shall provide the following:

(a) Employment

Senior citizens who have the capacity and desire to work, or be re-employed, shall be provided information and matching services to enable them to be productive members of society. Terms of employment shall conform with the provisions of the Labor Code, as amended, and other laws, rules and regulations.

Private entities that will employ senior citizens as employees, upon the effectivity of this Act, shall be entitled to an additional deduction from their gross income, equivalent to fifteen percent (15%) of the total amount paid as salaries and wages to senior citizens, subject to the provision of Section 34 of the NIRC, as amended: Provided, however, That such employment shall continue for a period of at least six (6) months: Provided, further, That the annual income of the senior citizen does not exceed the latest poverty threshold as determined by the National Statistical Coordination Board (NSCB) of the National Economic and Development Authority (NEDA) for that year.

The Department of Labor and Employment (DOLE), in coordination with other government agencies such as, but not limited to, the Technology and Livelihood Resource Center (TLRC) and the Department of Trade and Industry (DTI), shall assess, design and implement training programs that will provide skills and welfare or livelihood support for senior citizens.

(b) Education

The Department of Education (DepED), the Technical Education and Skills Development Authority (TESDA) and the Commission on Higher Education (CHED), in consultation with nongovernmental organizations (NGOs) and people’s organizations (POs) for senior citizens, shall institute programs that will ensure access to formal and nonformal education.

(c) Health

The DOH, in coordination with local government units (LGUs), NGOs and POs for senior citizens, shall institute a national health program and shall provide an integrated health service for senior citizens. It shall train community-based health workers among senior citizens and health personnel to specialize in the geriatric care and health problems of senior citizens.

The national health program for senior citizens shall, among others, be harmonized with the National Prevention of Blindness Program of the DOH.

Throughout the country, there shall be established a “senior citizens’ ward” in every government hospital. This geriatric ward shall be for the exclusive use of senior citizens who are in need of hospital confinement by reason of their health conditions. However, when urgency of public necessity purposes so require, such geriatric ward may be used for emergency purposes, after which, such “senior citizens’ ward” shall be reverted to its nature as geriatric ward.

(d) Social Services

At least fifty percent (50%) discount shall be granted on the consumption of electricity, water, and telephone by the senior citizens center and residential care/group homes that are government-run or non-stock, non-profit domestic corporation organized and operated primarily for the purpose of promoting the well-being of abandoned, neglected, unattached, or homeless senior citizens, subject to the guidelines formulated by the DSWD.

(1) “self and social enhancement services” which provide senior citizens opportunities for socializing, organizing, creative expression, and self-improvement;

(2) “after care and follow-up services” for citizens who are discharged from the homes or institutions for the aged, especially those who have problems of reintegration with family and community, wherein both the senior citizens and their families are provided with counseling;

(3) “neighborhood support services” wherein the community or family members provide caregiving services to their frail, sick, or bedridden senior citizens; and

(4) “substitute family care ” in the form of residential care or group homes for the abandoned, neglected, unattached or homeless senior citizens and those incapable of self-care.

(e) Housing

The national government shall include in its national shelter program the special housing needs of senior citizens, such as establishment of housing units for the elderly.

(f) Access to Public Transport

The Department of Transportation and Communications (DOTC) shall develop a program to assist senior citizens to fully gain access to public transport facilities.

(g) Incentive for Foster Care

The government shall provide incentives to individuals or nongovernmental institution caring for or establishing homes, residential communities or retirement villages solely for, senior citizens, as follows:

(1) realty tax holiday for the first five (5) years starting from the first year of operation; and

(2) priority in the construction or maintenance of provincial or municipal roads leading to the aforesaid home, residential community or retirement village.

(h) Additional Government Assistance

(1) Social Pension

Indigent senior citizens shall be entitled to a monthly stipend amounting to Five hundred pesos (Php500.00) to augment the daily subsistence and other medical needs of senior citizens, subject to a review every two (2) years by Congress, in consultation with the DSWD.

(2) Mandatory PhilHealth Coverage

All indigent senior citizens shall be covered by the national health insurance program of PhilHealth. The LGUs where the indigent senior citizens resides shall allocate the necessary funds to ensure the enrollment of their indigent senior citizens in accordance with the pertinent laws and regulations.

(3) Social Safety Nets

Social safety assistance intended to cushion the effects of economics shocks, disasters and calamities shall be available for senior citizens. The social safety assistance which shall include, but not limited to, food, medicines, and financial assistance for domicile repair, shall be sourced from the disaster/calamity funds of LGUs where the senior citizens reside, subject to the guidelimes to be issued by the DSWD.”

Section 6. Section 6 of the same Act, as amended, is heeby further amended to read as follows:

SEC. 6. The Office for Senior Citizens Affairs (OSCA). – There shall be established in all cities and municipalities an OSCA to be headed by a senior citizen who shall be appointed by the mayor for a term of three (3) years without reappointment but without prejudice to an extension if exigency so requires. Said appointee shall be chosen from a list of three (3) nominees as recommended by a general assembly of senior citizens organizations in the city or municipality.

The head of the OSCA shall be appointed to serve the interest of senior citizens and shall not be removed or replaced except for reasons of death permanent disability or ineffective performance of his duties to the detriment of fellow senior citizens.

The head of the OSCA shall be entitled to receive an honorarium of an amount at least equivalent to Salary Grade 10 to be approved by the LGU concerned.

The head of the OSCA shall be assisted by the City Social Welfare and Development officer or by the Municipal Social Welfare and Development Officer, in coordination with the Social Welfare and Development Office.

The Office of the Mayor shall exercise supervision over the OSCA relative to their plans, activities and programs for senior citizens. The OSCA shall work together and establish linkages with accredited NGOs Pos and the barangays in their respective areas.

The OSCA shall have the following functions:

(a) To plan, implement and monitor yearly work programs in pursuance of the objectives of this Act;

(b) To draw up a list of available and required services which can be provided by the senior citizens;

(c) To maintain and regularly update on a quarterly basis the list of senior citizens and to issue national individual identification cards, free of charge, which shall be valid anywhere in the country;

(d) To serve as a general information and liason center for senior citizens;

(e) To monitor compliance of the provisions of this Act particularly the grant of special discounts and privileges to senior citizens;

(f) To report to the mayor, any individual, establishments, business entity, institutions or agency found violating any provision of this Act; and

(g) To assist the senior citizens in filing complaints or charges against any individual, establishments, business entity, institution, or agency refusing to comply with the privileges under this Act before the Department of Justice (DOJ), the Provincial Prosecutor’s Office, the regional or the municipal trial court, the municipal trial court in cities, or the municipal circuit trial court.”

Section 7. Section 10 of the same Act, as amended, is hereby further amended to read as follows:

SEC. 10. Penalties. – Any person who refuses to honor the senior citizen card issued by this the government or violates any provision of this Act shall suffer the following penalties:

(a) For the first violation, imprisonment of not less than two (2) years but not more than six (6) years and a fine of not less than Fifty thousand pesos (Php50,000.00) but not exceeding One hundred thousand pesos (Php100,000.00);

(b) For any subsequent violation, imprisonment of not less than two (2) years but not more than six (6) years and a fine of not less than One Hundred thousand pesos (Php100,000.00) but not exceeding Two hundred thousand pesos (Php200,000.00); and

(c) Any person who abuses the privileges granted herein shall be punished with imprisonment of not less than six (6) months and a fine of not less than Fifty thousand pesos (Php50,000.00) but not more than One hundred thousand pesos (Php100,000.00).

If the offender is a corporation, partnership, organization or any similar entity, the officials thereof directly involved such as the president, general manager, managing partner, or such other officer charged with the management of the business affairs shall be liable therefor.

If the offender is an alien or a foreigner, he/she shall be deported immediately after service of sentence.

Upon filing of an appropriate complaint, and after due notice and hearing, the proper authorities may also cause the cancellation or revocation of the business permit, permit to operate, franchise and other similar privileges granted to any person, establishment or business entity that fails to abide by the provisions of this Act.”

Section 8. Section 11 of the same Act, as amended, is hereby further amended to read as follows:

SEC. 11. Monitoring and Coordinating Mechanism. – A National Coordinating and Monitoring Board shall be established which shall be composed of the following:

(a) Chairperson – the Secretary of the DSWD or an authorized representative;

(b) Vice Chairperson – the Secretary of the Department of the Interior and Local Government (DILG) or an authorized representative; and

(c) Members:

(1) the Secretary of the DOJ or an authorized representative;

(2) the Secretary of the DOH or an authorized representative;

(3) the Secretary of the DTI or an authorized representative; and

(4) representatives from five (5) NGOs for senior citizens which are duly accredited by the DSWD and have service primarily for senior citizens. Representatives of NGOs shall serve a period of tree (3) years.

The Board may call on other government agencies, NGOs and Pos to serve as resource persons as the need arises. Resource person have no right to vote in the National Coordinating and Monitoring Board.”

Section 9. Implementing Rules and Regulations. – Within sixty (60) days from theeffectivity of this Act, the Secretary of the DSWD shall formulate and adopt amendments to the existing rules and regulations implementing Republic Act No. 7432, as amended by Republic Act No. 9257, to carry out the objectives of this Act, in consultation with the Department of Finance, the Department of Tourism, the Housing and Urban Development Coordinating Council (HUDCC), the DOLE, the DOJ, the DILG, the DTI, the DOH, the DOTC, the NEDA, the DepED, the TESDA, the CHED, and five (5) NGOs or POs for the senior citizens duly accredited by the DSWD. The guidelines pursuant to Section 4(a)(i) shall be established by the DOH within sixty (60) days upon the effectivity of this Act.

Section 10. Appropriations. – The Necessary appropriations for the operation and maintenance of the OSCA shall be appropriated and approved by the LGUs concerned. For national government agencies, the requirements to implement the provisions of this Act shall be included in their respective budgets: Provided, That the funds to be used for the national health program and for the vaccination of senior citizens in the first year of the DOH and thereafter, as a line item under the under the DOH budget in the subsequent General Appropriations Act (GAA): Provided, further, That the monthly social pension for indigent senior citizens in the first year of implementation shall be added to the regular appropriations of the DSWD budget in the subsequent GAA.

Section 11. Repealing Clause. – All law, executive orders, rules and regulations or any part hereof inconsistent herewith are deemed repealed or modified accordingly.

Section 12. Separability Clause. – If any part or provision of this Act shall be declared unconstitutional and invalid, such 18 declaration shall not invalidate other parts thereof which shall remain in full force and effect.

Section 13. Effectivity. – This Act shall take effect fifteen (15) days its complete publication n the Official Gazette or in at least two (2) newspapers of general circulation, whichever comes earlier.

Approved: FEB 15, 2010

Posted by: Elmer Brabante | February 21, 2011

Legal Dictionary: Cad – Cus


Cadastral Proceeding. A quasi-judicial or administrative proceeding which involves the identification of various lots embraced in a survey and adjudication of their titles, usually undertaken at the initiative of the Land Registration Authority or Bureau of Lands.

Cadastral System. The system of identifying and adjudicating disputes involving ownership or possession of lands in a given area or municipality for the purpose of quieting titles therein and their incorporation into the Torrens system.

Calibrated Preemptive Response. A catchphrase, called CPR for short, pertaining to a court-nullified crowd dispersal enforcement policy which is characterized by a measured response by the military, police and other law enforcement authorities to break up an unlawful public assembly or rally depending on the extent of provocation or disorderly behavior demonstrated by its participants. (KMP vs. ERmita, GR 169838)

Capacity to Act. The power to do acts with legal effect, e.g., to enter into contract or to sue, usually associated with a person who is 18 years old—the age of majority—or over. It is acquired and may be lost. (Art. 37, Civil Code)

Capital Assets. Property held by the taxpayer whether or not connected with his trade or business. (Sec. 39, National Internal Revenue Code of 1997)

Capital Gains Tax. A tax on the gain or profit from the sale of the taxpayer’s property forming part of his capital assets.

Capital Offense. An offense which, under the law existing at the time of its commission and at the time of the application to be admitted to bail, may be punished with death. (Sec. 6, Rule 114)

Capital Punishment. The penalty of death. Note that the Death Penalty Law, RA 7659, has already been repealed. (People vs. Quiachon, GR 170276, Aug. 31, 2006

Capital Stock. The capitalization of a corporation which is expressed in a specified number of shares or certificates of stock that will be subscribed to and paid for conformably with its by-laws.

Caram Rule. Under the 1935 Constitution, those born in the Philippines of foreign parent, who before the adoption of the Constitution had been elected to public office in the Philippines, are considered Filipino citizens.

Carnal Knowledge. A legal euphemism for illicit sexual intercourse perpetrated against a woman’s will. It is legalese for sexual intercourse involving rape or seduction.

Carnapping. The taking, with intent to gain, of a motor vehicle belonging to another without the latter’s consent, or by means of violence against or intimidation of persons, or by using force upon things. (Sec. 2, RA 6539, Anti-Carnapping Act of 1972)

Cartel. Any combination of or agreement between two or more persons engaged in the production, manufacture, processing, storage, supply, distribution, marketing, sale or disposition of any basic necessity or prime commodity designed to artificially and unreasonably increase or manipulate its price. (RA 7581, The Price Act)

Case at Bar. The case being tried by the trial court in the exercise of its jurisdiction, i.e., the case  that is currently the subject of a particular trial or judicial proceeding.

Case at Bench. The case being heard before an appellate court.

Castration. See Mutilation. 

Casual Employee. A person who has been engaged to perform activities which are peripheral or incidental to the usual business or trade of the employer, except that is such service has lasted for at least one year, whether it is continuous or broken, he is to be considered a regular employee with respect to the activity in which he is employed and his employment shall continue while such activity exists. (Art. 280, Labor Code

Cassus Omissus. A principle in statutory construction which means that a person or thing omitted from an enumeration must be deemed to have been omitted intentionally. This is to be differentiated from ejusdem generic

Cattle-rustling. The unlawful act of taking away by any means, method or scheme, without the consent of the owner or raiser, of any of the animals classified as large cattle, whether or not for profit or gain, or whether committed with or without violence against or intimidation of any person or force upon things. (PD 533, Anti-cattle Rustling Law of 1974)

Cause of Action. An act or omission of the defendant in violation of the legal right of the plaintiff giving him the ground to file suit. (Sec. 2, Rule 2; Barcelona vs. CA, 412 SCRA 41)

Caveat Emptor. A Latin term that is applicable to the law of sales which translates into “buyer beware.”

Certificate of Public Convenience. An authorization granted by the LTFRB for the operation of land transportation services for public use.

Certification Election. An election contest between two or more legitimate labor organizations in an establishment to determine which among them represents the majority of the members in an appropriate bargaining unit for the purpose of collective bargaining with their employer, as well as representation of the members therof in labor-management activities. (Art. 231, Labor Code)

Certiorari. A special civil action brought by an aggrieved party against a tribunal, board or officer exercising judicial or quasi-judicial functions to determine whether it has acted without or in excess or in excess of jurisdiction, and there is no appeal, or any plain, speedy, and adequate remedy in the ordinary course of law for the purpose of annulling or modifying the proceedings of such tribunal, board or officer and granting such reliefs as law and justice may require. (Sec. 1, Rule 65)

Cestui Que Trust. The beneficiary for which a trust is created.

Chain Distribution Plan. See Pyramid Sales Scheme.

Chambers. The term which is used to describe the private offices of a Justice or judge, entry to which is normally restricted.

Champertous Contract. An agreement that is deemed void being against public policy and professional legal ethics whereby a lawyer agrees to prosecute at his own expense the recovery of a thing or property for a litigant who agrees to share with him a portion or pay him an amount corresponding to a percentage of the value of the thing or property thus recovered or won in the suit. It is akin to instigating a claimant to file suit with the lawyer advancing the costs of suit in return for substantial fee if successful. See Contingent Fee Agreement.

Charter Party. A maritime contract by virtue of which the owner or the agent of a vessel binds himself to transport merchandise or persons for a fixed price. It is also a contract by which an entire ship, or some principal part thereof, is leased by the owner to another person for a specified time or use. 

Chattel Mortgage. A conditional sale of property which is recorded in the Chattel Mortgage Register as security for the payment of a debt or the performance of an obligation. Note that if the movable, instead of being recorded, is delivered to the creditors or third person, the contract is a pledge and not a chattel mortgage. (Art. 2140, Civil Code; Sec. 3 Act 1508, Chattel Mortgage Law

Check. A bill of exchange drawn that is payable on demand signed by the maker or drawer, containing an unconditional promise to pay a sum certain to order or to bearer. (Sec. 185, Act 2031, Negotiable Instruments Law

Check-off. It is an accounting device whereby the employer, on agreement with the union, or upon prior authorization from its employees, deducts union dues or agency fees from the latter’s salaries and remits them directly to the union. 

Checks and Balances Doctrine. A political doctrine which complements the separation of powers doctrine underlying our system of government by which the three branches of government “check” one another against abusing or misusing their respective powers under the Constitution. Thus, the President can veto legislation. Congress must approve executive appointments. The courts, whose members are appointed by the President, can nullify  grave abuse of executive power and invalidate laws for violating the limits of their respective Constitutional powers and prerogatives. 

Child Abuse. Any physical, psychological, or sexual abuse, and criminal neglect which leads to the infliction of physical or psychological injury, cruelty to, or neglect, sexual abuse, or exploitation of a child, i.e., a person below 18 years of age, or even older if that person is incapable of taking care of himself fully because of a physical or mental disability, or of protecting himself from abuse. (Secs. 2(a) and 2(b), RA 7610, Child Abuse Act)

Child Prostitute. A male or female, under 18 years of age, who for money, profit, or any other consideration or due to the coercion or influence of any adult, syndicate or group, indulges in sexual intercourse or lascivious conduct. (Sec. 5, RA 7610, Child Abuse Act)

Child Trafficking. The prohibited act of engaging in trading and dealing with children, including the act of buying and selling of a child for money, of for any other consideration, or barter. It is classified as a grave felony punishable by reclusion perpetua. If the victim is under 12 years of age, the maximum penalty is to be imposed.

Child Witness. Any person who is below the age of 18 at the time of giving testimony. He may be over 18 years old if found by the court to be unable to fully take care of himself or protect himself from abuse or exploitation. In child abuse cases, however, the child may be more than 18 years old but is found by the court as unable to take care of himself or protect himself from abuse because of a physical or mental disability or condition. (Sec. 4(a), Rule on Examination of a Child Witness)

Child-caring Agency. A duly licensed and accredited agency by the DSWD that provides 24-hour residential care services for abandoned, orphaned, neglected, or voluntarily committed children. (Sec. 3(i), RA 8552, Domestic Adoption Act of 1998)

Child-placing Agency. A duly licensed and accredited agency by the DSWD to provide comprehensive child welfare services, including, but not limited to, receiving applications for adoption, evaluating the prospective adoptive parents and preparing the adoption home study. (Sec. 3(h), RA 8552, Domestic Adoption Act of 1998)

Child at Risk. Refers to child who is vulnerable to and at the risk of committing criminal offenses because of personal, family and social circumstances, e.g., being exploited sexually or economically, being a gang member, being out of school, etc. (Sec. 4(d), RA 9344, Juvenile Justice and Welfare Act of 2006)

Chose in Action. The instrument evidencing the right to sue for money or property, e.g., a promissory note. A legal claim or cause of action that can translate into a lawsuit.

Circumstantial Evidence. Evidence which indirectly proves a fact in issue through an inference which the fact-finder draws from the evidence established. It constitutes a combination of circumstances that is sufficient to overcome the presumption of innocence in criminal cases that can lead to conviction beyond reasonable doubt, i.e., there is more than one circumstance inferred from facts which are proven. (Sec. 4, Rule 133; People vs. Cuenca, 375 SCRA 119)

Citizenship. Membership in a political community which is personal and more or less permanent in character.

Civil Action. A suit filed by one party against another for the enforcement or protection of a right, or the prevention or redress of a wrong. (Sec. 3(a), Rule 1)

Civil Aspect. A reference to the pecuniary liabilities, i.e., damages, of the defendant in a criminal case which are deemed subsumed therein. See Civil Liability.

Civil Contempt. Contempt of court is committed by a party who falls or neglects to do something ordered by the court or judge for the benefit of the opposing party. People vs. Godoy, 243 SCRA 64

Civil Fruits. Income derived from the rents of buildings, the price of leases of lands and other property, and the amount of perpetual or life annuities or other similar income. (Art. 442, Civil Code)

Civil Interdiction. An accessory penalty which has the effect of depriving the offender during the time of his sentence of the rights of parental authority, or guardianship, either as to the person or property of any ward, of marital authority, of the right to manage his property, and of the right to dispose of such property by any conveyance inter vivos. (Art. 34, RPC)

Civil Law. That branch of law, based on Roman law, that governs the relations between and among persons, as regulated by the State, for the protection of private interests. The Civil Code of the Philippines is a codification of such law.

Civil Liability. Generally, refers to the monetization of the claims arising out of a criminal act which consists of restitution, reparation, and indemnification for consequential damages. See Civil Aspect.

Civil Liberty. The catch-all term which embraces all the freedoms and civil rights enumerated under the bill of rights of the Constitution 

Civil Obligation. An obligation that gives a right of action to compel performance, as opposed to a natural obligation. (Art. 1423, Civil Code)

Civil Register. The official record or repository for entering the civil status of persons, involving births, deaths, marriages, annulments of marriages, adoptions, legitimizations, acknowledgments of natural children, naturalizations, or changes of names. (Act 3753, Civil Register Law; Art. 407, Civil Code)

Civil Right. A right accorded every citizen or resident of the Philippines by law or constitutional fiat.

Class Suit. An action filed on behalf of many persons so numerous that it is impracticable to join all as parties, brought by a representative number of them who sue for the benefit of all concerning a controversy that is one of common or general interest to them all. Also referred to as a representative suit, it is an action brought for the benefit of all persons in the class. Its main requisites are (a) the subject matter of the controversy is one of common or general interest to the persons represented; (b) the parties affected are so numerous that is impracticable to bring them all before the court; and (c) the parties bringing the class suit are sufficiently numerous or representative of the class. (Sec. 12, Rule 3). See Derivative Suit.

Clean Hands Doctrine. A legal principle grounded on equity which says that a complainant or plaintiff seeking relief in the courts must not himself be guilty in the matter subject of his claim.

Clear and Present Danger Rule. When words are used in such circumstance and of such nature as to create a clear and present danger that will bring about substantive evil that State has right to prevent (Schenck v. U.S., 249 US 97); clear – causal connection with the danger of the substantive evil arising from the utterance questioned; and present – time element, identified with imminent and immediate danger; the danger must not only be probable, but very likely inevitable (Gonzales v. Comelec, 27 SCRA 835).

Close Corporation. A corporation comprising not more than 20 stockholders whose shares are not generally traded publicly and whose management is vested in the stockholders themselves. The late Justice Jose C. Campos characterized such a corporation as a “de facto partnership with a corporate shell.” (Sec. 96, BP 68, Corporation Code)

Closed-Shop. A union security clause in a collective bargaining agreement that requires membership in the union as a condition of continuous employment.

Closing-Out Sale. A consumer sale wherein the seller uses the announcement to create the impression the be is willing to give large discounts on merchandise to reduce, dispose or close out his inventory and business. (Sec. 4(1), RA 7394, Consumer Act of the Philippines)

Cloud on Title. A term which denotes an outstanding instrument, record, claim, encumbrance or proceeding which  is actually invalid or inoperative, but which may, nevertheless, impair or affect injuriously the title to property 

Codicil. A supplement or addition to a will, made after its execution and annexed to e taken as part thereof, by which any  disposition made in the original will is explained, added to or altered. (Art. 825, Civil Code)

Cohibit. To live or dwell together as husband and wife without the benefit of marriage 

Cohabitation. The public assumption by a man and woman of the marital relation, and dwelling together as man and wife, thereby holding themselves out to the public as such. Also Live-in Relationship.

Coitus. Legalese for sexual intercourse. See also Carnal Knowledge.

Collateral Estoppel. See Conclusiveness of Judgement.

Collation. A term in the law of inheritance, it refers to the act by  virtue of which descendants or other compulsory heirs who intervene in the division of the inheritance of an ascendant bring into the common mass the property which they received from him through donation or by gratuitous title so that the division may be made according to law and the will of the testator. (Vizconde vs. CA, 286 SCRA 217

Collective Bargaining. The performance of a mutual obligation to meet and convince  promptly  and expeditiously in good faith for the purpose of negotiating an agreement with respect to wages, hours of work and all other terms and conditions of employment, including proposals for adjusting any grievances or questions arising under such agreement and executing a CBA incorporating such agreements if requested by either party but such duty does not compel any party to agree to a proposal or to make any concession. (Art. 252, Labor Code)

Collective Bargaining Agreement (CBA). A contract executed upon request of either the employer or the exclusive bargaining representative incorporating the agreement reached after negotiations with respect to wages, hours of work and all other terms and conditions of employment, including proposals for adjust grievances or questions arising under such agreement. (Rivera vs. Espiritu, 374 SCRA 351)

Collective Bargaining Unit (CBU). A group of employees sharing mutual interests within a given employer unit, comprised of all or less than all of the entire body of employees in the employer unit or any  specific occupational or geographical grouping within such employer unit. As such, it can qualify as a labor organization and its members can form a union. 

Collision. A term in maritime law which refers to two moving vessels which crash into each other. 

Colorable Imitation. An act of infringement of a registered mark and a form of unfair competition whereby an article is made to look or sound like the real thing when it is not. (Sec. 155, RA 8923, The Intellectual Property Code)

Combination in Restraint of Trade. A conspiratorial contract or an agreement which is designed to prevent free competition in the market through artificial means or resort to any artifice, such as spreading false rumors, to stifle lawful commerce. (Art. 186, RPC

Comity or Comitas Gentium. A principle in public international law which recognized and requires reciprocal gestures of courtesies among sovereign states concerning one another’s actions based on customs duties of personal article belonging to diplomats in a country’s jurisdiction, or lifting of visa restrictions for short periods of stay. 

Commercial Arbitration. An arbitration that covers any matter arising from all relations of a commercial nature, whether contractual or not. (Sec. 3(g), RA 9285, Alternative Dispute Resolution Act of 2004

Commercial Farms. Private agricultural lands which are devoted to commercial livestock, poultry and swine raising, and aquaculture including saltbeds, fishponds and prawn ponds, fruit orchards, vegetable and cutflower farms, and cacao, coffee and rubber plantations. Note that these commercial farms are also subject to government acquisition upon payment of just compensation under the agrarian reform program. (Sect. 11, RA 6657, Comprehensive Agrarian Reform Law

Commodatum. A contract of loan characterized by the delivery of a non-consumable thing to another for the latter’s use for a certain time with the obligation to return to it. Note that this contract is essentially gratuitous with the ownership of the thing lent remaining with the lender. 

Common Carrier. A person, association, firm or corporation engaged in the business of carrying or transporting passengers or goods or both, by land, water or air transportation, offering its services to the public. (Art. 1732, Civil Code

Common Law. The system of jurisprudence, which originated from England, that evolved from case law or judicial precedents rather than legislative enactments from which legal rules are derived and enforced. Thus, the phrase of common law denotes the implementation of a law that is not derived from statute. 

Common Law Marriage. Usually referred to as Live-in Relationship, a union of two people who agree to live together as man and wife without the benefit of legal or formal ceremony. See Cohabitation.

Common Reputation. Reputation that has been in existence previous to the controversy concerning facts of public or general interest that are more than 30 years old, or respecting marriage or moral character, that may be admissible in evidence. Note that monuments and inscriptions in public places may be received as evidence of common reputation. (Sec. 41, Rule 130)

Common Stock. A stock which represents the residual ownership interest in the corporation, a basic class of stock ordinarily and usually issued without extraordinary rights or privileges that entitles the shareholders to only a pro rata division of profits.

Communal Forest. A tract of land set aside by the government for the use of the residents of a municipality from which said residents may cut, collect and remove forest products for their personal use conformably with existing laws and regulations. 

Community of Property. All the property owned by the spouses at the time of the celebration of their marriage or acquire thereafter. (Art. 8 and 91, Family Code)

Company Union. An illegitimate labor organization that is dominated or controlled by the employer. Note that the employer can be held culpable for unfair labor practice for fomenting or organizing such a union. (Art. 212(i), Labor Code)

Compenable Illness. Any illness which is definitely accepted as an occupational disease listed by the Employees’ Compensation Commission or any illness caused or aggravated by employment subject to proof by the employee that the risk of contracting the same is increased by the conditions in the workplace. (Bonilla vs. CA, 340 SCRA 760)

Compensatory Damages. See Actual Damages.

Complaint. Generally, it is the pleading which alleges the plaintiff ‘s causes of action. The names and addresses of the plaintiff and defendant must be stated in the complaint. In criminal law, it refers to the sworn written statement charging a person with an offense. (Sec. 3, Rule 6 and Sec. 3, Rule 110)

Completeness test. The law must be complete in all essential terms and conditions so that there is nothing for delegate to do except enforce it.

Complex Crime. A single criminal act resulting in the commission of two or more grave or less grave felonies, or when offense is a necessary means for committing the other. Note that in such cases, the penalty for the more serious crime shall be imposed in its maximum period. (Art. 48, RPC, amended by Act 4000)

Composition in Insolvency. An agreement whereby the creditors of an insolvent agree accept a certain percentage of their claims in full settlement of such claims. It is method of dividing the estate of the insolvent among his creditors. (Sec. 63, Act 1956, The Insolvency Act)

Compressed Work Week. An energy-saving labor productivity scheme which provides for an alternative arrangement whereby the normal workweek is reduced to less than six  days but the total number of normal work hours per week shall remain at 40 or 48 hours, as the case may be. The normal workday is increased to more that eight hours without corresponding overtime premium. This scheme can be adjusted accordingly in cases where the normal workweek of the firm is five days. (Department Advisory No. 22 (DOLE), series of 2004, Implementation of Compressed Workweek Schemes)

Compromise. A contract whereby the parties, by making reciprocal concessions, avoid litigation or put an end to one already commenced. (Art. 2028, Civil Code)

Compulsory Arbitration. The quasi-judicial process of settling labor disputes by the NLRC initially through  the labor arbiters, or through the certification of a labor dispute by the Secretary of the DOLE when  it affects an industry indispensable to the national interest. 

Compulsory Counterclaim. One which, being cognizable by the regular courts, arises out of or is connected with the transaction or occurrence constituting the subject matter of the opposing party’s claim and does not require for its adjudication the presence of third parties of whom the court cannot acquire jurisdiction. Note that it must be within the jurisdiction of the court both as to the amount and the nature thereof, except that in an original action before the regional trial court, the counterclaim may be considered compulsory regardless of the amount. (Sec. 7, Rule 7)

Compulsory Heir. A forced heir, i.e., an heir for whom the law has reserved a part of the testator’s property which he cannot dispose of. The surviving spouse and children are examples of compulsory heirs. (Arts. 886 and 887, Civil code)

Conclusive Presumption. An assertion of a fact that is deemed to be true without the need further proof. (Sec. 2, Rule 131)

Conclusiveness of Judgment. A doctrine stating that a fact or question which in issue in a former suit and that was judicially passed upon and determined by a court of competent jurisdiction conclusively settled by the judgment therein as far as the parties to that action and persons in privity with them are concerned, and cannot again be litigated in any future action between such parties or their privies in the same court or any other of concurrent jurisdiction on either the same or different cause of action, while the judgment remains unreversed by proper authority. (Cayana vs. CA, 426 SCRA 10 Oropesa Marketing Corporation vs. Allied Bank, 393 SCRA 278)

Concubinage. An offense committed by a husband who keeps a mistress in the conjugal dwelling, or has sexual intercourse with a woman who is not his wife under scandalous circumstances, or who cohabits with her in any other place. (Art. 334, RPC)

Concurrence of Credits. This situation occurs, usually in an insolvency proceeding, when the same specific property of the debtor or all of his property is being claimed by several creditors.

Condition Precedent. Or Conditio Sine Qua Non, an indispensable requirement without which a thing or matter cannot proceed to fruition or completion.

Comdominium. An interest in real property consisting of a separate interest in a unit in a residential , industrial or commercial building, and an undivided interest in common, directly or indirectly, in the land on which it is located and in other common areas of the building. (Sec. 2, RA 4726, Condominium Act)

Conduct Unbecoming. A term that is applied to a broad range of transgressions of rules not only of social behavior but of ethical practice or logical procedure or prescribed method. (Zacarias vs. NAPOLCOM, 414 SCRA 387

Confession. The declaration of an accused acknowledgment his guilt of the offense charged, or of any offense necessarily included therein. It can be used against him in evidence. (Sec. 33, Rule 130)

Confession and Avoidance. An answer or a pleading filed by party who, while admitting the allegations against him, either expressly or by implication, asserts matters or facts which render the “confession” ineffective, excusable inadmissible or void.

Conflict of Interest. A situation which arises when a public official or employer is a member of a board, or a substantial stockholder of a private corporation or business, or his rights or duties therein, may be opposed to or affected by the faithful performance of official duty. For example, a public official or employee should not have any financial or material interest in any transaction which requires the approval of his office. (Sec. 3(i) and Sec. 7(a), RA 6713,Code  of Conduct and Ethical Standards for Public Officials and Employees)

Conjugal Partnership of Gains. A marriage settlement whereby both husband and wife place in a common fund the proceeds, products, fruits and income from their separate properties and those acquired by either or both spouses through their efforts or by chance. The net gains or benefits obtained by either or both spouses shall be divided equally between them upon the dissolution of the marriage, unless otherwise agreed in the marriage settlements. (Art. 106, Family Code)

Conjugal Property. See Conjugal Partnership of Gains. Note that under Art. 106 of the Family Code, all property acquired during the marriage is presumed to be conjugal.

Consent. In contract law, is manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract. The offer must be certain and the acceptance absolute. Note that a qualified acceptance constitutes a conter-offer. (Art. 1319, Civil Code 

Consent Judgment. A compromise agreement between the parties to end further litigation by having the same force and effect as a judgment by the court. Thus, once approved, it has the force of res judicata with respect to the contentious issues in the case. Such a judgment, as a rule, is immediately executory. (Del Rosario vs. Madayag and Leviste, 247 SCRA 767; Central Bank vs. CA, 61 SCRA 348; Pasay City vs. Manila, 132 SCRA 156)

Consented Abduction. The abduction of a virgin over 12 and under 18 years of age, carried out with her consent but with lewd designs by the abductor. (Art. 343, RPC)

Consequential Damages. Damages caused by the injury which may not be evident at the time when the injury was actually inflicted or caused, such as loss of income. Note that civil liability may arise in such a case for which restitution or indemnification may be exacted. (Art. 104, RPC)

Consignation. The act of depositing the thing due with the court or judicial authorities whenever the creditor cannot accept or refuses to accept payment. It generally requires a prior tender of payment. (Heirs of Luis Bucus vs. CA, 371 SCRA 295)

Consignment. A mode of distribution through a dealer or agency, that is, the consignee, which ordinarily does not involve the transfer of title to the goods since they may be returned if unsold. For example, the sale of newspapers and magazines to a news dealer who will distribute or re-sell them but subject to the return of unsold copies. 

Consolidation. A process by which two or more corporations unite to form a new single corporation. (Sec. 76, BP 68, Corporation Code)

Conspiracy. It exists when two or more persons come to an agreement concerning the commission of a felony and decide to commit it. Note that conspiracy by itself is not a crime unless there is a specific provision of law making it so, such as treason, rebellion, or sedition. It may, however, aggravate or qualify a felony. 

Constituent Assembly. Refers to the Senate and the House of Representatives when they sit down together to propose any amendment to, or revision of the Constitution, upon a vote of three-fourths of all its Members. (Sec. 1, Art. XVII, Constitution

Constitution. The document which serves as the fundamental law of the state. (V. Sinco, Philippine Political Law, 11th ed., p.68-70); that written instrument enacted by direct action of the people by which the fundamental powers of the government are established, limited and defined, and by which those powers are distributed among the several departments for their safe and useful exercise for the benefit of the body politic (Malcolm, Philippine Constitutional Law, p.6).

Construction Dispute. A dispute between or among the parties in a construction project. If there is agreement to arbitrate such a dispute, the governing law is EO 1008, otherwise known as the Construction Industry Arbitration Law. 

Constructive Contempt. A form of indirect contempt, i.e., one committed outside the court’s presence but which tends to belittle, degrade, obstruct, interrupt or embarrass the court which is tantamount to a misbehavior in the presence of or so near a court or judge as to interrupt the administration of justice. (Delima vs. Gallardo, 77 SCRA 2886)

Constructive Delivery. A general term comprehending all those acts which, although not conferring physical possession of the thing, have been legally interpreted as equivalent to acts of real delivery. A good example is the giving of the key to the house as constructive delivery of the house from the seller to the buyer. (Banawa vs. Mirano, 97 SCRA 517

Constructive Dismissal. The “resignation” of an employee who is considered to do so because of an act of clear discrimination, or disdain by an employer which becomes so unbearable that the employee is left with no choice but to forego his continued employment. It also refers to an ostensibly lawful act by the employer which, in fact, translates into unbearable condition for the employee leaving him no option but to forego his employment, e.g., unfair demotion, geographical transfer, or an undesirable change of functions or duties, or acts of clear discrimination. (PESR vs. Paramio, 427 SCRA 732; Philamgen vs. Gremaje, 442 SCRA 274

Constructive Fraud. The unintentional commission or omission of an act that is legally required which results in damage or injury to another. An example is when a debtor transfers his assets impairing the rights of his creditors, that conveyance can be set aside even if the debtor did not intend to prejudice his creditors’ rights in the premises. 

Constructive Notice. Notice that is presumed by law to have been communicated to the party concerned and ought to be known by him regardless that it has not been personally or actually served. Notice by publication in a newspaper of general circulation is an instance where the party concerned is considered as having been notified by fiction of law. 

Constructive Service. The delivery of a pleading or notice that is considered to have been legally served on its intended recipient even if not actually received in person by him. It is also known as substituted service which can be done by registered mail or publication in a newspaper of general circulation. 

Consumer. A natural person who is a purchaser, lessee, recipient or prospective purchaser, lessor or recipient of consumer products, services or credit. (Sec. 4(n), RA 7394, Consumer Act

Consumer Credit. A credit extended by a creditor to a consumer for the sale or lease of any consumer product or service, under which part or all of the price or payment, therefore, is payable at some future time, whether in full or in installments. (Sec. 4(o),RA 7394, Consumer Act

Consumer Loan. A loan made by the lender to a person which is payable in installments for which a finance charge is or may be imposed. (Sec. 4(p), RA 7394, Consumer Act)

Consumer Products and Services. Goods, services and credits, debts or obligations which are primarily for personal, family, household or agricultural purposes, which shall include but not limited to food, drugs, cosmetics, and devices. (Sec. 4(q), RA 7394, Consumer Act

Consummated Felony. A felony or a crime is deemed consummated when all the elements necessary for its execution and accomplishment are present. (Art. 6, RPC)

Contempt of Court. It is a defiance of the authority, justice or dignity of the court—such conduct as tends to bring the authority and administration of the law into disrespect of, to interfere with, or prejudice parties litigant or their witnesses during litigation. It signifies not only a willful disregard or disobedience to the court’s order but such conduct which tends to bring the authority of the court and the administration of law into disrepute or in some manner to impede the administration of justice. (Halili vs. Court of Industrial Relations, 136 SCRA 112

Contiguous Zone. Extends up to 12 nautical miles from the territorial sea.  Although not part of the territory, the coastal State may exercise jurisdiction to prevent infringement of customs, fiscal, immigration or sanitary laws.

Continental Shelf. The seabed and subsoil of the submarine areas that extend beyond a coastal state’s territorial sea throughout the natural prolongation of its land territory. 

Contingent Fee Agreement. A no recovery, no fee agreement between a lawyer and a client, i.e., if the lawyer wins his case, he acquires a right to whatever amount stipulated between him and his client. See also Champertous Contract. 

Continuing Crime. A single crime which results from a plurality or series of the same or related felonious acts over a period of time, characterized by a unity of criminal intent or purpose, which means that two or more violations of the same penal provisions are united in one and the same intent or resolution leading to the perpetration of the same criminal purpose or aim. An example is illegal recruitment or a pyramiding scheme which are crimes designed to victimize as many people as possible, or a theft of two items belonging to different owners. This is also referred to as Delito Continuado.

Continuing Guaranty. One which covers all transactions, including those arising in the future, which are within the description or contemplation of the contract of guaranty, until the expiration or termination thereof. (SBTC vs. Cuenca, 341 SCRA 781

Continuous Easement. An easement the use of which is or may be incessant, without the intervention of any act of man. (Art. 651, Civil Code)

Contract. A meeting of the minds between two persons whereby one binds himself, with respect to the other, to give something or render some service. Note that there is no contract unless the following requisites concur: (a) consent; (b) subject matter; and (c) cause of the obligation. (Arts. 1305 and 1318, Civil Code)

Contract of Sale. An agreement whereby one of the contracting parties obligates himself to sell the property exclusively to the buyer upon fulfillment of the terms previously agreed upon. In the meantime, he retains ownership of the subject matter—even if is should already have been delivered to the prospective buyer. 

Contract-Add-and-Operate. A contractual arrangement whereby the project proponent adds to an existing infrastructure facility which it is renting from the government. It operates the expanded project over an agreement franchise period. There may or may not be a transfer arrangement in regard to the facility. (Sec. 2(g), RA 7718, Build-Operate-Transfer Law

Contract Bar Rule. The period during which the majority status of the incumbent bargaining agent may not be questioned or subjected to a certification election. (Art. 253-A, Labor Code). See Freedom Period.

Contractor. A person who, in the pursuit of his independent business, undertakes to do a specific job or piece of work for other persons, using his own means and methods without submitting himself to control as to the petty details. The true test of a contractor is that he renders service in the course of an independent occupation, representing the will of his employer only as to the result of his work, and not as to the means by which it is accomplished. (Sec. 191, NIRC; CIR vs. CTA, 134 SCRA 49)

Contributory Negligence. A mitigating circumstance in criminal prosecutions for negligence where it can be shown that the injury or damage suffered by the offended party was caused in part by his own failure to observe the necessary precaution. 

Conventional Redemption. This takes place when the vendor reserves the right to repurchase the thing sold, with the obligation to return the price of the sale, the expenses of the contract and other necessary and useful expenses made on the thing sold by the vendee. (Arts. 1601 and 1616, Civil Code)

Cooling-off Period. In labor law, the period of time that both parties to a labor dispute must observe before carrying out a strike or imposing a lockout to afford each contending party more time to arrive at a mutually acceptable solution to their problem; the required number of days that must elapse between the filing of the notice to strike and 30 days in the case of an economic strike, for the purpose of allowing tempers to cool down and to give a chance for reconciliation and mediation work.

Co-ownership. One’s proprietary interest or share of an undivided thing or right that belongs to different persons. (Art. 484, Civil Code)

Copyright. The exclusive right to publish and reproduce, and to sell, license or otherwise exploit, a literary, artistic or other work of the mind. (Sec. 4.1, RA 8923, Intellectual Property Code)

Corporal Punishment. Any kind of physical punishment inflicted on the body as distinguished from pecuniary punishment or fine.

Corporate Farms. Agricultural lands devoted to farming which are owned or operated by private corporations or other business associations.

Corporate Rehabilitation. A summary and non-adversarial judicial proceeding in rem by which a debtor corporation suffering from financial difficulties that can lead to its insolvency or bankruptcy, or its creditors holding at least 25 percent of its liabilities, may petition the court having jurisdiction for the distressed corporation to be afforded the opportunity to rehabilitate itself financially so that it can liquidate or pay off its debts and obligations. In other words, it refers to an administrative or judicial process denoting a continuance of corporate life and activities in an effort to restore and reinstate the corporation to its former position of successful operation and solvency. (AM 00-8-10-SC, Dec. 15, 2000; Ruby Industrial Corporation vs. CA, 284 SCRA 445)

Corporation. An artificial being created by operation of law, having the rights of succession and the powers, attributes, and properties expressly authorized by law or incident of its existence. (Sec. 2, BP 68, Corporate Code)

Corporation by Estoppel. An association that passes itself off as a corporation, its members knowing that it does not have the authority to act like one. Its members will be exposed to liability as general partners for all debts, liabilities, and damages arising as a result thereof, and they cannot interpose the lack of a corporate personality as a defense precisely for that reason.

Corporation Sole. A corporation formed by the chief or head of a religious denomination for the purpose of administering and managing as trustee, its affairs, property and temporalities. (Sec. 110, BP 68, Corporation Code)

Corporators. The persons who compose a compose a corporation, whether as stockholder or members.

Corpus Delicti. A Latin term which refers to “the body of the crime,” i.e., the facts constituting or proving the commission of an offense. 

Corrective Damages. Amount of monetary compensation that is imposed by the court by way of example or correction for the public good, in addition to the moral, temperate, liquidated or actual damages. It is also known as exemplary damages. (Art. 2229, Civil Code)

Corruption of Minors. A crime committed by any person who promotes or facilitates the prostitution or corruption of persons under age to satisfy the lust of another, i.e., the act of “pimping” minors. (Art. 340, RPC; Sec. 5, RA 7610, Child Abuse Law) 

Corruption of Public Officials. A crime committed by any person who shall have made the offers or promises or given the gifts or presents in acts constituting bribery in any of its forms. (Art. 212, RPC)

Costs of Suit. In law, they comprise the fees and indemnities in the course of judicial proceedings, whether fixed or unalterable amounts previously determined by law or regulations in force, including those amounts which are not subject to schedule.

Counsel de Oficio. A lawyer appointed by the Court to render free legal assistance to an indigent litigant who cannot afford to pay for legal representation. It is in pursuance of the mandate under Sec. 11, Article III of the Constitution, which states: “Free access to the courts and quasi-judicial bodies and adequate legal assistance shall not be denied to any person by reason of poverty.”

Counterclaim. Any claim for money or other relief which a defendant party may have against an opposing party. (Sec. 6, Rule 6)

Coup d’etat. A swift attack, accompanied by violence, intimidation, threat, strategy or stealth, directed against duly constituted authorities of the government, or any military camp or installation, communications networks, public utilities or other facilities needed for the exercise and continued possession of power, singly or simultaneously carried out anywhere in the Philippines by any person or persons, belonging to the military or police or holding any public office or employment, with or without civilian support or participation, for the purpose of seizing or diminishing state power. (Art. 134-A, RPC as amended by RA 6968

Court-annexed Mediation. A process conducted under the auspices of the court, after such court has acquired jurisdiction of the dispute. (Sec. 3(1), RA 9285, Alternative Dispute Resolution Act of 2004)

Court-referred Mediation. A process where the parties to a pending case are directed by the court to submit their dispute to a neutral third party, called the mediator, who works with them to reach a settlement of their controversy resulting in a compromise agreement on the basis of which the court will render judgment. (Sec. 3(m), RA 9285, Alternative Dispute Resolution Act of 2004)

Craft. In criminal law, an aggravating circumstance characterized by trickery and cunning on the part of the offender in his commission of the offense. (People vs. Juliano, 95 SCRA 511; Art. 14(14), RPC)

Crime Syndicate. See Organizational Crime Group.

Criminal Action. A proceeding in court by which the State prosecutes a person for an act or omission punishable by law. (Sec. 3(b), Rule 1)

Criminal Contempt. Contempt of court that consists of conduct directed against the authority and dignity of a court or of a judge, as in unlawfully assailing or discrediting the authority and dignity of a court or a judge or in doing a forbidden act. (People vs. Godoy, 243 SCRA 64)

Criminal Jurisdiction. The authority to hear and try a particular offense and impose the punishment for it. (People vs. Mariano, 71 SCRA 600)

Criminal Law. That branch of law which defines crimes and criminals and provides for their punishment.

Criminal Liability. The liability incurred by a person who commits a felony even if the wrongful act done is different from what he intended, or when he performs an act which would be an offense against persons or property, were it not for inherent impossibility of its accomplishment or on account of the employment of inadequate or ineffectual means. (Art. 4, RPC)

Cross Examination. Examination of the witness by the adverse party as to any matters stated in the direct examination, or connected therewith, with sufficient fullness and freedom to test his accuracy and truthfulness and freedom from interest or bias, or the reverse, and to elicit all important facts bearing upon the issue. (Sec. 6, Rule 132)

Cross-claim. Any claim by one party against a co-party arising out of the transaction or occurrence that is the subject matter either of the original action or of a counterclaim therein. (Sec. 8, Rule 6)

Crossed Check. A check that will not be encashed by the bank because by “crossing” it, the drawer is directing the bank to credit the amount of the check to the account of the payee only who, in turn, may withdraw said amount from his account.

Cruelty. As an aggravating circumstance, it means that the wrong done in the commission of the crime is deliberately augmented by causing another wrong which is not necessary for its commission, e.g., sadism or unnecessarily inflicting moral and physical pain. (Art. 14(21), RPc; People vs. Luna, 58 SCRA 198; People vs. Llamera, 51 SCRA 48)

Culpa Aquiliana. Civil liability arising from fault or negligence which usually results from the commission of a tortuous act or quasi-delict.

Culpa Contractual. Civil liability resulting from fault or negligence in the performance of a contractual obligation.

Curative Statute. A law that is enacted to cure defects in a prior law or to validate legal proceedings, instruments or acts of public authorities which would otherwise be void for want of conformity with certain existing legal requirements. 

Currency. All Philippine notes and coins issued or circulating in accordance with RA 7653, the law creating the Bangko Sentral ng Pilipinas (BSP).

Custodia Legis. A Latin phrase which means “in the custody of the law”, that is, in the lawful and physical possession of a court or public officer in obedience to a judicial or administrative order.

Custodial Investigation. The investigation of a person who has been arrested or detained, or “invited” by law enforcement authorities to answer questions in connection with a crime he is suspected to have committed. This is the initial stage of a criminal investigation whereby the police or prosecutors is trying to determine whether or not there is probable cause or a prima facie case against the accused or person held in custody for the purpose of filing the necessary information or releasing the accused. The term custodial investigation includes the practice of issuing an “invitation” to a person who is investigated in connection with an offense he is suspected to have committed, without prejudice to the liability of the “inviting” officer for any violation of law. This is also the stage during which a person arrested must be informed of his constitutional rights. (Rule 115; Sec. 2, RA 7438, Rights of Persons under Custodial Investigation). See Miranda Doctrine.

Posted by: Elmer Brabante | February 21, 2011

Legal Dictionary: Bad – Buy


Bad Faith. It connotes a dishonest purpose or some moral obliquity and conscious doing of a wrong, a breach of sworn duty through some motive or intent or ill will. (Llorente vs. Sandiganbayan, 287 SCRA 382)

Bail. Security given for the release of a person in custody of law, furnished by him or a bondsman, to guarantee his appearance before any court as required under conditions specified under the rules of court. (see Sec. 1, Rule 114, Revised Rules of Criminal Procedure).

Balancing of interest rule. When particular conduct is regulated in interest of public order, and the regulation results in an indirect, conditional, partial abridgment of speech, the duty of the courts is to determine which of the 2 conflicting interests demands the greater protection under the particular circumstances presented (American Communications Association v. Douds, 339 US 282). 

Band. A group of malefactors numbering more than three, it may be an aggravating circumstance when the members of the group shall have acted in concert in the commission of a crime. (Art. 14(6), RPC)

Bangalore Draft. The draft, agreed to by world jurists in a judicial conference held in Bangalore, India, and adopted as the model by the Supreme Court of the Philippines in promulgating the New Code of Judicial Conduct for the Philippine Judiciary and the Code of Conduct for Court Personnel, both of which too effect on June 1, 2004. (AM No. 03-05-01-SC, April 27, 2005) 

Bank. An entity engaged in the lending of funds obtained in the form of deposits. (Sec. 3, RA 8791, General Banking Law of 2000) 

Bank Secrecy Law. Republic Act No. 1405, the law which mandates that deposits in banks, including investments in government bonds, are to be considered as absolutely confidential in nature. As such, they may not be inquired into except upon written permission of the depositor, or in cases of impeachment, or upon order of a competent court. The purpose of the law is to encourage the people to deposit their money in the banks and discourage hoarding so that they can be made available as loans to contribute to the economic development of the country. 

Bar. The collective reference to the profession of law comprising all the lawyers who have been admitted to the bar, taken their oath, and whose names appear in the Roll of Attorneys. (Garcia vs. De Vera, 418 SCRA 27

Barangay. The basic unit of local government which serves as the primary planning and implementing unit of government policies and programs in the community, and acts as a forum wherein the collective views of the people may be expressed, and their disputes amicably settled. (Sec. 384, RA 7160, Local Government Code of 1991

Bargainable Employee. Generally, it refers to a rank-and-file employee who belongs to an established collective bargaining unit.

Bargaining Representative. A legitimate labor organization or any officer or agent thereof, whether or not working for the employer, which speaks for and represents the members of that organization in its dealings with the employer, e.g., collective bargaining negotiations, grievance handling, etc. (Art. 212(j), Labor Code)

Barratry. Any willful misconduct by the master of a vessel in pursuance of some unlawful or fraudulent purpose without the consent of the owner and to the prejudice of the owner’s interest. (Roque vs Intermediate Appellate Court, 139 SCRA 596)

Basic Necessities. Under the law, is defined by enumerating what it embraces, namely, rice, corn, bread, fresh, dried and canned fish and other marine products, fresh pork, beef and poultry, fresh eggs, fresh and processed milk, fresh vegetables, root crops, coffee, sugar, cooking oil, salt, laundry soap, detergents, firewood, charcoal, candles, and drugs classified as essential by the Department of Health. (Sec. 3(1), RA 7581, The Price Act)

Battered Woman Syndrome. A defined pattern of psychological ad behavioral symptoms found in women living in battering relationships as a result of cumulative abuse. Those found by the courts to be suffering from this syndrome do not incur any criminal or civil liability, notwithstanding the absence of any of the elements to justify self-defense under the Revised Penal Code. (Sec. 3(D)(c) and Sec. 26, RA 9262; People vs. Genosa, 419 SCRA 537)

Battery. An act of inflicting physical harm upon the woman or her child resulting in physical and psychological or emotional distress. (Sec.3 (D)(b), RA 9262)

Bench Warrant. A common law term which ordinarily refers to a court order for the arrest of a person to compel his attendance in a hearing before the court, either as a witness who has ignored a duly issued subpoena, or a defendant charged with contempt of court.

Beneficial Owner. Any person who, directly or indirectly, through any contract arrangement, understanding, relationship or otherwise, possesses or shares voting power in regard of any security as to its investment disposition.

Beneficial Ownership. One that is recognized by law and capable of being enforced in the courts at the suit of the beneficial owner. Note that this is to be differentiated from naked ownership, which is the enjoyment of all the benefits and privileges of ownership, as against possession of the bare title of property.

Berry Rule. Criteria that must be observed before a new trial may be granted by the courts on the ground of newly discovered evidence. Thus, it must be shown (a) that the evidence was discovered after trial; (b) that such evidence could not have been discovered and produced at the trial even with the exercise of reasonable diligence; (c) that it is material, not merely cumulative, corroborative, or impeaching; and (d) the evidence is of such weight that it would probably change the judgment if admitted. (Gen. Luther Custodio vs. Sandiganbayan, 453 SCRA 24, citing Berry vs. State of Georgia, 10 GA 511 (1851))

Best Evidence Rule. The rule that the original document itself is the best evidence of what it contains. It is only when the original document cannot be produced that a secondary or other evidence of its contents may be adduced.

Best Interest of the Child. The totality of the circumstances and conditions which are most congenial to the survival, protection and feelings of security of the child and most encouraging to the child’s physical, psychological and emotional development. It also means the least detrimental available alternative for safeguarding the growth and development of the child. (Sec. 4(b), RA 9344, Juvenile Justice and Welfare Act of 2006)

Betting. A wager of money or article of value upon the result of any game, races and other sports contests. (Sec. 1(a), PD 483)

Bidding. In its comprehensive sense, it means making an offer or an invitation to prospective contractors whereby the government manifests its intention to make proposals for the purpose of procuring supplies, materials and equipment for official business or public use, or for public works or repair. (JG Summit vs. CA, 412 SCRA 10)

Bigamous Marriage. A marriage contracted by any person during the subsistence of a previous marriage and is, therefore, null and void. (Art. 41, Family Code)

Bigamy. The punishable act of any person who contracts a second or subsequent marriage before the former marriage has been legally dissolved, or before the absent spouse has been declared presumptively dead by means of a judgment rendered in the proper proceedings. (Art. 349, RPC)

Bill of Attainder. A legislative act which inflicts punishment without judicial trial. It is against the Constitution to enact such a bill into law. (Sec. 22, Art. III, 1987 Constitution)

Bill of Exchange. An unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or a fixed or determinable future time a sum certain in money to order or to bearer. (Sec. 126, Act 2031, The Negotiable Instruments Law)

Bill of Lading. The written evidence of a contract for the carriage and delivery of goods sent by sea for a certain freight. (Art. 350, Code of Commerce)

Bill of Particulars. A motion by the adverse party for a more detailed statement of any matter which is not averred with sufficient definiteness or particular to enable him to prepare properly his responsive pleading. Such a detailed listing and explanation of the claims made by the plaintiff may b required by the court on its own or at the instance of the other party to the case. (Sec. 1, Rule 12)

Bill of Rights. A constitutional listing of the rights of citizens which defines the scope and extent of the State’s power to interfere with the exercise of those rights to the end that “no person shall be deprived of life, liberty, or property without due process of law, nor shall any person be denied the equal protection of the laws,” among 21 other rights enumerated under Article III of the 1987 Constitution.

Blackmail. A crime of extortion committed by any person who threatens another to publish a libel concerning him or his parents, spouse, child, or other members of his family, or who offers to prevent the publication of such libel for a monetary consideration. (Art. 356, RPC)

Blanket Clause. See Dragnet Clause.

Boiler Room Sales. A price manipulation scheme in securities trading by the use of high-pressure sales tactics to promote purchases as sales of certain stocks.

BOT Scheme. An acronym which stands for build-operate-and-transfer scheme, it refers to a contractual arrangement with the government whereby the contractor undertakes the construction , including financing, of a given infrastructure facility, and the operation and maintenance thereof. It admits of variations, the most common of which is simply a build-and-transfer arrangement. (Sec. 2, RA 6957)

Bouncing Check. A check that is dishonored for encashment by a drawee bank upon presentment for the reason that the drawer does not have sufficient funds to cover the amount of the check. (Sec. 1, BP 22)

Boundary System. A system whereby the franchise holder of a jeepney or taxi rents out his vehicle for a fixed sum called the boundary to a driver-operator whose income thereon depends on his earnings in excess of the boundary. Its legality is deemed questionable.

Bribery. See Direct Bribery and Indirect Bribery.

Brief. A legal paper containing arguments and discussions usually concerning a contentious point of law under a certain set of facts and circumstances.

Brigand. A member in a gang of robbers comprising more than three armed persons who conspire to commit robbery in the highway, kidnapping for ransom, or for other purpose to be attained by means of force and violence. (Art. 306, RPC)

Brigandage. A grave felony committed by more than three armed persons who constitute themselves into a band of robbers for the purpose of committing robbery on the highway or kidnapping for ransom, or to attain any other purpose by means of force or violence. (Art. 306, RPC)

Broker. A person engaged in the business of buying and selling securities for the account of others. He is usually the middleman who ordinarily acts as an agent for both parties to a transaction, on a commission, negotiating contracts relative to the property with the custody of which he has no concern.

Build-and-Transfer. A contractual arrangement whereby the project proponent undertakes the financing and construction of a given infrastructure or development facility, and after its completion turns it over to the government agency or local government unit concerned, which shall pay the proponent on an agreed schedule the amount of its total investments expended on the project, plus a reasonable rate or return thereon. (Sec 2(c), RA 7718, Build-Operate-Transfer Law)

Builder in Good Faith. A person who builds, believing that the land he is building on belong to him, or that by some title he has the right to build thereon, and is ignorant of any defect or flaw in his title. (Art. 448, Civil Code; Rosales vs. Castelltort, 472 SCRA 144)

Bulk Buying. In realty law, it refers to purchase by a person, natural or juridical, of more than one saleable lot or unit within an HLURB-approved subdivision for the purpose of reselling the same with or without introducing alteration on the approved plan. (Sec. 1, HLURB Adm. Order No. 09, Series of 1994, pursuant to PD 957)

Burden of Evidence. The onus that the party must carry to overcome the weight of the evidence which has tilted against him. Thus, it may shift back and forth during the course of the trial depending on who is better able to sustain a prima facie case in his favor. On the other hand, the burden of proof remains from the first to the last upon the party whose task is to establish the truth of his allegation.

Burden of Proof. The duty of a party to present evidence on the facts in issue necessary to establish his claims or defense by the amount of evidence required by law. (Sec. 1, Rule 131

Buy-Bust Operation. A form of entrapment sanctioned by law whereby ways and means are resorted to for the purpose of trapping and capturing law breakers in the execution of their criminal plan. (People vs. Zheng Hai Hai, 338 SCRA 420)

Posted by: Elmer Brabante | February 19, 2011

Reply


REPUBLIC OF THE PHILIPPINES

REGIONAL TRIAL COURT

NATIONAL CAPITAL JUDICIAL REGION

BRANCH _______, MANILA 

FIRST AFFAIRS, INC.,

Plaintiff,

- versus –                                                               CIVIL CASE NO. 12345 

FIVE CLASS PRODUCTS

COMPANY, INC., ET AL.,

Defendants.

x—————————————x 

R E P L Y 

            COMES NOW plaintiff, by its undersigned attorneys, and by way of reply to defendants’ Answer, to this Honorable Court, respectfully states:

I

            Defendant partner AAA did not negotiate with plaintiff company in June, 2008 but defendants BBB and/or the late CCC who tried to negotiate from time to time with plaintiff company;

II

            Plaintiff did not agree verbally or in writing to accept the mortgaged properties of defendant partner BBB as full payment of the principal obligation contained in the promissory note subject matter of the complaint;

III

            Plaintiff is not willing to accept the mortgaged propertied of defendant partner BBB in full satisfaction of the obligation of the defendants in the amount of P35,000.00;

IV

            There has been no novation of defendants’ obligation.

            WHEREFORE, it is respectfully prayed that judgment be rendered according to the prayer of the complaint.

            Manila, February 2011. 

                                                                                      EEE, FFF, GGG and HHH

                                                                        By:

                                                                                      APOLINARIO B. BRAVO

                                                                                      Attorneys for the Plaintiff

                                                                                      (Address)

Copy furnished:

                ATTY. BBB

     Counsel for the Defendants

             (Address)

By: _______________________

Posted by: Elmer Brabante | February 19, 2011

Letters Rogatory


REPUBLIC OF THE PHILIPPINES

REGIONAL TRIAL COURT

NATIONAL CAPITAL JUDICIAL REGION

BRANCH _______, MANILA

 

JUAN C. SANTOS,

Plaintiff,

- versus –                                                        CIVIL CASE NO._______

                                                                             For: SUM OF MONEY

JOSELITO PEREZ,

Defendant.

x———————————–x

LETTERS ROGATORY

            The Regional Trial Court of _______________ (name of court) to Judge or Tribunal having jurisdiction of Civil Cases at ________________ (name of foreign country);

            WHEREAS, a certain suit is pending in the Regional Trial Court of ___________, in which JOSELITO PEREZ is the plaintiff and JOSELITO PEREZ is defendant, and it has been suggested to us that there are witnesses residing within your jurisdiction without whose testimony justice cannot completely be done between said parties.

            WE, THEREFORE, request you that in furtherance of justice you will by the proper and usual process of your courts cause such witness (or witnesses) as shall be named or pointed out to you by the said parties or either of them (if witnesses are named, omit the last clause), to appear before you or some competent person by you for that purpose to be appointed and authorized at a precise time and place by you to be fixed and there to answer on their oaths and affirmations to the several interrogatories hereunto annexed; and that you will cause their depositions to be committed to writing and returned to us under cover duly closed and sealed up together with these presents. And we shall be ready and willing to do the same for you in a similar case when required.

______________________________

CLERK, Regional Trial Court

Court of Manila

Posted by: Elmer Brabante | February 18, 2011

Deed of Sale of Real Property


DEED OF ABSOLUTE SALE

KNOW ALL MEN BY THESE PRESENTS:

This instrument, executed by and between:

            JUAN DELA CRUZ, of legal age, single, and a resident of ___________________, herein represented by his Attorney-in-Fact, JOHN DELA CRUZ, of legal age and a resident of _______________________, and hereafter referred to as the VENDOR,

-         and       –

ROBERT REYES, Filipino, of legal age, single, a resident of ______________________, and hereafter referred as the VENDEE, 

W I T N E S S E T H:

            THAT, for and in consideration of the sum of One Million Pesos (P1,000,000.00) in hand paid to the VENDOR and receipt of which is hereby acknowledged, the VENDOR has sold, transferred and conveyed, and by these presents does hereby sell, transfer and convey, unto the VENDEE, that certain parcel of land with an area of 1,000 square meters, more or less, located in Sampaloc, Manila, covered by Transfer Certificate Title No. 12345 of the Register of Deeds of Manila, which is more particularly described as follows:

(technical description) 

              IN WITNESS WHEREOF, the parties hereto have signed these presents at Manila, this 18th day of February, 2011.

JUAN DELA CRUZ                                         ROBERT REYES

Vendor                                                            Vendee

 

By:

             JOHN DELA CRUZ

            Attorney-in-Fact

W I T N E S S E S:

___________________________                 _____________________________

 

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES )

CITY OF MANILA                            )           S.S.

            IN THE CITY OF MANILA, Philippines, personally appeared before me, Mr. JOHN DELA CRUZ, with Community Tax Certificate No.__________ issued at ___________________________________ on ______________, 2011 and Mr. JUAN DELA CRUZ, with Community Tax Certificate No. ____________ issued at _______________________________ on ______________, 2011, both of whom are personally known to me to be the same persons who executed the foregoing instrument, and they acknowledged to me that the same is their free and voluntary act and deed, and the free and voluntary act and deed of the principal whom Mr. JOHN DELA CRUZ represents.

            I further certify that the foregoing instrument is a deed of sale of a parcel of land located in Sampaloc, Manila, and consists of _____ pages, including this page, and is signed on each and every page by the said parties and their instrumental witnesses.

            WITNESS MY HAND AND SEAL.

                                                                        NOTARY PUBLIC

                                                                        My Commission expires on _____________

                                                                        (Address)

                                                                        Commission No. ___________, Manila

                                                                        Attorney’s Roll No. ______________

                                                                        IBP Membership No. _____________

                                                                        PTR O.R. No. __________, Manila, 20____

Doc. No. _________

Page No. _________

Book No. ________

Series of _________

Posted by: Elmer Brabante | February 18, 2011

Quiz No. 6


Please click the box below to see and answer the ten (10) questions in labor, civil, criminal law and taxation. Passing grade is 80 percent. Good luck!

Posted by: Elmer Brabante | February 18, 2011

Quiz No. 5


Here’s another quiz, in Criminal Law, Remedial Law and Legal Ethics, composed of ten (10) questions. To get started, please click the box below. Passing grade is 80 percent. Don’t worry if you don’t get all the right answers on the first take; you can do the quiz again. Good luck! I hope you enjoy it.

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