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AGRARIAN LAW AND SOCIAL LEGISLATION

AGRARIAN LAW
AND
SOCIAL
LEGISLATION

Submitted to: Atty. Gefer R. Mancol


Submitted by: ALSL 0000 Block 3

May 2018
Group Members Assigned Topics
Group 1: Agrarian Law:
Chapter 1: Preliminary
Katipunan, Hazel E.
Marcelo, Kathleen B. Social Legislation:
Marin, Rey-Ann T. 1. Domestic Workers Act
Mediodia, Ilssa Maria Tara T. 2. Migrant Workers and Overseas Filipinos
Merrera, Karna Lowell V. Act of 1995
Mingoa, Clariz S. 3. Paternity Leave Act of 1996
Morillo, Deniel Salvador B. 4. Solo Parents’ Welfare Act of 2000
Group 2: Agrarian Law
Chapter 2: Agricultural Leasehold Concept
Basallaje, Marlon V.
Camposuela, Mark Anthony B. Social Legislation
Colipano, Aprille G. 1. Magna Carta for Persons with Disability
Corpuz, Ma. Visitacion C. 2. Special Protection of Children Against
Dacanay, Joshua Benjamin T. Abuse, Exploitation and Discrimination
Diaz, Nathaniel N. Act
Dioquino, John Freko B. 3. The Magna Carte for Women
Domatog, Mary Grace P. 4. Anti-Violence Against Women and their
Gasatan, Marieshem L. Children Act of 2004
Isubol, Donna Cel A.
Mendoza, John Maxwel
Memoracion, Michael Angelo L.
Zagado, Simon Peter S.
Group 3: Agrarian Law
Chapter 3: Tenants Emancipation Decree
Chavez, Aldrin
Lagutan, Kenken Social Legislation:
Ricafort, RR 1. Anti-Trafficking in Persons Act of 2003
Barba, Daylinda 2. Anti-Sexual Harassment Act of 1995
Carinan, Novelyn 3. Seniors Citizen Act
Cruz, Marian Hazel 4. Home Development Mutual Fund Law
De Vera, Gladys
Devis, Jocelyn
Fariñas, Jessica
Lim, Joan
Pinto, Camille Bianca
Toledo, Alexandrhea
Group 4 Agrarian Law
Chapter 4: Comprehensive Agrarian Reform Law
Dalida, Raphael Anton Gabriel S. of 1998 (RA 6657 as amended)
Francisco, Jayson A.
Javier, Mac Vincent E. Social Legislation:
Moreno, Ronald Allan U.
Tagle, Kenneth Ray B. 1. National Health Insurance Act of 1995
Concepcion, Jemah G. 2. Social Security Law
Manahan, Eurice Anne C. 3. The Government Service Insurance
Mendoza, Stephanie Rei C. System Act
Natividad, Rhodalyn T.
Santiago, Ma. Victoria T.

pg. 2
Contents
CHAPTER I: PRELIMINARY ........................................................................................................................... 14
Definition of Agriculture ......................................................................................................................... 14
Three Stages of Agricultural Development ......................................................................................... 14
Definition of Land Tenure .................................................................................................................. 14
Related Concepts ................................................................................................................................ 15
Feudalism ............................................................................................................................................ 15
Spanish Encomienda System (Latin America & Philippines) ............................................................... 16
Regalian Doctrine ................................................................................................................................ 17
Land Registration Act of 1902 ............................................................................................................. 18
Torrens System of Land Registration .................................................................................................. 18
Public Land Act of 1902....................................................................................................................... 18
Friar Lands Act..................................................................................................................................... 18
Rice Share Tenancy Act of 1933 .......................................................................................................... 18
Sugarcane Tenancy Contracts Act of 1933 ......................................................................................... 19
Republic Act 34 of 1946 (Agricultural Sharing) ....................................................................................... 19
Republic Act 1160 of 1954 (National Resettlement and Rehabilitation) ................................................ 19
Republic Act 1199 of 1954 (Tenancy Rights) .......................................................................................... 19
Agricultural Land Reform Code of 1963.................................................................................................. 19
P. D. No. 2 of 1972 .................................................................................................................................. 20
PROCLAIMING THE ENTIRE COUNTRY AS A LAND REFORM AREA...................................................... 20
P. D. No. 27 of 1972 ................................................................................................................................ 20
Applicability of the Law ....................................................................................................................... 20
Transfer of Land to Tenants ................................................................................................................ 20
Police Power as Doctrinal Basis of Agrarian Reform........................................................................... 21
CHAPTER II: AGRICULTURAL LEASEHOLD CONCEPT ................................................................................... 23
AGRICULTURAL LAND REFORM CODE (Rep. Act. No. 3844) ................................................................... 23
Prefatory Statement ........................................................................................................................... 23
Three shifts in the mode of acquisition .............................................................................................. 23
Repayment Scheme and Credit Assistance ......................................................................................... 24
Jurisdiction on Agrarian Disputes ....................................................................................................... 24
Special Agrarian Courts ....................................................................................................................... 24
Bureau of Agrarian Legal Assistance ................................................................................................... 24
DEFINITION OF TERMS ............................................................................................................................ 24
Modes of Land Tenure Allowed under R.A. No. 3844 ............................................................................ 25
How Leasehold Relation is Established ............................................................................................... 25
Parties to Leasehold Relation ............................................................................................................. 25
ESSENCE OF LEASEHOLD RELATION ........................................................................................................ 25
Tenurial Arrangement of Leasehold ................................................................................................... 25

pg. 3
Definitions of Security of Tenure ........................................................................................................ 25
Tenurial Arrangement of Leasehold ................................................................................................... 26
Doctrine on security of land tenure .................................................................................................... 27
Causes for Extinguishment of Leasehold Relation .............................................................................. 28
Obligations of the Lessees .................................................................................................................. 28
Prohibitions to Agricultural Lessee ..................................................................................................... 28
Termination of Leasehold by the Lessee ............................................................................................ 28
Rights of the Agricultural Lessor ......................................................................................................... 28
Obligations of the Lessor .................................................................................................................... 29
Prohibition to the Agricultural Lessor ................................................................................................. 29
Ground for Disposition of Agricultural Lessee .................................................................................... 29
Lessee’s Right of Pre-emption and Redemption................................................................................. 29
Right of Pre-emption........................................................................................................................... 30
Procedure to avail of right: ................................................................................................................. 30
Lessee’s Right of Redemption ............................................................................................................. 30
Right to Self-organization ................................................................................................................... 30
Bill of Rights for Agricultural Labor ..................................................................................................... 30
Irrigation Facilities ............................................................................................................................... 31
Management of Irrigation System ...................................................................................................... 31
Lease of Ricelands and Lands Devoted to Other Crops ...................................................................... 31
Amortization Payment for Land under Leasehold: ............................................................................. 32
Period of Prescription ......................................................................................................................... 32
CHAPTER III: TENANTS EMANCIPATION DECREE ........................................................................................ 33
Presidential Decree (P.D.) No. 27 (Tenants Emancipation Decree) ........................................................ 33
Phrases and Terms under P.D. No. 27 .................................................................................................... 33
Tenants-Beneficiaries.............................................................................................................................. 34
Coverage under P.D. 27 (Implentation of Operation Land Transfer Program) ................................... 34
Rights and obligations of tenant-beneficiaries under P.D. 27 ............................................................ 34
Maturity Date of Land Bank of the Philippines (LBP) Bonds ................................................................ 35
Maturity date of LBP Bonds ................................................................................................................... 36
Procedures in Case Landowner Refuses to Accept Payment.................................................................. 36
Effect of Failure to Pay Amortization ...................................................................................................... 36
How Foreclosure May be Lifted .......................................................................................................... 37
Sale of Lands Foreclosed under E.O. No. 228 ..................................................................................... 37
Prior Notice of Sale ............................................................................................................................. 38
Affidavit Required to Voluntary Dealings ........................................................................................... 38
Property Registration Decree (Presidential Decree No. 1529) ........................................................... 38
Status Quo Over Lands Covered by P.D. No. 27 ..................................................................................... 38
Certificate of Land Transfer as Evidence of Ownership ...................................................................... 39

pg. 4
Mechanics on Issuance of Emancipation Patent ................................................................................ 39
CASE DIGEST............................................................................................................................................ 40
HEIRS OF LORENZO BUENSUCESO v. LOVY PEREZ .............................................................................. 40
SPS. LUBINA CALIWAG-CARMONA AND RENATO CARMONA v. CA ................................................... 41
CHAPTER IV: COMPREHENSIVE AGRARIAN REFORM LAW OF 1988 (Republic Act no. 6657) ................... 43
As amended by Republic Act nos. 7881, 7905, 8532 and 9700 .............................................................. 43
TRANSFER OF PRIVATE AND PUBLIC LANDS TO FARMER BENEFICIARIES .............................................. 43
LANDS NOT COVERED BY LAND ACQUISITION........................................................................................ 45
Daez v. CA............................................................................................................................................ 46
Rodriguez v. Salvador .......................................................................................................................... 47
ALITA vs. CA......................................................................................................................................... 48
NATALIA REALTY, INC. vs. DEPARTMENT OF AGRARIAN REFORM ..................................................... 49
LUZ FARMS VS Sec of DAR .................................................................................................................. 49
DAR VS SUTTON .................................................................................................................................. 49
MILESTONE FARMS VS OFFICE OF THE PRESIDENT ............................................................................ 50
CENTRAL MINDANAO UNIVERSITY VS DARAB .................................................................................... 50
DAR VS DECS ....................................................................................................................................... 50
ROXAS & CO. VS DAMBA-NSFR ........................................................................................................... 51
BUKLOD NANG MAGBUBUKID VS EM RAMOS ................................................................................... 51
REPUBLIC VS LOPEZ ............................................................................................................................. 51
PROVINCE OF CAMARINES SUR VS CA ................................................................................................ 52
LAND VALUATION ................................................................................................................................... 52
JUST COMPENSATION ......................................................................................................................... 52
Land Bank v Dumlao............................................................................................................................ 55
Land Bank v Soriano ............................................................................................................................ 56
Land Bank vs Orilla .............................................................................................................................. 57
Land Bank v Barrido ............................................................................................................................ 58
Land Bank v Colarina ........................................................................................................................... 59
Land Bank v Celada ............................................................................................................................. 60
LAND REDISTRIBUTION ........................................................................................................................... 62
MAGO V. BARBIN ................................................................................................................................ 64
PADUA v. CA ........................................................................................................................................ 64
PASCO V. PISON-ARCEO AGRI. DEV. CORP.......................................................................................... 65
Estribillo v. DAR ................................................................................................................................... 65
Estate of Vda. De Panlilio v. Dizon ...................................................................................................... 66
IMPROVEMENT OF THE LEASEHOLD RELATIONSHIP .............................................................................. 67
LEASE RENTAL ..................................................................................................................................... 67
VARIATIONS IN LAND ACQUISITIONS...................................................................................................... 68
PRODUCTION SHARING........................................................................................................................... 68

pg. 5
ALTERNATIVE BUSINESS ARRANGEMENTS ............................................................................................. 68
CONVERSION OF AGRICULTURAL LANDS ................................................................................................ 71
Sta. Rosa Realty v. CA .......................................................................................................................... 72
Ros v. DAR ........................................................................................................................................... 73
Fortich v. Corona ................................................................................................................................. 74
MECHANISMS FOR IMPLEMENTING THE COMPREHENSIVE AGRARIAN REFORM PROGRAM ............... 76
FINANCING THE COMPREHENSIVE AGRARIAN REFORM PROGRAM ...................................................... 77
RESOLUTION OF AGRARIAN DISPUTES ................................................................................................... 78
Rufina Vda. De Tangub v. CA............................................................................................................... 78
STA. ROSA REALTY DEVELOPMENT CORPORATION, v. COURT OF APPEALS, JUAN B. AMANTE ET AL
............................................................................................................................................................ 79
DAR v. CUENCA ................................................................................................................................... 79
CABRAL v. CA....................................................................................................................................... 79
ISIDRO v. CA ........................................................................................................................................ 79
HEIRS OF SANTOS v. CA cited (Morta v. Occidental) .......................................................................... 79
LAGUNA ESTATE v. CA ......................................................................................................................... 79
ALANGILAN REALTY v. OFFICE OF THE PRESIDENT ............................................................................. 80
CONCHA v. RUBIO ............................................................................................................................... 80
MODE/S OF APPEAL/REVIEW FROM DARAB DECISION .......................................................................... 80
AUTHORITY OF DAR SECRETARY TO NULLIFY TITLE UNDER THE CARP................................................... 81
THE ROLE OF THE SPECIAL AGRATIAN COURTS IN LAND VALUATION AND PENAL PROVISIONS ........... 82
THE ROLE OF THE SPECIAL AGRATIAN COURTS IN LAND VALUATION AND PENAL
PROVISIONS ......................................................................................................................................... 84
SECTION 73 – PROHIBITED ACTS UNDER CARP.................................................................................... 85
Domestic Workers Act or Batas Kasambahay (RA 10361) .......................................................................... 87
Meaning of domestic worker or kasambahay ........................................................................................ 87
Not a domestic worker ........................................................................................................................... 87
Minimum age for employment of domestic worker .............................................................................. 87
Hiring of domestic worker ...................................................................................................................... 87
Basic contents of employment contract ................................................................................................. 87
Registration of domestic workers ........................................................................................................... 88
Terms and conditions of employment .................................................................................................... 88
Rights and privileges of domestic workers ............................................................................................. 88
Rights and obligations of Employer ........................................................................................................ 88
Obligations of domestic workers ............................................................................................................ 89
Extent of Duty Outside the Household ................................................................................................... 89
Prohibited activities ................................................................................................................................ 89
Just causes for termination of employment by the domestic worker .................................................... 89
Just causes for termination of employment by the employer ............................................................... 89

pg. 6
Certificate of Employment ...................................................................................................................... 90
Deduction for Loans/Debts ..................................................................................................................... 90
Prohibited Deductions ............................................................................................................................ 90
Criminal Acts ........................................................................................................................................... 90
Criminal Sanction .................................................................................................................................... 90
Migrant Workers and Overseas Filipinos Act of 1995 ................................................................................ 91
Definition of migrant worker .................................................................................................................. 91
Deployment of migrant workers ............................................................................................................. 91
Liability of POEA Governing Board, Government Officials and Employees ............................................ 91
Compulsory insurance coverage for agency-hired migrant workers...................................................... 91
Disqualification ....................................................................................................................................... 92
Coverage of the insurance ...................................................................................................................... 92
Repatriation of migrant workers ............................................................................................................ 92
Emergency repatriation .......................................................................................................................... 92
Repatriation of underage migrant workers ............................................................................................ 92
Illegal recruitment................................................................................................................................... 92
Syndicated illegal recruitment ................................................................................................................ 93
Large-scale illegal recruitment ................................................................................................................ 93
Economic sabotage ................................................................................................................................. 93
Prohibited acts ........................................................................................................................................ 93
Filing of criminal complaint for illegal recruitment ................................................................................ 93
Prescriptive period for filing of criminal complaint ................................................................................ 93
Penalty of illegal recruitment ................................................................................................................. 93
Jurisdiction of the POEA .......................................................................................................................... 94
POEA ...................................................................................................................................................... 94
Power of the POEA to order closure of establishment ........................................................................... 94
Effect of closure order ............................................................................................................................ 94
Remedies from a closure order........................................................................................................... 94
Money claims .......................................................................................................................................... 94
Paternity Leave Act of 1996 (RA 8187) ....................................................................................................... 95
Meaning of paternity leave ..................................................................................................................... 95
Duration of the paternity leave .............................................................................................................. 95
Conditions for entitlement to paternity leave ........................................................................................ 95
Penal sanctions ....................................................................................................................................... 95
Solo Parents’ Welfare Act (RA 8972) ........................................................................................................ 95
Definition of solo parent ......................................................................................................................... 95
Benefits available to solo parent ............................................................................................................ 95
Magna Carta for Persons with Disability..................................................................................................... 96
(RA 7227, as amended by RA 9442, 10070, 10524 and 10754) ............................................................ 96

pg. 7
Definition of persons with disability ....................................................................................................... 96
Rights and privileges of persons with disability ...................................................................................... 96
Prohibition on discrimination, ridicule, and vilification of persons with disability ................................ 98
Tax incentives for benefactors ................................................................................................................ 98
Penal sanctions ....................................................................................................................................... 98
AN ACT PROVIDING FOR THE REHABILITATION, SELF-DEVELOPMENT AND SELF-RELIANCE OF DISABLED
PERSON AND THEIR INTEGRATION (Republic Act No. 7277) .................................................................... 100
DISABLED PERSONS............................................................................................................................... 100
CATEGORIES OF DISABLED PEOPLE ....................................................................................................... 100
RIGHTS AND PRIVILEGES OF DISABLED PERSONS ................................................................................. 100
EXPANDED BENEFITS AND PRIVILEGES OF PERSONS WITH DISABILITY (RA 10754) ............................. 102
PROHIBITION AGAINST DISCRIMINATION ............................................................................................ 102
Discrimination on Employment ........................................................................................................ 102
Discrimination on Transportation ..................................................................................................... 103
Discrimination on the Use of Public Accommodations and Services................................................ 103
PROHIBITIONS ON VERBAL, NON-VERBAL RIDICULE AND VILIFICATION.............................................. 104
TAX INCENTIVES FOR BENEFACTORS .................................................................................................... 104
ENFORCEMENT OF PENALTIES .............................................................................................................. 105
AN ACT PROVIDING FOR STRONGER DETERRENCE AND SPECIAL PROTECTION AGAINST CHILD ABUSE,
EXPLOITATION AND DISCRIMINATION, AND FOR OTHER PURPOSES (RA 7610 as amended) ................. 106
Elements ............................................................................................................................................... 106
Punishable Acts ..................................................................................................................................... 106
1. Child Abuse ............................................................................................................................... 106
2. Child prostitution and other sexual abuse ................................................................................ 106
3. Attempt to Commit Child Prostitution ...................................................................................... 106
4. Child Trafficking ...................................................................................................................... 106
5. Attempt to Commit Child Trafficking ...................................................................................... 106
6. Obscene publications and indecent shows ................................................................................ 107
7. Other acts if Neglect, Abuse, Cruelty or Exploitation and other conditions Prejudicial to the
Child’s Development ......................................................................................................................... 107
8. Violation of working conditions for Minors as provided in this law and the Labor Code ........ 107
Penalties for those found guilty of the crime of Other Acts of Abuse involving children ................ 108
Sanctions for Establishments or Enterprises .................................................................................... 109
Penalties for those found guilty of violating the Article on Working Children ................................. 109
Penalties for those guilty of the crime of Discrimination Against Children of Indigenous Cultural
Communities ..................................................................................................................................... 109
Common Penal Provisions ................................................................................................................ 109
Confidentiality ................................................................................................................................... 110
Protection of Children in Situations of Armed Conflict .................................................................... 110
Rights of children arrested for reason related to armed conflicts ................................................... 110

pg. 8
Republic Act No. 9344 “JUVENILE JUSTICE AND WELFARE SYSTEM “................................................. 111
Children in Conflict with the Law ...................................................................................................... 111
Rights of a Child in Conflict with the Law.......................................................................................... 111
Minimum Age of Criminal Responsibility .......................................................................................... 111
Determination of Age........................................................................................................................ 112
Children not Criminally Liable for Certain Offenses.......................................................................... 112
SEC. 21................................................................................................................................................... 112
Treatment of children below the age of criminal responsibility ...................................................... 113
Petition for involuntary commitment ............................................................................................... 113
IRR, Rule 31.c. Duty of the local social worker ................................................................................. 113
SEC. 36................................................................................................................................................... 114
SEC. 38................................................................................................................................................... 114
SEC. 40................................................................................................................................................... 114
The Magna Carta for Women (RA 9710)................................................................................................... 114
Rights of Women .................................................................................................................................. 114
Sanctions ............................................................................................................................................... 116
Aggravating Circumstances ................................................................................................................... 116
ANTI-VIOLENCE AGAINST WOMEN AND THEIR CHILDREN ACT OF 2004 (RA 9262) ............................ 116
Violence against women and their children ......................................................................................... 116
Battered Wife Syndrome ...................................................................................................................... 117
Venue of Criminal Action .................................................................................................................. 118
Protection Orders.............................................................................................................................. 118
Barangay Protection Orders (BPO) ....................................................................................................... 118
Temporary Protection Orders (TPO) ..................................................................................................... 119
Permanent Protection Order (PPO) ...................................................................................................... 119
ANTI-TRAFFICKING IN PERSONS ACT OF 2003 (RA 9208) ......................................................................... 120
FORCED LABOR ..................................................................................................................................... 121
INVOLUNTARY SERVITUDE .................................................................................................................... 121
DEBT BONDAGE .................................................................................................................................... 121
SLAVERY ................................................................................................................................................ 121
Attempted Trafficking in Persons ..................................................................................................... 122
Repatriation of Trafficked Persons ....................................................................................................... 124
Legal Protection to Trafficked Persons ................................................................................................. 125
ANTI-SEXUAL HARASSMENT ACT OF 1995 (REPUBLIC ACT 7877) ............................................................ 125
YOLANDA FLORALDE vs. COURT OF APPEALS ................................................................................... 125
PHILIPPINE AEOLUS AUTOMOTIVE UNITED CORPORATION and/or FRANCISCHUA vs. ................... 127
NATIONAL LABOR RELATIONS COMMISSION ................................................................................... 127
Ma. Lourdes T. Domingo v. Rogelio I. Rayala .................................................................................... 127

pg. 9
DUTY OF THE EMPLOYER OR HEAD OF OFFICE IN A WORK RELATED, EDUCATION OR TRAINING
ENVIRONMENT ..................................................................................................................................... 128
COMPOSITION OF THE COMMITTEE ON DECORUM AND INVESTIGATION.......................................... 128
FOR EMPLOYERS ................................................................................................................................... 128
CIVIL SERVICE COMMISSION VS NIERRAS ......................................................................................... 129
The Senior Citizens Act.............................................................................................................................. 129
Privileges of Senior Citizens .................................................................................................................. 129
Discount and VAT exemption ............................................................................................................... 130
Conditions for availment of the senior citizens’ privileges ................................................................... 130
No double discount ............................................................................................................................... 130
Additional privileges for indigent senior citizens .................................................................................. 130
Discount for DSWD-Accredited senior citizen center ........................................................................... 130
Incentives for Foster Care ..................................................................................................................... 130
Additional tax deduction for private entities that employ senior citizen ............................................. 130
Criminal Offenses and Penalties ........................................................................................................... 130
Abuse of Senior Citizen Privileges ......................................................................................................... 131
The Office for Senior Citizens Affairs .................................................................................................... 131
Qualifications of the OSCA Head .......................................................................................................... 132
Functions of the OSCA .......................................................................................................................... 132
HOME DEVELOPMENT MUTUAL FUND LAW OF 2009 .............................................................................. 132
I. General Rule and Objectives ......................................................................................................... 132
I. History ........................................................................................................................................... 133
III. Leadership and Entity ...................................................................................................................... 134
IV. Membership and Waiver. ................................................................................................................ 136
V. Generation and Contribution ........................................................................................................... 136
VI. Housing Features ............................................................................................................................. 136
VII. Repealing and Effectivity Section 30 and 31 of RA 9679 .......................................................... 137
National Health Insurance Act of 2013 ..................................................................................................... 138
OBJECTIVE OF THE LAW ........................................................................................................................ 138
DEFINITION OF TERMS .......................................................................................................................... 138
COVERAGE............................................................................................................................................. 142
ENROLLMENT OF BENEFICIARIES .......................................................................................................... 143
Requirements for Registration of Members and Dependents ......................................................... 144
Emancipated Individual or Single Parent .......................................................................................... 144
Effectivity .......................................................................................................................................... 144
PREMIUM CONTRIBUTIONS .................................................................................................................. 144
Remittance of Premium Contribution .............................................................................................. 144
Mandatory Appropriation of Premium Contribution for Government Agencies ............................. 144
Enrollment of Citizens of Other Countries Working in the Philippines ............................................ 144

pg. 10
Identification and Enrollment of Indigents ....................................................................................... 144
LIFETIME MEMBERS .............................................................................................................................. 145
Required Number of Monthly Premium Contributions to Qualify as Lifetime Member .................. 145
Requirements to be a lifetime member: .......................................................................................... 145
Lifetime Member with Current Source of Income ............................................................................ 145
BENEFITS UNDER THE NATIONAL HEALTH INSURANCE PROGRAM...................................................... 145
BENEFIT PACKAGE MEMBERS AND THEIR DEPENDENTS .................................................................. 145
HEALTH SERVICES NOT COVERED BY THE NATIONAL HEALTH INSURANCE PROGRAM ....................... 146
Excluded Personal Health Services ................................................................................................... 146
Continuation of Entitlement to Benefits in Case of Death of Member ............................................ 146
CONDITIONS FOR ENTITLEMENT OF BENEFITS ..................................................................................... 146
Entitlement to Benefits ..................................................................................................................... 146
Benefits of Members and their Dependents Confined Abroad ........................................................ 146
ACCREDITATION OF HEALTH CARE PROVIDERS .................................................................................... 147
Types of Accreditation ...................................................................................................................... 147
Participation to the Program ............................................................................................................ 148
HEALTHCARE PROVIDERS...................................................................................................................... 148
Exemptions from Three-Year Operation Requirement ........................................................................ 149
Accreditation requirements for Physicians, Dentists, Nurses, Midwives, Pharmacists and other
Licensed Health Care Professionals ...................................................................................................... 150
B. SOCIAL SECURITY LAW ...................................................................................................................... 151
Objective of the law .............................................................................................................................. 151
Persons covered by the SSS law ............................................................................................................ 151
Coverage in the SSS............................................................................................................................... 151
Date of effectivity of coverage.............................................................................................................. 151
Employees not covered by SSS Law ...................................................................................................... 151
OBLIGATIONS OF EMPLOYER ................................................................................................................ 152
EFFECT OF NON-REPORTING OR NON-REMITTANCE............................................................................ 152
EFFECT OF FAILURE TO MAKE TIMELY REMITTANCE OF CONTRIBUTION ............................................ 153
Effect of Interruption of Business or Professional Income ................................................................... 154
Effect of Separation from Employment ................................................................................................ 154
SUMMARY OF SSS BENEFITS ................................................................................................................. 154
C. The Government Service Insurance Act of 1997 .............................................................................. 158
Definiti`on of Terms: ............................................................................................................................. 158
Compulsory Membership ..................................................................................................................... 159
Benefit Coverage................................................................................................................................... 159
Effect of Separation from the Service: .................................................................................................. 160
Collection and Remittance of Contributions and Other Amounts........................................................ 161
Amount of Contributions .................................................................................................................. 161

pg. 11
Effects of Non-Remittance of Contributions on the Eligibility to Benefits of Members ...................... 161
Computation of the Basic Monthly Pension ..................................................................................... 161
Computation of the Creditable Service............................................................................................. 162
Effects of Re-employment ................................................................................................................ 162
Basis of computation of Total Service............................................................................................... 162
Notification by Employer .................................................................................................................. 164
Conflicts in Date of Birth ................................................................................................................... 164
Effect of Re-employment .................................................................................................................. 164
Concept ............................................................................................................................................. 164
Types of Disabilities........................................................................................................................... 164
Criteria for Evaluating the Extent of Disability of a Member ............................................................ 165
Provisions for Permanent Total Disability ......................................................................................... 165
Provisions for Partial Disability ......................................................................................................... 165
Provisions for Temporary Disability .................................................................................................. 165
Periodic Medical Report.................................................................................................................... 166
Effect of Recovery from Impairment ................................................................................................ 166
Effect of Re-employment or Self-Employment ................................................................................. 166
Forfeiture of Disability Benefits ........................................................................................................ 166
Limitation to Enjoyment of Disability Benefits ................................................................................. 167
Requirements and Conditions of Accreditation................................................................................ 167
Adjudication Process ......................................................................................................................... 176
Powers and Functions of the GSIS .................................................................................................... 178
The Board of Trustees ....................................................................................................................... 179
Powers and Functions of the Board of Trustees ............................................................................... 180
President and General Manager of Other Personnel ....................................................................... 180
Penalties under Article 172 of the RPC ............................................................................................. 181
Other Penalties ................................................................................................................................. 181
Dispensation of Social Insurance Benefits ........................................................................................ 182
Development and Disposition of Acquired Assets ............................................................................ 182
Exclusiveness of Benefits .................................................................................................................. 183

pg. 12
PART 1:
AGRARIAN
LAW

pg. 13
CHAPTER I: PRELIMINARY

Definition of Agriculture

 Agriculture includes farming in all branches and, among other things, includes the cultivation and
tillage of soil, dairying, the production, cultivation, growing and harvesting of any agricultural and
horticultural commodities, the raising of livestock or poultry, and any practices performed by a farmer
on a farm as an incident to or in conjunction with such farming operations, but does not include the
manufacturing or processing of sugar, coconuts, abaca, tobacco, pineapple or other farm products. [Art.
97 (d), Chapter I, Title II, Labor Code of the Philippines]

 Agriculture, Agricultural Enterprise or Agricultural Activity means the cultivation of the soil,
planting of crops, growing of fruit trees, including the harvesting of such farm products, and other farm
activities and practices performed by a farmer in conjunction with such farming operations done by
persons whether natural or juridical. [Sec. 3b, Chapter I, Comprehensive Agrarian Reform Law of 1988
(R.A. No. 6657 as amended by R. A. 7881)]

Three Stages of Agricultural Development

From the point of development, Mellor divides agriculture into three stages. The stages are:

1. Traditional Agriculture

“It is a technologically stagnant stage in which production is increased largely through slowly increased
application of traditional forms of land, labor and capital.” The increase in output takes place through
an essentially symmetrical expansion of all inputs or through increased input of the already abundant
low productivity resources. Declining income and productivity per unit of an input is a common feature
of this phase.

2. Technologically Dynamics Agriculture-Low Capital Technology

In stage II, “a complex of technological changes substantially increases the efficiency of agricultural
processes and raises the rate of increase of agricultural production. The critical characteristics of stage
II, as compared with stage I is the constant generation and application of technology which is facilitated
by a complex institutional framework.”

3. Technologically Dynamic Agriculture High Capital Technology

This is the stage when agriculture has much of its relative importance in the generation of the National
Income. Agriculture of various developed countries are included in this stage. Government’s role in
different stages is quite important. In nature, of course, is different.

It may be noted that as the stage of agricultural development cannot be finely demarcated, the objectives
of agricultural policy at a particular time, too, cannot be defined rigidly. What we find at a particular
point of time is a set of objectives, their order of priority- changing as the time changes.

Definition of Land Tenure

In common law systems, land tenure is the legal regime in which land is owned by an individual, who is
said to "hold" the land. The French verb "tenir" means "to hold" and "tenant" is the present participle of
"tenir.”

Land tenure is the relationship that individuals and groups hold with respect to land and land-based
resources, such as trees, minerals, pastures, and water. Land tenure rules define the ways in which property
rights to land are allocated, transferred, used, or managed in a particular society. When land tenure is
secured, land can be a cornerstone for economic growth and an incentive for investment, but when land
rights are not secured, this can lead to conflicts, instability, and the exclusion of vulnerable groups, such as
women, indigenous people, and the poor.

pg. 14
Related Concepts

Divine Right of Kingship

The Divine Rights of Kings Theory is an old theory that states that God created the State and the rulers
were appointed by Him. It is both a political and religious doctrine of royal and political legitimacy. It
asserts that a monarch is subject to no earthly authority and the rulers were responsible to God alone and
not to any human being. The people must then obey the king. Disobedience means not only a crime but also
a sin. Being supreme, some people considered the King to be the shadow of God on earth. According to
this doctrine, only God can judge an unjust king. The doctrine implies that any attempt to depose the king
or restrict his powers runs contrary to the will of God and may constitute a sacrilegious act.

The remote origins of the theory are rooted in the medieval idea that God has bestowed earthly power on
the king, just as God had given spiritual power and authority to the church, centering on the pope. The
immediate author of the theory was Jean Bodin, who based it on the interpretation of the Roman Law.

The Divine Right theory was further modified by King James the First of England (VI of Scotland) who
consistently clashed with the English Parliament as he tried to maintain and expand royal authority. He
wished to rule as an absolute monarch rather than a constitutional one. He based his theories in part on his
understanding of the bible. To him, “the state of monarchy is the supremest thing upon earth, for kings are
not only Gods lieutenants upon Earth and sit upon God’s throne, but even by God himself they are called
gods. There be three principal that illustrate the state of monarchy: one taken out of the word of God, and
the two other out of grounds of policy and philosophy.”

The New Testament does have several passages which support the idea that a person should submit him or
herself to the governmental authorities. The most powerful passage of the Bible for maintaining the status
quo is from Romans 13: 1-2: “Let every soul be subject unto the higher powers. For there is no power but
of God, the powers that be are ordained to God: and they that resist shall receive to themselves damnation.”

One of the most famous quotes from the Bible about paying taxes is from Luke 20:25 which states
that “And Jesus said unto them, “Render therefore unto Caesar the things which are Caesar’s, and unto
God the things which are God’s.”

One of the relevant portions in the Divine Right of Kings Theory is the prevailing philosophy and basis of
Governance that the rulers of various pieces of lands were held to be Gods and/or representatives of Gods
on earth to which no earthly person nor entity can question their authority. Under this theory, essentially all
land belonged to the king. The King can grant various persons such as nobles the use of tracts of land in
exchange for pledges of loyalty, payment of taxes and promise to provide soldiers when summoned by the
King. In essence, if you speak against the King or any layer of the government, if you could not pay your
taxes, if the King wanted to favor someone than you, you’ll lose your property. There were no private rights,
no freedom of speech, no freedom of religion nor of the press and no freedom to dissent with the
government. The fate of the people lies with the absolute whim of the King.

Feudalism

In its general sense, feudal society is a military hierarchy in which a ruler or lord offers mounted fighters a
fief, a unit of land to control in exchange for a military service. The individual who accepted this land
became a vassal, and the man who granted the land become known as his liege or his lord.

Feudalism discouraged trade and economic growth. The land was worked by peasant farmers called serfs,
who were tied to individual plots of land and forbidden to move or change occupations without the
permission of their lord. The feudal lord might claim one-third to one-half of their produce in taxes and
fees, and the serfs owed him a set number of days each year in which they would work the lord's fields in
exchange for the right to work their own lands. Often, they were required to grind their grain in the lord's
mill, and bake all their bread in the lords' oven, and to use roads and bridges the lord had built. Each time
they did this, of course, they would have to pay him a toll or a fee of some sort. They were, however,
forbidden to set up their own roads, bridges, mills, and ovens--the lord had a legal monopoly and would
milk it for all it was worth. In exchange for other hefty fees, various peasants might set up a commune (a
cooperative government amongst themselves), or pay the lord for the right to try their own court cases by
juries. Other ambitious communities might pool their resources and purchase a charter, a legal document
that gave the inhabitants of a town or village certain economic freedoms to buy and sell their own land or

pg. 15
produce. In practice, these occurrences were often economic necessities, but in theory, these freedoms were
generous gifts given by the lord to his former serfs in exchange for various financial considerations.

In the Philippine context, feudalism is primarily an agriculture-based economic system where most farmers
or peasants don’t own land and are forced to work for a landlord who profits off excessive land rent rates,
exorbitant loan interest rates, and very low crop prices, among others. Over decades, this setup has become
dominant across the Philippines. In effect, it has left 9 out of 10 farmers landless today and has forced
peasants and families to sell their labor to landlords, in urban areas, and abroad.

Equally important to this economic system is the backward haciendero, or feudal, culture needed to
maintain it. Oppressive religious practices combined with the lack of access to quality education produces
a culture in which people internalize unquestioning obedience and utang na loob (debt of gratitude). It
produces a society where exploitation is downplayed as a temporary state worth bearing to prevent any
collective resistance and thoroughgoing change.

Spanish Encomienda System (Latin America & Philippines)

Latin America

When the Spanish arrived in the New World, they brought with them a set of customs and traditions
from their old Spain. One of the systems that were commonly practiced in Western Europe was forced
labour. In Spain, this was known as the Encomienda system. An encomienda was a means of providing
a Spaniard a portion of land and restricted property rights over a certain number of Indians. The
Encomienda system quickly became entrenched in South and Central America. Although it was
implemented with the intention to care for and provide for the Native Americans, it became the most
abusive and destructive system in colonial New Spain.

Encomienda, in colonial Spanish America, is a legal system by which the Spanish crown attempted to
define the status of the Indian population in its American colonies. It was based upon the practice of
exacting tribute from Muslims and Jews during the Reconquista (“Reconquest”) of Muslim
Spain. Although the original intent of the encomienda was to reduce the abuses of forced labour
(repartimiento) employed shortly after the discovery of the New World, in practice it became a form
of enslavement.

An encomienda (from encomendar, “to entrust”) consisted of a grant by the crown to a conquistador,
soldier, official, or others of a specified number of Indians living in a particular area. The receiver of
the grant, the encomendero, could exact tribute from the Indians in gold, in kind, or in labour and was
required to protect them and instruct them in the Christian faith.

The encomienda did not include a grant of land, but in practice the encomenderos gained control of the
Indians’ lands and failed to fulfil their obligations to the Indian population. The encomienda was
designed to meet the needs of the colonies’ early mining economy. With the catastrophic decline in
the Indian population and the replacement of mining activities by agriculture, the system lost its
effectiveness and was gradually replaced by the hacienda system of landed estates. The encomienda
was not officially abolished, however, until the late 18th century.

Philippines

In 1570, the encomienda was introduced in the Philippines when Legaspi, in compliance with the
decree issued by King Philip II in 1558, distributed lands in Cebu to loyal Spanish subjects. These men
had helped conquer the Philippines. The encomienda was not actually a land grant but was a favor from
the kind under which the Spaniard receiving his favor was given the right to collect tributes–or taxes–
from the inhabitants of the area assigned to him. The man who received this favor was called
an encomendero. The encomienda was, therefore, a public office.

The encomenderos were required by law to perform the following duties:

1. to give protection to the natives;


2. to help the missionaries convert the natives to Christianity; and
3. to promote education

Unfortunately, many Spanish encomenderos committed abuses, such as:

pg. 16
1. Brutal treatment of the Filipinos;
2. Collecting more tribute than that authorized by law
3. Forcing the people to work for them
4. Seizure of the people’s animals and crops without just compensation

Because of the abuses of encomenderos, much bad feeling resulted. First, peace and order, which the
colonizers and the early Spanish friars had established, was disturbed. Second, the abuses led to a
conflict between the friars and the encomenderos. The early friars observed that the encomenderos
neglected their duty of teaching the Christian faith to the Filipinos. They saw that the encomenderos
were only interested in enriching themselves instead.

The friars tried to protect the Filipinos from the greed and abuses of the encomenderos by;

1. preaching from the pulpits against encomendero abuses


2. writing letters and memorials to the King of Spain in which they reported the abuses of the
encomenderos
3. refusing to absolve the encomenderos from their sins

The Filipinos, seeing that the encomenderos were interested only in getting rich, grew lazy. They
reasoned that it was useless to work too hard for a living if the fruits of their work would only go to the
payment of excessive tributes to the encomenderos. This attitude was encouraged by the friars who told
them that the abandonment of their labors would free from injustice.

There were three kinds of encomiendas:


1. the Royal Encomiendas, belonging to the King
2. the Ecclesiastical Encomiendas, belonging to the Church
3. Private Encomiendas, belonging to private individuals

At first the natives paid eight reales as tribute. This amount was increased to ten reales in 1589 by order
of King Philip II. Aside from the tribute expected from the royal encomiendas, the king also received
reales from each tribute each encomiendero received from his encomienda. The total amount of the
tributes intended for the king was kept as fund to pay the expenses for the country’s defense. This fund
was called the situado.

The size of an encomienda was determined in two ways:


1. by the number of people living in it
2. by the value of the land

The law limited the number of natives in an area and administered by an encomendero to not more than
300, and the value of the land was limited to not more than P2,000. At first an encomienda could be
held for three generations (about ninety years). This was later reduced to two generation. But because
of the complaints from encomenderos, the king decided to return the encomienda tenure to three
generations in 1635.

Regalian Doctrine

Under the Regalian doctrine, all lands of whatever classification and other natural resources not
otherwise appearing to be clearly within private ownership are presumed to belong to the State which
is the source of any asserted right to ownership of land. Accordingly, public lands not shown to have
been reclassified or released as alienable agricultural land or alienated to private person by the State
remain part of the inalienable public domain.

Section 2. Article XII of the Constitution provides:

“All lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils,
all forces of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other
natural resources are owned by the State. With the exception of agricultural lands, all other
natural resources shall not be alienated.”

pg. 17
Land Registration Act of 1902

On November 6, 1902, the Philippine Commission enacted Act No. 496 known as the Land Registration
Act. Under Act 496, Section 1., “The short title of this Act shall be “The Land Registration Act.”

This provided for the creation of the Court of Land Registration (CLR), the offices of the Register of Deeds
and the institution in this country of the Torrens system of registration whereby real estate ownership may
be judicially confirmed and recorded in the archives of the government.

Five judges were appointed by the Governor-General with the advice and consent of the Philippine
Commission. One Judge was designated Judge of Court; the rest were assigned Associate Judges. Other
members of the court were a clerk and assistant clerk, both appointed by the Attorney General with the
approval of the Secretary of Finance and Justice. Along with the court were established the Registries of
Deeds.

Landowners under this Act were required to register their landholdings and acquire Torrens titles to land
properties.

The system, however, actually took effect on February 1, 1903.

Torrens System of Land Registration

In this system, title by registration takes the place of “title by deeds” of the system under the “general”
law. A sale of land for example is effected by a registered transfer, upon which a certificate of title is
issued. Certificate is guaranteed by statute, and with certain exceptions, constitutes indefeasible title to the
land mentioned therein.

Under old system, the same sale would be effected through conveyance, depending on its validity, apart
from intrinsic flaws, on the correctness of a long series of prior deeds, wills, etc.

Object of the Torrens system: to do away with the delay, uncertainty, and expense of the old conveyancing
system.

Generally, by “Torrens” systems are meant those systems of registration of transactions with interest in
land whose declared object is, under governmental authority, to establish and certify to the ownership of an
absolute and indeafisible title to realty, and to simplify its transfer.

Public Land Act of 1902

Also known as “Philippine Bill of 1902” or “1902 Land Act”. This bill limited private individual
landholdings to 16 hectares, and corporate landholdings to 1024 hectares. It also gave the Americans the
right to acquire agricultural lands and enabled American agricultural interests to control huge tracts of land
for large-scale farming.

It offered homestead plots not exceeding 16 hectares to families who had occupied and cultivated the land
they were residing since August 13, 1898.

Friar Lands Act

This Act instituted transfer of friar lands to the tenants to diffuse the peasant unrest which found expression
in the 1898 Revolution against Spain. The American government purchased some of the 23 large friar
estates covering 166,000 hectares for $7 million, which it resold to 60,000 tenants at full cost plus interest.
The prices were beyond the reach of most tenants and some could not understand why they had to buy back
the land which had belonged to their parents. In fact, most of the lands transferred as a result of this Act
were those in which agrarian unrest was widespread. This act was later amended to allow the sale of friar
lands (which were prime lands) not only to Filipino tillers but to foreign nationals as well. In a short time,
the Sugar Trust, an American corporation, purchase the San Jose Estate.

Rice Share Tenancy Act of 1933

pg. 18
Public Act No. 4054 which was passed on February 27, 1933 by the Philippine Legislative during the time
of Governor-General Theodore Roosevelt, aimed at protecting tenants against abuses of landlords. This Act
provided for a 50-50 sharing of the crop, an interest rate ceiling at 10 percent per crop year, safeguards
against arbitrary dismissal of tenants by landlords. However, the law could go into effect “only in provinces
where the majority of the municipal councils shall, by resolution, petition for its application to the
Governor-General.” With this provision, the law was ineffective because members of the landed elite
controlled the municipalities. Subsequent amendments to make the law effective were also invalidated by
landlord resistance

Sugarcane Tenancy Contracts Act of 1933

Enacted on January 1, 1934, this law governed the relationship between landowners and tenants in
sugarlands which makes it a duty of the sugar central where the sugarcanes are milled by the landowner
thereat, upon the demand of the said tenant, which receipt shall be the basis of the computation of the
tenant’s share from the cane harvested. Basically, this Act makes it a duty of the sugar central to exhibit to
the tenants the receipts of the number of tons milled by the landowner thereat.

 When the cane is not milled at the central but in the private mill of the landowner, the latter, shall
stipulate with his tenant the necessary expenses of milling, cutting and hauling the cane from field to
mill, and of purchasing all necessary ingredients for boiling the sugar and all materials for proper
packing of product

 When there is no written agreement concerning the value of the share of the tenant, the landowner shall
not sell said share without the knowledge and written consent of the tenant or his representative. When
the tenant does not consent to the sale, the landowner shall have the right to sell the same after the lapse
of thirty days.

 The settlement of accounts between landowner and tenants and the distribution of the crop shall be
made immediately after each milling season

 Any violation to this Act shall be punished by a fine not less than twenty-five pesos nor more than two
hundred pesos, or by imprisonment for not less than ten days nor more than sixty days, or both, in the
discretion of the court

Republic Act 34 of 1946 (Agricultural Sharing)

Approved on September 30, 1946, this law was passed during the incumbency of President Manuel Roxas,
which amended certain sections of the Rice Share Tenancy Act of 1933 providing for a 70 - 30 crop-sharing
method. It further provides that in the case the land is planted with rice on a second cropping or other
auxiliary crops, all expenses of production shall be shouldered by the tenant, but the sharing arrangement
shall be 80% for the tenant, and 20% for the landowner of the net harvest. Aside from the change in the
sharing system, the legislation also provided for a home lot for the tenant which is not less than 600 square
meters.

Republic Act 1160 of 1954 (National Resettlement and Rehabilitation)

Abolished the LASEDECO and established the National Resettlement and Rehabilitation Administration
(NARRA) to resettle dissidents and landless farmers. It was particularly aimed at rebel returnees providing
home lots and farmlands in Palawan and Mindanao.

Republic Act 1199 of 1954 (Tenancy Rights)

Governed the relationship between landowners and tenant farmers by organizing share-tenancy and
leasehold system. The law provided the security of tenure of tenants. It is also created the Court of Agrarian
Reforms.

Agricultural Land Reform Code of 1963

pg. 19
This Code (Republic Act No. 3844) was enacted to institute land reforms in the Philippines and aimed at
establishing owner-cultivatorship and the family-size farm as the basis of Philippine agriculture; achieving
a dignified existence for the small farmers free from pernicious industrial restraints and practices; and
making small farmers more independent, self-reliant and responsible citizens.

It enunciates the following, which will be further discussed by the next group in reporting Chapter 2:
1. An agricultural leasehold system to replace all existing share tenancy systems in agriculture;
2. A declaration of rights for agricultural labor;
3. An authority for the acquisition and equitable distribution of agricultural land;
4. An institution to finance the acquisition and distribution of agricultural land;
5. A machinery to extend credit and similar assistance to agriculture;
6. A machinery to provide marketing, management, and other technical services to agriculture;
7. A unified administration for formulating and implementing projects of land reform;
8. An expanded program of land capability survey, classification, and registration; and
9. A judicial system to decide issues arising under this Code and other related laws and regulations.

P. D. No. 2 of 1972

PROCLAIMING THE ENTIRE COUNTRY AS A LAND REFORM AREA

PRESIDENTIAL DECREE No. 2 provides that:


All agencies and office of the Government are enjoined to extend full cooperation and assistance to the
Department of Agrarian Reform to insure the successful prosecution of the Agrarian Reform Program.

The Agrarian Reform Coordinating Council created under Executive Order Mo. 387, series of 1971, is
hereby directed to convene immediately to exercise its functions.

The Secretary of Agrarian Reform shall take necessary steps for the prompt and effective implementation
of this decree.

P. D. No. 27 of 1972

DECREEING THE EMANCIPATION OF TENANTS FROM THE BONDAGE OF THE SOIL,


TRANSFERRING TO THEM THE OWNERSHIP OF THE LAND THEY TILL AND PROVIDING
THE INSTRUMENTS AND MECHANISM THEREFOR

Applicability of the Law

This shall apply to tenant farmers of private agricultural lands primarily devoted to rice and corn under a
system of sharecrop or lease-tenancy, whether classified as landed estate or not.

Transfer of Land to Tenants

PRESIDENTIAL DECREE No. 27 provides that:

“The tenant farmer, whether in land classified as landed estate or not, shall be deemed owner of a portion
constituting a family-size farm of five (5) hectares if not irrigated and three (3) hectares if irrigated.”

Size of the land to be transferred to the tenant-farmer

1. five (5) hectares if not irrigated and three (3) hectares if irrigated, or
2. three (3) hectares if irrigated.

Retention right of landowner

Under PRESIDENTIAL DECREE No. 27 the landowner may retain an area of not more than seven (7)
hectares if such landowner is cultivating such area or will now cultivate it.

The cost of the land to be transferred to the tenant-farmer.

pg. 20
The value of the land shall be equivalent to two and one-half (2 1/2) times the average harvest of three
normal crop years immediately preceding the promulgation of this Decree

The tenant-farmer will pay

The total cost of the land, including interest at the rate of six (6) per centum per annum, shall be paid by the
tenant in fifteen (15) years of fifteen (15) equal annual amortizations;

In case of default, the amortization due shall be paid by the farmers' cooperative in which the defaulting
tenant-farmer is a member, with the cooperative having a right of recourse against him;

The government shall guaranty such amortizations with shares of stock in government-owned and
government-controlled corporations;

Issuance of title

No title to the land owned by the tenant-farmers under this Decree shall be actually issued to a tenant-farmer
unless and until the tenant-farmer has become a full-fledged member of a duly recognized farmer's
cooperative.

Tenant-beneficiary cannot sell or transfer ownership of the land

Title to land acquired pursuant to this Decree or the Land Reform Program of the Government shall not be
transferable except by hereditary succession or to the Government in accordance with the provisions of this
Decree, the Code of Agrarian Reforms and other existing laws and regulations;

Jurisdiction

The Department of Agrarian Reform through its Secretary is hereby empowered to promulgate rules and
regulations for the implementation of this Decree.

Police Power as Doctrinal Basis of Agrarian Reform

Asociacion de Agricultores v. Talisay-Silay Milling


G. R. No. L-19937 | February 19, 1979 | 88 SCRA 294

FACTS: On June 1952, Republic Act 809 was enacted for the purpose of addressing the necessity to
increase the share of planters and laborers in the income derived from the sugar industry. Said act was to
regulate the relations among the persons engaged in the sugar industry. Under Section 1 thereof, it was
provided that in the absence of written milling agreements between the majority of planters and the millers
of sugarcane in any milling district in the Philippines, the unrefined sugar produced in that district from the
milling by any sugar central of the sugar cane of any sugarcane planter or planter owner, as well as all
byproducts and derivative thereof, shall be divided between them depending on the maximum actual
production. The higher the rate of production, the bigger the percentage given to the planters.

The Association de Agricultores de Talisa-Silay Inc. and six sugarcane planters (PLANTERS) filed a
petition to the Secretary of Labor, praying that the latter declare the applicability of the RA 809 to the
Talisay Silay Mill District (CENTRAL) for every crop year starting from 1952-1962.

CENTRAL alleged that RA 809 was invalid and unconstitutional and even if it was valid, the planters had
written milling contracts with them at the time the said act went into effect, and the planters who entered
into said contracts did so voluntarily and those voluntary contracts may not be altered or modified without
infringing the constitutional guarantee on freedom of contracts and non-impairment clause of the
Constitution. CENTRAL also alleged that the law violates the equal protection clause since bigger milling
districts should provide bigger shares than smaller ones.

ISSUES: (1) Whether RA 809 would violate the non-impairment clause of the Constitution and infringe
the Constitutional guarantee on freedom of contracts if applied to the Talisay Silay Mill District. (2)
Whether RA 809 violates the equal protection clause.

pg. 21
HELD: No. RA 809 is a social justice and police power measure for the promotion of labor conditions in
sugar plantations. Hence, whatever rational degree of constraint it exerts on freedom of contract and existing
contractual obligation as is constitutionally permissible. The said act was concerned and enacted as a social
legislation designed primarily to ameliorate the condition of the laborers in the sugar plantation. Having in
view its primary objective, to promote the interests of the laborer, it can never be possible that the State
would be bereft of constitutional authority to enact legislations of its kind.

Section 5 of Article II of the Constitution of 1935, under the aegis of which the law in question was enacted,
made it one of the declared principles to which the people committed themselves that "the promotion of
social justice to insure the wellbeing and economic security of all the people should be the concern of the
State." More specifically in regard to labor, there was also Section 6 of Article XIX, to the effect that "the
State shall afford protection to labor ... and shall regulate the relation between . . . labor and capital in
industry and in agriculture.”

The Republic Act did not violate equal protection clause. The obvious standard used by the legislature is
the amount of production in each district. Naturally, the planters adhered to the bigger centrals should be
given bigger shares, considering that the more a sugar central produces, the bigger its margin of profit which
can be correspondingly cut for the purpose of enlarging the share of the planters. Understandably, the
smaller centrals may not be able to afford to have their shares reduced substantially, which is evidently the
reason why the law has not been made applicable to centrals having a production of less than 150,000 piculs
a year.

It is beyond cavil that dealing as it did with the unfortunate plight of the farm laborers crying for just and
urgent amelioration and confronted with the usual constitutional objections whenever contractual relations
are sought to be regulated, Congress ultimately availed of the state's police power, in the face of which all
arguments about freedom of contract and impairment of contractual obligations have generally been held
not to prevail. In Lutz vs. Araneta (G.R. No. L-2859, Dec. 22, 1959), this Court recognized the propriety of
exercising 'police power when it is needed to do so in order that our sugar industry may be stabilized, and
to that end, it was held that the legislature could provide that the distribution of benefits from the proceeds
of sugar be readjusted among the components of the industry to enable it to resist the added strain of the
increase in taxes that it had to sustain then. With at least equal persuasiveness must such reasoning obtain
when the readjustment of the distribution of proceeds is impelled by the need to render social justice among
all the participants in the industry, especially the laborers. True it is that, as counsel for the centrals contends,
police power cannot be resorted to just any time the legislature wishes, but it is not correct to say that it is
indispensable that exceptional circumstances must exist before police power can be exercised. As very aptly
pointed out by the able amicus curiae, Attys. Tañada, Teehankee and Carreon, gone are the days when
courts could "be found adhering to the doctrine that interference with contracts can only be justified by
exceptional circumstances", for the "test of validity today under the due process clause, even in the case of
legislation interfering with existing contracts, is reasonableness, as held by this Honorable Supreme Court
in the case of People vs. Zeta. In other words, freedom from arbitrariness, capriciousness and whimsicality
is the test of constitutionality." (p. 17, Brief of Amicus Cuiae in Behalf of Silay-Saravia Planters'
Association, Attys. Tañada, Teehankee and Carreon.) And there is not enough showing here of
unreasonableness in the legislation in question. Quite to the contrary, as will be discussed anon, The Court
find all the provisions of the impugned act to be germane to the end being pursued.

pg. 22
CHAPTER II: AGRICULTURAL LEASEHOLD CONCEPT

AGRICULTURAL LAND REFORM CODE (Rep. Act. No. 3844)

REPUBLIC ACT No. 3844

AN ACT TO ORDAIN THE AGRICULTURAL LAND REFORM CODE AND TO INSTITUTE


LAND REFORMS IN THE PHILIPPINES, INCLUDING THE ABOLITION OF TENANCY AND
THE CHANNELING OF CAPITAL INTO INDUSTRY, PROVIDE FOR THE NECESSARY
IMPLEMENTING AGENCIES, APPROPRIATE FUNDS THEREFOR AND FOR OTHER
PURPOSES

Section 1. Title - This Act shall be known as the Agricultural Land Reform Code.

Prefatory Statement

The thrust of this legislation is the drastic abolition of share tenancy system. It provided for the automatic
conversion of the sharecropper to the status of an agricultural lessee, governed by the system of agricultural
leasehold which is established either:
a. by agreement of the parties, whether oral or written, or
b. by operation of law.

The Agricultural Land Reform Code still finds application to the following:

a. areas which have not come within the operation and implementation of P.D. No. 27;
b. agricultural laborers subject to the provisions of the Labor Code;
c. organization and operation of the Land Bank;
d. provisions on resettlements of farmers;
e. right to pre-emption and redemption, with respect to land-owner’s retained area, should such
landowner decide to sell his tenanted / leased retained area, the tenant has the preferential right to
purchase and / or redeem the same in case the land is sold to a third person without the tenant’s
knowledge;
f. right of the tenant / lessee to 75% share from the standing crops;

Three shifts in the mode of acquisition

a. The automatic conversion of the status of share tenant to leaseholder characterized by payment
of fixed rentals;
b. The second shift which is the conversion of the leaseholder to amortizing owner, characterized
by the Land Bank purchase of the property with a concomitant obligation imposed on the tenant-
lessee to pay Land Bank on amortization basis the purchase price of the farmholding;
c. The third shift which converts the status of an amortizing owner into full owner or owner-
cultivator upon full payment of the remaining balance of the amortization.

Section 3. Composition of Code -


1. An agricultural leasehold system to replace all existing share tenancy systems in agriculture;
2. A system of crediting rental as amortization payment on purchase price;
3. A declaration of rights for agricultural labor;
4. A machinery for the acquisition and equitable distribution of agricultural land;
5. An institution to finance the acquisition and distribution of agricultural land;
6. A machinery to extend credit and similar assistance to agricultural lessees, amortizing
owners-cultivators, owners-cultivator and cooperatives;
7. A machinery to provide marketing, management and other technical assistance and / or services to
agricultural lessees, amortizing owners-cultivators, owner-cultivator, cooperatives;
8. A machinery for cooperative development;
9. A department for formulating and implementing projects of agrarian reform;
10. An expanded program of land
11. A judicial system to decide issues arising under this Code.
12. A machinery to provide legal assistance to agricultural lessees, amortizing owners-cultivator, and
owners-cultivator.

pg. 23
Repayment Scheme and Credit Assistance

The same scheme of repayments to the Land Bank of the Philippines of the purchase price of lands acquired
under the operation of the Agricultural Land Reform Code, applies to lands acquired under both P.D. No.
27 and R.A. No. 6657, with the difference that the period of amortization payments to the Land Bank which
was staggered within the period of 15 years under P.D. No. 27, has been extended to 30 years under Section
26 of R.A No. 6657.

The functions of a machinery that used to extend credit and financial assistance to agricultural lessees,
amortizing owners-cultivator, owners-cultivator and cooperatives which the Code of Agrarian Reforms had
entrusted with the defunct Agricultural Credit Administration (ACA) are now being implemented by the
Land Bank of the Philippines.

Jurisdiction on Agrarian Disputes

All agrarian disputes are now under the cognizance of the Department of Agrarian Reform thru the Agrarian
Reform Adjudication Board.

The Department of Agrarian Reform Adjudication Board (DARAB) in turn delegates its functions to the
respective Regional and Provincial Adjudicators of the DAR. Any decision, order, award or ruling of the
DAR on any agrarian dispute, may be brought to the Court of Appeals on certiorari.

Special Agrarian Courts

Under the present law (R.A. No. 6657) all controversies involving the determination of just compensation
and prosecution of all criminal offenses arising from violations of the provisions of this Act, fall under the
original and exclusive jurisdiction of Special Agrarian Courts.

Bureau of Agrarian Legal Assistance

They shall be responsible for the development of plans and programs for the extension of legal information
to farmers; extension of legal services to them.

DEFINITION OF TERMS

Agricultural land – means land devoted to any growth, including but not limited to crop lands, saltbeds,
fishponds, idle land and abandoned land.

Agricultural lessee – means a person who by himself and with the aid available from within his immediate
farm household, cultivates the land belonging to, or possessed by, another with the latter’s consent.

Agricultural lessor – means a person, lets or grants to another the cultivation and use of his land for a price
certain.

Agricultural year – means the period of time required for raising a particular agricultural product.

Farm implements – means hand tools or machineries in a farm enterprise.

Immediate farm household - means the members of the family of the lessee or lessor and other persons
who are dependent upon him for support.

Proven farm practices – means sound farming practices.

Personal cultivation – means cultivation by the lessee or lessor in person.

Work animals – means animals ordinarily employed in a farm enterprise.

pg. 24
Agrarian dispute – means any controversy relating to terms, tenure or condition of employment, or
concerning an association or representation of persons in negotiating, maintaining, changing or seeking to
arrange terms on conditions of employment.

Agricultural owner-cultivator – means any person who, personally cultivates his own land.

Fair rental value – means the value not in excess of allowable depreciation plus 6% interest per annum.

Incapacity – means any cause or circumstance which prevents the lessee from fulfilling his contractual and
other obligations under the Code.

Modes of Land Tenure Allowed under R.A. No. 3844

1. Leasehold system – characterized by a tenant – farmer personally and actually cultivating the
farmholding under a leasehold relationship whereby the lessee pays a fixed amount of rental whether
in cash or in kind to the lessor.

2. Share tenancy- the relationship which exists whenever two persons agree on a joint undertaking for
agricultural production wherein one party furnishes the land and the other his labor, with either or both
contributing any one or several of the items of production, the tenant cultivating the land personally
with the aid of labor available from members of his immediate farm household, and the produce thereof
to be divided between the landholder and the tenant.

3. Owner-cultivatorship - a land tenure mode where a person who, providing capital and management,
personally cultivates his own land with the aid of his immediate family and household.

4. Cooperative-cultivatorship – which is a form of agrarian relationship among members of a


cooperative who work and live on the land as tillers in common.

5. Labor administration – which employs laborers and workers on a daily wage basis, and engaged in a
large scale plantation farming of permanent crops by their respective managers.

How Leasehold Relation is Established

1. by agreement of the parties


2. by operation of law – implementation of R.A. No. 3844 providing for the abolition of share tenancy.

Parties to Leasehold Relation

1. the landholder
2. the person who personally cultivates the land.

ESSENCE OF LEASEHOLD RELATION

1. It is essentially personal, in the sense that it cannot be exercised by third persons other than the
lessor himself, and the lessee who personally cultivates the land;

2. It has the nature of an in rem or real relationship, because it imposes a burden upon the land subject
of the landholding and continues to exist even by the death or incapacity of either party, or the
expiration of the agreement.

Tenurial Arrangement of Leasehold

It makes it a penal offense to eject a tenant illegally from his holding except upon approval of the court

Definitions of Security of Tenure

Political Science

pg. 25
Security of Tenure is a term used in political science to describe a constitutional or legal guarantee that a
political office-holder cannot be removed from office except in exceptional and specified circumstances.

Business Dictionary

According to business dictionary, security of tenure is a legal protection afforded to (1) tenants of dwelling
houses (usually under a rent act) against arbitrary rent increases and landlord's attempts to repossess the
property through eviction, or (2) employees in certain professions (such as teaching) against summary
dismissal without just cause.

Security of Tenure and 1987 Constitution

Security of Tenure is guaranteed by the Constitution. This guarantee means that an employee cannot be
dismissed from the service for causes other than those provided by the law and only after due process is
accorded the employee.

According to Article XIII, Section 3 of 1987 Constitution:


“Section 3. The State shall afford full protection to labor, local and overseas, organized and
unorganized, and promote full employment and equality of employment opportunites for all.

It shall guarantee the rights of all workers of self-organization, collective bargaining and negotiations, and
peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled
to security of tenure, humane conditions of work, and a living wage.”xxx

In Addition, According to De Guzman vs Comelec, G.R. No. 129118, July 19, 2000,
“The guarantee of security of tenure under the Constitution is not a guarantee of perpetual employment. It
only means that an employee cannot be dismissed (or transferred) from the service for causes other than
those provided by law and after due process is accorded the employee. What it seeks to prevent is capricious
exercise of the power to dismiss. But, where it is the law-making authority itself which furnishes the ground
for the transfer of a class of employees, no such capriciousness can be raised for so long as the remedy
proposed to cure a perceived evil is germane to the purposes of the law.”

Security of Tenure and Labor Code

The Labor Code also guarantees the right of labor’s to security of tenure. Article 279 of the same code
states that:
“ART. 279. Security of tenure. - In cases of regular employment, the employer shall not terminate the
services of an employee except for a just cause or when authorized by this Title. An employee who is
unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other
privileges and to his full backwages, inclusive of allowances, and to his other benefits or their monetary
equivalent computed from the time his compensation was withheld from him up to the time of his actual
reinstatement. (As amended by Section 34, Republic Act No. 6715, March 21, 1989).”
According to PHILIPPINE-SINGAPORE TRANSPORT SERVICES, INC. vs NATIONAL LABOR
RELATIONS COMMISSION (G.R. No. 95449, August 18, 1997) There are two facets of Article 279 of
Labor Code. To wit:
a. The legality of act of dismissal
b. The legality in manner of dismissal
The illegality of the act of dismissal constitutes discharge without just cause, while illegality in the
manner of dismissal is dismissal without due process.

Tenurial Arrangement of Leasehold

The leasehold relation may either by agreement of parties (orally or in writing) or by implication
entitles the leasehold tenant to security of tenure until its extinguishment by any of the causes provided by
law. Ejecting a tenant illegally from his land holding is considered as a penal offence. No person is allowed
to eject a tenant except upon approval of the court.

Presidential Decree No. 583, signed by President Ferdinand Marcos, penalizes persons, including
judges, fiscal or any investigating officer, and members of Armed Forces of the Philippines who will order
illegal ejectment, ouster, exclusion or removal of any tenant-farmer from the land they tilled. According to
Section 2 of such decree:

pg. 26
“Section 2. Any judge of the Court of Agrarian Relations, Court of First Instance, City or Municipal
Court or any fiscal or any investigating officer, including members of the Armed Forces of the Philippines,
who shall order the ejectment, ouster, exclusion or removal of any tenant-farmer from the land tilled by
him or who shall take cognizance of any ejectment case or any other similar case designed to exclude, oust,
eject or remove a tenant-farmer from the land tilled by him without first complying with the provisions of
Presidential Decree No. 316 shall, upon conviction, be punished by prision mayor and perpetual absolute
disqualification.”

Presidential Decree No. 316 prohibits ejectment of tenant-tillers from their farmholdings without due
process.

“Section 1. No tenant-farmer in agricultural lands primarily devoted to rice and corn shall be
ejected or removed from his farmholding until such time as the respective rights of the tenant-farmer and
the landowner shall have been determined in accordance with the rules and regulations implementing
Presidential Decree No. 27.

Section 2. Unless certified by the Secretary of Agrarian Reform as a proper case for trial or hearing
by a court or judge or other officer of competent jurisdiction, no judge of the Court of Agrarian Relations,
Court of First Instance, municipal or city court, or any other tribunal or fiscal shall take cognizance of any
ejectment case or any other case designed to harass or remove a tenant of an agricultural land primarily
devoted to rice and corn, and if any such cases are filed, these cases shall first be referred to the Secretary
of Agrarian Reform or his authorized representative in the locality for a preliminary determination of the
relationship between the contending parties. If the Secretary of Agrarian Reform finds that the case is a
proper case for the court or judge or other hearing officer to hear, he shall so certify and such court, judge
or other hearing officer may assume jurisdiction over the dispute or controversy.”

Doctrine on security of land tenure

Security of land tenure “the agricultural leasehold relation under this Code, shall not be extinguished by
mere expiration of the term or period in the leasehold contract, in case the agricultural lessor sells, alienates
of transfers the legal possession of the landholding, the purchaser or transferee thereof shall be subrogated
to the rights and substituted to the obligations of the agricultural lessor.”

In order to possess the status of a de jure tenant, the following essential requisites must concur, to wit:

1. the parties are the landowner and the tenant;


2. the subject is agricultural land;
3. there is consent;
4. the purpose is agricultural production;
5. there is personal cultivation;
6. there is sharing of harvests.

The absence of one does not make an occupant of a parcel of land or a cultivator thereof, a de jure tenant,
hence cannot invoke the defense of security of tenure.

What then constitutes as family-size farm so as to give rise to tenancy relationship?

Family-size farm – an area of farmland that permits efficient use of labor and capital resources of the farm
family and will produce an income sufficient to provide a modest standard of living to meet a farm family’s
needs for food, clothing, shelter, and education with possible allowance for payment of yearly installments
on the land, and reasonable reserves to absorb yearly fluctuations in income.

What now is the effect of the law to cultivator-tiller of a less than family-size farms?

Such landholder-tiller or tiller-sharer, is at most considered as a mere caretaker before the eyes of the law
who is not entitled to the security of tenure.

Should the landholding be sold or alienated to a new owner, what happens to the rights and
obligations of the transferee and his heirs?

pg. 27
The transferee and his heirs are subrogated to the rights and obligations of the former landowner. However,
the change of landowner cannot be allowed to raise the status of a mere caretaker or tiller – sharer to that
of an agricultural tenant and leaseholder.

Causes for Extinguishment of Leasehold Relation

1. Abandonment of the landholding;


2. Voluntary surrender of the landholding;
3. Absence of successor or qualified heir, in case of death or permanent incapacity of the lessee;
4. Judicial ejectment of the lessee;
5. Acquisition by the lessee of the landholding;
6. Termination of the leasehold under Sec. 28;
7. Mutual consent of the parties;
8. Conversion of the landholding for non-agricultural purposes.

Obligations of the Lessees

1. To cultivate and take care of the farm as a good father of a family


2. To inform the agricultural lessor any trespass committed by third persons upon the farm;
3. To take reasonable care of the work animals and farm implements delivered to him by the
agricultural lessor, he shall be held responsible and made answerable therefore to the extent of the
value of the work animals and / or farm implements at the time of the loss, death or destruction;
4. To keep his farm and growing crops attended to during the work season. In case of unjustified
abandonment all of the expected produce, any upon order of the court be forfeited in favor of the
agricultural lessor.
5. To notify the agricultural lessor at least three (3) days before the date of harvesting;
6. To pay the lease rental to the agricultural lessor when it falls due.

Section 26, R.A. No. 3844, empowers the lessee to take direct action against any trespasser to the
landholding without waiting for the response from the lessor.

Prohibitions to Agricultural Lessee

a. To contract to work additional landholdings belonging to a different agricultural lessor;


b. To acquire and personally cultivate a family-size farm without knowledge and consent of the
agricultural lesor;
c. To employ a sub-lessee.

Termination of Leasehold by the Lessee

1. Cruel, inhuman or offensive treatment of the agricultural lessee by the agricultural lessor;
2. Non-compliance on the part of the agricultural lessor with any of the obligations imposed;
3. Compulsion of the agricultural lessee by the agricultural lessor to do any work not in any way
connected with farm work;
4. Commission of a crime by the agricultural lessor against the agricultural lessee
5. Voluntary surrender due to circumstances more advantageous to him and his family.

Rights of the Agricultural Lessor

Agricultural Lessor is a person, natural or juridical, who, either as owner, civil law lessee, usufructuary, or
legal possessor, lets or grants to another the cultivation and use of his land for a certain price in money or
in produce or both.

Section 29 of the Code of Agrarian Reform provides for the Right of the Agricultural lessor. The agricultural
lessor can exercise the right provided as long as it does not interfere with the lessee’s peaceful possession
of the landholding.

Section 29. Rights of the Agricultural Lessor - It shall be the right of the agricultural lessor:
(1) To inspect and observe the extent of compliance with the terms and conditions of their contract and the
provisions of this Chapter;

pg. 28
(2) To propose a change in the use of the landholding to other agricultural purposes, or in the kind of crops
to be planted: Provided, That in case of disagreement as to the proposed change, the same shall be settled
by the Court according to the best interest of the parties concerned: Provided, further, That in no case shall
an agricultural lessee be ejected as a consequence of the conversion of the land to some other agricultural
purpose or because of a change in the crop to be planted;
(3) To require the agricultural lessee, taking into consideration his financial capacity and the credit
facilities available to him, to adopt in his farm proven farm practices necessary to the conservation of the
land, improvement of its fertility and increase of its productivity: Provided, That in case of disagreement
as to what proven farm practice the lessee shall adopt, the same shall be settled by the Court according to
the best interest of the parties concerned; and
(4) To mortgage expected rentals.

Obligations of the Lessor

1. To keep the lessee in peaceful possession and cultivation of his landholding;


2. To keep intact the permanent useful improvements existing on the landholding.

The lessee may seek relief from the nearest Regional Agrarian Reform Adjudicators (RARAD) or the
Provincial Agrarian Reform Adjudicators (PARAD) to compel the agricultural lessor to comply with this
obligation in case of refusal, neglect or resistance on the part of the lessor.

Prohibition to the Agricultural Lessor

1. To dispossess the agricultural lessee of his landholding except upon authorization by the court
under Section 36.
2. To require the agricultural lessee to assume, the payment of the taxes on the landholding;
3. To require the agricultural lessee to assume, any part of the rent, to pay to third persons for the
use of the land;
4. To deal with millers or processors without written authorization of the lessee;
5. To discourage, the formation, maintenance or growth of unions or organizations of agricultural
lessees in his landholding.

Ground for Disposition of Agricultural Lessee

1. When the landholding is declared by the Department Head to be suited for residential, commercial,
industrial or some other urban purposes;
2. Failure to comply with any of the of the terms and conditions of the contract of lease;
3. Planting of crops or used the landholding for a purpose other than what had been previously agreed
upon;
4. Failure to adopt proven farm practices as determined under paragraph 3 of Section twenty-nine;
5. When through fault or negligence of the lessee, the land or other substantial permanent
improvement thereon is substantially damaged or destroyed or has reasonably deteriorated;
6. Failure to pay the lease rental when it falls due;
7. Employment of a sub-lessee.

The above causes are grounds for ejectment of an agricultural lessee only after observance of due process.

Lessee’s Right of Pre-emption and Redemption

In case the agricultural lessor decide to sell the landholding, the agricultural lessee shall have the
preferential right to buy the same under reasonable terms and conditions: each shall be entitled to said
preferential right only to the extent of the area actually cultivated by him. The right of pre-emption may be
exercised within one hundred eighty (180) days from notice in writing, which shall be served by the owner
on all lessees affected and the Department of Agrarian Reform.

He must either tender payment of, or present a certificate from the Land Bank that it shall make payment
pursuant to Sec. 80 of this Code. If the latter refuses to accept such tender or presentment, he may consign
it with the Court.

pg. 29
Any dispute as to reasonableness of the terms and conditions, may be brought by the lessee or by the
Department of Agrarian Reform to the proper Court of Agrarian Relations.

Right of Pre-emption

Granted by the Code of Agrarian Reform to the agricultural lessee to purchase the property subject of his
landholding, from the agricultural lessor, before said land is sold to a third person other than the lessee or
lessees.

Procedure to avail of right:


1. Lessee to file a petition to DAR within 180 days from receipt of notice from lessor offering to sell
the property under leasehold.
2. If lessee agrees on the terms and conditions stated in landowner’s offer, he should give notice within
180 days but not less than 30 days to lessor of his intent to exercise right of pre-emption.
3. Lessee to tender payment to lessor or present a certificate issued by the Land Bank
4. In case of refusal by lessor, lessee may consign the purchase money with the Department of
Agrarian Reform, thru the proper Regional or Provincial Adjudicator of the place where the land
lies.
5. If there is more than one lessee, each shall be entitled to purchase the extent of the area actually
cultivated by them.

Lessee’s Right of Redemption

Lessee also enjoys right of redemption. Redemption means the action of regaining or gaining possession of
something in exchange for payment or clearing a debt. Right of redemption differs from right of pre-
emption as the former contemplates of a consummated sale and transfer of ownership of landholding to a
third person while in the latter, no such sale to a third person has yet taken place. Section 12 of R.A. 3844
states that:

“Section 12. Lessee's Right of Redemption - In case the landholding is sold to a third person without the
knowledge of the agricultural lessee, the latter shall have the right to redeem the same at a reasonable price
and consideration: Provided, That the entire landholding sold must be redeemed: Provided, further, That
where these are two or more agricultural lessees, each shall be entitled to said right of redemption only to
the extent of the area actually cultivated by him. The right of redemption under this Section may be
exercised within two years from the registration of the sale, and shall have priority over any other right of
legal redemption.”

If the vendee (third person) refuse to accept the lessee’s offer to redeem, the agricultural lessee who is actual
cultivator of the landholding shall file his petition with DAR through proper Regional or Provincial
Adjudicator where the land lies to compel the vendee-third person to have the land redeemed. DAR shall
initiate the redemption process. Land Bank shall make payment of the redemption price which will be
agreed upon by the parties or will be fixed by DAR. The same will be repaid by the lessee in legitimate
amortization basis.

Should the area subject of redemption be bigger that the area actually cultivated, the excess shall be divided
equally among the lessees by mutual agreement, if not, it will be decided in proper judicial proceeding
before the DARAB. The lessee has 180 days to exercise the right of redemption. 180 days starts from time
he learned of the sale of landholding by the lessor in favour of the third person.

CARL of 1988 does not affect right of redemption of the lessee as it only repealed Section 35 or R.A. 3844.
The rest of the provisions of R.A. 3844 not contrary to CARL shall have suppletory application.

Right to Self-organization

The farmworkers shall have the right to self-organization and form, join or assist farmworkers’
organizations of their own choosing for the purpose of collective bargaining through representatives of their
own choosing.

Bill of Rights for Agricultural Labor:

pg. 30
1. Right to self – organization;
2. Right to engage in concerted activities.
3. Right to minimum wage;
4. Right to work for not more than eight hours;
5. Right to claim for damages for death or injuries sustained while at work;
6. Right to compensation for personal injuries; death or illness;
7. Right against suspension or lay-off.

Comments:

The right to self – organization includes the right to strike and hold picket in order to compel the
management in the case of large scale plantations and multinational corporations to meet the demands of
the farm workers for wage increase and better working conditions.

Right to Engage in Concerted Activities

Comments:

The provisions are corollary to the right to self-organization, and includes the right to strike and hold picket
in order to compel the management in the case of large-scale plantations and multinational corporations
doing business in the Philippines to meet the demands of the farmworkers for wage increase and better
working conditions

Right against suspension and lay-off

Under this section, suspension, dismissal or lay-off is enjoined of any farmworker who is a member of a
farmers’ association or group that has served a copy of a petition or complaint on the employer or manager
of a farm enterprise on any matter, like demand for wage increase or better working conditions that may
cause a strike or lockout and copy of such petition or complaint which is pending before the DAR is
furnished the Secretary of Labor.

Irrigation Facilities

Permanent irrigation system may be constructed at the expense of the lessor:

1. Should the lessor refuse to bear the expenses, he should not be entitled to the increase in rental and
shall upon the termination of the leasehold relationship pay the lessee or his their the reasonable
value of the improvements at the time of the termination;
2. Should the lessor bear expenses he shall be entitled to an increase in the rental proportionate to the
resultant increase in production.

Management of Irrigation System

1. When constructed and operated by the government. Lessees either as individuals or groups shall
allocate not more than 25% of their rental collection to the government.
2. Irrigation systems installed and / or constructed at expense of landowner or agricultural lessor –
acquisition of these irrigation system shall be initiated by the DAR to be financed by the Land
Bank.

Lease of Ricelands and Lands Devoted to Other Crops

1. 25% of the average normal harvest – shall be the amount of rental for ricelands or estimated
normal harvest during the three (3) agricultural years immediately preceding the establishment of
the leasehold after deducting the expenses for seeds, cost of harvesting, threshing, loading, hauling
and processing;
2. Average normal harvest for three (3) preceding years.
3. No agreement as to rental – the court (now DAR) shall fix a provisional rental until fixed rental is
determined within (30) days from submission of the case for decision.

pg. 31
Amortization Payment for Land under Leasehold:
The rentals paid by the lessee to the lessor at the place agreed upon by the parties shall be credited as
amortization payments for the purchase price of the landholding titled by the leasee:

a) When the landholding is expropriated by the government;


b) When it is redeemed.

Whatever balance remaining after crediting as amortization the rental paid, the same may be finances by
the Land Bank in the same ratio and mode of payment provided under Section 80 of the Code.

Default on the Part of the Lessee: Should the lessee incur default in the payment of at least three (3)
installments on the loan, the lender shall immediately notify the Land Bank and the DAR so that appropriate
steps shall be taken by these agencies:

a) to answer for the default in case the failure is due to fortuitous event
b) to take over the ownership and administration of the landholding.

Where the case of the default is attributable to the lessee, the DAR shall endeavor to substitute the defaulting
amortization owner. In case the default is due to fortuitous event, the Land Bank shall assume the payment
of the balance and the farmer shall be released from his obligation.

Purchase payment of the landholding in favor of the agricultural lessee may consist of:
1. Cash payment
- 10 %
- Balance payable by LBP bonds at 6% interest per annum
- Tax free to mature after 25 years
2. Balance payable in LBP bonds
- 6% per annum
- Tax free to mature after 25 years

Amortizing owners whose lands have been surveyed:


- May avail of the assistance of the Land Registration Commission and the Bureau of Lands
in the approval of the corresponding certificates of title with the encumbrance duly
annotated.

Certificate of title:
- Amortizing owner may avail of loans from private lending institutions.
- Amortizing owner can borrow up to not less than 60% of the fair market value of the
property.

Default of lessee
- The lessee will be held criminally liable by default if any of the following is violated:

a) Violation of the provisions Section 13 and 27 of paragraph one, of section 31.


b) Any person, natural or juridical who induces another, as tenant, to excute or to enter into a
share tenancy contract with himself or another is in violation of this code.
c) Any person who violates the provisions of section 40, 41 and 42 of this code.

Period of Prescription

An action to enforce any cause of action accruing under this Code (R.A. No. 3844) shall be brought within
the period of three (3) years.

pg. 32
CHAPTER III: TENANTS EMANCIPATION DECREE

Presidential Decree (P.D.) No. 27 (Tenants Emancipation Decree)

Decreeing the emancipation of tenants from the bondage of the soil, transferring to them the
ownership of the land they till and providing the instruments and mechanism therefor.

It was signed by President Ferdinand E. Marcos on October 21, 1972 which orders the emancipation of all
tenants.

The three (3) shifts underlined under R.A. No. 3844 from share-tenancy to leasehold, from leasehold to
amortizing ownership and from amortizing ownership to full ownership or owner-cultivatorship shall NO
longer apply.

Phrases and Terms under P.D. No. 27

1. Private agricultural lands primarily devoted to rice and corn

Refer to lands of private ownership planted with rice and corn as principal crops as of October 21, 1972,
not being part of the public domain and are under the effective control and supervision of natural or juridical
persons. The controlling criterion is that the land has been proven to be suitable for the production of rice
and corm as their principal crops.

2. Tenant-farmer

Refers to the farmer who actually tills the land whether it is a landed estate or not, irrespective of his
relationship to the landowner, whether share-cropper or lessee-tenant. If under sub-lease, the sub-lessee or
sub-tenant who actually tills the land shall be deemed as tenant-farmer.

3. Irrigated land

Denotes a farmland that is supplied with water whether by means of power-pump or gravity flow system
or other modes of irrigation where water supply flows from the dam or spring or brook.

4. Non-irrigated land or upland

Refers to a farmland located on a higher elevations or terrain and is not provided with water supply through
any method of irrigation and is almost rain-fed.

5. Normal crop year

Denotes an agricultural period of 12 months of planting and harvesting activities whether on a double or
triple croppings not attended by any natural calamity such as typhoon, flood, fire, pests, or other force
majeure. 6. Right of retention in rice and corn lands

It is a right pertaining to a landowner or a landholding devoted to rice and corn to retain an area of seven
(7) hectares for his own individual farming if such landowner is cultivating or will now cultivate it.
Note:

The landowner could be compelled to transfer his landholding in favor of a tenant-farmer even if the
retained area is less than seven (7) hectares should he be found by the DAR to be an absentee or with
sources of income other than the retained area, except when the cause of his absenteeism is due to force
majeure or when he was driven out of the landholding by the armed forces or other agencies of the
government against his will.

Pursuant to Letter of Instructions (LOI) No. 474, October 21, 1976, the fact that the landowner or rice and
corn land with an area of seven (7) hectares or less, owns other agricultural lands of more than seven (7)
hectares in aggregate area, or lands devoted to residential, industrial and/or commercial purposes from
which he derives adequate income for the support of his family, would be sufficient ground to compel such
landowner to transfer his land-holding to a tenant-beneficiary.

pg. 33
Tenants-Beneficiaries

The decree shall apply to tenant-farmers of private agricultural lands primarily devoted to rice or corn under
a System of Share-Crop or Lease-Tenancy, whether classified as landed estate or not.

Coverage under P.D. 27 (Implentation of Operation Land Transfer Program)

1. The land must be devoted to rice and corn crops, and;


2. There must be a system of share-crop of lease tenancy obtaining therein.

Rights and obligations of tenant-beneficiaries under P.D. 27

1. Tenant-farmers shall be deemed owners of portion constituting of family-size farm of five (5) hectares
if not irrigated and three (3) hectares if irrigated (Par.6, P.D. 27).

2. Tenant shall pay for the cost of the land including interest of six (6) percent per annum in fifteen (15)
equal ammortizations. (The period is extended to twenty (20) annual ammortizations under Sec. 6,
E.O. 228).

a. Cost of the land shall be equivalent to two and one half (2 ½) times the average harvest of three
normal crop years immediately preceding the promulgation of P.D.27.

b. It has been held that, when the government takes property pursuant to PD 27, but does not pay
the landowner his just compensation until after RA 6657 has taken effect in 1988, it becomes
more equitable to determine the just compensation using RA 6657

3. The title to the land owned by the tenant shall not be transferrable except:

a. By hereditary succession

b. To the government in accordance with law.


c. Upon full payment of tenant-benificiary
d. Upon issuance of emancipation patent.

Note:

Under the Decree, lands planted to coconuts but are also utilized for rice and corn planting in between the
growing trees, are NOT considered private agricultural lands devoted to rice and corn, neither are lands
owned by government-owned and controlled corporations (GOCC).

A tenant beneficiary who fails to take advantage of his right under this Decree or is guilty of abandonment
of his farmholding, may be deprived thereof, in which case the landholding shall revert to the government
and not to the landowner.

A tenant-farmer whose farmholding is less than five (5) hectares if not irrigated, and three (3) hectares if
irrigated, may seek the assistance of the DAR which shall endeavor to find additional landholdings to
complete the hectarage in order to be considered as a family-size farm. Once the farmholding is awarded
to the tenant-farmer it becomes his obligation to pay its value to the Land Bank if the acquisition thereof is
financed by the Land Bank, or to the landowner in case of a negotiated sale duly approved by the DAR.

In case the land is transferred to the tenant-farmer thru compulsory acquisition method, the latter shall pay
the Land Bank in fifteen (15) years with interest at 6% per annum. The value of the land to be the land to
be trnasferred to the tenant-farmer shall be equivalent to two and one-half ( 2 ½) times the average harvest
of three (3) normal crop years immediately preceeding the promulgaton of P.D. No. 27.Shoud the tenant-
farmer default in the payment of his amortizations, the farmer’s cooperative which he is affiliated with,
shall answer for the remaining balance. It is essential under such Decree that the tenant-farmer must be a
member of a duly recognized farmer’s cooperative, otherwise, he shall not be entitled to the issuance of a
certificate of title to his farmholding.

pg. 34
Title to lands acquired under P.D. No. 27 shall not be transferred to third persons except by hereditary
succession or in favor of the government. However, this provision has been amended bySec. 27 of R.A.
No. 6657 (Comprehensive Agrarian Reform Law of 1988) which authorized the issuance of Emancipation
Patents to qualified beneficiaries, as well as other Agrarian Reform Laws, including R.A. No. 3844. Hence,
lands acquired under these laws may now be transferred by hereditary succession, to the government, LBP
or other qualified beneficiaries and third persons after the lapse of ten (10) years from the issaunce and
registration of the Emancipation Patent or Certificate of Land Ownership Award issued under the CARL
of 1988.

Maturity Date of Land Bank of the Philippines (LBP) Bonds

Compensation shall be paid to the landowners in any of the following modes, at the option of the landowners
Section 3, subsections (a) (b) or (c)]: [BDO]

a. Bond payment over ten (10) years, with ten percent (10%) of the value of the land payable immediately
in cash, and the balance in the form of LBP bonds bearing market rates of interest that are aligned with
90-day treasury bills rates, net of applicable final withholding tax. One-tenth of the face value of the
bonds shall mature every year from the date of issuance until the tenth year.

The LDP bonds issued hereunder shall be eligible for the purchase of government assets to be
privatized.

b. Direct payment in cash or in kind by the farmer-beneficiaries with the terms to be mutually agreed
upon by the beneficiaries and landowners and subject to the approval of the Department of Agrarian
Reform; and

c. Other modes of payment as may be prescribed or approved by the Presidential Agrarian Reform
Council.

pg. 35
Maturity date of LBP Bonds

All outstanding LBP bonds that are retained by the original landowners-payee or by their heirs, are deemed
matured up to one-twenty fifth (1/25) of their yearly face value from their date of issue to the date of
EO 228 and may be claimed by the original landowner-payee by surrendering the bonds to the Land Bank.
(Sec.4, EO 228).

E.O. No. 228 was signed on July 17,1987 by President Corazon Aquino,

“Declaring Full Land Ownership to Qualified Farmer Beneficiaries Covered by P.D. No. 27:
Determining the Value of Remaining Unvalued Rice and Corn Lands Subject to P.D. No. 27 and
Providing for the Manner of Payment by the Farmer Beneficiary and Mode of Compensation to the
Landowner”

The original landowner-payee may claim payment for the remaining unmatured period of the surrendered
bonds under any of the modes of compensation provided in Section 3, subsections (a) (b) or (c) hereof.

In order to meet the financial requirements mentioned in this Section, the Central Bank shall remit to the
Land Bank such sums as may be necessary from the Sinking Fund established by the Land Bank from the
retirement of its bonds and other long-term obligations and which Sinking Fund is administered by the
Central Bank:

Provided, however, That there is no change in maturity of other outstanding Land Bank bonds acquired and
held by transferees from original bondholders.

The landowner is exempt from capital gains tax on the compensation paid to him under this Executive
Order.

Procedures in Case Landowner Refuses to Accept Payment

1. His compensation shall be held in trust for him by Land Bank.


2. The cash portion of the compensation and such portions that mature yearly shall be invested by the
Trust Department of the Land Bank.
3. It will be invested in government securities fully guaranteed by Republic of the Philippines. All the
net earnings of the investment shall be for the benefit of the landowner, his heirs or successors in interest.
The rights of the landowner may be exercised by his heirs upon his death
4. Lease rentals paid to the landowner by the farmer beneficiary after October 21, 1972 shall be
considered as advance payment to the land
5. In the event of dispute, the DAR and Barangay Committee on Land Production shall resolve dispute
within 30 days from its submission.
6. Should a party question the resolution, the landowner’s compensation claim shall still be processed
for payment and the proceeds shall be held in trust by the Trust of Department of the Land Bank pending
the resolution of the dispute before the court.

Effect of Failure to Pay Amortization

Failure on the part of the farmer-beneficiary to pay three (3) annual amortizations shall be sufficient cause
for the Land Bank to foreclose on the mortgage. (Sec 8, E.O. No. 228)

Foreclosure proceeding under E.O No. 228 shall be commenced by serving final notice of payment to the
defaulting tenant-farmer by the Land Bank which shall furnish the Department of Agrarian Reform with a
copy of such final notice. After the lapse of thirty (30) days from service of final notice both to the defaulting
tenant-farmer and DAR, the Land Bank shall register a certification under oath of its intent to foreclose
with the Register of Deeds of the city or province where the land is situated attaching thereto:

a. A copy of the final notice of payment


b. Proof of service to the tenant-farmer and the Department of Agrarian Reform of the final notice of
payment; and
c. A certification that at least three (3) annual amortizations on the land of the sum thereof remains unpaid.
The mortgage is deemed foreclosed upon registration of said document with the Register of Deeds.

pg. 36
In the event the defaulting tenant-farmer cannot be served with final notice of payment, the Land Bank shall
post the notice for payment in the town hall, public market and barangay hall or any other suitable place
frequented by the public of the barangay where the defaulting tenant-farmer resides. A certification by the
Land Bank to this effect shall substitute for the proof of service of the final notice of payment for purposes
of foreclosure.

The Register of Deeds of all cities and municipalities are directed to have a separate registry book to enter
all the requirements of foreclosure.

How Foreclosure May be Lifted

Sec. 10 of the E.O. 228 provides that the tenant-farmer, or any of his compulsory heirs may lift the
foreclosure within a period of two (2) years from its registration by paying the Land Bank all unpaid
amortizations on the land with interest thereon of six percent (6%) per annum. In case of failure to lift the
foreclosure within the said period, ownership of the land shall be deemed transferred to the Land Bank.

Sale of Lands Foreclosed under E.O. No. 228

The Land Bank, not later than three (3) months after its acquisition of the land, shall sell the foreclosed
land.

Who are eligible to buy lands foreclosed

Any interested landless farmer duly certified to as a bona fide landless farmer by the Department of
Agrarian Reform of the barangay or the two closest barangays where the land is situated.

In the event that there is more than one interested buyer, the actual buyer shall be determined by lottery
in the presence of all the buyers or their representatives and a representative of the Department of
Agrarian Reform

Cost of the Land

Unpaid amortizations due on the lands as of the date of the sale with interest thereon of six percent (6%)
per annum.

pg. 37
Transfer of Property

The Deed of Conveyance executed by the Land Bank in favor of the farmer transferee shall be registered
with the Register of Deeds of the city or province where the land is located. Ownership shall transfer to the
farmer transferee only upon registration with the Registry of Deeds.

Prior Notice of Sale

The Land Bank, at least one (1) month prior to the sale, shall furnish the Department of Agrarian Reform
with the notice of sale and shall post a similar notice in the town hall or any suitable place frequented by
the public of the barangay where the property is located. The notice shall state the description of the property
subject of the sale, the price, the date and the place of the sale. (Sec. 12, E.O. No. 228).

Affidavit Required to Voluntary Dealings


Property Registration Decree (Presidential Decree No. 1529)

Provides that, “no voluntary deed or instrument purporting to be a subdivision, mortgage, lease, sale or any
other mode of encumbrance or conveyance of the private agricultural land principally devoted to rice and
corn or any portion thereof shall be registered unless accompanied by an affidavit of the vendor or executor
stating that the land involved is not tenanted, or if tenanted, the same is not primarily devoted to the
production of rice and corn.”

If only a portion of the land is devoted to the production of rice and/or corn, and such area so devoted is
tenanted, no such deed or instrument shall be registered unless accompanied by an affidavit stating the area
(size) of the portion which is tenanted and primarily devoted to rice and/or corn.

A memorandum of said affidavit shall be annotated on the certificate of title. The Register of Deeds shall
cause a copy of the registered deed or instrument, together with the affidavit, to be furnished the Ministry
of Agrarian Reform Regional Office where the land is located. The affidavit provided in this Section shall
not be registered in the case of a tenant-farmer who deals with his Certificate of Land Transfer or
Emancipation Patent in accordance with law.

Status Quo Over Lands Covered by P.D. No. 27

Upon the effectivity of P.D. No. 27 all tenant-farmers of private agricultural lands primarily devoted to rice
and corn are deemed owners of the land they till. Pending the issuance of implementing rules and
regulations which were never issued at all until the issuance of P.D. No. 228 and the enactment of R.A. No.
6657, the relations between landowners and tenants were placed in their status quo. In effect, the
agricultural lands leasehold relationship with respect to rice and corn lands of seven (7) hectares or less,
not covered by operation land transfer shall be maintained.

Pursuant to LOI No. 474, October 21, 1976, the scope of operation land transfer further expanded as to
include only lands devoted to rice and corn in excess of seven (7) hectares, but also private agricultural
lands of seven (7) hectares or less, where the owners thereof own other agricultural lands of more than
seven (7) hectares in aggregate areas, or land used for residential, commercial, industrial or other purposes
from which they derive adequate income to support their families.

With respect to landowners whose landholdings fall within the exempted limits but who have offered their
landholdings for transfer under P.D. No. 27, the same are immediately placed within the coverage of
operation land transfer.

Operation Land Transfer further extends to homelots occupied by tenant-farmers of lands principally
developed to rice and corn by virtue of the mandates of LOI No. 75, dated July 10, 1978, regardless of
whether or not the homelot is found inside or outside the farmlot or equivalent to 2 – 5 times the harvest of
three (3) normal crop years immediately preceding October 21, 1972.
In case of failure to agree on the price, the tenant-farmer may request the DAR to expropriate the homelot
for resale to the farmer. In no case shall the tenant-farmer be ejected from the homelot during the pendency
of the expropriation proceedings.

pg. 38
If the homelot is owned by another person other than the landowner, the price of resale shall be that agreed
upon and in case of disagreement, the value of the homelot shall be the same as the valuation of the owner
appearing in the tax declaration.

Certificate of Land Transfer as Evidence of Ownership

1. It is immediately issued to the tenant-farmer of a land primarily devoted to rice and corn after
identifying the farmer's landholding, area, location, and specifying the terms and conditions of
ownership, as long as the DAR has transferred the landholding to him and recognized him as a qualified
beneficiary.
2. The tenant-farmer under P.D. No.27 whose landholding had been considered into full ownership under
E.O. No.228, had fully paid his amortization to the Landbank, the DAR shall issue him an Emancipation
Patent.
3. CLT does not vest full ownership on the holder and does not automatically operate to divest the
landowner of all of his rights over the landholding.

The holder must first comply with certain mandatory requirements to effect a transfer of ownership. Under
R.A. No. 6657 in relation with P.D. No. 27 and E.O. No. 228, the title to the landholding shall be issued to
the tenant-farmer only upon the satisfaction of the following requirements:

a. Payment in full of the just compensation for the landholding, duly determined by final judgment of
the proper court.
b. Possession of the qualifications of a farmer-beneficiary under the law.
c. Full-pledged membership of the farmer-beneficiary in a duly recognized farmers’ cooperative.
d. Actual cultivation of the landholding.

Note:

The tenant-holder of a CLT merely possesses an inchoate right that is subject to compliance with certain
legal preconditions for perfecting title and acquiring full ownership.

4. All register of Deeds are instructed to record in their primary entry books and annotate a memorandum
in the corresponding certificate of title of the farmlot without surrendering the duplicate certificate of
title upon receipt of the CLT.

5. The unregistered lands shall be brought by the DAR to the Bureau of Land so that titles thereto could
be issued to farmer-beneficiaries occupying the same under the Torrens System.

Mechanics on Issuance of Emancipation Patent

An Emancipation Patent shall be issued by the DAR in favor of the tenant-farmer who has complied with
the requirements imposed by P.D. No. 27, after such a survey has been conducted and the survey plan
submitted duly approved of the identified landholding primarily devoted to rice and corn.

Where the land covered by an Emancipation Patent is unregistered under Act No. 3344, the land involved
will thus be brought under the operation of Act No. 496 (An Act to Provide for the Adjudication and
Registration of Titles to Lands in the Philippines Islands), upon filing of the Emancipation Patent with
the Register of Deeds of the city or province where the land is situated. Hence, such lands shall have the
character of registered lands under the Torrens System.

In the case of lands registered under the Torrens System, it becomes the ministerial duty of the Register of
Deeds to assign a corresponding certificate of title thereto upon filing of the Emancipation Patent in
accordance with the approved survey plan. Before cancelling the original certificate of title containing an
annotation of a memorandum of the entry of the patent thereon, the Register of Deeds shall require the
surrender of the duplicate certificate thereof within a reasonable time. Should the duplicate copy be
continued to be withheld or refused to be surrendered, the Register of

Deeds shall be empowered to cancel the original and the owner’s duplicate and to issue a new certificate of
title and a duplicate copy in favor of the tenant-farmer who is a holder of the Emancipation Patent pursuant
to P.D. No. 266 (Providing for the Mechanics of Registration of Ownership and/or Title to Land
Under P.D. No. 27).

pg. 39
Once an Emancipation Patent and certificate of title are issued in accordance with P.D. No. 27, and the
agrarian reform laws of this country, the beneficiary thereof is prohibited from transferring or conveying
tile to the land which it represents in favor of third persons, whether natural or juridical, and the transferee
shall not acquire a valid title thereto. However, this has been amended by Sec. 27 of R.A. No. 6657 and
DAR Adm. Order No. 1 dated January 25, 1989, which allow transferability of awarded lands under P.D.
No. 27, R.A. 3844 and R.A. No. 6657, after the lapse of ten (10) years from the issuance and registration
of the Emancipation Patent or Certificate of Land Ownership Award in favor of third persons.

The farmer-beneficiary shall not be entitled to a refund of his amortizations to the Land Bank, but the land
thus conveyed shall be forfeited in favor of the State and he shall be forever disqualified from acquiring
lands under the agrarian reform laws.

The above-mentioned injunction embodied in B.P. Blg. 870 (An Act Providing Sanctions Against
Transfer of Lands Acquired under P.D. No. 27 of the Land Reform Program of the Government and
for Other Purposes), however, has been superseded by an amendatory provision of Sec. 6 of E.O. No.
228, which allows transfer of lands provided the farmer-beneficiary has fully paid his remaining
amortizations to the Land Bank, and the transferee is a qualified beneficiary.

Emancipation patents may be cancelled for the following grounds:

1. Abandonment of land
2. Neglect and misuse of land
3. Failure to pay amortization

Failure on the part of the farmer-beneficiary to pay three (3) annual amortizations shall be sufficient cause
for the Land Bank to foreclose on the mortgage (Sec. 24 of CAR)

4. Misuse of diversion of financial and support services


5. Sale, transfer or conveyance of the right to use the land
6. Illegal conversion of the land.

CASE DIGEST

HEIRS OF LORENZO BUENSUCESO v. LOVY PEREZ


GR No. 173926, Mar 06, 2013

FACTS:

Upon the death of Lorenzo Buensuceso, the farmer-beneficiary of an agricultural lot covered by Certificate
of Land Transfer (CLT), German, the son, allegedly immediately occupied the disputed lot and had been
cultivating and residing within its premises since then. German claimed that, in 1989, Lovy Perez forcibly
entered the disputed lot, thus, compelling him to file a petition for recovery of possession with the PARAD.

Lovy argued that she is the real and lawful tenant of the disputed lot evidenced by: (1) the duly
acknowledged and registered contract of leasehold (lease contract) between her and the landowner, Joaquin
Garces, which Lorenzo signed as a witness; and (2) the certifications issued by the Municipal Agrarian
Reform Officer (MARO) of the Department of Agrarian Reform (DAR) and by the Barangay Agrarian
Reform Council stating that she is the disputed lot's registered agricultural lessee. She also claimed that she
has been paying the lease rentals to Garces, as shown by receipts, and the irrigation services certified to by
the National Irrigation Administration, and that she is a bona fide member of the Samahang Nayon.

On July 31, 1997, the PARAD dismissed the petition. German appealed the dismissal to the DARAB where
he was favored. Lovy filed a petition for review with the CA but pending before the CA, Lovy died and
was substituted by her heirs - Erlinda Perez-Hernandez, Teodoro G. Perez and Candida Perez-Atacador
(respondents). The CA granted Lovy's appeal and reversed the DARAB resolution. Since the CA denied
German's motion for reconsideration in its August 4, 2006 resolution, hence, prompting the present
recourse.

pg. 40
ISSUES:

Whether or not as a holder of the CLT, German as Lorenzo's heir, was entitled not only to the possession
of the disputed lot but also to the full benefits of a farmer-tenant under P.D. No. 27.

Whether or not nothing on the records showed that the CLT had been cancelled; that Lorenzo had failed to
comply with his obligations as tenant-beneficiary; or that he or Lorenzo had abandoned the disputed lot.

RULING:

On the merits, German, as substituted by his heirs, asserts possession and ownership over the disputed lot,
emphasizing the issuance of and the continued validity of Lorenzo's CLT. They invoke P.D. No. 27 to
justify their position, arguing that as holder in due course of a CLT, Lorenzo remains a qualified beneficiary
under the Act. Lorenzo's right and claim to ownership over the disputed lot were, at most, inchoate since
the title to the landholding shall be issued to the tenant-farmer only upon the satisfaction of the following
mandatory requirements, hence, German as Lorenzo's heir is not automatically rendered the owner of the
disputed lot.

The respondents, on the other hand, claim entitlement to the continued possession of the disputed lot
following the declarations of the PARAD, the DARAB (in its earlier decision) and the CA that Lovy is the
disputed lot's lawful tenant. Also, they insist that Lorenzo or his heirs cannot be the owners of the disputed
lot because Lorenzo failed to comply with his obligations under the CLT. Neither can German possess the
disputed lot because Lorenzo had long abandoned it.

The lease contract between Garces and Lovy as void, hence, not recognizing Lovy's claim that she is the
present and actual agricultural lessee of the disputed lot.

The SC reiterates that abandonment is a ground for the cancellation of a CLT and the forfeiture of the
farmer-beneficiary's right to the landholding. Nevertheless, for a cancellation or forfeiture to take place, the
proper procedures must be observed and a final judgment rendered declaring a cancellation or forfeiture.

The SC hereby REMANDS this case to the Department of Agrarian Reform for the conduct of investigation
and of the necessary proceedings to determine the qualified beneficiary of the disputed lot. No costs.

SPS. LUBINA CALIWAG-CARMONA AND RENATO CARMONA v. CA


GR NO. 148157, Jul 27, 2006

FACTS:

Victoriano Caliwag was a tenant-tiller of a Riceland. On October 15, 1973, the Minister of Agrarian Reform
issued in Victoriano's favor a Certificate of Land Transfer (CLT) being the actual occupant, cultivator and
possessor of the land. Victoriano died intestate on April 20, 1980 and survived by his heirs, Consolacion,
Regina and Priscilla (all surnamed Caliwag), Rosa Caliwag Chico, Lubina Caliwag Carmona and Almario
Buenaventura. On February 1, 1995, the said heirs discovered that the CLT issued to their predecessors had
been cancelled by an Emancipation Patent (EP) under the names of the spouses Renato and Lubina
Carmona. The patent was based on a "Pinagsanib na Pagpapawalang-bisa ng Karapatan” purportedly
executed by Marciana Sanchez, Victoriano's wife, and their children before a Notary Public. It appears
therein that Victoriano's heirs had waived all their rights over the landholding in favor of Renato Carmona
and his wife Lubina S. Caliwag, the youngest child of Victoriano and Marciana, allegedly because the
couple had been cultivating the landholding and possessed the same. The spouses Carmona then paid the
rentals of the property to the landowner and to the Land Bank of the Philippines, and thereafter secured the
emancipation patent in their names.
On March 30, 1995, Consolacion and Priscilla Caliwag, Rosa Chico and Almario Buenaventura filed a
petition in the PARAB for the cancellation of the mentioned EP and for the issuance of the appropriate
emancipation patent in their names but was dismissed for lack or merit. However, on motion of Victoriano’s
heirs, the PARAB reversed its decision declaring the first EP as void, and ordered the issuance of another
patent over the landholding in the names of the heirs of Victoriano.

On appeal, the DARAB rendered judgment on July 27, 1998, affirming the appealed resolution of the
PARAB rejecting the contention of the spouses Carmona that the Caliwag heirs’ right to the landholding in
question had been waived upon the execution of the Pinagsanib na Pagpapawalang-Bisa sa Karapatan.
Hence, this petition for review with the CA.

pg. 41
ISSUES:

Whether or not public respondents Honorable Court of Appeals and Honorable Adjudication Board
committed grave abuse of discretion where in their respective decisions rendered in the above-entitled case
mainly focused on a single documentary exhibit and totally brushed aside other documentary proofs
adduced therein;

Whether or not the decisions rendered by the public respondents Honorable Court of Appeals and
Honorable Adjudication Board are contrary to existing jurisprudence, rules and regulations applicable on
the matter at issue; and,

Whether or not public respondent Honorable Court of Appeals and Honorable Adjudication Board grossly
erred in not considering that private respondents' cause of action against petitioners spouses had already
been barred by the principles of prescription, laches and estoppel.

RULING:

Petitioners assert that the PARAB, DARAB, and the CA relied principally on the absence of the original
copy of the Pinagsanib na Pagpapawalang-bisa ng Karapatan and ignored the other evidence on record
which they adduced to prove their entitlement to the landholding as tenants-tillers. Respondents allege that
petitioners never interposed the defenses of prescription and laches in their answer to the petition before
the PARAB, and even in the DARAB, and are thus estopped from raising the said issues in this Court for
the first time.

The SC notes that the petition filed by petitioners is one for certiorari under Rule 65 of the Rules of Court.
This is erroneous. The proper remedy from the Decision of the CA is a petition for review on certiorari
under Rule 45 of the Rules of Court. Under Section 2 of Rule 45, petitioners had fifteen (15) days from
notice of the CA Resolution denying their motion for reconsideration within which to file the same.
Petitioners received the said CA Resolution on May 11, 2001, hence, had until May 26, 2001 within which
to file their petition. Considering that they failed to file the petition within the reglementary period, the CA
Decision became final and executory.

Victoriano had been issued a CLT over the landholding. The rights and interest covered by the certificate
are beyond the commerce of men. They are not negotiable except when used by the beneficiary as collateral
for a loan with the rural bank for an agricultural production. Hence, EP No. A-278850 issued to and under
the names of petitioners is null and void. Thus, in any event, the Salaysay purportedly thumbmarked by
Feliciano Caliwag, whom petitioners claim to be Victoriano Caliwag, is void.

pg. 42
CHAPTER IV: COMPREHENSIVE AGRARIAN REFORM LAW OF 1988
(Republic Act no. 6657)
As amended by Republic Act nos. 7881, 7905, 8532 and 9700

TRANSFER OF PRIVATE AND PUBLIC LANDS TO FARMER BENEFICIARIES

AGRARIAN REFORM means redistribution of lands, regardless of crops or fruits produced, to farmers
and regular farmworkers who are landless, irrespective of tenurial arrangement, to include the totality of
factors and support services designed to lift the economic status of the beneficiaries and all other
arrangements alternative to the physical redistribution of lands, such as production or profit-sharing, labor
administration, and the distribution of shares of stocks, which will allow beneficiaries to receive a just share
of the fruits of the lands they work.

SCOPE
Per RA 6657
Amendment per RA 9700

The Comprehensive Agrarian Reform Law of 1988 shall cover, regardless of tenurial arrangement and
commodity produced, all public and private agricultural lands as provided in Proclamation No. 131 and
Executive Order No. 229, including other lands of the public domain suitable for agriculture: Provided,
That landholdings of landowners with a total area of five (5) hectares and below shall not be covered for
acquisition and distribution to qualified beneficiaries.
"More specifically, the following lands are covered by the CARP:
 All alienable and disposable lands of the public domain devoted to or suitable for agriculture. No
reclassification of forest or mineral lands to agricultural lands shall be undertaken after the approval
of this Act until Congress, taking into account ecological, developmental and equity considerations,
shall have determined by law, the specific limits of the public domain;
 All lands of the public domain in excess of the specific limits as determined by Congress in the
preceding paragraph;
 All other lands owned by the Government devoted to or suitable for agriculture;
 All private lands devoted to or suitable for agriculture regardless of the agricultural products raised
or that can be raised thereon. "A comprehensive inventory system in consonance with the national
land use plan shall be instituted by the Department of Agrarian Reform (DAR), in accordance with
the Local Government Code, for the purpose of properly identifying and classifying farmlands
within one (1) year from effectivity of this Act, without prejudice to the implementation of the land
acquisition and distribution.

PRIORITIES:

The Department of Agrarian Reform (DAR) in coordination with the Presidential Agrarian Reform Council
(PARC) shall plan and program the acquisition and distribution of all agricultural lands through a period
of ten (10) years from the effectivity of this Act. Lands shall be acquired and distributed as follows:

Phase One:

Rice and corn lands under Presidential Decree No. 27; all idle or abandoned lands; all private lands
voluntarily offered by the owners for agrarian reform; all lands foreclosed by the government financial
institutions; all lands acquired by the Presidential Commission on Good Government (PCGG); and all other
lands owned by the government devoted to or suitable for agriculture, which shall be acquired and
distributed immediately upon the effectivity of this Act, with the implementation to be completed within a
period of not more than four (4) years;

Phase Two:

All alienable and disposable public agricultural lands; all arable public agricultural lands under agro-forest,
pasture and agricultural leases already cultivated and planted to crops in accordance with Section 6, Article
XIII of the Constitution; all public agricultural lands which are to be opened for new development
and resettlement; and all private agricultural lands in excess of fifty (50) hectares, insofar as the excess
hectarage is concerned, to implement principally the rights of farmers and regular farmworkers, who are
the landless, to own directly or collectively the lands they till, which shall be distributed immediately upon

pg. 43
the effectivity of this Act, with the implementation to be completed within a period of not more than four
(4) years.

Phase Three:

All other private agricultural lands commencing with large landholdings and proceeding to medium and
small landholdings under the following schedule:

(a) Landholdings above twenty-four (24) hectares up to fifty (50) hectares, to begin on the fourth (4th) year
from the effectivity of this Act and to be completed within three (3) years; and

(b) Landholdings from the retention limit up to twenty-four (24) hectares, to begin on the sixth (6th) year
from the effectivity of this Act and to be completed within four (4) years; to implement principally the right
of farmers and regular farmworkers who are landless, to own directly or collectively the lands they till.

The schedule of acquisition and redistribution of all agricultural lands covered by this program shall be
made in accordance with the above order of priority, which shall be provided in the implementing rules to
be prepared by the Presidential Agrarian Reform Council (PARC), taking into consideration the following;
the need to distribute land to the tillers at the earliest practicable time; the need to enhance agricultural
productivity; and the availability of funds and resources to implement and support the program.

In any case, the PARC, upon recommendation by the Provincial Agrarian Reform Coordinating Committee
(PARCCOM), may declare certain provinces or region as priority land reform areas, in which the
acquisition and distribution of private agricultural lands therein may be implemented ahead of the above
schedules. In effecting the transfer within these guidelines, priority must be given to lands that are tenanted.

The PARC shall establish guidelines to implement the above priorities and distribution scheme, including
the determination of who are qualified beneficiaries: Provided, That an owner-tiller may be a beneficiary
of the land he does not own but is actually cultivating to the extent of the difference between the area of the
land he owns and the award ceiling of three (3) hectares.
Procedure for Acquisition of Private Lands

(a) After having identified the land, the landowners and the beneficiaries, the DAR shall send its notice to
acquire the land to the owners thereof, by personal delivery or registered mail, and post the same in a
conspicuous place in the municipal building and barangay hall of the place where the property is
located. Said notice shall contain the offer of the DAR to pay a corresponding value in accordance with the
valuation set forth in Sections 17, 18, and other pertinent provisions hereof.

(b) Within thirty (30) days from the date of receipt of written notice by personal delivery or registered mail,
the landowner, his administrator or representative shall inform the DAR of his acceptance or rejection of
the offer.

(c) If the landowner accepts the offer of the DAR, the Land Bank of the Philippines (LBP) shall pay the
landowner the purchase price of the land within thirty (30) days after he executes and delivers a deed of
transfer in favor of the government and surrenders the Certificate of Title and other muniments of title.

(d) In case of rejection or failure to reply, the DAR shall conduct summary administrative proceedings to
determine the compensation for the land requiring the landowner, the LBP and other interested parties to
submit evidence as to the just compensation for the land, within fifteen (15) days from the receipt of
the notice. After the expiration of the above period, the matter is deemed submitted for decision. The DAR
shall decide the case within thirty (30) days after it is submitted for decision.

(e) Upon receipt by the landowner of the corresponding payment or, in case of rejection or no response
from the landowner, upon the deposit with an accessible bank designated by the DAR of the compensation
in cash or in LBP bonds in accordance with this Act, the DAR shall take immediate possession of the land
and shall request the proper Register of Deeds to issue a Transfer Certificate of Title (TCT) in the name of
the Republic of the Philippines. The DAR shall thereafter proceed with the redistribution of the land to the
qualified beneficiaries.

(f) Any party who disagrees with the decision may bring the matter to the court of proper jurisdiction for
final determination of just compensation.

pg. 44
Incentives for Voluntary Offers for Sales.

Landowners, other than banks and other financial institutions, who voluntarily offer their lands for sale
shall be entitled to an additional five percent (5%) cash payment.

LANDS NOT COVERED BY LAND ACQUISITION

What is right of retention and what is its purpose?


The right of retention is a constitutionally guaranteed right, which is subject to qualification by the
legislature. Sec. 4, Art. XIII, 1987 Constitution provides:

”The State shall, by law, undertake an agrarian reform program founded on the right of farmers and regular
farmworkers, who are landless, to own directly or collectively the lands they till or, in the case of other
farmworkers, to receive a just share of the fruits thereof. To this end, the State shall encourage and undertake
the just distribution of all agricultural lands, subject to such priorities and reasonable retention limits as the
Congress may prescribe, taking into account ecological, developmental, or equity considerations, and
subject to the payment of just compensation. In determining retention limits, the State shall respect the right
of small landowners. The State shall further provide incentives for voluntary land-sharing.”
It serves to mitigate the effects of compulsory land acquisition by balancing the rights of the landowner and
the tenant and by implementing the doctrine that social justice was not meant to perpetrate an injustice
against the landowner. (Daez v. CA, G.R. 133507)
Section 6. Retention Limits.
Except as otherwise provided in this Act, no person may own or retain, directly or indirectly, any public or
private agricultural land, the size of which shall vary according to factors governing a viable family-size
farm, such as commodity produced, terrain, infrastructure, and soil fertility as determined by the
Presidential Agrarian Reform Council (PARC) created hereunder,
 But in no case shall retention by the landowner exceed five (5) hectares.
 Three (3) hectares may be awarded to each child of the landowner, subject to the following
qualifications:
o (1) that he is at least fifteen (15) years of age; and
o (2) that he is actually tilling the land or directly managing the farm
o Provided, that landowners whose lands have been covered by Presidential Decree No. 27 shall be
allowed to keep the areas originally retained by them thereunder
o Provided, further, that original homestead grantees or their direct compulsory heirs who still own
the original homestead at the time of the approval of this Act shall retain the same areas as long as
they continue to cultivate said homestead.
 The right to choose the area to be retained, which shall be compact or contiguous, shall pertain to the
landowner:
o Provided, however, that in case the area selected for retention by the landowner is tenanted, the
tenant shall have the option to choose whether to remain therein or be a beneficiary in the same or
another agricultural land with similar or comparable features.
 In case the tenant chooses to remain in the retained area, he shall be considered a leaseholder and
shall lose his right to be a beneficiary under this Act.
 In case the tenant chooses to be a beneficiary in another agricultural land, he loses his right as a
leaseholder to the land retained by the landowner. The tenant must exercise this option within a
period of one (1) year from the time the landowner manifests his choice of the area for retention.
 In all cases, the security of tenure of the farmers or farmworkers on the land prior to the approval of
this Act shall be respected.
 Upon the effectivity of this Act, any sale, disposition, lease, management, contract or transfer of
possession of private lands executed by the original landowner in violation of the Act shall be null
and void:

Provided, however, that those executed prior to this Act shall be valid only when registered with the
Register of Deeds within a period of three (3) months after the effectivity of this Act. Thereafter, all
Registers of Deeds shall inform the Department of Agrarian Reform (DAR) within thirty (30) days of any
transaction involving agricultural lands in excess of five (5) hectares.

pg. 45
Daez v. CA
G.R. No. 133507 February 17, 2000

Issue:
Whether a land owner can still exercise their right of retention over the subject 4.1685 hectares
riceland despite the fact that a previous decision denying the petition for exemption under P.D. 27 had long
become final and executory

Ruling:
Application for exemption and an application for retention are not of the same thing. Being distinct
remedies, finality of judgment in one does not preclude the subsequent institution of the other. Therefore,
Petitioner heirs of Eudosia Daez may exercise their right of retention over the subject 4.1685 riceland even
the decision regarding the exemption under P.D. 27 had already been final and executory.

Rationale:
First. Exemption and retention in agrarian reform are two (2) distinct concepts.
P .D. No. 27, which implemented the Operation Land Transfer (OLT) Program, covers tenanted rice or corn
lands. The requisites for coverage under the OLT program are the following: (1) the land must be devoted
to rice or corn crops; and (2) there must be a system of share-crop or lease-tenancy obtaining therein.

P.D. No. 27 grants each tenant of covered lands a five (5)-hectare lot, or in case the land is irrigated, a three
(3)-hectare lot constituting a family size farm. However, said law allows a covered landowner to retain not
more than seven (7) hectares of his land if his aggregate landholding does not exceed twenty-four (24)
hectares. Otherwise, his entire landholding is covered without him being entitled to any retention right.

Consequently, a landowner may keep his entire covered landholding if its aggregate size does not exceed
the retention limit of seven (7) hectares. In effect, his land will not be covered at all by the OLT program
although all requisites for coverage are present.LOI No. 474 clarified the effective coverage of OLT to
include tenanted rice or corn lands of seven (7) hectares or less, if the landowner owns other agricultural
lands of more than seven (7) hectares.The term "other agricultural lands" refers to lands other than tenanted
rice or corn lands from which the landowner derives adequate income to support his family.

Exemption from coverage of OLT lies if:


(1) the land is not devoted to rice or corn crops even if it is tenanted; or
(2) the land is untenanted even though it is devoted to rice or corn crops.

On the other hand, the requisites for the exercise by the landowner of his right of retention are the following:
(1) the land must be devoted to rice or corn crops;
(2) there must be a system of share-crop or lease-tenancy obtaining therein; and
(3) the size of the landholding must not exceed twenty-four (24) hectares, or it could be more than twenty-
four (24) hectares provided that at least seven (7) hectares thereof are covered lands and more than seven
(7) hectares of it consist of "other agricultural lands”.

Second. Petitioner heirs of Eudosia Daez may exercise their right of retention over the subject 4.1685
riceland.

The right of retention is a constitutionally guaranteed right, which is subject to qualification by the
legislature. [Sec. 4, Art. XIII, 1987 Constitution.2]It serves to mitigate the effects of compulsory land
acquisition by balancing the rights of the landowner and the tenant and by implementing the doctrine that
social justice was not meant to perpetrate an injustice against the landowner. A retained area, as its name
denotes, is land which is not supposed to anymore leave the landowner's dominion, thus sparing the
government from the inconvenience of taking land only to return it to the landowner afterwards, which
would be a pointless process.

Without doubt, this right of retention may be exercised over tenanted land despite even the issuance of
Certificate of Land Transfer (CLT) to farmer-beneficiaries. The issuance of EPs to beneficiaries does not
absolutely bar the landowner from retaining the area covered thereby. Under Administrative Order No. 2,
series of 199432 [Issued on March 7, 1994.], an EP may be cancelled if the land covered is later found to
be part of the landowner's retained area.

In the instant case, the CLTs of private respondents over the subject 4.1685-hectare riceland were issued
without Eudosia Daez having been accorded her right of choice as to what to retain among her landholdings.

pg. 46
The transfer certificates of title thus issued on the basis of those CLTs cannot operate to defeat the right of
the heirs of deceased Eudosia Daez to retain the said 4.1685 hectares of riceland.

Rodriguez v. Salvador
G.R. No. 171972 June 8, 2011

Facts:
Respondent Teresita V. Salvador filed a Complaint for Unlawful Detainer against petitioners Lucia (Lucia)
and Prudencia Rodriguez, mother and daughter, respectively before the Municipal Trial Court (MTC) of
Dalaguete, Cebu. Respondent alleged that she is the absolute owner of a parcel of land covered by Original
Certificate of Title (OCT) No. P-271407 issued by virtue of Free Patent No. (VII-5) 2646 in the name of
the Heirs of Cristino Salvador represented by Teresita Salvador; and that the petitioners acquired possession
of the subject land by mere tolerance of her predecessors-in-interest; and that despite several verbal and
written demands made by her, petitioners refused to vacate the subject land.

In their Answer, petitioners interposed the defense of agricultural tenancy. Lucia claimed that she and her
deceased husband, Serapio, entered the subject land with the consent and permission of respondent's
predecessors-in-interest, siblings Cristino and Sana Salvador, under the agreement that Lucia and Serapio
would devote the property to agricultural production and share the produce with the Salvador siblings.

Petitioners' Arguments
Petitioners contend that under Section 53 of Republic Act No. 3844, otherwise known as the Agricultural
Land Reform Code, tenancy may be constituted by agreement of the parties either orally or in writing,
expressly or impliedly. In this case, there was an implied consent to constitute a tenancy relationship as
respondent and her predecessors-in-interest allowed petitioners to cultivate the land and share the harvest
with the landowners for more than 40 years. Petitioners further argue that the CA erred in disregarding the
affidavits executed by their witnesses as these are sufficient to prove the existence of a tenancy relationship.
Petitioners claim that their witnesses had personal knowledge of the cultivation and the sharing of harvest

Respondent's Arguments
Respondent, on the other hand, maintains that petitioners are not agricultural tenants because mere
cultivation of an agricultural land does not make the tiller an agricultural tenant. Respondent insists that her
predecessors-in-interest merely tolerated petitioners' occupation of the subject land.

Issue of the case: Whether there is tenancy relationship between the petitioner and the respondent, thus, the
petitioner can eject the respondent from his area.

Ruling:
Mere occupation or cultivation of an agricultural land will not ipso facto make the tiller an agricultural
tenant. It is incumbent upon a person who claims to be an agricultural tenant to prove by substantial
evidence all the requisites of agricultural tenancy.

In the instant case, petitioners failed to prove consent and sharing of harvest between the parties.
Consequently, their defense of agricultural tenancy must fail. Respondent is entitled to the fair rental value
or the reasonable compensation for the use and occupation of the subject land.

Rationale:
Requisites as to how Agricultural tenancy exists:
1) The parties are the landowner and the tenant or agricultural lessee;
2) The subject matter of the relationship is an agricultural land;
3) There is consent between the parties to the relationship;
4) The purpose of the relationship is to bring about agricultural production;
5) There is personal cultivation on the part of the tenant or agricultural lessee; and
6) The harvest is shared between landowner and tenant or agricultural lessee.

In this case, to prove that an agricultural tenancy relationship exists between the parties, petitioners
submitted as evidence the affidavits of petitioner Lucia and their neighbors.

In her affidavit, petitioner Lucia declared that she and her late husband occupied the subject land with the
consent and permission of the original owners and that their agreement was that she and her late husband
would cultivate the subject land, devote it to agricultural production, share the harvest with the landowners
on a 50-50 basis, and at the same time watch over the land.

pg. 47
Witness Alejandro Arias attested in his affidavit that petitioner Lucia and her husband, Serapio, have been
cultivating the subject land since 1960; that after the demise of Serapio, petitioner Lucia and her children
continued to cultivate the subject land; and that when respondent's predecessors-in-interest were still alive,
he would often see them and respondent get some of the harvest.

The affidavit of witness Conseso Muñoz stated, in essence, that petitioner Lucia has been in peaceful
possession and cultivation of the subject property since 1960 and that the harvest was divided into two
parts, ½ for the landowner and ½ for petitioner Lucia.

The statements in the affidavits presented by the petitioners are not sufficient to prove the existence of an
agricultural tenancy.

As correctly found by the CA, the element of consent is lacking. Except for the self-serving affidavit of
Lucia, no other evidence was submitted to show that respondent's predecessors-in-interest consented to a
tenancy relationship with petitioners.

Self-serving statements, however, will not suffice to prove consent of the landowner; independent evidence
is necessary.

Aside from consent, petitioners also failed to prove sharing of harvest. The affidavits of petitioners'
neighbors declaring that respondent and her predecessors-in-interest received their share in the harvest are
not sufficient.

Petitioners should have presented receipts or any other evidence to show that there was sharing of harvest
and that there was an agreed system of sharing between them and the landowners.

Section 10. Exemption and Exclusuions

ALITA vs. CA
G.R. No. 78517 February 27, 1989

Issue:

Whether or not lands obtained through homestead patent are covered by the Agrarian Reform under
P.D. 27.

Ruling:

No. The Homestead Act has been enacted for the welfare and protection of the poor. The law gives
a needy citizen a piece of land where he may build a modest house for himself and family and plant what
is necessary for subsistence and for the satisfaction of life's other needs. The right of the citizens to their
homes and to the things necessary for their subsistence is as vital as the right to life itself. They have a right
to live with a certain degree of comfort as become human beings, and the State which looks after the welfare
of the people's happiness is under a duty to safeguard the satisfaction of this vital right. (Patricio v. Bayog,
112 SCRA 45)
In this regard, the Philippine Constitution likewise respects the superiority of the homesteaders' rights over
the rights of the tenants guaranteed by the Agrarian Reform statute. In point is Section 6 of Article XIII of
the 1987 Philippine Constitution which provides:

Section 6. The State shall apply the principles of agrarian reform or stewardship, whenever
applicable in accordance with law, in the disposition or utilization of other natural resources, including
lands of public domain under lease or concession suitable to agriculture, subject to prior rights, homestead
rights of small settlers, and the rights of indigenous communities to their ancestral lands.

Additionally, it is worthy of note that the newly promulgated Comprehensive Agrarian Reform
Law of 1988 or Republic Act No. 6657 likewise contains a proviso supporting the inapplicability of P.D.
27 to lands covered by homestead patents like those of the property in question, Section 6. Retention Limits,
provided further, That original homestead grantees or their direct compulsory heirs who still own the
original homestead at the time of the approval of this Act shall retain the same areas as long as they continue
to cultivate said homestead

pg. 48
NATALIA REALTY, INC. vs. DEPARTMENT OF AGRARIAN REFORM
G.R. No. 103302 August 12, 1993

Issue:

Whether or not lands already classified for residential, commercial or industrial use, as approved
by the Housing and Land Use Regulatory Board and its precursor agencies prior to 15 June 1988, covered
by R.A. 6657, otherwise known as the Comprehensive Agrarian Reform Law of 1988.

Ruling:

No. Section 4 of R.A. 6657 provides that the CARL shall "cover, regardless of tenurial arrangement
and commodity produced, all public and private agricultural lands." As to what constitutes "agricultural
land," it is referred to as "land devoted to agricultural activity as defined in this Act and not classified as
mineral, forest, residential, commercial or industrial land." The deliberations of the Constitutional
Commission confirm this limitation. "Agricultural lands" are only those lands which are "arable and suitable
agricultural lands" and "do not include commercial, industrial and residential lands." Thus, the
underdeveloped portions of the Antipolo Hills Subdivision cannot be considered as agricultural lands for
this land was intended for residential use.

LUZ FARMS VS Sec of DAR


G. R. No. 86889 December 4, 1990

Issue:

WON Sections 3(b), 11, 13, 16(d), 17 and 32 of R.A. 6657 are constitutional, insofar as the said
law includes the raising of livestock, poultry and swine in its coverage?
(a) Section 3(b) which includes the "raising of livestock (and poultry)" in the definition of "Agricultural,
Agricultural Enterprise or Agricultural Activity.
(b) Section 11 which defines "commercial farms" as "private agricultural lands devoted to commercial,
livestock, poultry and swine raising . . ."
(c) Section 13 which calls upon petitioner to execute a production-sharing plan.
(d) Section 16(d) and 17 which vest on the Department of Agrarian Reform the authority to summarily
determine the just compensation to be paid for lands covered by the Comprehensive Agrarian Reform Law
(e) Section 32 which spells out the production-sharing plan mentioned in Section 13
". . . (W)hereby three percent (3%) of the gross sales from the production of such lands are distributed
within sixty (60) days of the end of the fiscal year as compensation to regular and other farmworkers in
such lands over and above the compensation they currently receive xxx

Ruling:

No. The transcripts of the deliberations of the Constitutional Commission of 1986 on the meaning
of the word "agricultural," clearly show that it was never the intention of the framers of the Constitution to
include livestock and poultry industry in the coverage of the constitutionally mandated agrarian reform
program of the Government. Section II of R.A. 6657 which includes "private agricultural lands devoted to
commercial livestock, poultry and swine raising" in the definition of "commercial farms" is invalid, to the
extent that the aforecited agro-industrial activities are made to be covered by the agrarian reform program
of the State. There is simply no reason to include livestock and poultry lands in the coverage of agrarian
reform.

DAR VS SUTTON
G.R. No. 162070 October 19,2005

Issue:
WON DAR Administrative Order (A.O.) No. 9, series of 1993, which prescribes a maximum retention limit
for owners of lands devoted to livestock raising is constitutional?

Ruling:
No. The A.O. sought to regulate livestock farms by including them in the coverage of agrarian reform and
prescribing a maximum retention limit for their ownership. However, the deliberations of the 1987

pg. 49
Constitutional Commission show a clear intent to exclude, inter alia, all lands exclusively devoted to
livestock, swine and poultry- raising. The Court clarified in the Luz Farms case that livestock, swine and
poultry-raising are industrial activities and do not fall within the definition of "agriculture" or "agricultural
activity." The raising of livestock, swine and poultry is different from crop or tree farming. It is an industrial,
not an agricultural, activity. A great portion of the investment in this enterprise is in the form of industrial
fixed assets, such as: animal housing structures and facilities, drainage, waterers and blowers, feed mill
with grinders, mixers, conveyors, exhausts and generators, extensive warehousing facilities for feeds and
other supplies, anti-pollution equipment like bio-gas and digester plants augmented by lagoons and concrete
ponds, deep wells, elevated water tanks, pumphouses, sprayers, and other technological appurtenances.
Clearly, petitioner DAR has no power to regulate livestock farms which have been exempted by the
Constitution from the coverage of agrarian reform. It has exceeded its power in issuing the assailed A.O.

MILESTONE FARMS VS OFFICE OF THE PRESIDENT


G.R. No. 182332 February 23,2011

Issue:
WON the subject land’s use and disposition is already beyond DAR’s jurisdiction?

Ruling:
To succumb to petitioner’s contention that “when a land is declared exempt from the CARP claiming it is
not agricultural as of the time the CARL took effect, the use and disposition of that land is entirely and
forever beyond DAR’s jurisdiction” is dangerous, suggestive of self-regulation. Precisely, it is the DAR
Secretary who is vested with such jurisdiction and authority to exempt and/or exclude a property from
CARP coverage based on the factual circumstances of each case and in accordance with law and applicable
jurisprudence. In addition, albeit parenthetically, Secretary Villa had already granted the conversion into
residential and golf courses use of nearly one-half of the entire area originally claimed as exempt from
CARP coverage because it was allegedly devoted to livestock production.

CENTRAL MINDANAO UNIVERSITY VS DARAB


G.R. No. 100091 October 22,1992

Issue:
WON the subject land is covered under the CARP?

Ruling:
No, because, (1) It is not alienable and disposable land of the public domain; (2) The CMU land reservation
is not in excess of specific limits as determined by Congress; (3) It is private land registered and titled in
the name of its lawful owner, the CMU; (4) It is exempt from coverage under Section 10 of R.A. 6657
because the lands are actually, directly and exclusively used and found to be necessary for school site and
campus, including experimental farm stations for educational purposes, and for establishing seed and
seedling research and pilot production centers.

The education of the youth and agrarian reform are admittedly among the highest priorities in the
government socio-economic programs. In this case, neither need give way to the other. Certainly, there
must still be vast tracts of agricultural land in Mindanao outside the CMU land reservation which can be
made available to landless peasants, assuming the claimants here, or some of them can qualify as CARP
beneficiaries. To our mind, the taking of the CMU land which had been segregated for educational purposes
for distribution to yet uncertain beneficiaries is a gross misinterpretation of the authority and jurisdiction
granted by law to the DARAB.

DAR VS DECS
G.R. No. 158228 March 23,2004

Issue:
WON the subject properties are exempt under the CARP?

Ruling:
No. Firstly, in the CMU case, the land involved was not alienable and disposable land of the public domain
because it was reserved by the late President Carlos P. Garcia under Proclamation No. 476 for the use of
Mindanao Agricultural College (now CMU).[16] In this case, however, the lands fall under the category of
alienable and disposable lands of the public domain suitable for agriculture.

pg. 50
Secondly, in the CMU case, the land was actually, directly and exclusively used and found to be necessary
for school sites and campuses. Although a portion of it was being used by the Philippine Packing
Corporation (now Del Monte Phils., Inc.) under a Management and Development Agreement, the
undertaking was that the land shall be used by the Philippine Packing Corporation as part of the CMU
research program, with direct participation of faculty and students. Moreover, the land was part of the land
utilization program developed by the CMU for its KilusangSarilingSikap Project (CMU-KSSP), a multi-
disciplinary applied research extension and productivity program. Hence, the retention of the land was
found to be necessary for the present and future educational needs of the CMU. On the other hand, the lands
in this case were not actually and exclusively utilized as school sites and campuses, as they were leased to
Anglo Agricultural Corporation, not for educational purposes but for the furtherance of its business. Also,
as conceded by respondent DECS, it was the income from the contract of lease and not the subject lands
that was directly used for the repairs and renovations of the schools in the locality.
The Comprehensive Agrarian Reform Program (CARP) is the bastion of social justice of poor landless
farmers, the mechanism designed to redistribute to the underprivileged the natural right to toil the earth,
and to liberate them from oppressive tenancy. To those who seek its benefit, it is the means towards a viable
livelihood and, ultimately, a decent life. The objective of the State is no less certain: landless farmers and
farmworkers will receive the highest consideration to promote social justice and to move the nation toward
sound rural development and industrialization. -Secretary of Agrarian Reform v. Tropical Homes, Inc.,
G.R. No. 136799, 31 July 2001.

ROXAS & CO. VS DAMBA-NSFR


G.R. No. 149548 December 4,2009

Issue:
WON subject lands are exempt from CARP?

Ruling:
No. While the Court acknowledged the passage of the PP 1520 Tourism Act as another vehicle for potential
tourism areas to be exempted from CARP coverage, that did not in any way pronounce as meritorious
Roxas& Co.’s subsequent application with the TIEZA to declare its properties as tourism enterprise zones.
PP 1520 did not reclassify the areas to non-agricultural use. A mere classification of an agricultural land
does not automatically allow a landowner to change its use since there is still that process of conversion
before one is permitted to use it for other purpose.

BUKLOD NANG MAGBUBUKID VS EM RAMOS


G.R. No. 131481 March 16, 2011

Issue:
WON subject land is exempt from CARP?

Ruling:
Yes. Since the subject property had been reclassified as residential land by virtue of Resolution No. 29-A
dated July 9, 1972, it is no longer agricultural land by the time the CARL took effect on June 15, 1988 and
is, therefore, exempt from the CARP. That the land in the Natalia Realty case was reclassified as residential
by a presidential proclamation, while the subject property herein was reclassified as residential by a local
ordinance, will not preclude the application of the ruling of this Court in the former to the latter. The
operative fact that places a parcel of land beyond the ambit of the CARL is its valid reclassification from
agricultural to non-agricultural prior to the effectivity of the CARL on June 15, 1988, not by how or whose
authority it was reclassified.

REPUBLIC VS LOPEZ
G.R. No. 178895 January 10, 2011

Issue:
WON the Lopez and Limot Lands are under the coverage of CARL?

Ruling:
Yes. The DAR argues that the tax declaration of the Lopez lands classifies it as agricultural land. Also, that
the SNLABC was incorporated after the implementation of the CARL shows that there is an attempt to
evade CARL coverage. It is, however, doctrine that tax declarations themselves are not conclusive evidence

pg. 51
as to the classification of land. Also, it is the actual usage of the land, not its classification, which determines
its eligibility for CARL. As for the Lopez lands, it is inherited by the owner of SNLABC as livestock land.
Its use has been for raising livestock even before the incorporation of SNLABC. Hence, the time of
incorporation, and the tax declaration are irrelevant.

As for the Limot lands, it is not enough that such are used as seasonal extensions of grazing land. The
livestock are not regularly situated in the land in question but are only brought there at times for grazing. It
is land actually devoted to coconut and rubber. Hence, it cannot be exempted.

PROVINCE OF CAMARINES SUR VS CA


G.R. No. 103125 May 17, 1993

Issue:
WON Resolution 129 authorizing the Prov. Gov. to expropriate property to establish a pilot farm for non-
food and non-agricultural crops and housing project for the government employees is constitutional?

Ruling:
The expropriation of the property authorized by the questioned resolution is for a public purpose. The
establishment of a pilot development center would inure to the direct benefit and advantage of the people
of the Province of Camarines Sur. Once operational, the center would make available to the community
invaluable information and technology on agriculture, fishery and the cottage industry. Ultimately, the
livelihood of the farmers, fishermen and craftsmen would be enhanced. The housing project also satisfies
the public purpose requirement of the Constitution. As held in Sumulong v. Guerrero, 154 SCRA 461,
"Housing is a basic human need. Shortage in housing is a matter of state concern since it directly and
significantly affects public health, safety, the environment and in sum the general welfare."

LAND VALUATION
JUST COMPENSATION

I. Legal Basis

1. 1987 Constitution, Sec 4 Art XIII

The State shall, by law, undertake an agrarian reform program founded on the right of farmers
and regular farmworkers who are landless, to own directly or collectively the lands they till or,
in the case of other farmworkers, to receive a just share of the fruits thereof. To this end, the
State shall encourage and undertake the just distribution of all agricultural lands, subject to
such priorities and reasonable retention limits as the Congress may prescribe, taking into
account ecological, developmental, or equity considerations, and subject to the payment of
just compensation. In determining retention limits, the State shall respect the right of small
landowners. The State shall further provide incentives for voluntary land-sharing. (Emphasis
supplied)

2. RA 6657 Comprehensive Agrarian Reform Law (CARL) Sec 17

Section 17.DETERMINATION OF JUST COMPENSATION

In determining just compensation, the cost of acquisition of the land, the value of the standing
crop, the current value of like properties, its nature, actual use and income, the sworn valuation
by the owner, the tax declarations, the assessment made by government assessors, and seventy
percent (70%) of the zonal valuation of the Bureau of Internal Revenue (BIR), translated into
a basic formula by the DAR shall be considered, subject to the final decision of the proper
court. The social and economic benefits contributed by the farmers as well as the nonpayment
of taxes of loans secured from any government financing institution on the said land shall be
considered as additional factors to determine its valuation.

II. CONCEPT

 It has been defined as the “full and fair equivalent of the property taken from its owner by the
expropriator.”

pg. 52
 The measure is not the taker’s gain, but the owner’s loss.1

 The word “just” is used to intensify the meaning of the word “compensation” to convey the
idea that the equivalent to be rendered for the property to be taken shall be real, substantial, full
and ample.2

 The concept of just compensation embraces not only the correct determination of the amount
to be paid to the landowner, but also “prompt” payment,” i.e., payment within a reasonable
time from its taking. There is no “prompt payment” when reimbursement is conditioned upon
the Land Bank’s approval and release of the amount is made to depend upon compliance with
some documentary requirements.3

 Without prompt payment, compensation cannot be considered “just” because the land owner
is made to suffer the consequence of being immediately deprived of his land while being made
to wait for some time before actually receiving the amount necessary to cope with his loss.4

Hacienda Luisita v Presidential Agrarian Reform Council (PARC)


G.R. No. 171101, April 24, 2012

In July 5, 2011 Decision (Hacienda Lusita v PARC GR No. 171101), the Supreme Court denied
the petition for review filed by Hacienda Luisita Incorporated (HLI) and affirmed the assailed
PARC Resolution No. 2005-32-01 dated December 22, 2005 and PARC Resolution No. 2006-34-
01 dated May 3, 2006 with the modification that the original 6,296 qualified farmworker-
beneficiaries (FWB) of Hacienda Luisita shall have the option to remain as stockholders of HLI.

Upon separate motions of the parties for reconsideration, the Court, by Resolution of November
22, 2011, recalled and set aside the option thus granted to the original FWBs to remain as
stockholders of HLI, while maintaining that all the benefits and homelots received by all the FWBs
shall be respected with no obligation to refund or return them.

HLI contends that since the Stock Distrbution Plan (SDP) is a modality which the agrarian reform
law gives the landowner as alternative to compulsory coverage, then the FWBs cannot be
considered as owners and possessors of the agricultural lands of Hacienda Luisita at the time the
SDP was approved by PARC.

Alyansa ng mga Manggagawang Bukid sa Hacienda Luisita (AMBALA), in its


Comment/Opposition dated January 30, 2012, on the other hand, alleges that HLI should not be
paid just compensation altogether.

It argues that when the Court of Appeals (CA) dismissed the case the government of then President
Ferdinand E. Marcos initially instituted and won against TADECO, the CA allegedly imposed as a
condition for its dismissal of the action that should the stock distribution program fail, the lands
should be distributed to the FWBs, with TADECO receiving by way of compensation only the
amount of PhP 3,988,000.

In the instant case, the issue on just compensation and the grounds HLI and Mallari, et al. rely upon
in support of their respective stance on the matter had been previously raised by them in their first
motion for reconsideration and fully passed upon by the Court in its November 22, 2011 Resolution.

Issue: Whether or not the Supreme Court erred in ruling that in determining the just compensation,
the date of taking is November 21, 1989 when PARC approved HLI’s SDP in view of the fact that
this is the time that the FWB were considered to own and possess the agricultural land in Hacienda
Luisita.

1
Hacienda Luisita v PARC, G.R. No. 171101 April 24, 2012

2
Land Bank v Dumlao 572 SCRA 108

3
Land Bank v Soriano 620 SCRA 347

4
Land Bank v Court of Appeals 258 SCRA 407

pg. 53
Held: The Supreme Court, however, maintain that they can rule, as it has in fact already ruled on
its reckoning date, that is, November 21, 1989, the date of issuance of PARC Resolution No. 89-
12-2, based on the above-mentioned disquisitions.

The investment on special agrarian court (SACs) of original and exclusive jurisdiction over all
petitions for the determination of just compensation to landowners will not preclude the Court from
ruling upon a matter that may already be resolved based on the records before the Court.

Even though the compensation due to HLI will still be preliminarily determined by DAR and LBP,
subject to review by the RTC acting as a SAC, the fact that the reckoning point of taking is already
fixed at a certain date should already hasten the proceedings and not further cause undue hardship
on the parties, especially the qualified FWBs.

By a vote of 8-6, the Court affirmed its ruling that the date of taking in determining just
compensation is November 21, 1989 when PARC approved HLI’s stock option plan.
As regards the issue of interest on just compensation, the Court also leave this matter to the DAR
and the LBP, subject to review by the RTC acting as a SAC.

On the payment of just compensation for the homelots to HLI, the Court, by unanimous vote,
resolved to amend its July 5, 2011 Decision and November 22, 2011 Resolution by ordering the
government, through the DAR, to pay to HLI the just compensation for the 240 sqm homelots thus
distributed to the FWBs.

The time of taking is the time when the landowner was deprived of the use and benefit of his
property, such as when title is transferred to the Republic.

It should be noted, however, that taking does not only take place upon the issuance of title either in
the name of the Republic or the beneficiaries of the Comprehensive Agrarian Reform Program
(CARP). Taking also occurs when agricultural lands are voluntarily offered by a landowner and
approved by PARC for CARP coverage through the stock distribution scheme, as in the instant
case.

Thus, HLI submitting its SDP for approval is an acknowledgment on its part that the agricultural
lands of Hacienda Luisita are covered by CARP. However, it was the PARC approval which should
be considered as the effective date of taking as it was only during this time that the government
officially confirmed the CARP coverage of these lands.

Indeed, stock distribution option and compulsory land acquisition are two (2) different modalities
under the agrarian reform program. Nonetheless, both share the same end goal, that is, to have a
more equitable distribution and ownership of land, with due regard to the rights of landowners to
just compensation.

Because due regard is given to the rights of landowners to just compensation, the law on stock
distribution option acknowledges that landowners can require payment for the shares of stock
corresponding to the value of the agricultural lands in relation to the outstanding capital stock of
the corporation.5

HLI postulates that just compensation is a question of fact that should be left to the determination
by the DAR, Land Bank of the Philippines (LBP) or even the special agrarian court (SAC).

As a matter of fact, the Court, in its November 22, 2011 Resolution, dispositively ordered the DAR
and the LBP to determine the compensation due to HLI. And as indicated in the body of said
Resolution:

5
The fact that Sec. 31 of Republic Act No. 6657 (RA 6657) gives corporate landowners the option to give qualified beneficiaries the right to avail
of a stock distribution or, in the phraseology of the law, the right to purchase such proportion of the capital stock of the corporation that the
agricultural land, actually devoted to agricultural activities, bears in relation to the company’s total assets, does not detract from the avowed
policy of the agrarian reform law of equitably distributing ownership of land.

The difference lies in the fact that instead of actually distributing the agricultural lands to the farmer beneficiaries, these lands are held by the
corporation as part of the capital contribution of the farmer beneficiaries, not of the landowners, under the stock distribution scheme. The end
goal of equitably distributing ownership of land is, therefore, undeniable. And since it is only upon the approval of the SDP that the agricultural
lands actually came under CARP coverage, such approval operates and takes the place of a notice of coverage ordinarily issued under compulsory
acquisition.

pg. 54
The foregoing notwithstanding, it bears stressing that the DAR’s land valuation is only preliminary
and is not, by any means, final and conclusive upon the landowner. The landowner can file an
original action with the RTC acting as a special agrarian court to determine just compensation. The
court has the right to review with finality the determination in the exercise of what is admittedly a
judicial function.

Land Bank v Dumlao


G.R. No. 167809, November 27, 2008

The DUMLAOS were co-owners of a 32 hectare rice lands in Nueva Vizcaya which was placed
under Operation Land Transfer (OLT) by virtue of PD27.

The DAR made a preliminary valuation on 16 hectares (2 lots) and payments were made to the
DUMLAOs by Landbank. The DUMLAOs filed a complaint before the RTC to determine just
compensation, and requested the appointment of 3 commissioners to make the determination.

The DAR moved to dismiss claiming that the RTC does not have jurisdiction. The RTC eventually
recognized the case and ordered payment at 6,912.50 per hectare for one lot & to follow the amount
provided for in the Land Valuation Summary and Farmers Undertaking for the other lot.

The DUMLAOs was claiming market value of 109,000 per hectare. The DUMLAOs appealed to
the CA which ruled in their favor, which noted that the time of taking was not certain. The CA held
that after the passage of RA No. 6657, the formula relative to valuation under PD No. 27 no longer
applies.

Under PD 27 and EO No. 228, the formula for computing the Land Value (LV) or Price Per Hectare
(PPH) of rice and corn lands is:
2.5 x AGP x GSP = LV or PPH.
Under the CARL, it is provided in Sec 17.

Issue: Which law should be followed to determine the just compensation?

Held:
1. The just compensation due to respondents should be determined under the provisions of
RA No. 6657.
The Court has repeatedly held that if just compensation was not settled prior to the passage of RA
No. 6657, it should be computed in accordance with said law, although the property was acquired
under PD No. 27.

The latter law, being the latest law in agrarian reform, should control, as held in Land Bank of the
Philippines v. Heirs of Angel T. Domingo. Section 75 of RA 6657 clearly states that the provisions
of PD 27 and EO 228 shall only have a suppletory effect.

This demonstrates that RA 6657 includes PD 27 lands among the properties which the DAR shall
acquire and distribute to the landless.

DAR’s failure to determine the just compensation for a considerable length of time makes it
inequitable to follow the guidelines provided by PD No. 27 and EO No. 228. Hence, RA No. 6657
should apply.

NOTE HOWEVER that the CA’s act of setting just compensation in the amount of P109,000.00
would have been a valid exercise of this judicial function, had it followed the mandatory formula
prescribed by RA No. 6657.

However, the appellate court merely chose the lower of two (2) values specified by the
commissioner as basis for determining just compensation, namely:

a. P109,000.00 per hectare as the market value of first class unirrigated rice land in the
Municipality of Villaverde; and
b. P60.00 per square meter as the zonal value of the land in other barangays in Villaverde.

pg. 55
This is likewise erroneous because it does not adhere to the formula provided by RA No. 6657
under Section 17, as implemented through DAR Admin Order No. 6 (1992) –
LV = (CNI x 0.6) + (CS x 0.3) + (MV x 0.1),
where:
LV = Land Value
CNI = Capitalized Net Income
CS = Comparable Sales
MV = Market Value per Tax Declaration
Accordingly, just compensation should be computed in accordance with RA No. 6657 in order to
give full effect to the principle that the recompense due to the land owner should be the full and
fair equivalent of the property taken from the owner by the expropriator.
The measure is not the takers gain but the owner’s loss. The word just is used to intensify the
meaning of the word compensation to convey the idea that the equivalent to be rendered for the
property to be taken shall be real, substantial, full, and ample.

2. The “taking” of the properties for the purpose of computing just compensation should be
reckoned from the date of issuance of emancipation patents.

The nature of the land at that time determines the just compensation to be paid.
It is undisputed that emancipation patents were issued to the farmer-beneficiaries. However, their
issuance dates are not shown. As such, the trial court should determine the date of issuance of these
emancipation patents in order to ascertain the date of taking and proceed to compute the just
compensation due to respondents, in accordance with RA No. 6657.

3. The DUMLAOs are entitled to payment of just compensation on their entire landholdings
covered by Operation Land Transfer, except for the five hectares of retention area each
of them are entitled to (RIGHT OF RETENTION).

The determination of just compensation is judicial in nature. The DAR’s land valuation is only
preliminary and is not, by any means, final and conclusive upon the landowner or any other
interested party. In the exercise of its functions, the courts still have the final say on what the amount
of just compensation will be.
A reading of Section 18 of RA No. 6657 shows that it is the courts, not the DAR, which make the
final determination of just compensation.
Also, to wait for the DAR valuation despite its unreasonable neglect and delay in processing the
four properties’ claim folders is to violate the elementary rule that payment of just compensation
must be within a reasonable period from the taking of property.
While the DAR is vested with primary jurisdiction to determine in a preliminary manner the amount
of just compensation, the circumstances of this case militate against the application of the doctrine
of primary jurisdiction.

Land Bank v Soriano


G.R. Nos. 180772 and 180776, May 6, 2010
Domingo and Mamerto Soriano are the registered owners of several parcels of rice land situated in
Albay. Out of the 18.9163 hectares of land owned by the respondents, 18.2820 hectares were placed
under the Operations Land Transfer and the CARP pursuant to Presidential Decree No. 27 and
Republic Act No. 6657, otherwise known as the Comprehensive Agrarian Reform Law.
LBP pegged the value of 18.0491 hectares of land at P482,363.957 (P133,751.65 as land value plus
P348,612.30 incremental interest), while the remaining 0.2329 hectare was computed at P8,238.94.
Not satisfied with the valuation, respondents, on 23 November 2000, instituted a Complaint for
judicial determination of just compensation with the Regional Trial Court of Legazpi City, sitting
as a Special Agrarian Court (SAC).
Respondents alleged that they are entitled to an amount of not less than P4,500,000.00 as just
compensation.
The SAC rendered a judgment, ordering LBP to pay the respondents P894,584.94 (the just
compensation of the 18.0491 hectares of irrigated riceland is P133,751.79, plus increment of 6%
per annum computed annually beginning October 21, 1972, until the value is fully paid, and of the
0.2329 hectare of rain fed riceland is P8,238.94 plus 12% interest per annum, beginning August 17,
1998, until the value is fully paid or a total of P894,584.94 as of this date.)
The SAC applied the formula prescribed under Executive Order No. 228 in determining the
valuation of the property, i.e., Land value = Average Gross Production x 2.5 x Government Support
Price. It likewise granted compounded interest pursuant to Department of Agrarian Reform (DAR)

pg. 56
Administrative Order No. 13, series of 1994, as amended by DAR Administrative Order No. 2,
series of 2004.
Both parties appealed to the Court of Appeals, but the CA affirmed the decision of the RTC (SAC).

Issues:
1. Whether or not the determination of just compensation for the subject land is covered by the
Comprehensive Agrarian Reform Program; and
2. Whether or not the interest rate imposed by the trial courts of 6% per annum from the date of
taking on 21 October 1972 until full payment of the just compensation, is correct.

Held:
The Supreme Court denied the petition and affirmed the decision of the Court of Appeals.
1. YES, HOWEVER IN THIS CASE THE SUPREME COURT SUSTAINED THE FORMULA
USED BY THE TRIAL COURT BECAUSE THE RECORDS OF THE CASE ARE BEREFT
OF ADEQUATE DATA

If just compensation is not settled prior to the passage of Republic Act No. 6657, it should be
computed in accordance with the said law, although the property was acquired under Presidential
Decree No. 27.
In this case, while the subject lands were acquired under PD No. 27, the complaint for just
compensation was only lodged before the court on 23 November 2000 or long after the passage of
RA No. 6657 in 1988. Therefore, Section 17 of RA No. 6657 should be the principal basis of the
computation for just compensation.
Nevertheless, with the passage of Republic Act (R.A.) No. 6657 or the CARL in 1988, new
guidelines were set for the determination of just compensation, however in this case, the fixing of
just compensation should therefore be based on the parameters set out in Republic Act No. 6657,
with Presidential Decree No. 27 and Executive Order No. 228 having only suppletory effect. As
much as this Court would like to determine the proper valuation based on the DAR formula
“Land Value= (Capitalized Net Income x 0.6) + (Comparable Sales x 0.3) + (Market Value per
Tax Declaration x 0.1)”
, the records of this case are bereft of adequate data. To write finis to this case, the Supreme Court
uphold the amount derived from the old formula.
However, since the application of the new formula is a matter of law and thus, should be made
applicable, the parties are not precluded from asking for any additional amount as may be warranted
by the new formula.

2. YES. Section 4, Article XIII of the 1987 Constitution mandates that redistribution of
agricultural lands be subject to the payment of just compensation.

Moreover, the landowner’s right to just compensation should be balanced with agrarian reform.

The concept of just compensation embraces not only the correct determination of the amount
to be paid to the owners of the land, but also payment within a reasonable time from its taking.
Without prompt payment, compensation cannot be considered “just.” To condition the payment
upon LBP’s approval and its release upon compliance with some documentary requirements
would render nugatory the very essence of “prompt payment.”

Therefore, to expedite the payment of just compensation, it is logical to concluded that the 6%
interest rate be imposed from the time of taking up to the time of full payment of just
compensation

Land Bank vs Orilla


G.R. No. 157206, June 27, 2008

DARAB informed Spouses Orilla of the compulsory acquisition of their landholding of 21.1289
pursuant to CARL for PhP 371,154.99 as compensation based on the valuation made by the Land
Bank.

The RTC acting as Special Agrarian Court (SAC) fixed the just compensation of the land at
P1.479M.

pg. 57
Land Bank filed a Notice of Appeal, subsequently, Spouses Orilla filed a Motion for Execution
pending Appeal.

Issue: Whether the Spouses Orilla were entitled to execution pending appeal of the compensation
fixed by SAC based on the principle of prompt payment of just compensation.

Held: YES.
Execution of the judgment or final order is discretionary. The existence of good reasons is what
confers discretionary power on a court to issue a writ of execution pending appeal. “Good reasons”
consist of compelling or superior circumstances demanding urgency which will outweigh the injury
or damages suffered should the losing party secure a reversal of the judgment or final order.
In the case at bar, the prompt payment of just compensation is consistent with principle of justice,
fairness and equity, and that suspending payment will prolong the agony of Spouses Orilla due to
the deprivation of their land. It must be noted that Spouses Orilla are 71 years old and if payment
would be delayed, it would not be long that death would overtake them.

III. The Factors Used in Valuation of Lands

Based on DAR Administrative Order No. 2, series of 2009, the following are the factors in the
valuation of lands:

1. Capitalized Net Income (CNI) which is based on land use and productivity;
2. Comparable Sales (CS) which is based 70% of the BIR zonal value; and
3. Market Value (MV) which is based on the Tax Declaration

 The basic formula when all factors are present


𝐿𝑎𝑛𝑑𝑉𝑎𝑙𝑢𝑒=0.60 ∗ 𝐶𝑁𝐼+ 0.30 ∗ 𝐶𝑆+ 0.10∗𝑀𝑉

 The formula when CNI factor is not present


𝐿𝑎𝑛𝑑𝑉𝑎𝑙𝑢𝑒=0.90 ∗ 𝐶𝑆+ 0.10∗𝑀𝑉

 The formula when CS factor is not present


𝐿𝑎𝑛𝑑𝑉𝑎𝑙𝑢𝑒=0.90 ∗ 𝐶𝑁𝐼+ 0.10 ∗ 𝑀𝑉

 The formula when CS and CNI factors are not present


𝐿𝑎𝑛𝑑𝑉𝑎𝑙𝑢𝑒=2∗ 𝑀𝑉

Illustrative Cases:
1. Land Bank v Barrido 628 SCRA 454;
2. Land Bank v Colarina;
3. Land Bank v Celada 479 SCRA 495

Land Bank v Barrido


G.R. No. 183688, August 18, 2010

Barrido and her heirs are the registered owners of the subject land located in Sara, Iloilo where
the government expropriated a portion of the property consisting of 43,461 sqm for distribution to
the farmer beneficiaries under the Land Reform Program.

Petitioner offered the respondents a total amount of PhP 60,385.49 as just compensation, but
respondents rejected the offer.

The petitioner and DAR insisted that the valuation is correct, based on the formula in P.D. 27 as
supplemented by E.O. No. 228.

Land Value (LV) = Average Gross Production (AGP) x 2.5 x Government Support Price (GSP)
RTC rendered a decision fixing the compensation at PhP94,797.09 per hectare and ordered the
petitioner to pay the respondents the sum of money PhP 411,997.63 as just compensation + 12%
interest per annum from March 21, 2003 until full payment.

On its appeal, CA affirmed in toto the decision of the RTC. Thus, this petition.

pg. 58
Issue: Whether or not in this case, if just compensation is not settled prior to the passage of
Republic Act (R.A.) No. 6657, it should be computed in accordance with said law even if the
property was acquired under P.D. No. 27.

Held: The fixing of just compensation should, therefore, be based on the parameters prescribed in
R.A.No. 6657, with P.D. No. 27 and E.O. No. 228 having only suppletory effect.
Specifically, Section 17 of R.A. 6657 is the principal basis of the computation for just
compensation.
The factors set forth in this section have been translated into a basic formula outlined in DAR
Administrative Order No. 5, series of 1998

There shall be one basic formula for the valuation of lands covered by VOS or CA:
LV = (CNI x 0.6) + (CS x 0.3) + (MV x 0.1)
Where: LV = Land Value; CNI = Capitalized Net Income; CS = Comparable Sales
MV= Market Value per Tax Declaration

Land Bank v Colarina


G.R. No. 176410 September 1, 2010

Respondent Conrado O. Colarina is the registered owner of three (3) parcels of agricultural land
which he acquired from their former owner, Damiana Arcega. The parcels of land have a total
area of 972,047 square meters.

Upon acquisition thereof, respondent manifested his voluntary offer to sell the properties to the
Department of Agrarian Reform (DAR) for coverage under Republic Act (R.A.) No. 6657, the
Comprehensive Agrarian Reform Law (CARL). Respondent’s assessment value of the properties
was ₱45,000.00 per hectare.

The DAR, through petitioner Land Bank of the Philippines (LBP), assessed the properties and
offered to purchase only 57.2047 hectares out of the 97.2047 hectares voluntarily offered for sale
by respondent. The excluded area (40 hectares) fell under the exemptions and exclusions
provided in Section 103 of the CARL, i.e., all lands with eighteen percent (18%) slope and over.
As the LBP’s assessment and valuation of the properties was unacceptable to, and rejected by,
respondent, he elevated the determination of just compensation of the properties to the Provincial
Agrarian Reform Adjudicator (PARAD). Unfortunately for respondent, the PARAD affirmed the
valuation set forth by the LBP.

During pre-trial, LBP manifested that the subject properties may be reassessed and revaluated
based on the new guidelines set forth in DAR A.O. No. 11, Series of 1994. Intent on finding a
common ground between petitioner and respondent and to amicably settle the case, the SAC
ordered the revaluation.

The same was still rejected by the respondent. With the conflicting evidence by both parties, SAC
followed the formula of LBP. After, RTC ordered LBP to pay the newly computed total sum of
PhP 1.79M.

Thereafter, both parties appealed to CA.

Issue: Whether the lower courts’ computation of just compensation for the subject properties is
correct.

Held: No. Based on Sec 17 of CAFL, these factors have been translated into a basic formula in
[DAR AO 6-92], as amended by [DAR AO 11-94], issued pursuant to the DAR’s rule-making
power to carry out the object and purposes of R.A. 6657, as amended.
The formula stated in [DAR AO 6-92], as amended, is as follows:
"LV = (CNI x 0.6) + (CS x 0.3) + (MV x 0.1)
The above formula shall be used if all the three factors are present, relevant and applicable.
A.1 When the CS factor is not present and CNI and MV are applicable, the formula shall be:
LV = (CNI x 0.9) + (MV x 0.1)6

6
A party who disagrees with the decision of the DAR adjudicator may bring the matter to the RTC designated as a Special Agrarian Court "for
final determination of just compensation.

pg. 59
Nota Bene: LV = (CNI x 0.9) + (MV x 2) – reformulated due to the attending circumstances of
the case.

Land Bank v Celada


G.R. No. 164876 January 23, 2006

Celada owns an agricultural land, 60% of which was identified in 1998 by the Department of
Agrarian Reform (DAR) as suitable for compulsory acquisition under the Comprehensive Agrarian
Reform Program (CARP). Upon indorsement to it for field investigation and valuation, Land Bank
valued the said land at P299,569.61. DAR offered the same amount to Celada as just compensation.
Celada, however, rejected the offer. The matter was then referred to the DAR Adjudication Board
(DARAB) for summary administrative hearing on the determination of just compensation.

During the pendency of the DARAB case, Celada filed a petition for judicial determination of just
compensation, alleging that the current market value of her land was at least P2,129,085.00. In its
answer, Land Bank raised the affirmative defense of non-exhaustion of administrative remedies. It
contended that Celada must first await the outcome of the DARAB case before taking any judicial
recourse.

Meanwhile, the DARAB Provincial Adjudicator affirmed the valuation made by Land Bank.
Thereafter, the Special Agrarian Court (SAC), where Celada’s petition was filed, rendered
judgment fixing the value of the land at P354,847.50, finding that Celada’s evidence showed that
the neighboring lands of similar classification were paid higher than what was quoted by Land
Bank. It denied Land Bank’s affirmative defense. The Court of Appeals dismissed Land Bank’s
appeal.

Land Bank maintains that the SAC erred in assuming jurisdiction over Celada’s petition for judicial
determination of just compensation despite the pendency of the administrative proceedings before
the DARAB. It also contends that the SAC erred in fixing the just compensation of the land based
on the valuation of neighboring lands instead of its actual land use.

Issues
1.) Whether or not the SAC erred in assuming jurisdiction over the petition for judicial
determination of just compensation pending administrative proceedings before the DARAB;
2.) Whether or not the SAC erred in fixing the just compensation of the land based on the valuation
of neighboring lands

Held:
1. SAC correctly assumed jurisdiction over determination of just compensation.

The SAC did not err in assuming jurisdiction over the petition for determination of just
compensation despite the pendency of the administrative proceedings before the DARAB. As the
Court held in Land Bank of the Philippines v. Court of Appeals,

the RTC, sitting as a SAC, has ‘original and exclusive jurisdiction over all petitions for the
determination of just compensation to landowners.’ This ‘original and exclusive’ jurisdiction of the
RTC would be undermined if DAR would vest in administrative officials original jurisdiction in
compensation cases and make the RTC an appellate court for the review of administrative decision.
Although the new rules speak of directly appealing the decision of adjudicators to the RTCs sitting
as SACs, the original and exclusive jurisdiction to determine such cases is in the RTCs. It should
be emphasized that the taking of property under the CARP is an exercise of the power of eminent
domain by the State. The valuation of property or determination of just compensation is a judicial
function. Thus, the SAC properly took cognizance of Celada’s petition for determination of just
compensation.

2. SAC erred in fixing just compensation based on valuation of neighboring lands

The SAC, however, erred in setting aside Land Bank’s valuation of the land on the sole basis
of the higher valuation given for neighboring properties.

It did not apply the DAR valuation formula which considers capitalized net income,
comparable sales and market value per tax declaration as components of land value.

pg. 60
IV. Reckoning of Valuation

In determining just compensation, the value of the property at the time it was taken from the owner
and appropriated by the government shall be the basis.

If the government takes possession of the land before the institution of expropriation proceedings,
the value should be fixed as of the time of the taking of possession, not of the filing of the compliant.

The time of taking does not only refer to the stage when the agricultural land voluntarily offered
by a landowner was approved by PARC for agrarian reform coverage through the stock distribution
scheme.7

However, if there is undue delay in payment, the value of the property should be determined at the
time of taking of the land but at the time of full payment of just compensation.8

V. Procedure for Determination of Just Compensation

1. The determination of just compensation under the CARL commences with Land Bank
determining the value of lands;
2. Using Lan Bank’s valuation, the DAR makes an offer to the landowner;
3. In case the landowner rejects the offer, the DAR conducts a summary administrative
proceeding to determine the compensation for the land by requiring the landowner, the Land
Bank and other interested parties to submit evidence as to just compensation.
4. A party who disagrees with the decision of the adjudicator may bring the matter to the RTC
designated as a Special Agrarian Court for final determination of just compensation.

VI. Role of Department of Agrarian Reform Adjudication Board (DARAB)

DARAB or its Provincial Agrarian Reform Adjudicators (PARAD) can conduct a summary
administrative proceeding for the preliminary determination of just compensation in order to
determine whether land valuation computation of the Land Bank are in accordance with the rules
or administrative orders.9
The preliminary proceedings of land valuation for the purpose of the determination of just
compensation for its acquisition shall be conducted by:

1. PARAD – when the initial land valuation of the Land Bank is less then P10M;
2. Regional Agrarian Reform Adjudicators (RARAD) – xxx P10M to P50M
3. DARAB – xxx above P50M

Note:
The valuation set by the Land Bank is not conclusive. The landowner can still contest the same in the proper
court in accordance with Section 6 Rule XIX of the 2009 DARAB Rules and Procedure.
The formula laid down by the DAR for the determination of just compensation are mandatory and not mere
guides which the designated RTC may disregard.10
Valuation and Mode of Compensation

Section 18.Valuation and Mode of Compensation. — The LBP shall compensate the landowner in such
amounts as may be agreed upon by the landowner and the DAR and LBP, in accordance with the criteria
provided for in Sections 16 and 17, and other pertinent provisions hereof, or as may be finally determined
by the court, as the just compensation for the land.

The compensation shall be paid on one of the following modes, at the option of the landowner:

a. Cash payment under the following terms and conditions;


i. For lands above 50 hectares : 25% cash;
75% government financial instruments

7
Hacienda Luisita v PARC, G.R. No. 171101 April 24, 2012

8
Lubrica v Landbank G.R. No. 170220 November 20, 2006
9
Sec 1, Rule XIX, 2009 DARAB Rules of Procedure
10
Land Bank v Colarina 629 SCRA 614

pg. 61
ii. For lands above 24 and up to 50 : 30% cash;
70% government financial instruments
iii. For lands 24 and below : 35% cash;
65% government financial instruments

b. Balance to be paid in government financial instruments negotiable at any time:

i. Shares of stock in government-owned or controlled corporations, LBP preferred shares,


physical assets or other qualified investments (PARC);
ii. Tax credits which can be used against any tax liability;
iii. Land Bank of the Philippines Bonds which shall have the following features:
* Market interest rates aligned with 91-day treasury bill rates;
* Ten percent (10%) of the face value of the bonds shall mature every year from
the date of issuance until the tenth year; and
* Transferability and negotiability. Such LBP bonds may be used by the
landowner, his successors in interest or his assigns, up to the amount of their face
value, for any of the following:
-Acquisition of land or other real properties of the government
-Acquisition of shares of stock
-Substitution for surety or bail bonds
-Security for loans with any government financial institution
-Payment for various taxes and fees to government
-Payment for tuition fees of the immediate family
- Payment for fees of the immediate family of the original bondholder in
government hospitals
-Such other uses as the PARC may from time to time allow

Landowner cannot insist in cash payment only

The landowner cannot insist in cash payment only because it is not sanctioned by agrarian reform
law. The law says that the just compensation shall be paid partly in cash and the remainder by means of
bonds, GOCC, tax credits or Land Bank bonds.
Related Cases:
E. Land Bank of the Philippines vs. Natividad.G.R. No. 127198. May 16, 2005
F. Lubrica vs. Land Bank of the Philippines, G.R. No. 170220. November 20, 2006
G. Association of Small Landowners in the Philippines, Inc. vs. Secretary of Agrarian Reform,
(G.R. No. 79310. July 14, 1989)
H. Land Bank of the Philippines vs. Court of Appeals, G.R. No. 118712. October 6, 1995
I. Land Bank of the Philippines vs. Court of Appeals, G.R. No. 128557. December 29, 1999
J. Santos vs. Land Bank of the Philippines, G.R. No. 137431.September 7, 2000

LAND REDISTRIBUTION
SEC. 22. Qualified Beneficiaries. - The lands covered by the CARP shall be distributed as much as
possible to landless residents of the same barangay, or in the absence thereof, landless residents of the same
municipality in the following order of priority:
(a) agricultural lessees and share tenants;
(b) regular farm workers;
(c) seasonal farm workers;
(d) other farm workers;
(e) actual tillers or occupants of public lands;
(f) collective or cooperatives of the above beneficiaries; and
(g) others directly working on the land.

Provided, however, that the children of landowners who are qualified under Section 6 of this Act shall be
given preference in the distribution of the land of their parents; and: Provided, further, that actual tenant -
tillers in the landholding shall not be ejected or removed therefrom.

Beneficiaries under Presidential Decree No. 27 who have culpably sold, disposed of, or abandoned their
land are disqualified to become beneficiaries under their program.

pg. 62
A basic qualification of a beneficiary shall be his willingness, aptitude and ability to cultivate and make
land as productive as possible. The DAR shall adopt a system of monitoring the record or performance of
each beneficiary, so that any beneficiary guilty of negligence or misuse of the land or any support extended
to him shall forfeit his right to continue as such beneficiary. The DAR shall submit periodic reports on the
performance of the beneficiaries to the PARC.

If, due to landowner's retention rights or to the number of tenants, lessees, or workers on the land, there is
not enough land to accommodate any or some of them, they may be granted ownership of other lands
available for distribution under this Act, at the option of the beneficiaries.

Farmers already in place and those not accommodated in the distribution of privately-owned lands will be
given preferential rights in the distribution of lands from the public domain.

SEC. 23. Distribution Limit.- No qualified beneficiary may own more than three (3) hectares of
agricultural land.

SEC. 24. Award to Beneficiaries.- The rights and responsibilities of the beneficiary shall commence from
the time the DAR makes an award of the land to him, which award shall be completed within one hundred
eighty (180) days from the time the DAR takes actual possession of the land. Ownership of the beneficiary
shall be evidenced by a Certificate of Land Ownership Award, which shall contain the restrictions and
conditions provided for in this Act, and shall be recorded in the Register of Deeds concerned and annotated
on the Certificate of Title.

SEC. 25. Award Ceilings for Beneficiaries. - Beneficiaries shall be awarded an area not exceeding three
(3) hectares, which may cover a contiguous tract of land or several parcels of land cumulated up to the
prescribed award limits.

For purposes of this Act, a landless beneficiary is one who owns less than three (3) hectares of agricultural
land. The beneficiaries may opt for collective ownership, such as co-workers or farmers' cooperative or
some other form of collective organization: Provided, That the total area that may be awarded shall not
exceed the total number of co-workers or members of the cooperative or collective organization multiplied
by the award limit above prescribed, except in meritorious cases as determined by the PARC. Title to the
property shall be issued in the name of the co-owners or the cooperative or collective organization as the
case may be.

SEC. 26. Payment by Beneficiaries. - Lands awarded pursuant to this Act shall be paid for by the
beneficiaries to the LBP in thirty (30) annual amortizations at six percent (6%) interest per annum. The
payments for the first three (3) years after the award may be at reduced amounts as established by the PARC
: Provided, That the first five (5) annual payments may not be more than five percent (5%) of the value of
the annual gross production is paid as established by the DAR. Should the scheduled annual payments after
the fifth year exceed ten percent (10) of the annual gross production and the failure to produce accordingly
is not due to the beneficiary's fault, the LBP may reduce the interest rate or reduce the principal obligation
to make the payment affordable.

The LBP shall have a lien by way of mortgage on the land awarded to beneficiary and this mortgage may
be foreclosed by the LBP for non-payment of an aggregate of three (3) annual amortizations. The LBP shall
advise the DAR of such proceedings and the latter shall subsequently award the forfeited landholding to
other qualified beneficiaries. A beneficiary whose land as provided herein has been foreclosed shall
thereafter be permanently disqualified from becoming a beneficiary under this Act.

SEC. 27. Transferability of Awarded Lands. - Lands acquired by beneficiaries under this Act may not
be sold, transferred or conveyed except through hereditary succession, or to the government, or to the LBP,
or to other qualified beneficiaries for a period of ten (10) years: Provided, however, That the children or the
spouse of the transferor shall have a right to repurchase the land from the government or LBP within a
period of two (2) years. Due notice of the availability of the land shall be given by the LBP to the Barangay
Agrarian Reform Committee (BARC) of the barangay where the land is situated. The Provincial Agrarian
Coordinating Committee (PARCCOM), as herein provided, shall, in turn, be given due notice thereof by
the BARC.

If the land has not yet been fully paid by the beneficiary, the right to the land may be transferred or
conveyed, with prior approval of the DAR, to any heir of the beneficiary or to any other beneficiary who,
as a condition for such transfer or conveyance, shall cultivate the land himself. Failing compliance herewith,

pg. 63
the land shall be transferred to the LBP which shall give due notice of the availability of the land in the
manner specified in the immediately preceding paragraph.

In the event of such transfer to the LBP, the latter shall compensate the beneficiary in one lump sum for the
amounts the latter has already paid, together with the value of improvements he has made on the land.

SEC. 28.Standing Crops at the Time of Acquisition. - The landowner shall retain his share of any
standing crops unharvested at the time the DAR shall take possession of the land under Section 16 of this
Act, and shall be given a reasonable time to harvest the same.

MAGO V. BARBIN
FACTS:

Barbin alleged that she is the owner of an irrigated Riceland and that Augusto Mago, Crispin Mago, Ernesto
Mago, and Pedro Mago were tenants of the landholding who also violated the terms of their leasehold
contracts when they failed to pay lease rentals for more than two years.

Petitioners alleged that the landholding was placed under the Operation Land Transfer program of PD
27. Respondents’ title was then cancelled and the landholding was transferred to the Magos who were
issued Emancipation Patents. The Transfer Certificates of Title were registered with the Registry of Deeds.

Petitioners averred that prior to the issuance of the Emancipation Patents, they already delivered their lease
rentals to respondent.

ISSUE:
Whether or not after the issuance of the Emancipation Patents, the subject landholding ceased to be covered
by any leasehold contract.

DECISION:
The PARAD held that the subject landholding is clearly covered by the Operation Land Transfer under LOI
474 that directed the Secretary of DAR to place under the Land Transfer Program (pursuant to PD 27), all
tenanted rice/corn lands with areas of seven hectares or less belonging to landowners who own other
agricultural lands of more than seven hectares in aggregate areas from which they derive adequate income.
The PARAD denied the petition for lack of merit. Further, DAR MC No. 6, s. of 1978, payment of lease
rentals to landowners covered by the Operation Land Transfer shall terminate on the date the value of the
land is established. Thus, it was held that the proper recourse of respondent is to file a claim for just
compensation.

However, Department of Agrarian Reform Adjudication Board (DARAB) reversed and set aside the
PARAD Decision and held that when the subject landholding was placed under the Operation Land
Transfer, the tenancy relationship between the parties ceased and the tenant-beneficiaries were no longer
required to pay lease rentals to the landowner. When petitioners entered into an agreement with respondent
for a direct payment scheme embodied in the Deeds of Transfer, petitioners obligated themselves to pay
their amortizations to respondent who is the landowner. The DARAB found that except for Crispin Mago,
who had fully paid his tillage, petitioners defaulted in their obligation to pay their amortization for more
than three consecutive years from the execution of the Deeds of Transfer.

Under DAR AO No. 2, s. of 1994, one of the grounds for cancellation of registered Emancipation Patents
is when there is default in the obligation to pay an aggregate of three consecutive amortizations in case of
direct payment schemes. Thus, the DARAB ruled that the cancellation of the Emancipation Patents issued
to petitioners is warranted in this case.

PADUA v. CA
FACTS:
PepitoDela Cruz, et al. were tenants of two lots in Tarlac and upon the request of Mayor Cruz, they agreed
to donate said properties to the municipality to be used as school sites. However, the project did not
materialize and Dela Cruz asked that the properties be returned to them. They found out that Mayor Cruz
had distributed the lot to Labagnoy and Cruz who were each issued a Certificate of Land Transfer
(CLT). DAR Secretary issued an Order cancelling the CLT issued to Labagnoy and Cruz. Labagnoy and
Cruz appealed to the Office of the President (OP) which dismissed the same.

pg. 64
Cruz executed an Affidavit of Waiver over his interest in the lot on the basis of which DAR Regional Office
III issued an Order cancelling the CLT of Cruz and declaring the lot is open for disposition. DAR Secretary
Santiago issued an Order awarding the lot to Padua who had been occupying said property and paying the
amortization thereon to the Land Bank. Dela Cruz, et al. filed with the DAR Secretary a Letter-Petition for
Cancellation of the DAR Regional Office III Order and DAR Order.

DAR Secretary Garilao granted the Letter-Petition in favor of Padua and directing the Regional Director to
cause the restoration of possession of said lot in favor of the petitioners.

ISSUE:
Whether or not the Sec. 50 if CARL cannot take cognizance of the petition for cancellation because the
matter involved is a civil law issue relating to the validity of a contract of sale executed by LBP and
petitioner, not an agrarian reform matter.

DECISION:
The CA dismissed the Petition and held that Rule 47 applies only to final judgments and orders of Regional
Trial Courts (RTCs) in civil cases and not to orders issued by the DAR Secretary. The CA also affirmed
the Garilao Order, holding that then DAR Secretary Garilao had authority to resolve the Letter-Petition as
it involved an agrarian dispute.

PASCO V. PISON-ARCEO AGRI. DEV. CORP.

FACTS:
Respondent is the registered owner of a parcel of land containing more than 100 hectares. Constructed on
respondents’ parcel of land are houses which are occupied by its workers. Petitioners, among other workers,
used to work for respondent until 1987. They having ceased to be employed by respondent, petitioners were
asked to vacate the house they were occupying but they refused, hence, respondent filed a complaint for
unlawful detainer against them before the MTCC in Talisay City.

Petitioners claimed that respondent constructed houses for its workers but the house they were occupying
was destroyed by a typhoon, forcing them to build their house; respondents demand was merely for them
to vacate the house, as they had paid rentals thru salary/wage deductions; and their refusal to vacate the
house is justified, they being the owners and actual possessors thereof.

Petitioners argued that respondents’ hacienda is covered by the CARL and they are qualified beneficiaries.

ISSUE:
Whether or not the subject land is covered by [CARL] and whether or not the defendants are qualified
agrarian reform beneficiaries;

DECISION:
The petition is denied. As for the registration of petitioners as potential CARP beneficiaries, the same does
not help their cause. As potential CARP beneficiaries, they are included in the list of those who may
be awarded land under the CARP. Nothing in the records of the case shows that the DAR has made an
award in favor of petitioners, hence, no rights over the land they occupy can be considered to have vested
in their favor in accordance with Section 24 of the CARL.

Moreover, to allow petitioners to continue to stay in respondents land on the ground that they are potential
CARP beneficiaries would give them preferential treatment over other potential CARP reform beneficiaries
who are not occupying the premises and still awaiting the award to be made by the DAR in their favor.
Worse, to further tolerate petitioners occupancy of respondents land might give other potential CARP
beneficiaries the wrong signal that they too can occupy the land which may be awarded to them even before
they are chosen or before an award is made in their favor.

Estribillo v. DAR
FACTS:
Petitioners are the recipients of Emancipation Patents (EPs) over parcels of land which were formerly part
of a forested area which have been denuded as a result of the logging operations of Hacienda Maria, Inc.
(HMI). Petitioners occupied and tilled these areas believing that the same were public lands. HMI acquired
such forested area through Sales Patent covering three parcels of land. PD 27 mandated that tenanted rice
and corn lands be brought under Operation Land Transfer and awarded to farmer-beneficiaries. HMI,

pg. 65
through Colmenares, requested that 527 hectares of its landholdings be placed under the coverage of
Operation Land Transfer. Receiving compensation therefor, HMI allowed petitioners and other occupants
to cultivate the landholdings so that the same may be covered under said law. DAR conducted
a parcellary mapping of the entire landholdings of 527 hectares and approved the Parcellary Map Sketching
(PMS) and the Amended PMS covering the entire landholdings. HMI participated in the determination of
the Average Gross Production per hectare at the Barangay Committee on Land Production, and was a
signatory of an undated Landowner and Tenant Production Agreement (LTPA), covering the 527 hectares
which was submitted to the Land Bank of the Philippines (LBP). A Deed of Assignment of Rights was also
executed in favor of petitioners, which was registered with the Register of Deeds. A final survey over the
entire area was conducted and approved.

The corresponding TCTs and EPs covering the entire 527 hectares were issued to petitioners. HMI filed
with the Regional Agrarian Reform Adjudicator (RARAD) of CARAGA, Region XIII, 17 petitions seeking
the declaration of erroneous coverage under PD 27 of 277 hectares of its former landholdings. HMI claimed
that said area was not devoted to either rice or corn, that the area was untenanted, and that no compensation
was paid therefor. The 17 petitions, which were later consolidated, sought for the cancellation of the EPs
covering the disputed 277 hectares which had been awarded to petitioners. HMI did not question the
coverage of the other 250 hectares under Presidential Decree No. 27 despite claiming that the entire
landholdings were untenanted and not devoted to rice and corn.

Petitioners failed to submit a Position Paper, the RARAD rendered a Decision declaring as void
the TCTs and EPs awarded to petitioners because the land covered was not devoted to rice and corn, and
neither was there any established tenancy relations between HMI and petitioners when PD 27 took effect.

ISSUE:
Whether or not the EPs and the corresponding TCTs issued to petitioners or to their successors-in-interest
are declared valid.

DECISION:
The rule in this jurisdiction, regarding public land patents and the character of the certificate of title that
may be issued by virtue thereof, is that where land is granted by the government to a private individual, the
corresponding patent therefor is recorded, and the certificate of title is issued to the grantee; thereafter, the
land is automatically brought within the operation of the Land Registration Act, the title issued to the
grantee becoming entitled to all the safeguards provided in Section 38 of the said Act. In other words, upon
expiration of one year from its issuance, the certificate of title shall become irrevocable and indefeasible
like a certificate issued in a registration proceeding. The EPs themselves, like the Certificates of Land
Ownership Award (CLOAs) in Republic Act No. 6657 (the Comprehensive Agrarian Reform Law of 1988),
are enrolled in the Torrens system of registration. The Property Registration Decree in fact devotes Chapter
IX on the subject of EPs. Indeed, such EPs and CLOAs are, in themselves, entitled to be as indefeasible as
certificates of title issued in registration proceedings.

The unreasonable delay of HMI in filing the Petition for cancellation more than 20 years after the alleged
wrongful annotation of the Deed of Assignment and more than ten years after the issuance of the TCTs to
the farmers, is apparently motivated by its desire to receive a substantially higher valuation and just
compensation should the disputed 277 hectares be covered under RA 6657 instead of Presidential Decree
No. 27.

The following EPs and the corresponding TCTs issued to petitioners or to their successors-in-interest are
hereby declared VALID and SUBSISTING.

Estate of Vda. De Panlilio v. Dizon


FACTS:
Encarnacion Vda. De Panlilio is the owner of the disputed landholdings with an area of 115 hectares called
Hacienda Masamat. Panlilio entered into a contract of lease over the said landholdings with Mercado
pursuant to the OLT under PD 27, DAR issued 38 Certificates of Land Transfer (CLTs) to Panlilios
tenants. The tenant-awardees were made defendants in the instant consolidated complaints filed by
petitioner Lizares. Mercado filed a letter-complaint with the DAR questioning the issuance of CLTs to
Panlilios tenants, alleging that the DAR should not have issued the CLTs since the land involved was
principally being planted with sugar and was outside the coverage of PD 27. She claimed that respondents
surreptitiously planted palay instead of sugar in order to bring the land within the purview of the law. DAR
concluded that the CLTs were properly and regularly issued.

pg. 66
Panlilio executed an Affidavit that it is his desire that the entire subject property be placed under the
coverage of P.D. 27 without exception and that thereafter the same be sold to tenant-petitioners. The DAR
Secretary to distribute all land transfer certificates, in view of the desire of Encarnacion Vda. De Panlilio
to place her property under the Land Transfer Program of the government. On the basis of the action of the
DAR Secretary, the CAR, issued an Order dismissing the complaint of Mercado (lessee). Panlilio died.

The RTC appointed Lizares as executor of the estate of Panlilio. Lizares filed his complaint for annulment
of coverage of landholdings under PD 27.

ISSUE:
Whether or not the Court of Appeals acted with grave abuse of discretion in declaring the transfer made by
the private respondents to third persons valid.

DECISION:
Petitioner Lizares asseverates that ownership of lands granted to tenant-farmers under PD 27 may not be
transferred or conveyed to third parties except by hereditary succession or to the Government. He contends
that the CA committed grave abuse of discretion in declaring the sale of the land by private respondents
Gonzalo Dizon, et al. to third persons valid. The CA ratiocinated that EO 228 was enacted after PD 27 and
since EO 228 is a later law, it will prevail over PD 27. Thus, the ownership of the lot may now be transferred
to persons other than the heirs of the beneficiary or the Government.
The prohibition in PD 27, the Tenants Emancipation Decree, states that title to land acquired pursuant to
this Decree or the Land Reform Program of the Government shall not be transferable except by hereditary
succession or to the Government in accordance with the provisions of this Decree, the Code of Agrarian
Reforms and other existing laws and regulations.

On the other hand, Sec. 6 of EO 228 authorizes the transfer of the ownership of the lands acquired by the
farmer-beneficiary after full payment of amortizations. It construed said provision to mean that the farmer-
beneficiary can sell the land even to a non-qualified person which is incorrect. The provision is silent as to
who can be the transferees of the land acquired through the CARP.

Since there appears to be no irreconcilable conflict between PD 27 and Sec. 6 of EO 228, then the two (2)
provisions can be made compatible by maintaining the rule in PD 27 that lands acquired under said decree
can only be transferred to the heirs of the original beneficiary or to the Government. Second, PD 27 is the
specific law on agrarian reform while EO 228 was issued principally to implement PD 27. This can easily
be inferred from EO 228 which provided for the mode of valuation of lands subject of PD 27 and the manner
of payment by the farmer-beneficiary and mode of compensation to the land owner. Third, implied repeals
are not favored. A perusal of the aforequoted Sec. 6 of EO 228 readily reveals that it confers upon the
beneficiary the privilege of paying the value of the land on a twenty (20)-year annual amortization plan at
six percent (6%) interest per annum. Thus, it is plain to see that Sec. 6 principally deals with payment of
amortization and not on who qualify as legal transferees of lands acquired under PD 27.

Since there is no incompatibility between PD 27 and EO 228 on the qualified transferees of land acquired
under PD 27, the lands acquired under said law can only be transferred to the heirs of the beneficiary or to
the Government for eventual transfer to qualified beneficiaries by the DAR pursuant to the explicit
proscription in PD 27. Thus, the alleged transfers made by private respondents in G.R. No. 148777 of lands
acquired under PD 27 to non-qualified persons are illegal and null and void.

IMPROVEMENT OF THE LEASEHOLD RELATIONSHIP

Leasehold system – characterized by a tenant – farmer personally and actually cultivating the farmholding
under a leasehold relationship whereby the lessee pays a fixed amount of rental whether in cash or in kind
to the lessor.

*Leasehold Relationship was thoroughly discussed by Group Two under RA 3844

LEASE RENTAL
In order to protect the economic status of the former, the DAR is empowered to determine and fix the lease
rental under section 12 of CARL, to wit:

SECTION 12.Determination of Lease Rentals. —In order to protect and improve the tenurial and
economic status of the farmers in tenanted lands under the retention limit and lands not yet acquired

pg. 67
under this Act, the DAR is mandated to determine and fix immediately the lease rentals thereof in
accordance with Section 34 of Republic Act No. 3844, as amended: Provided, That the DAR shall
immediately and periodically review and adjust the rental structure for different crops,
including rice and corn, or different regions in order to improve progressively the conditions of the
farmer, tenant or lessee.
Rental set by RA 3844 Rental set by DAR
Lease of Rice lands and Lands Devoted to Other a. For lands devoted to rice and other
Crops crops
- 25% of the average normal harvest during - 25% of the average normal harvest
the three (3) agricultural years after deducting the amount used for
immediately preceding the establishment seeds and the cost of harvesting, or
of the leasehold after deducting the threshing.
expenses for seeds, cost of harvesting, - If there has been no normal harvest,
threshing, loading, hauling and processing then the estimated normal harvest
during the 3 agricultural years
immediately preceding the date the
leasehold was established

VARIATIONS IN LAND ACQUISITIONS


Under Section 31 of CARL, there are two schemes available to corporate landowners, namely:
a. Voluntary land transfer; and
b. Stock Distribution

Both schemes, however, are no longer operative. Section 7 of CARL, as amended by RA 9700, allowed
voluntary land distribution only up to June 30, 2009. After June 30, 2009, the modes of acquisition are
limited to voluntary to sell and compulsory acquisition. Thus:

“Section 7.Priorities – x xx after June 30, 2009, the modes of acquisition shall be limited to
voluntary offer to sell and compulsory acquisition;”

PRODUCTION SHARING
SECTION 32.Production-Sharing.
Pending final land transfer, individuals or entities owning, or operating under lease or management
contract, agricultural lands are hereby mandated to execute a production-sharing plan with their farm
workers or farmworkers' reorganization, if any, whereby three percent (3%) of the gross sales from the
production of such lands are distributed within sixty (60) days of the end of the fiscal year as compensation
to regular and other farmworkers in such lands over and above the compensation they currently receive:
Provided, That these individuals or entities realize gross sales in excess of five million pesos per annum
unless the DAR, upon proper application, determines a lower ceiling.

In the event that the individual or entity realizes a profit, an additional ten percent (10%) of the net
profit after tax shall be distributed to said regular and other farmworkers within ninety (90) days of the end
of the fiscal year.

To forestall any disruption in the normal operation of lands to be turned over to the farmworker-
beneficiaries mentioned above, a transitory period, the length of which shall be determined by the DAR,
shall be established.

During transitory period, at least one percent (1%) of the gross sales of the entity shall be distributed
to the managerial, supervisory and technical group in place at the time of the effectivity of this Act, as
compensation for such transitory managerial and technical functions as it will perform, pursuant to an
agreement that the farmworker-beneficiaries and the managerial, supervisory and technical group may
conclude, subject to the approval of the DAR.

ALTERNATIVE BUSINESS ARRANGEMENTS


DAR ADMINISTRATIVE ORDER NO. 09-06
Revised Rules and Regulations Governing Agribusiness Venture Arrangements (AVAs) in Agrarian
Reform Areas
December 8, 2006

pg. 68
 Issued to amend/update the existing policies and procedures under Administrative Order (A.O.)
No. 2, Series of 1999 in order to effectively implement and monitor agribusiness venture
arrangements in agrarian reform areas.
 Agribusiness venture arrangements is encouraged as a means by which investment of financial and
other resources by the private sector can be channeled to agrarian reform areas through productive
and collaborative ventures between the private sector and the agrarian reform beneficiaries (ARBs).
 Covers all awarded lands distributed under CARP.
o Individual/cooperative/association ARBs who are holders of EP, CLOA and other tenurial
instruments issued by DAR.
o Retained areas of small landowners (LOs) and lands of ARBs that are fully paid or where
the ten-year prohibitory period under Sec. 27 of R.A. No. 6657 has already lapsed may also
be covered by these rules and regulations provided the said LOs and ARBs opt to include
the said landholdings in the AVAs under this Order.
 The different types of agribusiness partnership or arrangement shall be governed by the following
specific policies:
o Joint Venture Agreement. — The ARBs and investors shall form a joint venture
corporation (JVC) to manage farm operations. The beneficiaries shall contribute use of the
land held individually or in common and the facilities and improvements, if any, while the
investor shall furnish capital and technology for production, processing and marketing of
agricultural goods, or construction, rehabilitation, upgrading and operation of agricultural
capital assets, infrastructure and facilities.
o Production/Contract Growing/Growership/Marketing Contract. — In production/contract
growing/growership, the ARBs shall commit to produce certain crops which the investor
buys at pre-agreed terms (e.g., volume, quality standard, selling price) and maintain
ownership of the land. In marketing contracts, the ARB shall engage the services of an
investor who will explore possible markets/buyers for his/her produce.
o Lease Agreement. — The beneficiaries shall bind themselves to give the former landowner
or any other investor general control over the use and management of the land for a certain
amount and for a definite period.
o Management Contract. — The ARBs shall hire the services of a contractor who may be an
individual, partnership, or corporation to assist in the management and operation of the
farm for the purpose of producing high value crops or other agricultural crops in exchange
for a fixed wage and/or commission.
o Service Contract. — The ARBs shall engage the services of a contractor for mechanized
land preparation, cultivation, harvesting, processing, post-harvest operations and/or other
farm activities for a fee.
o Build-Operate-Transfer. (BOT). The investor may build, rehabilitate or upgrade, at his own
cost, capital assets, infrastructure and facilities applied to the production, processing and
marketing of agricultural products. He/She shall operate the same at his/her expense for an
agreed period after which the ownership thereof is conveyed to the ARBs who own the
land where such improvements and facilities are located.
 Parameters for Agribusiness Venture Arrangement. — The approval of AVAs shall depend on the
following considerations:
o Economic Viability/Profitability
o Legal Enforceability
o Ecological Soundness
o ARBs Skills Development
o Non-Transferability
 Financial and Organizational Capability of the Investor and ARB Cooperatives/Associations. —
The approval of AVAs shall depend on the financial and organizational capability of the investor
and ARB cooperative/association such as:
o good financial standing for the past three (3) years;
o must have established stable business relations/undertaking or good track record with
major business partners;
o possess enough liquid assets; and
o proof of its capability to manage and operate the AVA undertaking.
 Resolution of Disputes
o Mediation. — As a general rule, voluntary conciliation methods shall be preferred in
resolving disputes arising from the execution of AVA contracts. The AVA contract shall
provide that any dispute arising from the execution of the AVA contract shall be resolved
first through mediation and, if unsuccessful, through arbitration. During the mediation
process, the PARO or his duly authorized representative shall act as the mediator and the

pg. 69
contending parties shall settle the dispute/s through discussions and negotiations pursuant
to Art. II, Sec. 4, Item 4.22 of this Order.
o Arbitration. — If the parties fail to arrive at an agreement through mediation, their second
recourse is to submit their dispute for arbitration in accordance with R.A. No. 876, also
known as the "Arbitration Law," as amended by R.A. No. 9285 or the Alternative Dispute
Resolution System Act of 2004 or other pertinent arbitration laws, as the case may be. For
this purpose, the AVA contract shall contain prior consent by both parties to submit
themselves to arbitration when the need arises. If the parties fail to settle their dispute
through voluntary conciliation, the aggrieved party may file its protests or complaints with
the appropriate agency.
o Jurisdiction. — In case the dispute remains unresolved, it may be brought to either of the
following, for resolution, depending on the principal cause of action:
 Adjudication Board (DARAB), if it involves interpretation and enforcement of an
agribusiness agreement or an agrarian dispute as defined in Sec. 3 (d) of R.A. No.
6657;
 Securities and Exchange Commission (SEC), if the issues involved are corporate
in nature and consistent with the provisions of the Corporation Code of the
Philippines and the Securities Regulation Code;
 Regional Trial Court (RTC), if within the jurisdiction as defined under Section 5.2
of R.A. No. 8799 or the Securities Regulations Code;
 Cooperative Development Authority (CDA), if it involves an internal cooperative
dispute; or
 National Labor Relations Commission (NLRC), if it involves employer-employee
relations.
The DAR Secretary, in his/her capacity as Chairman of the PARC Executive Committee,
may issue orders, as may be appropriate, to maintain the status quo and preserve peace and
order in the farm subject of AVAs, particularly in the following cases pursuant to Sec. 5
(b) in relation to Sec. 7 of E.O. No. 129-A:
 a. Where there is clear and imminent threat to life or property;
 b. Where the dispute will cause serious and irreparable damage to either party or
to the AVA; or
 c. Where, in the Secretary's judgment, there is an urgent need to protect the national
interest.
 Revocation/Cancellation of AVA Contracts Implementation. — Pursuant to Art. II, Sec. 4, Item
4.24 of this Order, the PARC or the PARC ExCom or the DARAB, after due process, may
revoke/cancel and terminate the implementation of the AVA contracts based on the following
grounds:
o Gross violation or non-compliance of the terms and conditions of the contract such as, but
not limited to:
 non-implementation of the human resources development plan provisions;
 non-employment of the ARBs;
 concealment of the true financial status of the enterprise; and
 fraud.
o When, without justifiable reasons, the AVA fails to provide benefits and incentives
stipulated in the approved/witnessed AVA contracts, such as but not limited to, dividends
accruing to ARB's equity shares, production and quality incentives. For this purpose,
situations/conditions beyond the control of the investor such as force majeure are
considered justifiable reasons;
o When the AVA is no longer financially and economically viable;
o When a portion of the commercial farm subject of the AVA is converted or fragmented
into non-agricultural use without prior written consent of the general membership of the
cooperative or association or a majority of the ARBs;
o Action resulting to the transfer of ownership of the landholding subject of AVA to the
investors; or
o Other meritorious grounds.
 Expiration of AVA Contract. — Upon expiration of the AVA contract, the individual ARBs/ARB
cooperative/association:
o May assume full control and management of the land;
o Has the option to renew or extend the AVA contract with the existing investor; or
o May enter into a new contract with another investor.

pg. 70
CONVERSION OF AGRICULTURAL LANDS
Section 65 – Conversion of Agricultural Lands — After the lapse of five (5) years from its award, when the
land ceases to be economically feasible and sound for agricultural purposes, or the locality has become
urbanized and the land will have a greater economic value for residential, commercial or industrial
purposes, the DAR, upon application of the beneficiary or the landowner, with due notice to the affected
parties, and subject to existing laws, may authorize the reclassification or conversion of the land and its
disposition: provided, that the beneficiary shall have fully paid his obligation.
CREBA v. Sec. of Agrarian Reforms
G.R. 183409 June 18, 2010

Facts:
DAR Issued DAR AO No. 01-02 which covers all applications for conversion from agricultural to non-
agricultural uses or to another agricultural use, this particular issuance requires clearance first from DAR
all reclassification of a private land as a residential, commercial or industrial property, on or after the
effectivity of Republic Act No. 6657 on 15 June 1988.

Petitioner contends that DAR AO No. 01-02, as amended, was made in violation of Section 65[11] of
Republic Act No. 6657 because it covers all applications for conversion from agricultural to non-
agricultural uses or to other agricultural uses, such as the conversion of agricultural lands or areas that have
been reclassified by the LGUs or by way of Presidential Proclamations, to residential, commercial,
industrial or other non-agricultural uses on or after 15 June 1988. According to petitioner, there is nothing
in Section 65 of Republic Act No. 6657 or in any other provision of law that confers to the DAR the
jurisdiction or authority to require that non-awarded lands or reclassified lands be submitted to its
conversion authority. Thus, in issuing and enforcing DAR AO No. 01-02, as amended, the Secretary of
Agrarian Reform acted with grave abuse of discretion amounting to lack or excess of jurisdiction.

Issue: Whether DAR AO No. 01-02 is in violative of Sec. 65 of RA 6657 by requiring clearance first from
DAR those reclassified private lands on or after June 15, 1988

Ruling:
DAR AO No. 01-02, as amended was not in violation of Sec. 65 of RA 6657
The argument of the petitioner that DAR AO No. 01-02, as amended, was made in violation of Section 65
of Republic Act No. 6657, as it covers even those non-awarded lands and reclassified lands by the LGUs
or by way of Presidential Proclamations on or after 15 June 1988 is specious. To suggest, however, that
these are the only instances that the DAR can require conversion clearances would open a loophole in
Republic Act No. 6657 which every landowner may use to evade compliance with the agrarian reform
program. It should logically follow, therefore, from the said department's express duty and function to
execute and enforce the said statute that any reclassification of a private land as a residential, commercial
or industrial property, on or after the effectivity of Republic Act No. 6657 on 15 June 1988 should first be
cleared by the DAR.

Conversion and reclassification are different


Conversion and reclassification differ from each other. Conversion is the act of changing the current use of
a piece of agricultural land into some other use as approved by the DAR while reclassification is the act of
specifying how agricultural lands shall be utilized for non-agricultural uses such as residential, industrial,
and commercial, as embodied in the land use plan, subject to the requirements and procedures for land use
conversion. In view thereof, a mere reclassification of an agricultural land does not automatically allow a
landowner to change its use. He has to undergo the process of conversion before he is permitted to use the
agricultural land for other purposes.

Any reclassification, therefore, of agricultural lands to residential, commercial, industrial or other non-
agricultural uses either by the LGUs or by way of Presidential Proclamations enacted on or after 15 June
1988 must undergo the process of conversion, despite having undergone reclassification, before agricultural
lands may be used for other purposes.

Nevertheless, emphasis must be given to the fact that DAR's conversion authority can only be exercised
after the effectivity of Republic Act No. 6657 on 15 June 1988. The said date served as the cut-off period
for automatic reclassification or rezoning of agricultural lands that no longer require any DAR conversion
clearance or authority. Thereafter, reclassification of agricultural lands is already subject to DAR's
conversion authority. Reclassification alone will not suffice to use the agricultural lands for other purposes.
Conversion is needed to change the current use of reclassified agricultural lands.

pg. 71
Sta. Rosa Realty v. CA
G.R. 112526, October 12, 2001

Facts:
Petitioner Sta. Rosa Realty Development Corporation (hereafter, SRRDC) was the registered owner of two
parcels of land situated at Barangay Casile, Cabuyao, Laguna covered by Transfer Certificate of Title (TCT)
Nos. 81949 and 84891 with a total area of 254.6 hectares. According to petitioner, the parcels of land are
watersheds which provide clean potable water to the Canlubang Community and ninety (90) light industries
located in the area.

Petitioner alleged that respondents usurped its rights over the property, thereby destroying the ecosystem.
Respondents filed a civil case with the RTC of Laguna seeking an easement of a right of way to and from
Barangay Casile. Petitioner countered by seeking the ejectment of the respondents and filed separate
complaints for forcible entry against the respondents before the Municipal Trial Court, Cabuyao, Laguna.
After the filing of the ejectment cases, respondents petitioned the DAR for the compulsory acquisition of
the SRRDC property under CARP.

Eventually, after a long and arduous process, the Secretary of Agrarian Reform, Miriam Defensor Santiago
sent two (2) notices of acquisition to petitioner and placed the properties under the Comprehensive Agrarian
Reform Program despite the protest made by SRRDC that the property was not appropriate for agricultural
purposes. The area being rugged in terrain with slopes of 18% or over and that the occupants of the land
were squatters not entitled to any land as beneficiaries. SRRDC further averred that the properties were
exempt from CARP coverage because it had been classified as watershed area and were the subject of a
pending petition for land conversion. Later, the case was referred to the DARAB for summary land
valuation.

On July 11, 1991, DAR Secretary Benjamin T. Leong issued a Memorandum directing the Land Bank of
the Philippines to open a trust account in favor of SRRDC for P5,637,965.55 as valuation for the SRRDC
property.

On December 19, 1991, DARAB promulgated its Decision which, among others, dismissed the petitioner's
protest against compulsory coverage for lack of merit, ordered the Land Bank of the Philippines to pay
SRRDC the amount of P7,841,997.64 for the landholdings covered by the two titles and ordered the DAR
through the MARO to take immediate possession of the landholding after transfer of the titles in the name
of the Republic of the Philippines for the immediate issuance of Emancipation Patents to farmer-
beneficiaries.

Issue:
Whether or not the property in question is covered by CARP considering that it forms part of a watershed
area and has slopes of 18% and over, and whether the required procedural

Ruling:
There was proof showing that the disputed parcels of land may be excluded from the compulsory acquisition
coverage of CARP because of its very high slopes. In addition, Payment of just compensation was not in
accordance with the procedural requirement. The law required payment in cash or LBP bonds, not by trust
accounts as was done by DAR, otherwise, the title shall still to be considered of the landowner

Rationale:
First, under Republic Act No. 6657, there are two modes of acquisition of private land, Compulsory and
Voluntary.

For a valid implementation of the CARP Program, two notices are required: (1) the notice of coverage and
letter of invitation to a preliminary conference sent to the landowner, the representative of the BARC, LBP,
farmer-beneficiaries and other interested parties pursuant to DAR A.O. No. 12, series of 1989; and (2) the
notice of acquisition sent to the landowner under Section 16 of the CARL.

The importance of the first notice, that is, the notice of coverage and the letter of invitation to a conference,
and its actual conduct cannot be understated. They are steps designed to comply with the requirements of
administrative due process. The implementation of the CARL is an exercise of the State's police power and
the power of eminent domain. To the extent that the CARL prescribes retention limits to the landowners,
there is an exercise of police power for the regulation of private property in accordance with the
Constitution. But where, to carry out such regulation, the owners are deprived of lands they own in excess

pg. 72
of the maximum area allowed, there is also a taking under the power of eminent domain. The taking
contemplated is not a mere limitation on the use of the land. What is required is the surrender of the title to
and physical possession of the excess and all beneficial rights accruing to the owner in favor of the farmer-
beneficiary.

Watersheds may be defined as "an area drained by a river and its tributaries and enclosed by a boundary or
divide which separates it from adjacent watersheds." Watersheds generally are outside the commerce of
man, so why was the Casile property titled in the name of SRRDC? The answer is simple. At the time of
the titling, the Department of Environment and Natural Resources had not declared the property as
watershed area. The parcels of land in Barangay Casile were declared as "PARK" by a Zoning Ordinance
adopted by the municipality of Cabuyao in 1979, as certified by the Housing and Land Use Regulatory
Board. On January 5, 1994, the Sangguniang Bayan of Cabuyao, Laguna issued Resolution 26 voiding the
Zoning classification of the lands at Barangay Casile as Park and declaring that the land was now classified
as agricultural land.

More than the classification of the subject land as PARK is the fact that subsequent studies and survey
showed that the parcels of land in question form a vital part of a watershed area.

The definition does not exactly depict the complexities of a watershed. The most important product of a
watershed is water which is one of the most important human necessity. The protection of watersheds
ensures an adequate supply of water for future generations and the control of flashfloods that not only
damage property but cause loss of lives. Protection of watersheds is an "intergenerational responsibility"
that needs to be answered now.

Ros v. DAR
G.R. 132477, August 31, 2005

Facts:
The case stems from a denial of the application for conversion before the Regional Office of DAR Region
7 disallowing the application for conversion filed by petitioners, owners/developers of several parcels of
land located in Arpili, Balamban, Cebu. The application was based on Municipal Ordinance No. 101 passed
by the Mun. Council of Balamban, Cebu which reclassified such lands as industrial lands. Said ordinance
was approved by the Provincial Board of Cebu on April 3, 1995. Because of such disapproval, Petitioners
filed with the RTC of Toledo City a complaint for Injunction with application of TRO and a Writ of
Preliminary Injunction. RTC dismissed the complaint for lack of jurisdiction ruling that it is DAR which
has jurisdiction citing Section 20 of the Local Government Code

Petitioners is not claiming that local grants have the power to reclassify portions of their agricultural lands,
subject to the conditions set forth in Section 20 of the Local Government Code that if agricultural lands
sought to be reclassified by the local government is one which has already been brought under the coverage
of the CARL and/or which has been distributed to ARBs, then such reclassification must be confirmed by
the DAR pursuant to its authority under Section 65 of the CARL, in order for the reclassification to become
effective, that if the land sought to be reclassified is not covered by CARL and not distributed to ARBs,
then no confirmation from DAR is necessary.
Issue:
Whether or not the reclassification of the subject lands to industrial use by the Municipality of Balamban,
Cebu pursuant to its authority under Section 20 (a) of Republic Act No. 7160 or the Local Government
Code of 1991 (the "LGC") has the effect of taking such lands out of coverage of the CARL and beyond the
jurisdiction of the DAR.

Ruling:
No, petition lacks merit. After the passage of R.A. No. 6657, agricultural lands, through reclassification,
have to go through the process of conversion, jurisdiction over which is vested in the DAR. However,
agricultural lands already reclassified before the effectivity of R.A. No. 6657 are exempted from
conversion. Reclassification of lands does not suffice.

Rationale:
In Alarcon vs. CA (405 SCRA 440) it was ruled that conversion is different from reclassification.
Conversion is the act of changing the current use of a piece of agricultural land into some other use as
approved by DAR. Reclassification is the act of specifying how agricultural lands shall be utilized, for non-
agricultural uses such as residential, industrial, commercial, as embodied in the land use plan, subject to the
requirements and procedure for land use conversion. R.A. No. 6657 took effect on 15 June 1988 and

pg. 73
Municipal Ordinance No. 101, which reclassified the subject land, was passed on 25 March 1992, and the
Provincial Ordinance No. 95-8 of the Provincial Board of Cebu, which adopted Municipal Ordinance No.
101 was passed on 03 April 1995, long after R.A. No. 6657 has taken effect. To further clarify any doubt
on its authority DAR issued Administrative Order No. 12 dated October 1994 which provides for the
consolidated and revised rules and procedures governing conversion of agricultural lands to nonagricultural
uses.

The authority of DAR to approve conversions of agricultural lands covered by Republic Act No. 6657 to
non-agricultural uses has not been pierced by the passage of the Local Government Code. The code
explicitly provides that nothing in this section shall be construed as repealing or modifying in any manner
the provisions of Republic Act No. 6657.

It being settled that jurisdiction over conversion of land is vested in the DAR, the complaint for injunction
was correctly dismissed by the trial and appellate courts under the doctrine of primary jurisdiction.

Fortich v. Corona
G.R. No. 131457 April 24, 1998

Facts:
This case involves a 144-hectare land located at San Vicente, Sumilao, Bukidnon, owned by the Norberto
Quisumbing, Sr. Management and Development Corporation (NQSRMDC), one of the petitioners. The
property is covered by a Transfer Certificate of Title No. 14371 3 of the Registry of Deeds of the Province
of Bukidnon.

In October, 1991, during the existence of 10-yr lease with Phil. Packing Corp, now Del Monte Phil. Inc.,
to expire on Apr. 1994, the Department of Agrarian Reform (DAR) placed the entire 144-hectare property
under compulsory acquisition and assessed the land value at P2.38 million.

NQSRMDC resisted DAR’s action and was able to get a temporary injunction for the said implementation
from DARAB.

In the meantime, the Provincial Development Council (PDC) of Bukidnon, headed by Governor Carlos O.
Fortich, passed Resolution No. 6, dated January 7, 1993, designating certain areas along Bukidnon-Sayre
Highway as part of the Bukidnon Agro-Industrial Zones where the subject property is situated.

DAR Secretary denied however, and ordered the DAR Regional Director "to proceed with the compulsory
acquisition and distribution of the property."

Governor Carlos O. Fortich of Bukidnon appealed the order of denial to the Office of the President and
prayed for the conversion/reclassification of the subject land as the same would be more beneficial to the
people of Bukidnon. In resolving the appeal, the Office of the President, through then Executive Secretary
Ruben D. Torres, dated March 29, 1996, reversed the DAR Secretary's decision.

DAR filed a motion for reconsideration of the OP decision.

On September 11, 1996, in compliance with the OP decision of March 29, 1996, NQSRMDC and the
Department of Education, Culture and Sports (DECS) executed a Memorandum of Agreement whereby the
former donated four (4) hectares from the subject land to DECS for the establishment of the NQSR High
School.

When NQSRMDC was about to transfer the title over the 4-hectare donated to DECS, it discovered that the
title over the subject property was no longer in its name. It soon found out that during the pendency of both
the Petition for Certiorari, Prohibition, with Preliminary Injunction it filed against DAR in the Court of
Appeals and the appeal to the President filed by Governor Carlos O. Fortich, the DAR, without giving just
compensation, caused the cancellation of NQSRMDC's title on August 11, 1995 and had it transferred in
the name of the Republic of the Philippines under TCT No. T-50264 19 of the Registry of Deeds of
Bukidnon. Thereafter, on September 25, 1995, DAR caused the issuance of Certificates of Land Ownership
Award (CLOA) No. 00240227 and had it registered in the name of 137 farmer-beneficiaries under TCT
No. AT-3536 of the Registry of Deeds of Bukidnon.

pg. 74
Thus, on April 10, 1997, NQSRMDC filed a complaint with the Regional Trial Court (RTC) of Malaybalay,
Bukidnon (Branch 9), docketed as Civil Case No. 2687-97, for annulment and cancellation of title, damages
and injunction against DAR and 141 others.

Meanwhile, on June 23, 1997, an Order was issued by then Executive Secretary Ruben D. Torres denying
DAR's motion for reconsideration for having been filed beyond the reglementary period of fifteen (15)
days. The said order further declared that the March 29, 1996 OP decision had already become final and
executory.

On October 9, 1997, some alleged farmer-beneficiaries began their hunger strike in front of the DAR
Compound in Quezon City to protest the OP Decision of March 29, 1996. The strikers protested the March
29, 1996 Decision of the Office of the President (OP), issued through then Executive Secretary Ruben D.
Torres in OP Case No. 96-C-6424, which approved the conversion of a one hundred forty-four (144)-
hectare land from agricultural to agro-industrial/institutional area. This led the Office of the President,
through then Deputy Executive Secretary Renato C. Corona, to issue the so-called "Win-Win" Resolution
2 on November 7, 1997, substantially modifying its earlier Decision after it had already become final and
executory. The said Resolution modified the approval of the land conversion to agro-industrial area only to
the extent of forty-four (44) hectares, and ordered the remaining one hundred (100) hectares to be
distributed to qualified farmer-beneficiaries.

In seeking the nullification of the "Win-Win" Resolution, the petitioners in this case claim that the Office
of the President was prompted to issue the said resolution "after a very well-managed hunger strike led by
fake farmer-beneficiary Linda Ligmon succeeded in pressuring and/or politically blackmailing the Office
of the President to come up with this purely political decision to appease the 'farmers,' by reviving and
modifying the Decision of 29 March 1996 which has been declared final and executory in an Order of 23
June 1997.

Issue:
Whether the final and executory Decision dated March 29, 1996 can still be substantially modified by the
"Win-Win" Resolution.

Ruling:
Assailed "Win-Win" Resolution which substantially modified the Decision of March 29, 1996 after it has
attained finality, is utterly void. Such void resolution, as aptly stressed by Justice Thomas A. Street 62 in a
1918 case, 63 is "a lawless thing, which can be treated as an outlaw and slain at sight, or ignored wherever
and whenever it exhibits its head."

Rationale:
The rules and regulations governing appeals to the Office of the President of the Philippines are embodied
in Administrative Order No. 18. Section 7 thereof provides:

"SEC. 7. Decisions/resolutions/orders of the Office of the President shall, except as otherwise provided for
by special laws, become final after the lapse of fifteen (15) days from receipt of a copy thereof by the
parties, unless a motion for reconsideration thereof is filed within such period.

"Only one motion for reconsideration by any one party shall be allowed and entertained, save in
exceptionally meritorious cases." (Emphasis ours)

When the Office of the President issued the Order dated June 23, 1997 declaring the Decision of March 29,
1996 final and executory, as no one has seasonably filed a motion for reconsideration thereto, the said
Office had lost its jurisdiction to re-open the case, more so modify its Decision. Having lost its jurisdiction,
the Office of the President has no more authority to entertain the second motion for reconsideration filed
by respondent DAR Secretary, which second motion became the basis of the assailed "Win-Win"
Resolution. Section 7 of Administrative Order No. 18 and Section 4, Rule 43 of the Revised Rules of Court
mandate that only one (1) motion for reconsideration is allowed to be taken from the Decision of March
29, 1996. And even if a second motion for reconsideration was permitted to be filed in "exceptionally
meritorious cases," as provided in the second paragraph of Section 7 of AO 18, still the said motion should
not have been entertained considering that the first motion for reconsideration was not seasonably filed,
thereby allowing the Decision of March 29, 1996 to lapse into finality. Thus, the act of the Office of the
President in re-opening the case and substantially modifying its March 29, 1996 Decision which had already
become final and executory, was in gross disregard of the rules and basic legal precept that accord finality
to administrative determinations.

pg. 75
The orderly administration of justice requires that the judgments/resolutions of a court or quasi-judicial
body must reach a point of finality set by the law, rules and regulations. The noble purpose is to write finis
to disputes once and for all. This is a fundamental principle in our justice system, without which there would
be no end to litigations. Utmost respect and adherence to this principle must always be maintained by those
who wield the power of adjudication. Any act which violates such principle must immediately be struck
down.

MECHANISMS FOR IMPLEMENTING THE COMPREHENSIVE AGRARIAN REFORM


PROGRAM

Program Implementation
• Presidential Agrarian Reform Council (Sec.41)
Chairperson – President of the Philippines
Vice Chairperson – Secretary of Agrarian Reform
Members:
Secretary of DA Admin – National Irrigation Administration
Secretary of DENR Admin – Land Registration Authority
Secretary of DBM 6 Rep. of affected land owner of LUZVIMIN
Secretary of DILG 2 Rep. each for LUZVIMIN agrarian reform ben.
Secretary of DPWH
Secretary of DTI
Secretary of DoF
Secretary of DOLE
Director-General – NEDA
President of LBP
- One (1) must be from indigenous people
- One (1) must be from recognized organization for Women / Agrarian reform org. with substantial
number of women members
- At least 20% are women
Executive Community of PARC (Sec. 42)
• Chairman – Secretary of DAR
• Members – Whoever appointed by the President

Purpose:
- Shall provide support to agriculture through appropriate technology and research and adequate
financial, production, marketing and other support services (1987 Article XIII Sec.5)
- The EXCOM may meet and decide on any and all matters in between meetings of the PARC and
its decision must be reported to the PARC immediately and not later than the next meeting
PARC Secretariat (Sec.43)
Member – Secretary of Agrarian Reform
Undersecretary
Staff (composition shall be determined by the PARC)
Purpose – to provide general support and coordinative services such as inter-agency linkages;
program and project appraisal and evaluation and general operations monitoring for the PARC
Provincial Agrarian Reform Coordinating Committee (Sec.44)
Chairman – Appointed by the President upon the recommendation of the EXCOM
Executive Officer – Provincial Agrarian Reform Officer
Members –
1. Representative from – DAR, DENR, LBP, existing farmers organizations, agricultural cooperatives
an non-governmental organizations in the province, cultural communities (in areas where there are
cultural communities)
2. Representatives from – Landowners (at least 1 of whom shall be a producer representing the principal
crop of province), farmer and farm worker or beneficiaries (at least 1 of whom shall be a farmer or farm
worker representing the principal crop of the province)

Purpose – shall coordinate and monitor the implementation of the CARP in the province. It shall provide
information on the provisions of the CARP

In addition to:
A. Recommend to the PARC the following:

pg. 76
1. Market Prices
2. Adoption of Direct Payment Scheme
3. Continuous processing of application for different arrangements and other schemes that will
optimize the operating size for agricultural production

Province by Province Implementation (Sec.45)


Purpose – The PARC shall provide the guidelines for the province-by-province implementation of the
CARP, taking into account the peculiarities and needs of each place, kinds of crop needed or suited,
land distribution workload, beneficiaries development activities and other factors prevalent or obtaining in
the area
Baranggay Agrarian Reform Council (Sec.46)
Members – Representative from:
Farmers and Farmworkers Beneficiaries
Farmer and Farmworkers Non-Beneficiaries
Agricultural Cooperatives
Other Farmer Organizations
Barangay Council
Non-government organizations
Landowners
Land Bank
Official of the Dept. of Agriculture assigned to the BARC
Official of the Dept. of DENR assigned to the area
DAR Technologist who shall act as the Secretary
Functions of the BARC (Sec.47)
1. Mediate and conciliate between agrarian dispute
2. Assist the identification of qualified beneficiaries and land owner
3. Attest to the accuracy of the initial parcellary mapping of the beneficiary’s tillage
4. Assist qualified beneficiaries in obtaining credit from lending institutions
5. Assist in the initial determination of the value of the land
6. Assist the DAR representative in the preparation of periodic reports for submission to DAR
7. Coordinate the delivery of support services to beneficiaries
8. Perform such other functions as may be assigned by the DAR
9. To participate and give support to the implementation of agrarian reform (EO 229 Sec.19)
10. To mediate, conciliate or arbitrate agrarian conflicts and issues (EO 229 Sec.19)
11. Perform Such other functions that the PARC, EXCOM or the DAR Secretary may delegate from
time to time (EO 229 Sec.19)
Legal assistance of BARC (Sec.48)
- The BARC or any member thereof may, whenever necessary, seek legal assistance of the DAR and
the provincial, city, or municipal government
Rules and Regulation (Sec.49)
- The PARC and the DAR shall have the power to issue rules and regulation whether substantive or
procedural, to carry out the objects and purposes of this Act. Said rules shall take effect ten (10) days after
publication in two (2) national newspapers of general circulation

FINANCING THE COMPREHENSIVE AGRARIAN REFORM PROGRAM

Financing the CARP (Sec.63)


• Funded by the Agrarian Reform Fund and other funding sources in the amount of at least One
Hundred Fifty Billion pesos (P 150,000,000,000.00)
- Additional amounts are hereby authorized to be appropriated as and when needed to augment the
Agrarian Reform Fund in order to fully implement the provision of this Act during the five (5) year
extension period.
-
Sources of funding or appropriations shall include
- Proceeds of the sales of Privatization and Management Office
- Proceeds of the disposition and development of the properties of Gov’t in foreign countries
- All income and collections of whatever form and nature from agrarian reform operations
- Portion of amounts of all sources of official foreign aids and concessional financing
- Yearly appropriations of no less than 5 billion pesos (P 5,000,000,000.00) from GAA
- Gratuitous financial assistance from legitimate resources
- Other government funds not otherwise appropriated

pg. 77
RESOLUTION OF AGRARIAN DISPUTES

Quasi – Judicial Powers of the DAR (Sec.50)


- The DAR is hereby vested with the primary jurisdiction to determine and adjudicate agrarian
reform matters and shall have exclusive original jurisdiction over all matters involving the
implementation of agrarian reform except those falling under the exclusive jurisdiction of the
Department of Agriculture (DA) and the Department of Environment and Natural Resources
(DENR)
- It shall not be bound by technical rules of procedure and evidences
- shall proceed to hear and decide all cases, disputes or controversies in a most expeditious manner,
employing all reasonable means to ascertain the facts of every case in accordance with justice and
equity and the merits of the case. Toward this end, it shall adopt a uniform rule of procedure to
achieve a just, expeditious and inexpensive determination for every action or proceeding before it.
- has the power to summon witnesses, administer oaths, take testimony, require submission of
reports, compel the production of books and documents and answers to interrogatories and issue
subpoena, and subpoena duces tecum, and enforce its writs through sheriffs or other duly deputized
officers.
- It shall likewise have the power to punish direct and indirect contempts in the same manner and
subject to the same penalties as provided in the Rules of Court
- when there are two or more representatives for any individual or group, the representatives should
choose only one among themselves to represent such party or group before any DAR proceedings
- Finality of Determination (Sec.51) – Any case or controversy before it shall be decided within thirty
(30) days after it is submitted for resolution. Only one (1) motion for reconsideration shall be
allowed. Any order, ruling or decision shall be final after the lapse of fifteen (15) days from receipt
of a copy thereof.
- Frivolous Appeals (Sec. 52) – To discourage frivolous or dilatory appeals from the decisions or
orders on the local or provincial levels, the DAR may impose reasonable penalties, including but
not limited to fines or censures upon erring parties.
- Certification of the BARC. (Sec. 53) - The DAR shall not take cognizance of any agrarian dispute
or controversy unless a certification from the BARC that the dispute has been submitted to it for
mediation and conciliation without any success of settlement is presented: provided, however, that
if no certification is issued by the BARC within thirty (30) days after a matter or issue is submitted
to it for mediation or conciliation the case or dispute may be brought before the PARC.

Rufina Vda. De Tangub v. CA

- The Regional Trial Courts have not, however, been completely divested of jurisdiction over
agrarian reform matters. Section 56 of RA 6657, on the other hand, confers "special jurisdiction"
on "Special Agrarian Courts," which are Regional Trial Courts designated by the Supreme Court
— at least one (1) branch within each province — to act as such. These Regional Trial Courts qua
Special Agrarian Courts have, according to Section 57 of the same law, original and exclusive
jurisdiction over:
- 1.all petitions for the determination of just compensation to land-owners," and
- 2."the prosecution of all criminal offenses under . . [the] Act."
- In these cases, "(t)he Rules of Court shall apply . . unless modified by . . . (the) Act."

pg. 78
STA. ROSA REALTY DEVELOPMENT CORPORATION, v. COURT OF APPEALS, JUAN B. AMANTE ET
AL
- SRRDC cannot now assail the jurisdiction of the DARAB to determine whether the property is
subject to CARP for the following reasons: [a] it was the Secretary of Agrarian Reform who
actually and initially classified that the subject property is subject to CARP; [b] it was SRRDC who
invoked the DARAB to resolve the issue whether the subject property is covered by the CARP;
and [c] the issue was raised for the first time before the CA, and was never presented or discussed
before the DARAB.

DAR v. CUENCA
- The issuance of the Notice of Coverage constitutes the first necessary step towards the acquisition
of private land under the CARP. Plainly then, the propriety of the Notice relates to the
implementation of the CARP, which is under the quasi-judicial jurisdiction of the DAR. Thus, the
DAR could not be ousted from its authority by the simple expediency of appending an allegedly
constitutional or legal dimension to an issue that is clearly agrarian.

CABRAL v. CA
- The Court of Appeals has underscored the fact that Section 13 of E.O. No. 129-A authorizes the
DARAB to delegate its powers and functions to the regional office in accordance with the rules
and regulations promulgated by the Board. The authority purportedly provides additional
justification for the Regional Offices jurisdiction over the case. Precisely, however, the DARAB,
through its Revised Rules, has delegated such powers and functions to the RARADs and the
PARADs, which, under Section 3 of the Rules, are deemed to form part of the DAR Regional
Office where they are stationed. It is evident from the foregoing that the DAR, like most
administrative agencies, is granted with a fusion of governmental powers, in this case, a
commingling of the quasi-judicial and the executive. The growing complexity of modern life, the
multiplication of the subjects of governmental regulation and the increased difficulty of
administering the laws have impelled this constantly growing tendency toward such delegation.

ISIDRO v. CA
- But a case involving an agricultural land does not automatically make such case an agrarian dispute
upon which the DARAB has jurisdiction. The mere fact that the land is agricultural does not ipso
facto make the possessor an agricultural lessee of tenant. The law provides for conditions or
requisites before he can qualify as one and the land being agricultural is only one of
them. The law states that an agrarian dispute must be a controversy relating to a tenurial
arrangement over lands devoted to agriculture. And as previously mentioned, such arrangement
may be leasehold, tenancy or stewardship

HEIRS OF SANTOS v. CA cited (Morta v. Occidental)


- For DARAB to have jurisdiction over a case, there must exist a tenancy relationship between the
parties. In order for a tenancy agreement to take hold over a dispute, it would be essential to
establish all its indispensable elements to wit: 1) that the parties are the landowner and the tenant
or agricultural lessee; 2) that the subject matter of the relationship is an agricultural land; 3) that
there is consent between the parties to the relationship; 4) that the purpose of the relationship is to
bring about agricultural production; 5) that there is personal cultivation on the part of the tenant or
agricultural lessee; and 6) that the harvest is shared between the landowner and the tenant or
agricultural lessee. In Vda. de Tangub v. Court of Appeals (191 SCRA 885), we held that the
jurisdiction of the Department of Agrarian Reform is limited to the following: a) adjudication of
all matters involving implementation of agrarian reform; b) resolution of agrarian conflicts and land
tenure related problems; and c) approval and disapproval of the conversion, restructuring or
readjustment of agricultural lands into residential, commercial, industrial, and other non-
agricultural uses.

LAGUNA ESTATE v. CA
- For DARAB to have jurisdiction over a case, there must exist a tenancy relationship between the
parties. In order for a tenancy agreement to take hold over a dispute, it would be essential to
establish all its indispensable elements to wit: 1) that the parties are the landowner and the tenant
or agricultural lessee; 2) that the subject matter of the relationship is an agricultural land; 3) that
there is consent between the parties to the relationship; 4) that the purpose of the relationship is to

pg. 79
bring about agricultural production; 5) that there is personal cultivation on the part of the tenant or
agricultural lessee; and 6) that the harvest is shared between the landowner and the tenant or
agricultural lessee.Obviously, the issue of a right of way or easement over private property without
tenancy relations is outside the jurisdiction of the DARAB. This is not an agrarian
issue. Jurisdiction is vested in a court of general jurisdiction.

ALANGILAN REALTY v. OFFICE OF THE PRESIDENT


- The exclusive jurisdiction to classify and identify landholdings for coverage under the CARP is
reposed in the DAR Secretary. The matter of CARP coverage, like the instant case for application
for exemption, is strictly part of the administrative implementation of the CARP, a matter well
within the competence of the DAR Secretary. It is well settled that factual findings of administrative
agencies are generally accorded respect and even finality by this Court, if such findings are
supported by substantial evidence . The factual findings of the DAR Secretary, who, by reason of
his official position, has acquired expertise in specific matters within his jurisdiction, deserve full
respect and, without justifiable reason, ought not to be altered, modified, or reversed

CONCHA v. RUBIO
- The DARAB cannot review, much less reverse, the administrative findings of DAR Instead, the
DARAB would do well to defer to DARs expertise when it comes to the identification and selection
of beneficiaries, as it did in Lercana where this Court noted with approval that, in the dispositive
portion of its decision, left to the concerned DAR Offices the determination of who were or should
be agrarian reform beneficiaries

MODE/S OF APPEAL/REVIEW FROM DARAB DECISION

Section 54. Certiorari. — Any decision, order, award or ruling of the DAR on any agrarian
dispute oron any matter pertaining to the application, implementation, enforcement, or
interpretation of this Actand other pertinent laws on agrarian reform may be brought to the
Court of Appeals by certiorariexcept as otherwise provided in this Act within fifteen (15) days
from the receipt of a copy thereof.

The findings of fact of the DAR shall be final and conclusive if based on substantial evidence.

R.A, 6700, as amended has also provided an aggrieved party the option to appeal the decision,
resolution or order of a DAR Sec. or Department of Agrarian Reform Adjudication Board (DARAB) to the
Court of Appeals, within 15 days, through a verified petition for review.11
A petition for review seeks to correct errors of judgment committed by the court, tribunal, or officer.
When a court, tribunal or officer has jurisdiction over the person and the subject matter of the dispute, the
decision on all other questions arising in the case is an exercise of that jurisdiction. Consequently, all errors
committed in the exercise of said jurisdiction are merely errors of judgment.
However, Rule 43 is inapplicable when a petition contains an allegation that the challenged
resolution is patently illegal and was issued with grave abuse of discretion and beyond the jurisdiction of
DAR Sec. or the DARAB. The crucial issue being raised in here involves an error of jurisdiction, not an
error of judgment which is reviewable by an appeal under Rule 43. Thus, the approximate remedy to annul
and set aside the assailed resolution is an original special civil action for certiorari under Rule 65.
The findings of fact of the DAR shall be final and conclusive
if based on substantial evidence.

Sec. 10 of rule 43 states that the finding of fact of the court or agency concerned, when supported
by substantial evidence, shall be binding on the court of appeals. Substantial evidence rules provides that
in cases filed before an administrative or quasi-judicial bodies, a fact may be deemed established if it is
supported with substantial evidence, which is that amount of relevant evidence as a reasonable mind might
accept as adequate to support a conclusion. For this purpose, the findings of fact of quasi-judicial agencies
are generally accorded not only respect, but at times even finality, if such findings are supported by
substantial evidence. 12 Nonetheless, such doctrine does not apply when the board or official has gone

11
Sec. 3, Rule 43, Rules of Court
12
Joya vs. Presidential Commission on Good Government, 225 SCRA 568

pg. 80
beyond his statutory authority, exercising unconstitutional powers, without regard to duty and with grave
abuse of discretion.

AUTHORITY OF DAR SECRETARY TO NULLIFY TITLE UNDER THE CARP

Section 24. Award to Beneficiaries. —The rights and responsibilities of the beneficiaries shall
commence from their receipt of a duly registered emancipation patent or certificate of land
ownership award and their actual physical possession of the awarded land. Such award shall be
completed in not more than one hundred eighty (180) days from the date of registration of the title
in the name of the Republic of the Philippines: Provided, That the emancipation patents, the
certificates of land ownership award, and other titles issued under any agrarian reform program
shall be indefeasible and imprescriptible after one (1) year from its registration with the Office of
the Registry of Deeds, subject to the conditions, limitations and qualifications of this Act, the
property registration decree, and other pertinent laws. The emancipation patents or the certificates
of land ownership award being titles brought under the operation of the Torrens system, are
conferred with the same indefeasibility and security afforded to all titles under the said system, as
provided for by Presidential Decree No. 1529, as amended by Republic Act No. 6732.

It is the ministerial duty of the Registry of Deeds to register the title of the land in the name of the
Republic of the Philippines, after the Land Bank of the Philippines (LBP) has certified that the
necessary deposit in the name of the landowner constituting full payment in cash or in bond with
due notice to the landowner and the registration of the certificate of land ownership award issued
to the beneficiaries, and to cancel previous titles pertaining thereto.

Identified and qualified agrarian reform beneficiaries, based on Section 22 of Republic Act No.
6657, as, amended, shall have usufructuary rights over the awarded land as soon as the DAR
takes possession of such land, and such right shall not be diminished even pending the awarding
of the emancipation patent or the certificate of landownership award.

All cases involving the cancellation of registered emancipation patents, certificates of land
ownership award, and other titles issued under any agrarian reform program are within the
exclusive and original jurisdiction of the Secretary of the DAR. (as amended by Section 9,
RA 9700)

Certificates of Land Ownership Award (CLOAs) are indefeasible as they are brought under the operation
of Torrens Systems. CLOAs and other titles issued under the agrarian reform program become
indefeasible and imprescriptible after one year from its registration with the Office of the Registry of
Deeds, subject to conditions, limitations and qualifications under Comprehensive Agrarian Reform Law,
the Property Registration Decree and other pertinent laws.

Nonetheless, the Secretary of Department of Agrarian Reform has the exclusive and original
jurisdiction to cancel CLOAs and other title issued under the agrarian reform program based on the
following grounds:
a. Abandonment of land;
b. Neglect or Misuse of Land;
c. Failure to Pay Three (3) Annual Amortizations;
d. Misuse or diversion of Financial and Support Services; and
e. Illegal Conversion of Land

pg. 81
THE ROLE OF THE SPECIAL AGRATIAN COURTS IN LAND VALUATION AND PENAL
PROVISIONS
Section 56. Special Agrarian Court. — The Supreme Court shall designate at least one (1)
branch of the Regional Trial Court (RTC) within each province to act as a special Agrarian Court.

The Supreme Court may designate more branches to constitute such additional Special Agrarian
Courts as may be necessary to cope with the number of agrarian cases in each province. In the
designation, the Supreme Court shall give preference to the Regional Trial Courts which have
been assigned to handle agrarian cases or whose presiding judges were former judges of the
defunct Court of Agrarian Relations.

The Regional Trial Court (RTC) judges assigned to said courts shall exercise said special
jurisdiction in addition to the regular jurisdiction of their respective courts.

The Special Agrarian Courts shall have the powers and prerogatives inherent in or belonging to
the Regional Trial Courts.

Section 57. Special Jurisdiction. — The Special Agrarian Courts shall have original and
exclusive jurisdiction over all petitions for the determination of just compensation to landowners,
and the prosecution of all criminal offenses under this Act. The Rules of Court shall apply to all
proceedings before the Special Agrarian Courts, unless modified by this Act.

The Special Agrarian Courts shall decide all appropriate cases under their special jurisdiction
within thirty (30) days from submission of the case for decision.

Section 56 of R.A. No. 6657 confers “special jurisdiction” on “Special Agrarian Courts”. These
Regional Trial Courts designated as Special Agrarian Courts have, according to Sec. 57 of the same law,
original and exclusive jurisdiction over:

(a)all petitions for the determination of just compensation to landowners; and


(b)the prosecution of all criminal offenses under the Act.

“The jurisdiction of the Regional Trial Courts is not any less “original and exclusive”, because the
question is first passed upon by the DAR, as the judicial proceedings are not a continuation of the
administrative determination. For the matter, the law may provide that the decision of the DAR is final and
unappealable. Nevertheless, resort to courts cannot be foreclosed on the theory that courts are the
guarantors of the legality of administrative action.”13

In Land Bank of the Philippines vs. Raymunda Martinez 14 , the agrarian reform adjudicator’s
decision on land valuation attains finality after the lapse of the 15-day period stated in the DARAB Rules.
The petition for the fixing of just compensation should therefore, following the law and settled
jurisprudence, be filed with the SAC within the said period. Following settled doctrine, the Court ruled in
this case that the PARAD’s decision had already attained finality because of LBP’s failure to file the petition
for the fixing of just compensation within the 15-day period.

Meanwhile, the Court laid down the mandatory formula to attain just compensation, to which the
Special Agrarian Court must thereby observe, in the case of LBP vs. Heirs of Cruz15. It said that “to obtain
the land value, the formula under said A.O. No. 06, series of 1992 requires that the values for the Capitalized
Net Income, Comparable Sales and Market Value based on the tax declaration must be shown. Moreover,
said formula has been superseded by DAR A.O. No. 05, series of 1998, which also requires values for
Capitalized Net Income, Comparable Sales and Market Value, the same parameters laid down in the prior
regulation.16

13
Philippine Veterans Bank vs. Court of Appeals G.R. No. 132767, January 18, 2000
14
Land Bank of the Philippines vs. Raymunda Martinez , G.R. No. 169008, 31 July 2008
15
Landbank of the Philippines vs. Heirs of Eleuterio Cruz, G.R. No. 175175, 29 September 2008
16
Ibid.

pg. 82
In Land Bank of the Philippines vs. Celada17, the Supreme Court, through Justice Ynares-Santiago,
pronounced that “DAR AO No. 5, s. of 1998 precisely filled in the details of Section 17, RA 6657 by
providing a basic formula by which the factors mentioned therein may be taken into account”.18 As such,
“SAC was at no liberty to disregard the formula which was devised to implement the said provision”.19

On the other hand, in Land Bank of the Philippines vs. Court of Appeals, et al.,20the Court reiterated
that it is Land Bank’s duty to finance a transaction once it has already agreed with the appraisal of the
Department of Agrarian Reform. “In the instant case, petitioner participated in the valuation proceedings
held in the office of the PARAD through its counsel, Atty. Eduard Javier. It did not appeal the decision of
PARAD which became final and executor .As a matter of fact, petitioner even stated in its Petition that it
is willing to pay the value determined by the PARAD provided that the farmer beneficiaries concur thereto.
These facts sufficiently prove that petitioner LBP agreed with the valuation of the land. The only thing that
hindered it from paying the amount was the non-concurrence of the farmer-beneficiary. But as we have
already stated, there is no need for such concurrence. Without such obstacle, petitioner can now be
compelled to perform its legal duty through the issuance of a writ of mandamus.”21

Section 58. Appointment of Commissioners. — The Special Agrarian Courts, upon their
owninitiative or at the instance of any of the parties, may appoint one or more
commissioners to examine,investigate and ascertain facts relevant to the dispute including
the valuation of properties, and to filea written report thereof with the court.

The term commissioner includes a referee, an auditor or an examiner. Rule 32 of the Rules of Court
(Trial by Commissioner) provides for a period within which a party who objects to a commissioner’s report
may signify the ground for his objections. Such period is only within ten (10) days and after the lapse of
such period, the matter will be set for hearing after which the court will issue an order adopting, modifying,
or rejecting the report in whole or in part.

Section 59. Orders of the Special Agrarian Courts. — No order of the Special Agrarian
Courts on any issue, question, matter or incident raised before them shall be elevated to
the appellate courtsuntil the hearing shall have been terminated and the case decided on
the merits.

Interlocutory orders of the Special Agrarian Court cannot be challenged in the higher court pending
trial or until the case has been decided on the merits. Such rule is made for the purpose of expediting the
resolution of agrarian disputes.

Section 60. Appeals. — An appeal may be taken from the decision of the Special
Agrarian Courts byfiling a petition for review with the Court of Appeals within fifteen (15)
days receipt of notice of thedecision; otherwise, the decision shall become final.

An appeal from the decision of the Court of Appeals, or from any order, ruling or decision
of the DAR,as the case may be, shall be by a petition for review with the Supreme Court
within a non-extendibleperiod of fifteen (15) days from receipt of a copy of said decision.

The remedy from an adverse decision rendered by the Regional Trial Court acting as a Special
Agrarian Court is appeal through a verified petition for review under Rule 43 of the Rules of Court. This is
so even if by reading the provision of said rule, the Special Agrarian Court is not mentioned therein.

In Land Bank of the Philippines vs. Arlene De Leon, et al.,22the Supreme Court specifically ruled
that “the failure to mention Special Agrarian Courts in Section 1 of Rule 43 of the Revised Rules of Civil
Procedure cannot be construed to mean that a petition for review is not permissible for decisions of the said
special courts. In fact, the said Rule is not relevant to determine whether a petition for review is the proper
mode of appeal from decisions of Regional Trial Courts in agrarian cases, that is, when they act as Special
17
LandBank of the Philippines vs. LeonilaCelada, G.R. No. 164876, 23 January 2006
18
Ibid
19
Ibid.
20
Land Bank of the Philippines vs. Court of Appeals and Jose Pascual, G.R. No. 128557, 29 December 1999
21
Ibid.
22
Land Bank of the Philippines vs. Arlene De Leon and Bernardo De Leon,G.R. No. 143275, 10 September 2002

pg. 83
Agrarian Courts. Section 1 of Rule 43 of the 1997 Revised Rules of Civil Procedure merely mentions the
Court of Tax Appeals and the other different quasi-judicial agencies without exclusivity in its phraseology.
Such omission cannot be construed to justify the contention that a petition for review is prohibited for
decisions on special agrarian cases inasmuch as the category is for quasi-judicial agencies and tax courts to
which the Regional Trial Courts do not properly belong. Although Supreme Court Circular No. 1-
91(precursor to Rule 43 of the Revised Rules of Civil Procedure) included the decisions of Special Agrarian
Courts in the enumeration requiring petition for review, its non-inclusion later on in Rule 43 merely
signifies that it was inappropriately classified as a quasi-judicial agency. What is indisputable is that Section
60 expressly regards a petition for review as the proper way of appealing decisions of agrarian courts. So
far, there is no rule prescribed by this Court expressly disallowing the said procedure.”23

On the other hand, an adverse decision of the Court of Appeals may be appealed to the Supreme
Court via certiorari under rule 45 of the Rules of Court, within a non-extendible period of fifteen (15) days
from notice of the award, judgment, final order or resolution, or from the date of its last publication or
denial of the petitioner’s Motion for Reconsideration or Motion for New Trial. The issues that may be raised
under this rule are only those pertaining to questions of law.24 However, certain exceptions have been made
in various cases allowing the petitioner to raise questions of fact in a petition provided the same shows any
of the following:

(a) When the findings are grounded entirely on speculation, surmises, or conjectures;
(b) When the inference made is manifestly mistaken, absurd, or impossible;
(c) When there is grave abuse of discretion;
(d) When the judgment is based on a misapprehension of facts;
(e) When the findings of facts are conflicting;
(f) When in making its findings the CA went beyond the issues of the case, or its findings are
contrary to the admissions of both the appellant and the appellee;
(g) When the CA’s findings are contrary to those by the trial court;
(h) When the findings are conclusions without citation of specific evidence on which they are
based;
(i) When the facts set forth in the petition as well as in the petitioner’s main and reply briefs
are not disputed by the respondent;
(j) When the findings of fact are premised on the supposed absence of evidence and
contradicted by the evidence on record; or
(k) When the CA manifestly overlooked certain relevant facts not disputed by the parties,
which, if properly considered, would justify a different conclusion.

THE ROLE OF THE SPECIAL AGRATIAN COURTS IN LAND VALUATION AND PENAL
PROVISIONS
SECTION 36.Funding for Support Services.
At least twenty-five percent (25%) of all appropriations for agrarian reform shall be immediately set aside
and made available for this purpose.
In addition, the DAR shall be authorized to package proposals and receive grants, aid and other forms
of financial assistance from any source.
SECTION 37. Support Services to the Beneficiaries.
The PARC shall ensure that support services to farmers-beneficiaries are provided, such as:
(a) Land surveys and titling;
(b) Liberalized terms on credit facilities and production loans;
(c) Extension services by way of planting, cropping, production and postharvest technology transfer,
as well as marketing and management assistance and support to cooperatives and farmers'
organizations;
(d) Infrastructure such as access trails, mini-dams, public utilities, marketing and storage facilities; and
(e) Research, production and use of organic fertilizers and other local substances necessary in farming
and cultivation.
The PARC shall formulate policies to ensure that support services to farmer beneficiaries shall be
provided at all stages of land reform. The BagongKilusangKabuhayansaKaunlaran (BKKK) Secretariat
shall be transferred and attached to the LBP, for its supervision including all its applicable and existing
funds, personnel, properties, equipment and records.

23
Id.
24
Section 1, Rule 45, Rules of Court

pg. 84
Misuse or diversion of the financial and support services herein provided shall result in sanctions
against the beneficiary guilty thereof, including the forfeiture of the land transferred to him or lesser
sanctions as may be provided by the PARC, without prejudice to criminal prosecution.

SECTION 38. Support Services to Landowners.

The PARC with the assistance of such other government agencies and instrumentalities as it may
direct, shall provide landowners affected by the CARP and prior agrarian reform programs with the
following services:

(a) Investment information financial and counseling assistance;


(b) Facilities, programs and schemes for the conversion or exchange of bonds issued for payment of
the lands acquired with stocks and bonds issued by the National Government, the Central Bank and
other government institutions and instrumentalities;
(c) Marketing of LBP bonds, as well as promoting the marketability of said bonds in traditional and
non-traditional financial markets and stock exchanges; and
(d) Other services designed to utilize productively the proceeds of the sale of such lands for rural
industrialization.

A landowner who invests in rural-based industries shall be entitled to the incentives granted to a
registered enterprise engaged in a pioneer or preferred area of investment as provided for in the Omnibus
Investment Code of 1987, or to such other incentives as the PARC, the LBP, or other government financial
institutions may provide. The LBP shall redeem a landowner's LBP bonds at face value, provided that the
proceeds thereof shall be invested in a BOI-registered company or in any agribusiness or agro-industrial
enterprise in the region where the landowner has previously made investments, to the extent of thirty percent
(30%) of the face value of said LBP bonds, subject to guidelines that shall be issued by the LBP.

SECTION 39. Land Consolidation.


The DAR shall carry out land consolidation projects to promote equal distribution of landholdings,
to provide the needed infrastructures in agriculture, and to conserve soil fertility and prevent erosion.

SECTION 73 – PROHIBITED ACTS UNDER CARP


The following are prohibited:
(a) The ownership or possession, for the purpose of circumventing the provisions of this Act, of
agricultural lands in excess of the total retention limits or award ceilings by any person, natural
or juridical, except those under collective ownership by farmer-beneficiaries.
(b) The forcible entry or illegal detainer by persons who are not qualified beneficiaries under this
Act to avail themselves of the rights and benefits of the Agrarian Reform Program.
(c) The conversion by any landowner of his agricultural land into any nonagricultural use with intent
to avoid the application of this Act to his landholdings and to dispossess his tenant farmers of
the land tilled by them.
(d) The willful prevention or obstruction by any person, association or entity of the implementation
of the CARP.
(e) The sale, transfer, conveyance or change of the nature of lands outside of urban centers and city
limits either in whole or in part after the effectivity of this Act. The date of the registration of the
deed of conveyance in the Register of Deeds with respect to titled lands and the date of the
issuance of the tax declaration to the transferee of the property with respect to unregistered lands,
as the case may be, shall be conclusive for the purpose of this Act.
(f) The sale, transfer or conveyance by a beneficiary of the right to use or any other usufructuary
right over the land he acquired by virtue of being a beneficiary, in order to circumvent the
provisions of this Act.

pg. 85
PART 2:
SOCIAL
LEGISLATION

pg. 86
Domestic Workers Act or Batas Kasambahay (RA 10361)
Approved January 18, 2013

Applicability of the Law - domestic workers working within the Philippines

Meaning of domestic worker or kasambahay


 Person engaged to work for a household within an employment relationship
 Hired specifically to perform household work
 Whether on a live-in or live-out arrangement, such as but not limited to:
1. General househelp;
2. Yaya;
3. Cook;
4. Gardener;
5. Laundry person; or
6. Any person who regularly performs domestic work in one household on an occupational
basis.

Not a domestic worker


1. Service providers;
2. Family drivers;
3. Children under foster family arrangement; and
4. Any other person who performs work occasionally or sporadically and not on an occupational basis.

Minimum age for employment of domestic worker – 15 years of age

Hiring of domestic worker


 Execute employment contract before commencement of the service in a language or dialect
understood by both the domestic worker and employer
 Employer may require the following from the domestic worker:
1. Medical certificate or a health certificate issued by a local government health officer;
2. Barangay and police clearance;
3. National Bureau of Investigation (NBI) clearance; and
4. Duly authenticated birth certificate or if not available, any other document showing the
age of the domestic worker such as voter’s identification card, baptismal record or
passport.
 The mentioned documents shall be standard requirements when the employment of the domestic
worker is facilitated through PEA
 Costs borne by the prospective employer or agency
 No share of recruitment or finder’s fees shall be charged against the domestic worker by the PEA
or third party.

Basic contents of employment contract


1. Duties and responsibilities of the domestic worker;
2. Period of employment;
3. Compensation;
4. Authorized deductions;
5. Hours of work and proportionate additional payment;
6. Rest days and allowable leaves;
7. Board, lodging and medical attention;
8. Agreements on deployment expenses, if any;
9. Loan agreement;
10. Termination of employment; and
11. Any other lawful condition agreed upon by both parties.

pg. 87
Registration of domestic workers
- Employer shall register all domestic workers under their employment in the Registry of Domestic
Workers in the barangay where the employer’s residence is located

Terms and conditions of employment


- Health and safety – safeguard the health and safety of the domestic worker with due consideration
of the peculiar nature of domestic work
- Daily rest period – aggregate of 8 hours per day
- Weekly rest period – at least 24 hours consecutive hours of rest in a week; agreed in writing;
respect preference based on religious grounds employer and domestic worker may agree on the
following:
1. Offsetting a day of absence with a particular rest day;
2. Waiving a particular rest day in return for an equivalent daily rate of pay;
3. Accumulating rest days not exceeding five (5) days; or
4. Other similar arrangements.

Rights and privileges of domestic workers


1. Basic necessities
a. At least 3 adequate meals a day
b. Humane sleeping arrangements that ensure safety
c. Appropriate rest and assistance in case of illnesses and injuries sustained during service
without loss of benefits
2. Minimum wage
a. P2,500 per month – NCR
b. P2,000 per month – in chartered cities and first class municipalities
c. P1,500 per month – in other municipalities
3. Other mandatory benefits such as daily and weekly rest periods, service incentive leave of 5 days
with pay for at least 1 year of service and 13th month pay
4. Freedom from employers’ interference in the disposal of wages
5. Standard of treatment - not be subjected to any kind of abuse, including repeated verbal or
psychological, nor be inflicted with any form of physical violence or harassment or any act tending
to degrade his/her dignity
6. Board, lodging and medical attendance
7. Right to privacy - Privacy guaranteed at all times and shall extend to all forms of communication
and personal effects
8. Access to outside communication - during free time, provided that in case of emergency, access to
communication shall be granted even during work time. Should the domestic worker make use of
the employer’s telephone or other communication facilities, the costs shall be borne by the domestic
worker, unless such charges are waived by the employer.
9. Access to education and training - Opportunity to finish basic education and may be allowed access
to alternative learning systems, and, as far as practicable, higher education or technical and
vocational training. The employer shall adjust the work schedule of the domestic worker to allow
such access to education or training without hampering the services required by the employer.
10. Right to form, join or assist labor organization – for purposes of mutual aid and collective
negotiation
11. Right to be provided a copy of the employment contract
12. Right to certificate of employment
13. Right to terminate the employment
14. Right to exercise their own religious beliefs and cultural practices
15. Access to a copy of pay slip containing the amount paid in cash kept by the employer for a period
of three years
16. SSS, ECC, Philhealth and HDMF coverage for those who have rendered at least one month of
service
- Wage of P5,000 and above per month – domestic worker shall pay the proportionate
share in the premium payments or contributions

Rights and obligations of Employer


1. To require submission by the Kasambahay of pre-employment documents
2. To recover deployment expenses
3. To demand replacement

pg. 88
4. To terminate employment

Obligations of domestic workers


1. Treat as privileged and confidential all communication and information
pertaining to the employer or members of the household
2. Render satisfactory service at all times
3. Observe the terms and conditions of the employment contract

Extent of Duty Outside the Household – Kasambahay and the employer may mutually agree to
temporarily perform a task for the benefit of another household under the following conditions:
1. Agreement between the Kasambahay and the employer for the purpose,
particularly on the task to be performed
2. Kasambahay entitled to additional payment of not less than the applicable
minimum wage rate
3. Original employer shall be responsible for any liability incurred by the
Kasambahay on account of such arrangement; and
4. The original employer is not charging any amount from the other
household for the arrangement.

Prohibited activities
- Prohibition against deposits for loss or damage - To require a domestic worker to make deposits
from which deductions shall be made for the reimbursement of loss or damage to tools, materials,
furniture and equipment in the household
- Prohibition on debt bondage - To place the domestic worker under debt bondage, i.e. rendering
of service by the kasambahay as security or payment for a debt where the length and nature of service
is not clearly defined or when the value of the service is not reasonably applied in the payment of the
debt.
- To assign work in commercial, industrial or agricultural enterprise at a wage rate lower than that
provided for agricultural or non-agricultural workers
- Prohibition on interference in the disposal of wages - To interfere with the freedom of any domestic
worker to dispose latter’s wages; employer to force, compel or oblige the domestic worker to purchase
merchandise, commodities or other properties from the employer or from any other person, or otherwise
make use of any store or services of such employer or any other person
- Prohibition against withholding of wages - To withhold wages of the domestic worker
If the domestic worker leaves without any justifiable reason, any unpaid salary not
exceeding 15 days shall be forfeited
- To deduct any amount from the wages without his written consent or authorization
- Employing under 15 years of age

Just causes for termination of employment by the domestic worker


1. Verbal or emotional abuse of the domestic worker by the employer or any member of the household;
2. Inhuman treatment including physical abuse of the domestic worker by the employer or any
member of the household;
3. Commission of a crime or offense against the domestic worker by the employer or any member of
the household;
4. Violation by the employer of the terms and conditions of the employment contract and other
standards set forth under this law;
5. Any disease prejudicial to the health of the domestic worker, the employer, or member/s of the
household; and
6. Other causes analogous to the foregoing.

Just causes for termination of employment by the employer


1. Misconduct or willful disobedience by the domestic worker of the lawful order of the employer in
connection with the former’s work;
2. Gross or habitual neglect or inefficiency by the domestic worker in the performance of duties;
3. Fraud or willful breach of the trust reposed by the employer on the domestic worker;
4. Commission of a crime or offense by the domestic worker against the person of the employer or
any immediate member of the employer’s family;

pg. 89
5. Violation by the domestic worker of the terms and conditions of the employment contract and
other standards set forth under this law;
6. Any disease prejudicial to the health of the domestic worker, the employer, or member/s of the
household; and
7. Other causes analogous to the foregoing.

Certificate of Employment
- Employer shall issue the domestic worker within 5 days from request a COE indicating the nature,
duration of the service and work performance

Deduction for Loans/Debts


- shall not exceed 20% of his/her wages in a month

Prohibited Deductions
1. The Kasambahay is clearly shown to be responsible for the loss or damage;
2. The Kasambahay is given reasonable opportunity to show cause why deduction should not be
made;
3. The total amount of such deductions is fair and reasonable and shall not exceed the actual loss or
damage; and
4. The deduction from the wages of the Kasambahay does not exceed 20% of his/her wages in a
month.

Criminal Acts
1. Employing a domestic worker who is below 15 years old
2. Charging by the original employer any amount from the household where the service of his domestic
worker is temporarily performed
3. Requiring the domestic worker to make deposits to answer for losses or damages to tools, materials,
furniture and equipment in the household
4. Placing the domestic worker under debt bondage
5. Interfering with the freedom of the domestic worker to dispose of his wages
6. Withholding the wages of domestic worker or inducing the domestic worker to give up any part of
his wages

Criminal Sanction
- Administrative penalty of not less than P10,000 but not more than P40,000.

pg. 90
Migrant Workers and Overseas Filipinos Act of 1995
RA 8042 - Approved on June 7, 1995
Amended by RA 9422 – Approved on April 10, 2007
Further Amended by RA 10022 – Approved on March 8, 2010

Definition of migrant worker


- Person who is to be engaged, is engaged or has been engaged in a remunerated activity in a state
of which he is not a legal resident
- Used interchangeably with OFW

Deployment of migrant workers


- Only in countries where rights of Filipino migrant workers are protected
- Any of the following is a guarantee for the protection and rights of OFWs:
a. It has existing labor and social laws protecting the rights of migrant workers;
b. It is a signatory to multilateral conventions, declarations or resolutions relating to the
protection of migrant workers;
c. It has concluded a bilateral agreement or arrangement with the government protecting
the rights of overseas Filipino workers; and
d. It is taking positive, concrete measures to protect the rights of migrant workers

- With regard to Filipino seafarers:


o When owners/employers are compliant with international laws and standards that
protect the rights of migrant workers
- With regard to companies and contractors with international operations:
o Compliant with standards and conditions embodied in the employment contracts
prescribed by the POEA

Liability of POEA Governing Board, Government Officials and Employees


- Money claims – within 9 days after filing of complaint of claims for actual, moral, exemplary and
other forms of damages (Labor Arbiter of the NLRC)
- Compromise./amicable settlement or voluntary agreement on money claims – within 4 months
from the approval of the settlement by the appropriate authority

Noncompliance with the mandatory periods for resolutions of cases shall subject responsible officials to
any or all of the following penalties:
1. Salary of such official who fails to render his decision or resolution within the
prescribed period shall be withheld until compliance
2. Suspension for not more than 90 days
3. Dismissal from the service with disqualification to hold any appointive public office
for 5 years
Same penalties apply for:
- Members of the POEA Governing Board who actually voted in favor of an order
allowing the deployment of migrant workers without any of the aforementioned
guarantees
- Those responsible for allowing deployment of migrant workers in direct contravention
of the prohibition imposed by the POEA Governing Board

Compulsory insurance coverage for agency-hired migrant workers


- Recruitment or manning agencies to provide at no cost to the worker
- Migrant worker made to shoulder the cost of insurance premium:
o License of the recruitment or manning agency will be cancelled
o All its directors, partners, proprietors, officers and employees shall be perpetually
disqualified from engaging in recruitment of overseas workers
- Insurance company must be:
o Duly registered with Insurance Commission
o In existence and operation for at least 5 years
o With a net worth of at least P500,000,000 to be determined by the Insurance
Commission

pg. 91
o With a current certificate of authority
- Certificate of insurance coverage submitted to POEA as a requirement for issuance of an Overseas
Employment Certificate
- The following shall be sufficient to substantiate the claim:
o Death certificate – natural or accidental death
o Police or accident report – accidental death
o Medical certificate – permanent disablement

Disqualification
- Insurance companies who have directors, partners, officers, employees or agents with relatives
within fourth degree of consanguinity or affinity who work or have interest in any of the government
agencies involved in the overseas employment program are disqualified from providing the workers’
insurance program.

Coverage of the insurance


o USD 15,000 – accidental death
o USD 10,000 – for natural death
o USD 7,500 – permanent total disability
o USD 100 per month – subsistence allowance for a maximum of 6 months if the migrant
worker is involved in a case or litigation for the protection of his rights in the receiving
country
o Repatriation cost of the worker when employment is terminated without any valid cause
and transport of his personal belongings
o Money claims arising from employer’s liability
o Cost of transportation for compassionate visit by 1 family member in case the migrant
worker is hospitalized for at least 7 consecutive days
o Cost of medical evacuation – proximate and adequate medical facility is not available
o Cost of medical repatriation – medically necessary as determined by attending physician

Repatriation of migrant workers


- Responsibility of the recruitment agency
- Costs borne by or charged to the agency and/or its principal except when termination of
employment is due solely to the fault of the worker.

Emergency repatriation
- War, epidemic, disasters or calamities, natural or man-made, and other similar events
- OWWA, in coordination with appropriate international agencies, subject to reimbursement by the
responsible principal or agency
- Costs borne by OWWA if latter cannot be identified

Repatriation of underage migrant workers


- License of recruitment/manning agency automatically revoked and shall pay a fine ranging from
P500,000 to P1,000,000
- Recruitment/manning agency shall refund all the fees incurred by the underage worker within 30
days from date of mandatory repatriation.

Illegal recruitment
- any act of canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring workers
and includes referring, contract services, promising or advertising for employment abroad, whether for
profit or not, when undertaken by a non-licensee or non-holder of authority
- includes the following acts:
o charge any amount greater than that specified in the schedule of allowable fees
o publish false notice regarding recruitment or employment
o commit any act of misrepresentation for securing license or authority
o induce or attempt to induce a worker already employed to quit his employment for
another unless the transfer will liberate the worker from oppressive terms and
conditions of employment
o influence or attempt to influence not to employ any worker who has not applied for
employment through his agency
pg. 92
o engage in the recruitment or placement of workers in jobs harmful to public health r
morality or to the dignity of the country
o obstruct or attempt to obstruct inspection by Secretary of DOLE
o fail to submit reports on the following:
§ status of employment
§ placement vacancies
§ remittance of foreign exchange earnings
§ separation from jobs
§ departures
o substitute or alter to the prejudice of the worker employment contracts
o officer or agent of a recruitment or placement agency to become an officer or member
of the Board of any corporation engaged in travel agency
o withhold or deny travel documents from applicant workers before departure for
monetary or financial considerations
o failure to actually deploy without valid reason
o failure to reimburse expenses incurred by the worker in connection with his
documentation and processing for purposes of deployment, in cases where the
deployment does not actually take place without the worker’s fault
o allow a non-Filipino citizen to head or manage a licensed recruitment/manning agency

Syndicated illegal recruitment – carried out by a group of 3 or more persons


Large-scale illegal recruitment – committed against 3 or more persons individually or as a group
Economic sabotage – illegal recruitment committed in syndicate or large scale
Prohibited acts
- grant a loan with interest exceeding 8% for payment of legal and allowable placement fees
- impose a compulsory and exclusive arrangement to avail a loan only from specifically designated
institutions
- refuse to condone or renegotiate a loan after premature termination of employment contract without
fault by an OFW
- impose a compulsory and exclusive arrangement to undergo health examinations only from
specifically designated medical clinics
- impose a compulsory and exclusive arrangement to undergo training from specifically designated
institutions
- For a suspended recruitment/manning agency to engage in any kind of recruitment activity
- For a recruitment/manning agency or a foreign principal/employer to pass on the overseas Filipino
worker or deduct from his or her salary the payment of the cost of insurance fees

Filing of criminal complaint for illegal recruitment


- Secretary of DOLE
- POEA Administrator
- Any aggrieved person

Prescriptive period for filing of criminal complaint


- Simple illegal recruitment – 5 years
- Large-scale or syndicated illegal recruitment – 20 years

Penalty of illegal recruitment


- Simple illegal recruitment
o 12 years and 1 day to 20 years of imprisonment
o Fine ranging from P1,000,000 to P2,000,000
- Large-scale or syndicated illegal recruitment
o Life imprisonment
o Fine ranging from P2,000,000 to P5,000,000
- Maximum penalty if:
o Person illegally recruited is less than 18 years of age
o Committed by non-licensee or non-holder of authority
- Any of the prohibited acts
o 6 years and 1 day to 12 years imprisonment
o A fine ranging from P500,000 to P1,000,000

pg. 93
- Accessory penalties
o Deportation after service of sentence – if the offender is an alien
o Automatic revocation of license or registration

Jurisdiction of the POEA


POEA – regulate private sector participation in the recruitment and overseas placement of workers by
setting up a licensing and registration system.
- Administrative aspect of recruitment violations committed by recruitment or manning agencies
- Disciplinary action cases and other special cases involving employers, principal, contracting
partners and overseas workers processed by POEA

Power of the POEA to order closure of establishment


- When the activities of the non-licensee:
o Constitute a danger to national security and public order
o Will lead to further exploitation of job seekers

Effect of closure order


- Inclusion of all officers and responsible employees of the entity in the List of Persons with
Derogatory Record
- Disqualification from participating in the overseas employment program of the government

Remedies from a closure order


- Motion to Re-open Establishment
- Motion to Lift Closure Order
- Appeal

Money claims
- Labor Arbiters of NLRC
- Solidary liability of the principal/employer and recruitment/placement agency
- Claims for actual, moral, exemplary and other forms of damages
- Termination of overseas employment without just, valid or authorized cause - the worker shall be
entitled to the full reimbursement of his placement fee and the deductions made with interest at twelve
percent (12%) per annum, plus his salaries for the unexpired portion of his employment contract or for
three (3) months for every year of the unexpired term, whichever is less.

pg. 94
Paternity Leave Act of 1996 (RA 8187)
Approved on June 11, 1996
Meaning of paternity leave
- Leave credits granted to a married male employee to allow him to earn compensation for 7 working
days without reporting for work, provided that his spouse has delivered a child, had a miscarriage, or
an abortion for the purpose of lending support to his wife during her period of recovery and nursing of
the newborn child
- the benefits granted to a married male employee allowing him not to report for work for seven (7)
days but continues to earn the compensation therefor, on the condition that his spouse has delivered a
child or suffered a miscarriage for purposes of enabling him to effectively lend support to his wife in
her period of recovery and/or in the nursing of the newly-born child.
Coverage of the law
- Married male employees in the private and public sectors.

Duration of the paternity leave


- 7 days with full pay (available only for the first 4 deliveries)

Conditions for entitlement to paternity leave


1. Employed at the time of the delivery of his child
2. Notified his employer of the pregnancy of his wife and her expected date of delivery
3. Wife has given birth, suffers a miscarriage or an abortion
4. Availed in first 4 deliveries by his lawful spouse

Penal sanctions
- Penalty or fine not exceeding P25,000 or imprisonment of not less than 30 days nor more than 6
months
- If violation is committed by a juridical entity, the penalty of imprisonment shall be imposed on
the entity’s responsible officers

Solo Parents’ Welfare Act (RA 8972)


Approved on November 7, 2000

Definition of solo parent


1. A woman who gives birth as a result of rape and other crimes against chastity even without a final
conviction of the offender
2. Parent left solo or alone due to the death of the spouse
3. Parent left solo or alone while spouse is detained or is serving sentence for a criminal conviction for
at least one year
4. Parent left solo or alone due to the physical/mental incapacity of spouse as certified by a public
medical practitioner
5. Parent left solo or alone due to the legal separation or de facto separation at least one year
6. Parent left solo or alone due to the declaration of nullity or annulment of marriage
7. Parent left solo or alone due to the abandonment of spouse for at least one year
8. Unmarried mother/father
9. Any other person who solely provides parental care and support to a child or children
10. Any family member who assumes the responsibility of head of family as a result of death,
abandonment, disappearance or prolonged absence of the parent/solo parent

Benefits available to solo parent


1. Comprehensive package of social development and welfare services
a. Livelihood development services
b. Counselling services
c. Parent effectiveness services
d. Critical incidence stress debriefing
e. Special projects for individuals in need of protection

pg. 95
2. Flexible work schedule – not affecting individual and company productivity; employer may
request for exemption on meritorious grounds
3. Parental leave – 7 working days; not convertible to cash; different from emergency or contingency
leave
4. Educational leave
a. Scholarship programs for qualified solo parents and their children in institutions of
basic, tertiary and technical/skills education
b. Non-formal education programs
5. Housing benefits – upon meeting the eligibility criteria; shall be provided with liberal terms on
government low-cost housing projects
6. Medical assistance – comprehensive health care program for solo parents and their children

Magna Carta for Persons with Disability

(RA 7227, as amended by RA 9442, 10070, 10524 and 10754)


Definition of persons with disability – persons suffering from restriction or different abilities, as a
result of a mental, physical or sensory impairment, to perform an activity in the manner or within the range
considered normal for a human being.

Rights and privileges of persons with disability


1. Equal opportunity for employment
- same terms of conditions of employment and same compensation, privileges, benefits,
fringe benefits, incentives or allowances as a qualified-able bodied person
- 5% of all casual, emergency and contractual positions in the DSWD, DOH, DEPED
and other government agencies, offices or corporation engaged in social development
shall be reserved for disabled persons
2. Sheltered employment
- Provision of productive work for disabled persons through workshops providing
special facilities, income –producing projects or homework schemes
3. Apprenticeship
- Handicap is not much as to effectively impede the performance of job operations in the
particular occupation for which they are hired
- If found satisfactory, they shall be eligible for employment
4. Incentives for employers
- Those employing disabled persons as regular employee, apprentice or learner entitled
to additional deduction from their gross income equivalent to 25% of the total amount
paid as salaries and wages to disabled persons
- Those that improve or modify their physical facilities in order to provide reasonable
accommodation for disabled persons shall also be entitled to an additional deduction
from their net taxable income equivalent to 50% of the direct costs of the improvements
or modifications
5. Vocational rehabilitation
- Develop the skills and potentials of disabled persons and enable them to compete
favourable for available productive and remunerative employment opportunities in the
labor market
6. Vocational guidance and counselling
- Ensure the availability and training of counsellors and other suitably qualified staff
responsible for the vocational guidance and counselling of disabled persons
7. Access to quality education
- Unlawful to deny a disabled person admission to any course by reason of handicap or
disability
8. Assistance to disabled students
- Financial assistance to economically marginalized but deserving disabled students
pursuing post-secondary or tertiary education in the form of scholarship grants, student
loan programs, subsidies and other incentives
- At least 5% of the allocation for the Private Education Student Financial Assistance
Program shall be set aside for disabled students
9. Special education
- Special education classes in public schools, cities or municipalities

pg. 96
- Braille and Record Libraries
10. Vocational or Technical and other training programs
- Civics, vocational efficiency, sports and physical fitness and other skills
11. Non-formal education
12. State Universities and Colleges
- Development of material appliances and technical aids for disabled persons
- Development of training materials for vocational rehabilitation and special education
instructions
- Research on special problems
- Inclusion of Special Education for Disabled (SPED) course in the curriculum
13. National Health Program
- Prevention of disability, whether occurring pre-natally or post-natally
- Recognition and early diagnosis of disability
- Early rehabilitation of the disabled
14. Rehabilitation Centers – in government provincial hospitals
15. Health services
- Prevention of disability through immunization, nutrition, environmental protection and
preservation, and genetic counseling; and early detection of disability and timely
intervention to arrest disabling condition
- Medical treatment and rehabilitation
16. Auxiliary social services – restore their social functioning and participation in the community
affairs
- Assistance in the acquisition of prosthetic devices and medical intervention of specialty
services
- Provision of specialized training activities designed to improve functional limitations
of disabled persons related to communication skills
- Development among disabled persons of a positive self-image through the provision
of counseling, orientation and mobility and strengthening daily living capability
- Provision of family care services geared towards developing the capability of families
to respond to the needs of the disabled members of the family
- Provision of substitute family care services and facilities for those who need custodial
care
- Provision of after care and follow-up services for the continued rehabilitation in a
community-based setting of disabled persons who were released from residential care
or rehabilitation centers
- Provision of day care services for disabled for disabled children of pre-school age
17. Broadcast media
- At least 1 newscast program a day and special programs covering events of national
significance
18. Telephone services
- Installation of special telephone devices or units for the hearing-impaired and ensure that
they are commercially available to enable them to communicate through the telephone
system
19. Free postal charges for the disabled for personal use of a disabled person certified by the Social
Welfare and Development Office of the LGU or DSWD
- Articles and literatures like books and periodicals, orthopaedic and other devices, and
teaching aids for the use of the disabled
- Aids and orthopaedic devices sent for repair
20. Barrier-free environment – access in public and private buildings and establishments
21. Mobility – disabled persons shall be allowed to drive motor vehicles subject to the rules of LTO
pertinent to the nature of their disability
22. Access to public transport facilities – subsidy in the form of subsidized transportation fare
23. Voting
- allowed to be assisted by a person of his choice in voting in the national or local elections
- polling places should be made accessible
24. Right to assemble – participate in processions, rallies, parades, demonstrations, public meetings
and assemblages or other forms of mass or concerned action held in public
25. Right to organize – right to form organizations or associations that promote their welfare and
advance or safeguard their interests
26. Housing program – consideration of special housing requirements of disabled persons

pg. 97
Prohibition on discrimination, ridicule, and vilification of persons with disability
1. Discrimination on employment
- Limiting, segregating, or classifying a disabled job applicant to adversely affect work
opportunities
- Using qualifications that screen out a disabled person unless job-related
- Utilizing standards that have the effect of discrimination and perpetuate discrimination on
the basis of disability
- Loss of compensation by reason of disability
- Favouring a non-disabled employee over a qualified disabled employee
- Re-assigning or transferring a disabled employee to a job he cannot perform by reason of
his disability
- Dismissal or termination of services by reason of disability unless he impairs the
satisfactory performance of the work involved to the prejudice of the business entity
- Failing to select or administer in the most effective manner of employment tests which
accurately reflect the skills, aptitude or other factor of the disabled applicant or employee
that such test purports to measure, rather than the impaired sensory, manual or speaking
skills
- Exclusion from membership in labor unions
2. Employment entrance examination – may be subjected to medical examination if:
- All employees are subjected to such an examination
- Information treated as a confidential information
o Supervisors and managers may be informed regarding necessary restrictions
o First aid and safety personnel may be informed
o Government officials investigating compliance shall be provided relevant
information
3. Discrimination on public transportation – charge higher fare or to refuse to convey a passenger
by reason of his disability
4. Discrimination on the use of public accommodations and services
- Inn, hotel, motel or other place of lodging
- Restaurant, bar or other establishment serving food or drink
- Motion picture, theatre, concert hall, stadium, or other place of exhibition or entertainment
- Auditorium, convention center, lecture hall or other place of public gathering
- Bakery, grocery store, hardware store, shopping center, or other sales or rental
establishment
- Bank, barber shop, beauty shop, travel service, funeral parlor, gas station, lawyer’s office,
pharmacy, insurance office, professional office of a health care provider, hospital or other
service establishment
- Terminal, depot, or other station used for specified public transportation
- Museum, gallery, library or other place of public display or collection
- Park, zoo, amusement park or other place of recreation
- Nursery, elementary, secondary, undergraduate, or post-graduate private school, or other
place of education
- Gymnasium, health spa, bowling alley, golf course
- Other place of exercise or recreation

Tax incentives for benefactors


1. Any donation made to government agencies engaged in rehabilitation og disabled persons and
organizations of disabled persons exempted from donor’s tax and allowed as deduction from donor’s
gross income for purposes of computing taxable income
2. Donation from foreign countries exempt from taxes and duties on importation
3. Local manufacturing of technical aids and appliances used by disabled persons shall be considered
a preferred area of investment

Penal sanctions
- First violation: Fine not less than P50,000 but not exceeding P100,000 or imprisonment of not less
than 6 months but not more than 2 years, or both at the discretion of the court
- Subsequent violation: Fine not less than P100,000 but not exceeding P200,000 or imprisonment
for not less than 2 years but not more than 6 years, or both at the discretion of the court

pg. 98
- Any person who abuses the privilege granted shall be punished with imprisonment of not less than
6 months or a fine of not less than P5,000 but not more than P50,000 or both at the discretion of the
court
- If violator is a corporation, the officials directly involved shall be liable therefor
- If the violator is an alien or a foreigner, deported immediately after service of sentence without
further deportation proceedings.

pg. 99
AN ACT PROVIDING FOR THE REHABILITATION, SELF-DEVELOPMENT
AND SELF-RELIANCE OF DISABLED PERSON AND THEIR INTEGRATION
(Republic Act No. 7277)

DISABLED PERSONS
● Those suffering from restriction of different abilities, as a result of a mental, physical or sensory
impairment, to perform an activity in the manner or within the range considered normal for a
human being
● Have the same rights as other people to take their proper place in society. They should be able to
live freely and as independently as possible.

CATEGORIES OF DISABLED PEOPLE


● confinement to wheelchairs
● requiring use of braces, crutches, artificial supports
● impairment of hearing or sight
● aging and incoordination
● acquired or congenital mental impairments
● diminution or aberration of psychological, physiological, or anatomical structure of function

RIGHTS AND PRIVILEGES OF DISABLED PERSONS


(mnemonics: E,E,H,A,T,A, P)

1. Employment

a. Equal opportunity for employment


- same compensation, privileges, benefits, fringe benefits, incentives or allowances as a
qualified able-bodied person.
- Five percent (5%) of all casual, emergency and contractual positions in the Department of
Social Welfare and Development; Health; Education, Culture and Sports; and other
government agencies, offices or corporations engaged in social development shall be reserved
for disabled persons.

b. Sheltered employment
- To be provided by the state
- individual qualities, vocational goals and inclinations

c. Apprenticeship
- handicap is not much as to effectively impede the performance of job operations
- they shall be eligible for employment if found satisfactory in the job performance

d. Vocational Rehabilitation
- State shall take appropriate vocational rehabilitation measures that shall serve to develop the
skills and potential of disabled persons and enable them to compete favorably for available
productive and remunerative employment opportunities in the labor market.

e. Vocational Guidance and Counseling


- DSWD to provide measures that enable disabled persons to secure, retain and advance in
employment.
- It shall ensure the availability and training counselors and other suitability qualified staff
responsible for the vocational guidance and counseling of disabled persons.

2. Education
a. Quality Education
- The State shall ensure access to quality education
- It shall be unlawful for any learning institutions to deny a disabled person admission to any
course it offers by reason of handicap or disability.

pg. 100
b. Assistance to disabled students
- Scholarship grants, student loan programs, subsidies, and other incentives to qualified
disabled students in both public and private schools for those pursuing secondary and tertiary
education
- Five percent (5%) of the allocation for the Private Education Student Financial Assistance
Program created by virtue of R.A. 6725 shall be set aside for disabled students pursuing
vocational or technical and degree courses.

c. Special Education
- for the visually impaired, hearing impaired, mentally retarded persons and other type of
exceptional children in all regions of the country.

d. Vocational and Technical or Other Training Programs


- training in civics, vocational efficiency, sports and physical fitness, and other skills.

e. Non-Formal Education
- intended for the total human development of disabled persons.

3. Health
a. National Health Program
- prevention of disability, whether occurring prenatally or post-natally;
- recognition and early diagnosis of disability; and
- early rehabilitation of the disabled.

b. Rehabilitation Centers
- For disabled persons to avail of free rehabilitation services in government hospitals.

c. Health Services
- prevention of disability through immunization, nutrition, environmental protection and
preservation, and genetic counseling; and early detection of disability and timely
intervention to arrest disabling condition; and
- medical treatment and rehabilitation.

4. Auxiliary Services
- assistance in the acquisition of prosthetic devices and medical intervention of specialty
services;
- provision of specialized training activities designed to improve functional limitations of
disabled persons related to communications skills;
- development among disabled persons of a positive self-image living capability;
- provision of family care services geared towards developing the capability of families to
respond to the needs of the disabled members of the family;
- provision of substitute family care services and the facilities therefore for abandoned,
neglected, abused and unattached disabled persons who need custodial care;
- provision of aftercare and follow-up services for the continued rehabilitation in a
community-based setting of disabled persons who were released from the residential care or
rehabilitation centers; and
- provision of day care services for disabled children of pre-school age.

5. Telecommunications
a. Broadcast Media
- Television stations shall be encouraged to provide a sign-language inset or subtitles in at least
one (1) newscast program a day and special programs covering events of national significance.

b. Telephone Services
- All telephone companies shall be encouraged to install special telephone devices or units for
the hearing-impaired and ensure that they are commercially available to enable them to
communicate through the telephone system.

c. Free postal charges

6. Accessibility
a. Barrier-free environment

pg. 101
- enable disabled persons to have access in public and private buildings and establishments
and such other places mentioned in Batas Pambansa Bilang 344

b. Mobility
- Disabled persons shall be allowed to drive motor vehicles, subject to the rules and
regulations issued by the Land Transportation Office pertinent to the nature of their
disability and the appropriate adaptations or modifications made on such vehicles.
c. Access to public transport facilities
- The Department of Social Welfare and Development shall develop a program to assist
marginalized disabled persons gain access in the use of public transport facilities. Such
assistance may be in the form of subsidized transportation fare.

7. Political and Civil Rights


a. Right to vote
b. Right to Organize
c. Right to Assemble

EXPANDED BENEFITS AND PRIVILEGES OF PERSONS WITH DISABILITY (RA 10754)

Persons with disability shall be entitled to:


a. At least twenty percent (20%) discount and exemption from the value-added tax (VAT), if applicable,
on the following sale of goods and services for the exclusive use and enjoyment or availment of the
PWD:
- Fees and charges relative to the utilization of all services in hotels and similar lodging
establishments; restaurants and recreation centers;
- Admission fees charged by theaters, cinema houses, concert halls, circuses, carnivals and other
similar places of culture, leisure and amusement;
- Purchase of medicines in all drugstores;
- Medical and dental services including diagnostic and laboratory fees such as, but not limited to,
x-rays, computerized tomography scans and blood tests, and professional fees of attending
doctors in all government facilities, subject to the guidelines to be issued by the Department of
Health (DOH), in coordination with the Philippine Health Insurance Corporation (PhilHealth);
- Medical and dental services including diagnostic and laboratory fees, and professional fees of
attending doctors in all private hospitals and medical facilities, in accordance with the rules and
regulations to be issued by the DOH, in coordination with the PhilHealth;
- Fare for domestic air and sea travel;
- Actual fare for land transportation travel
- Funeral and burial services for the death of the PWD: Provided, That the beneficiary or any
person who shall shoulder the funeral and burial expenses of the deceased PWD shall claim the
discount under this rule for the deceased PWD upon presentation of the death certificate. Such
expenses shall cover the purchase of casket or urn, embalming, hospital morgue, transport of the
body to intended burial site in the place of origin, but shall exclude obituary publication and the
cost of the memorial lot.

b. 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;

c. To the extent possible, the government may grant special discounts in special programs for PWD 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

PROHIBITION AGAINST DISCRIMINATION


Three types of discrimination:
· Discrimination on Employment
· Discrimination on Transportation
· Discrimination on Use of Public Accommodations and Services
Discrimination on Employment
➔ Discrimination on qualified disabled person in regards to:

pg. 102
o Promotion
o Hiring
o Employee Compensation
o Discharge of Employees
o Job application process
o Other terms, conditions, and privileges of employment
o Job Training

➔ Acts of Discrimination on Employment


o Limiting, segregating or classifying a disabled job applicant in such a manner that
adversely affects his work opportunities;
o Using qualification standards, employment tests or other selection criteria that
screen out or tend to screen out a disabled person unless such standards, tests or
other selection criteria are shown to be job related for the position on question and
are consistent with business necessity
o Utilizing standards, criteria, or methods of administration that
❏ have the effect of discrimination on the basis of disability
❏ Perpetuate the discrimination of others who are subject to common
administrative control
o Providing less compensation, such as salary, wage or other forms of remuneration
and fringe benefits, to a qualified disabled employee, by reason of his disability, than
the amount to which a non-disabled person performing the same work is entitled
o Favoring a non-disabled employee over a qualified disabled employee with respect to
promotion, training opportunities, study and scholarship grants, solely on account of
the latter’s disability
o Re-assigning or transferring a disabled employee to a job or position he cannot
perform by reason of his disability
o Dismissing or terminating the services of a disabled employee by reason of his
disability unless the employer can prove that he impairs the satisfactory performance
of the work involve to the prejudice of the business entities; Provided, however, That
the employer first sought provide reasonable accommodations for disabled persons
o Failing to select or administer in the effective manner employment tests which
accurately reflect the skills, aptitude or other factor of the disabled applicant or
employee that such test purports to measure, rather than the impaired sensory,
manual or speaking skills of such applicant or employee, if any
o Excluding disabled persons from membership in labor unions or similar organization

Discrimination on Transportation
➔ Applies to:
o Franchisees/Operators/Personnel of sea, land, and air transportation facilities

➔ Acts of Discrimination on Transportation:


o Charge higher fare
o Refuse to convey a passenger, his orthopedic devices, personal effects, and
merchandise

Discrimination on the Use of Public Accommodations and Services


Ø Public accommodations and services includes:
o an inn, hotel, motel, or other place of lodging, except for an establishment located
within a building that contains not more than five (5) rooms for rent or hire and that
is actually occupied by the proprietor of such establishment as the residence of such
proprietor
o a restaurant, bar or other establishment serving food or drink
o a motion picture, theater, concert hall, stadium, or other place of exhibition or
entertainment
o an auditorium, convention center, lecture hall, or other place of public gathering
o a bakery, grocery store, hardware store, shopping center, or other sales or rental
establishment

pg. 103
o a bank, barber-shop, beauty-shop, travel service, funeral parlor, gas station, office of a
lawyer, pharmacy, insurance office, professional office of a health care provider,
hospital or other service establishment
o a terminal, depot, or other station used for specified public transportation
o a museum, gallery, library or other place of public display or collection
o a park, zoo, amusement park, or other place of recreation
o a nursery, elementary, secondary, undergraduate, or post-graduate private school, or
other place of education
o a gymnasium, health spa, bowling alley, golf course
o other place of exercise or recreation

Ø Acts of Discrimination on use of Public accommodation and services:


o denying a disabled person, directly through contractual, licensing, or other
arrangement, the opportunity to participate in or benefit from the goods, services,
facilities, privileges, advantages, or accommodations of an entity by reason of his
disability
o affording a disabled person, on the basis of his disability, directly or through
contractual, licensing, or other arrangement, with the opportunity to participate in or
benefit from a good, service, facility, privilege, advantage, or accommodation that is
not equal to that afforded to other able-bodied persons
o providing disability, directly or through contractual, licensing, or other arrangement,
with a good, service, facility, advantages, privilege, or accommodation that is
different or separate from that provided to other able-bodied persons unless such
action is necessary to provide the disabled person with a good, service, facility,
advantage, privilege or accommodation, or other opportunity that is as effective as
that provided to others

PROHIBITIONS ON VERBAL, NON-VERBAL RIDICULE AND VILIFICATION

● Public Ridicule – act of making fun or contemptuous imitating or making mockery of persons
with disability
● Acts of ridicule
o Making fun of a person on account of his/her disability even through jokes in a manner
that is degrading resulting to the embarrassment of the person with disability in front
of two or more persons
o Making mockery of a person with disability whether in oral or in writing
o Imitating a person with disability in public gatherings, stage shows, carnivals, television
shows, broadcast media and other forms of entertainments that are offensive to the
rights and dignity of persons with disability or any other similar acts
● Vilification - utterance of slanderous and abusive statements against a person with disability
● Slanderous and abusive statements (list not exclusive)
o calling a person by his disability in public which results to humiliation
o using the disability of a person as an example in a manner that is embarrassing and
humiliating to the dignity of persons with disability

TAX INCENTIVES FOR BENEFACTORS

Status Exemption Entitlement


one basic personal
Head of the Family 25,000 or as allowed by NIRC
excemption

Married individual with children* basic personal excemption equivalent to 32,000

pg. 104
basic personal excemption
Married individual with child/children + additional excemption
32,000 + 8,000 per dependent
with disability (dependent) per qualified dependent
NOT EXCEEDING FOUR

basic personal excemption


equivalent to head of
Solo parents with child/children with family + additional
25,000 + 8,000
disability** excemption per qualified
dependent NOT
EXCEEDING FOUR

Grandparents*** with one basic personal


equivalent to 25,000
grandchild/grandchildren with disability excemption

*A married individual is not entitled to the above additional exemption if he/she takes care of a
person with disability who is not his/her child. EXPN: adoption
**not entitled to the above 6.12.1 additional exemption if he/she takes care of a person with
disability who is not his/her child EXPN: adoption
*** Provided she/he is not legally separated or a widow/widower or a solo parent

ENFORCEMENT OF PENALTIES

VIOLATION FINE IMPRISONMENT OR BOTH?


First Violation Not less than 50,000 Not less than 6 YES
but not exceeding months but not more
100,000 than two years

Subsequent violation Not less than 100,000 Not less than 2 years YES
but not exceeding but not more than 6
200,000 years

Abuse of granted privilege Not less than 5,000 Not less than 6 YES
but not more than months
50,000 at discretion of
court

· If the violator is a corporation, organization or any similar entity, the officials


thereof directly involved shall be liable
· If the violator is an alien or a foreigner, he shall be deported immediately after
service of sentence without further deportation proceedings.

pg. 105
AN ACT PROVIDING FOR STRONGER DETERRENCE AND SPECIAL
PROTECTION AGAINST CHILD ABUSE, EXPLOITATION AND
DISCRIMINATION, AND FOR OTHER PURPOSES (RA 7610 as amended)

Elements:

1) Committed against children


Who are considered children?
- Persons below 18 years of age OR
- Over 18 but are unable to fully take care of themselves or protect themselves
2) There is abuse, neglect, cruelty, exploitation, or discrimination

Punishable Acts

1. Child Abuse- maltreatment, whether habitual or not, of the child which includes any for the
following:
a. Psychological and physical abuse, neglect, cruelty, sexual abuse and emotional
maltreatment;
b. Any act by deeds or words which debases, degrades, or demeans the intrinsic worth and
dignity of a child as a human being;
c. Unreasonable deprivation of his basic needs for survival, such as food and shelter; or
d. Failure to immediately give medical treatment to an injured child resulting in serious
impairment of his growth and development or in his permanent incapacity or death.
3
2. Child prostitution and other sexual abuse

Elements:
a. Children, whether male or female
b. For money OR profit OR any other consideration OR due to coercion OR influence
c. Of any ADULT, SYNDICATE, or GROUP
d. Indulge in sexual intercourse or lascivious conduct

3. Attempt to Commit Child Prostitution


a. Attempt under Par. A, Sec 5
i. Any person, not relative of a child
ii. Found alone with the child
iii. In a room, cubicle of a house, inn, hotel, motel, etc
iv. Under circumstances which would lead a reasonable person to believe that the child is
about to be exploited in prostitution and other sexual abuse.
b. Attempt under Par. B, Sec 5
i. Any person
ii. Receiving services from a child
iii. In a sauna parlor or batch, massage clinic, health club, etc.

4. Child Trafficking

Elements:
a. Any person who shall engage in
b. Trading and dealing with children including, but not limited to, the act of buying and selling a
child for money, and for any other consideration, or barter.

5. Attempt to Commit Child Trafficking

a. When a child travels alone to a foreign country without a valid reason therefore and without
clearance from the DSWD or written permit or justification from the child’s parents or legal
guardian;

pg. 106
b. Person, agency, establishment, or child-caring institution recruits women or couples to be
children for the purpose of child trafficking; or

c. When a doctor, hospital or clinic official or employee, nurse midwife, local civil registrar or any
other person simulates birth for the purpose of child trafficking; or

d. When a person engages in the act of finding children among low-income families, hospitals,
clinics, nurseries, day-care centers, or other child-caring institutions who can be offered for the
purpose of child trafficking.

6. Obscene publications and indecent shows

a. A child is employed, used, persuaded, induced, or coerced

b. To perform in obscene exhibitions and indecent shows, whether live or in video, or model in
obscene publications or pornographic materials

c. Such materials are distributed

7. Other acts if Neglect, Abuse, Cruelty or Exploitation and other conditions Prejudicial to the
Child’s Development

a. Violation of Art. 59, PD 603

b. Keeping in his company a minor, 12 years or under or 10 years younger than the person
liable, in any public or private place, hotel, motel, beer joint, discotheque, cabaret,
pension house, sauna or massage parlor, beach resort, etc.

c. Inducement, delivery, or offering of a minor for the above-mentioned act

d. Use, coercion, forcing, or intimidating a street child or any other child to:
i. Beg or use begging as a means of living;
ii. Acts as conduit or middlemen in drug trafficking or pushing; or
iii. Conduct any illegal activities

8. Violation of working conditions for Minors as provided in this law and the Labor Code

Penalties

Penalties for those found guilty of the crime of Child Prostitution and Other Sexual Abuse

a. (Procurer) - Reclusion Temporal (Medium) to Reclusion Perpetua for acts described in Article III
Section 5(a)

b. (Client) - Reclusion Temporal (Medium) to Reclusion Perpetua for the act of sexual intercourse or
lascivious conduct with a child exploited in prostitution.

IF CHILD IS UNDER TWELVE (12) YEARS OLD, Sexual Intercourse considered as


Rape. Penalty is Reclusion Perpetua

IF CHILD IS UNDER TWELVE (12) YEARS OLD, Lascivious Conduct. Penalty is


Reclusion Temporal (Medium)

a. (Manager/Owner of Establishment) Reclusion Temporal (Medium) to Reclusion Perpetua to those


who are found to have derived profit or advantage from child prostitution.

pg. 107
b. (Attempted Felonies) Attempt to commit Child Prostitution carries with it a penalty two (2)
degrees lower than the prescribed penalty for its consummated counterpart.

Penalties for those found guilty of the crime of Child Trafficking

a. (Procurer) Reclusion Temporal to Reclusion Perpetua to those engage in trading and dealing with
children. The penalty shall be applied in its Maximum period when the victim is under twelve (12)
years of age.

b. (Attempted Felony) Attempt to commit Child Trafficking carries with it a penalty two (2) degrees
lower than the prescribed penalty for its consummated counterpart.

Penalties for those found guilty of the crime of Obscene Publications and Indecent Shows
involving children

a. (Procurer) Reclusion Mayor (Medium) for acts described in Article V Section 9(1)

IF CHILD IS UNDER TWELVE (12) YEARS OLD, Penalty shall be imposed in its
Maximum period

a. (Ascendant/Guardian) Prision Mayor (Medium) to those who are found to have caused or
allowed the child to be employed or to participate in obscene play, scene act, movie or show,
orin other acts covered by Article V Section 9.

Penalties for those found guilty of the crime of Other Acts of Abuse involving children

a. (Parents) Prision Mayor (Minimum) for those found guilty of Child Abuse or Neglect including
those covered by Article 59 of PD No. 603 (The Child and Youth Welfare Code)

b. (Stranger) Prision Mayor (Maximum) and a fine of not less than fifty thousand pesos
(P50,000.00) shall be imposed on one in whose company a minor either under twelve (12) years
of age, or who in ten(10) years or more is his junior is found, in any of the places enumerated in
Article VI Section 10(b), where there exists a relationship not within the fourth degree of
consanguinity or affinity, or by any bond characterized in the same statute.

c. (Procurer) Prision Mayor (Medium) and a fine of not less than forty thousand pesos
(P40,000.00)shall be imposed on a procurer for the violation of this Article. Should the procurer
be an ascendant, stepparent, or guardian of the child: Prision Mayor (Maximum) and a fine of not
less than fifty thousand pesos (P50,000.00)

d. (Manager/Owner of Establishment) Prision Mayor (Medium)and a fine of not less than fifty
thousand pesos (P50,000.00) and the loss of their license to operate are imposed upon those who
are found to have derived profit or advantage from violations of this Article.

e. (Coercion to beg and other illegal activities) Prision Correccional (Medium) to Reclusion
Perpetua shall be imposed on those who either: coerces a child to beg as a means of living, to act
as a conduit in drug trafficking or pushing, to conduct any illegal activity.

f. (Physical Injury) Reclusion Perpetua will be imposed on those found guilty of the crimes of
Murder, Homicide, Other Intentional Mutilation and Serious Physical Injuries,

WHERE THE VICTIM IS UNDER TWELVE (12) YEARS OLD.

a. (Moral and Emotional Injury) A penalty one (1) degree higher will be imposed on those found
guilty of the crimes of Qualified Seduction, Acts of Lasciviousness with Consent,Corruption of
Minors, and White Slave Trade, WHERE THE VICTIM IS UNDER TWELVE (12) YEARS
OLD.

pg. 108
Sanctions for Establishments or Enterprises

a. Immediate Closure of Establishment


b. The Revocation of the License to Operate
c. A Public “Off Limits” Sign posted outside the establishmentfor a period not less than one (1)
year. The unauthorized removal of which will be punishable by Prision Correccional.

Penalties for those found guilty of violating the Article on Working Children

a. Fine not less than one thousand pesos (P1,000.00) but not more than ten thousand pesos
(P10,000.00)
b. Alternatively, imprisonment of not less than three (3) months, but not more than three (3) years.
c. Or both penalties at the discretion of the court
d. In cases of repeat offenders, their license to operate shall be revoked.

Penalties for those guilty of the crime of Discrimination Against Children of Indigenous Cultural
Communities

a. (Discrimination) Arresto Mayor (Maximum) and a fine of not less than five thousand pesos
(P5,000.00) but not more than ten thousand pesos (P10,000.00) shall be imposed on any
person found guilty of discriminating against a child of indigenous cultural communities.

Common Penal Provisions

a. (Previous Conviction) Penalties are to be imposed in their maximum periods

b. (Juridical Personality) Penalties are to be imposed in their maximum periods on the officer or
employee of erring corporation, partnership, or association

c. (Relationship) Penalties are to be imposed in their maximum periods when the perpetrator is
an ascendant, parent guardian, stepparent or collateral relative within the second degree of
consanguinity or affinity, or a manager or owner of an establishment which has no license to
operate or its license has expired or has been revoked.

d. (Foreigner) Deportation immediately after service of sentence, and the same shall be forever
barred from entering the country.

e. (Public Officer) Penalties are to be imposed in their maximum periods if the perpetrator is a
public officer or
9
Should the penalty be Reclusion Perpetua or Reclusion Temporal, then the accessory
penalty of perpetual or temporary absolute disqualification shall also be imposed.

Should the penalty imposed be Prision Correccional or Arresto Mayor, the accessory
penalty of suspension shall likewise be imposed.

f. (Fine) A fine to be determined by the court shall be imposed and administered as a cash fund
by the DSWD and the same will be disbursed for the rehabilitation of the victim.

Who May File a Complaint?

1. Offended Party;
2. Parents or guardians;
3. Ascendant or collateral relative within the third degree of consanguinity;
4. Officer, social worker or representative of a licensed child-caring institution;
5. Officer or social worker of the Department of Social Welfare and Development;
6. Barangay Chairman; or

pg. 109
7. At least three (3) concerned responsible citizens where the violation occurred (Sec. 27, Article XI,
RA 7610).

Confidentiality
At the instance of the offended party, his name may be withheld from the public until the court acquires
jurisdiction over the case.

Editor, publisher, and reporter or columnist in case of printed materials, announcer or producer in case of
television and radio broadcasting, producer and director of the film in case of movie industry, are prohibited
to cause undue and sensationalized publicity of any case of violation of this Act which results in the moral
degradation and suffering of the offended party (Sec. 29, Art. XI, RA 7610).
awphi1

Protection of Children in Situations of Armed Conflict

Children are declared as Zones of peace. Therefore:


i. Children shall not be the object of attack and shall be entitled to special respect. They shall be protected
from any form of threat, assault, torture or other cruel, inhumane or degrading treatment;
ii. Children shall not be recruited to become members of the Armed Forces of the Philippines of its civilian
units or other armed groups, nor be allowed to take part in the fighting, or used as guides, couriers, or
spies;
iii. Delivery of basic social services such as education, primary health and emergency relief services shall be
kept unhampered;
iv. The safety and protection of those who provide services including those involved in fact-finding missions
from both government and non-government institutions shall be ensured. They shall not be subjected to
undue harassment in the performance of their work;
v. Public infrastructure such as schools, hospitals and rural health units shall not be utilized for military
purposes such as command posts, barracks, detachments, and supply depots; and
vi. All appropriate steps shall be taken to facilitate the reunion of families temporarily separated due to armed
conflict.

Rights of children arrested for reason related to armed conflicts

Any child who has been arrested for reasons related to armed conflict, either as combatant, courier, guide
or spy is entitled to the following rights;
(a) Separate detention from adults except where families are accommodated as family units;
(b) Immediate free legal assistance;
(c) Immediate notice of such arrest to the parents or guardians of the child; and
(d) Release of the child on recognizance within twenty-four (24) hours to the custody of the
Department of Social Welfare and Development or any responsible member of the community as
determined by the court.

If after hearing the evidence in the proper proceedings the court should find that the aforesaid child
committed the acts charged against him, the court shall determine the imposable penalty, including any
civil liability chargeable against him.

However, instead of pronouncing judgment of conviction, the court shall suspend all further proceedings
and shall commit such child to the custody or care of the Department of Social Welfare and Development
or to any training institution operated by the Government, or duly-licensed agencies or any other responsible
person, until he has had reached eighteen (18) years of age or, for a shorter period as the court may deem
proper, after considering the reports and recommendations of the Department of Social Welfare and
Development or the agency or responsible individual under whose care he has been committed.

The aforesaid child shall subject to visitation and supervision by a representative of the Department of
Social Welfare and Development or any duly-licensed agency or such other officer as the court may
designate subject to such conditions as it may prescribe.

The aforesaid child whose sentence is suspended can appeal from the order of the court in the same manner
as appeals in criminal cases.

pg. 110
Republic Act No. 9344 “JUVENILE JUSTICE AND WELFARE SYSTEM “

Children in Conflict with the Law


Children in conflict with the law refers to a person under 18 years old who alleged as, adjudged,
or recognized as, having committed an offense under Philippine laws.

Rights of a Child in Conflict with the Law


Every child in conflict with the law shall have the following rights, including but not limited to:

a. the right not to be subjected to torture or other cruel, inhuman or degrading treatment or
punishment;

b. the right not to be imposed a sentence of capital punishment or life imprisonment, without the
possibility of release;

c. the right not to be deprived, unlawfully or arbitrarily, of his/her liberty; detention or


imprisonment being a disposition of last resort, and which shall be for the shortest appropriate
period of time;

d. the right to be treated with humanity and respect, for the inherent dignity of the person, and in
a manner which takes into account the needs of a person of his/her age. In particular, a child
deprived of liberty shall be separated from adult offenders at all times. No child shall be
detained together with adult offenders. He/She shall be conveyed separately to or from court.
He/She shall await hearing of his/her own case in a separate holding area. A child in conflict
with the law shall have the right to maintain contact with his/her family through
correspondence and visits, save in exceptional circumstances;

e. the right to prompt access to legal and other appropriate assistance, as well as the right to
challenge the legality of the deprivation of his/her liberty before a court or other competent,
independent and impartial authority, and to a prompt decision on such action;

f. the right to bail and recognizance, in appropriate cases;

g. the right to testify as a witness in hid/her own behalf under the rule on examination of a child
witness;

h. the right to have his/her privacy respected fully at all stages of the proceedings;

i. the right to diversion if he/she is qualified and voluntarily avails of the same;

j. the right to be imposed a judgment in proportion to the gravity of the offense where his/her
best interest, the rights of the victim and the needs of society are all taken into consideration
by the court, under the principle of restorative justice;

k. the right to have restrictions on his/her personal liberty limited to the minimum, and where
discretion is given by law to the judge to determine whether to impose fine or imprisonment,
the imposition of fine being preferred as the more appropriate penalty;

l. in general, the right to automatic suspension of sentence;

m. the right to probation as an alternative to imprisonment, if qualified under the Probation Law;

n. the right to be free from liability for perjury, concealment or misrepresentation; and

o. other rights as provided for under existing laws, rules and regulations.

Minimum Age of Criminal Responsibility

pg. 111
15 years old and below
Exempt from criminal liablity
The child will be subjected to an intervention program.

Above 15 yrs old but below 18 yrs old


(act without discerment)
Exempt from criminal liablity
The child will be subjected to an intervention program.

Above 15 yrs old but below 18 yrs old


(act with discerment)
No longer exempt from criminal liablity
The child will be subjected to appropriate proceeding

Determination of Age
Children in conflict with tyhe law enjoys the presumption of minority.

The age of a child may be determined from the child's birth certificate, baptismal certificate or any other
pertinent documents. In the absence of these documents, age may be based on information from the child
himself/herself, testimonies of other persons, the physical appearance of the child and other relevant
evidence. In case of doubt as to the age of the child, it shall be resolved in his/her favor.

Children not Criminally Liable for Certain Offenses


Persons below eighteen (18) years of age shall be exempt from prosecution for the crime of
1. vagrancy and prostitution under Section 202 of the Revised Penal Code,
2. mendicancy under Presidential Decree No. 1563
3. sniffing of rugby under Presidential Decree No. 1619,
Provided, That said persons shall undergo appropriate counseling and treatment program.

SEC. 21. Procedure for Taking the Child into Custody. - From the moment a child is taken into custody,
the law enforcement officer shall:

a. Explain to the child in simple language and in a dialect that he/she can understand why he/she is being
placed under custody and the offense that he/she allegedly committed;
b. Inform the child of the reason for such custody and advise the child of his/her constitutional rights in a
language or dialect understood by him/her;
c. Properly identify himself/herself and present proper identification to the child;
d. Refrain from using vulgar or profane words and from sexually harassing or abusing, or making sexual
advances on the child in conflict with the law;
e. Avoid displaying or using any firearm, weapon, handcuffs or other instruments of force or restraint,
unless absolutely necessary and only after all other methods of control have been exhausted and have
failed;
f. Refrain from subjecting the child in conflict with the law to greater restraint than is necessary for his/her
apprehension;
g. Avoid violence or unnecessary force;
h. Determine the age of the child pursuant to Section 7 of this Act;
i. Immediately but not later than eight (8) hours after apprehension, turn over custody of the child to the
Social Welfare and Development Office or other accredited NGOs, and notify the child's apprehension.
The social welfare and development officer shall explain to the child and the child's parents/guardians
the consequences of the child's act with a view towards counselling and rehabilitation, diversion from
the criminal justice system, and reparation, if appropriate;
j. Take the child immediately to the proper medical and health officer for a thorough physical and mental
examination. The examination results shall be kept confidential unless otherwise ordered by the Family
Court. Whenever the medical treatment is required, steps shall be immediately undertaken to provide
the same;
k. Ensure that should detention of the child in conflict with the law be necessary, the child shall be secured
in quarters separate from that of the opposite sex and adult offenders;
l. Record the following in the initial investigation:
i. Whether handcuffs or other instruments of restraint were used, and if so, the reason for such;
ii. That the parents or guardian of a child, the DSWD, and the PA0 have been informed of the
apprehension and the details thereof; and

pg. 112
iii. The exhaustion of measures to determine the age of a child and the precise details of the physical
and medical examination or the failure to submit a child to such examination; and
m. Ensure that all statements signed by the child during investigation shall be witnessed by the child's
parents or guardian, social worker, or legal counsel in attendance who shall affix his/her signature to
the said statement.

A child in conflict with the law shall only be searched by a law enforcement officer of the same gender
and shall not be locked up in a detention cell.

Treatment of children below the age of criminal responsibility

SEC. 20. Children Below the Age of Criminal Responsibility


if it has been determined that the child taken into custody is fifteen (15) years old or below, the
authority which will have an initial contact with the child has the duty to:

a. immediately release the child to the custody of his/her parents or guardian, or in the absence
thereof, the child's nearest relative.
b. Said authority shall give notice to the local social welfare and development officer who will
determine the appropriate programs in consultation with the child and to the person having custody
over the child.

If the parents, guardians or nearest relatives cannot be located, or if they refuse to take custody, the
child may be released to any of the following:

a. a duly registered non governmental or religious organization;


b. a barangay official or a member of the Barangay Council for the Protection of Children (BCPC);
c. a local social welfare and development officer;
d. or when and where appropriate, the DSWD.

According to the Rules and Regulations Implementing Republic Act No. 9344, Rule 31.b:
If parents, guardians or relatives are unable to take custody of the child due to mental or physical
incapacity or incarceration, the child shall be referred to alternative placement such as foster homes, in
addition to what has been provided in the Act.

Petition for involuntary commitment

If the child referred to herein has been found by the Local Social Welfare and Development Office to be
abandoned, neglected or abused by his parents, or in the event that the parents will not comply with the
prevention program, the proper petition for involuntary commitment shall be filed by the DSWD or the
Local Social Welfare and Development Office pursuant to Presidential Decree No. 603, otherwise, known
as "The Child and Youth Welfare Code". (R.A. No. 9344)

IRR, Rule 31.c. Duty of the local social worker

Immediately after being notified of the apprehension of the child fifteen (15) years old or below, the
LSWDO shall:
(1) Prepare a case study report on the child; and
(2) Determine the appropriate intervention and prevention programs in consultation with the child and the
person having custody over the child.
The LSWDO shall also determine if the child is abandoned, neglected or abused by his/her parents for
purposes of filing a petition for involuntary commitment if necessary.
If the safety of the child is in danger in view of the alleged commission of the offense, the LSWDO shall
encourage the parent or guardian of the child to request for temporary custody of the child to the DSWD
or licensed and accredited NGOs.

In the event the parent or guardian does not agree to the request for temporary custody of the child, the
LSWDO shall carefully review the case of the child and file a petition for involuntary commitment when

pg. 113
sanctioned by law, in accordance with P.D. 603 and the SC Rule on Commitment of Children.

SEC. 36. Detention of the Child Pending Trial. - Children detained pending trial may be released on bail
or recognizance as provided for under Sections 34 and 35 under this Act. In all other cases and whenever
possible, detention pending trial may be replaced by alternative measures, such as close supervision,
intensive care or placement with a family or in an educational setting or home. Institutionalization or
detention of the child pending trial shall be used only as a measure of last resort and for the shortest possible
period of time.

Whenever detention is necessary, a child will always be detained in youth detention homes established by
local governments, pursuant to Section 8 of the Family Courts Act, in the city or municipality where the
child resides.

In the absence of a youth detention home, the child in conflict with the law may be committed to the care
of the DSWD or a local rehabilitation center recognized by the government in the province, city or
municipality within the jurisdiction of the court. The center or agency concerned shall be responsible for
the child's appearance in court whenever required.

SEC. 38. Automatic Suspension of Sentence. - Once the child who is under eighteen (18) years of age
at the time of the commission of the offense is found guilty of the offense charged, the court shall determine
and ascertain any civil liability which may have resulted from the offense committed. However, instead of
pronouncing the judgment of conviction, the court shall place the child in conflict with the law under
suspended sentence, without need of application: Provided, however, That suspension of sentence shall still
be applied even if the juvenile is already eighteen years (18) of age or more at the time of the pronouncement
of his/her guilt.

Upon suspension of sentence and after considering the various circumstances of the child, the court shall
impose the appropriate disposition measures as provided in the Supreme Court Rule on Juveniles in Conflict
with the Law.

SEC. 40. Return of the Child in Conflict with the Law to Court. - If the court finds that the objective of
the disposition measures imposed upon the child in conflict with the law have not been fulfilled, or if the
child in conflict with the law has willfully failed to comply with the conditions of his/her disposition or
rehabilitation program, the child in conflict with the law shall be brought before the court for execution of
judgment.

If said child in conflict with the law has reached eighteen (18) years of age while under suspended sentence,
the court shall determine whether to discharge the child in accordance with this Act, to order execution of
sentence, or to extend the suspended sentence for a certain specified period or until the child reaches the
maximum age of twenty-one (21) years.

The Magna Carta for Women (RA 9710)


This law recognized that the economic, political, and socio-cultural realities affect women’s current
condition. The State affirms the role of women in nation building and ensures the substantive equality of
women and men. To realize this, the State shall endeavor to develop plans, policies, programs, measures,
and mechanisms to address discrimination and inequality in the economic, political, social, and cultural life
of women and men (Duka, 2016).

Rights of Women

Protection from all forms of violence, including those committed by the State. This includes the incremental
increase in the recruitment and training of women in government services that cater to women victims of
gender-related offenses. It also ensures mandatory training on human rights and gender sensitivity to all
government personnel involved in the protection and defense of women against gender-based violence,
and mandates local government units to establish a Violence Against Women Desk in every barangay to
address violence against women cases;

pg. 114
• Protection and security in times of disaster, calamities and other crisis situations, especially in all
phases of relief, recovery, rehabilitation and construction efforts, including protection from sexual
exploitation and other sexual and gender-based violence.
• Participation and representation, including undertaking temporary special measures and affirmative
actions to accelerate and ensure women's equitable participation and representation in the third level civil
service, development councils and planning bodies, as well as political parties and international bodies,
including the private sector.
• Equal treatment before the law, including the State's review and when necessary amendment or repeal
of existing laws that are discriminatory to women;
• Equal access and elimination of discrimination against women in education, scholarships and
training. This includes revising educational materials and curricula to remove gender stereotypes and
images, and outlawing the expulsion, non-readmission, prohibiting enrollment and other related
discrimination against women students and faculty due to pregnancy outside of marriage;
• Equal participation in sports. This includes measures to ensure that gender-based discrimination in
competitive and non-competitive sports is removed so that women and girls can benefit from sports
development;
• Non-discrimination in employment in the field of military, police and other similar services. This
includes according the same promotional privileges and opportunities as their men counterpart, including
pay increases, additional benefits, and awards, based on competency and quality of performance. The
dignity of women in the military, police and other similar services shall always be respected, they shall be
accorded with the same capacity as men to act in and enter into contracts, including marriage, as well as be
entitled to leave benefits for women such as maternity leave, as provided for in existing laws;

• Non-discriminatory and non-derogatory portrayal of women in media and film to raise the
consciousness of the general public in recognizing the dignity of women and the role and contribution of
women in family, community, and the society through the strategic use of mass media;

• Comprehensive health services and health information and education covering all stages of a
woman's life cycle, and which addresses the major causes of women's mortality and morbidity, including
access to among others, maternal care, responsible, ethical, legal, safe and effective methods of family
planning, and
encouraging healthy lifestyle activities to prevent diseases;
• Leave benefits of two (2) months with full pay based on gross monthly compensation, for women
employees who undergo surgery caused by gynecological disorders, provided that they have rendered
continuous aggregate employment service of at least six (6) months for the last twelve (12) months;
• Equal rights in all matters relating to marriage and family relations. The State shall ensure the same
rights of women and men to: enter into and leave marriages, freely choose a spouse, decide on the number
and spacing of their children, enjoy personal rights including the choice of a profession, own, acquire, and
administer their property, and acquire, change, or retain their nationality. It also states that the betrothal and
marriage of a child shall have no legal effect. The Magna Carta of Women also guarantees the civil, political
and economic rights of women in the marginalized sectors, particularly their right to:
• Food security and resources for food production, including equal rights in the titling of the land and
issuance of stewardship contracts and patents;
• Localized, accessible, secure and affordable housing;
• Employment, livelihood, credit, capital and technology;
• Skills training, scholarships, especially in research and development aimed towards women friendly
farm technology;
• Representation and participation in policy-making or decisionmaking bodies in the regional,
national, and international levels;
• Access to information regarding policies on women, including programs, projects and funding outlays
that affect them;
• Social protection;
• Recognition and preservation of cultural identity and integrity provided that these cultural systems
and practices are not discriminatory to women;
• Inclusion in discussions on peace and development;
• Services and interventions for women in especially difficult circumstances or WEDC;
• Protection of girl-children against all forms of discrimination in education, health and nutrition,
and skills development; and
• Protection of women senior citizens.

The Magna Carta of Women defines the marginalized sectors as those who belong to the basic,
disadvantaged, or vulnerable groups who are mostly living in poverty and have little or no access to land

pg. 115
and other resources, basic social and economic services such as health care, education, water and sanitation,
employment and livelihood opportunities, housing security, physical infrastructure and the justice system.
These include, but are not limited to women in the following sectors or groups: Small farmers and rural
workers, Fisherfolk, Urban poor, Workers in the formal economy, Workers in the informal economy,
Migrant workers, Indigenous Peoples, Moro, Children, Senior citizens, Persons with disabilities, and Solo
parents.

In addition to guaranteeing substantive rights, the MCW establishes the responsibility of the government
to take actions in order to end discrimination against women. It provides that the Philippines government
must "ensure the substantive equality of men and women" and mandates the State to take steps to review,
amend or repeal existing laws that are discriminatory towards women.

Sanctions

If the violation is committed by a government agency or any government office, including


government-owned and controlled corporations and local government units, the person directly
responsible for the violation, as well as the head of the agency or local chief executive shall be held liable
under the Magna Carta of Women. The sanctions under administrative law, civil service or other appropriate
laws shall be recommended by the Commission on Human Rights to the Civil Service Commission and the
Department of the Interior and Local Government.

Further, in cases where violence has been proven to be perpetrated by agents of the State, such shall be
considered aggravating offenses with corresponding penalties depending on the severity of the offenses.

If the violation is committed by a private entity or individual, the person directly responsible for the
violation shall be liable to pay damages. Further, the offended party can also pursue other remedies available
under the law and can invoke any of the other provisions of existing laws, especially those that protect the
rights of women.

Aggravating Circumstances

If violence has been proven to be perpetrated by agents of the State including, but not limited to,
extrajudicial killings, enforced disappearances, torture, and internal displacements, such shall be considered
aggravating offenses with corresponding penalties depending on the severity of the offenses.

ANTI-VIOLENCE AGAINST WOMEN AND THEIR CHILDREN ACT OF 2004


(RA 9262)
Violence against women and their children

Refers to any act or a series of acts committed by any person against a woman who is his wife, former wife,
or a woman with whom the person has or had a dating or sexual relationship, or with whom he has a
common child, or against her child whether legitimate or illegitimate, within or without the family abode,
which result in or is likely to result in physical, sexual, psychological harm or suffering, or economic abuse
including threats of such acts, battery, assault, coercion, harassment or arbitrary deprivation of liberty.

Acts of violence against women and their children under R.A. No. 9262. - Violence against women and
their children is committed through any of the following acts:
(a) Causing, threatening or attempting to cause physical harm to the woman or her child;
(b) Placing the woman or her child in fear of imminent physical harm;
(c) Attempting to compel or compelling the woman or her child to engage in conduct which the
woman or her child has the right to desist from or to desist from conduct which the woman or her
child has the right to engage in, or attempting to restrict .or restricting the woman's or her child's
freedom of movement or conduct by force or threat of force, physical or other harm or threat of
physical on other harm, or intimidation directed against the woman or her child.

This shall include, but is not limited to, the following acts committed with the purpose or effect of
controlling or restricting the movement or conduct of the woman or her child:

pg. 116
(1) Threatening to deprive or actually depriving the woman or her child of custody or access to
her/his family;
(2) Depriving or threatening to deprive the woman or her children of financial support legally due
her or her family, or deliberately providing the woman's children insufficient financial support;
(3) Depriving or threatening to deprive the woman or her child of a legal right; and
(4) Preventing the woman from engaging in any legitimate profession, occupation, business or
activity except in cases where the spouse or partner on valid, serious and moral grounds, or
controlling the victim's own money or property, or solely controlling the conjugal or common
money or property;
(5) Inflicting or threatening to inflict physical harm on oneself for the purpose of controlling her
actions or decisions;
(6) Causing or attempting to cause the woman or her child to engage in any sexual activity which
does not constitute rape, by force or threat of force, physical harm, or through intimidation
directed against the woman or her child or her/his immediate family;
(7) Engaging in purposeful, knowing, or reckless conduct, personally or through another that
alarms or causes substantial emotional or psychological distress to the woman or her child.

A. This shall include, but is not limited to, the following acts:

(1) Stalking or following the woman or her child in public or private places;
(2) Peering in the window or lingering outside the residence of the woman or her child;
(3) Entering or remaining in the dwelling or on the property of the woman or her child against
her/his will;
(4) Destroying the property and personal belongings or inflicting harm to animals or pets of the
woman or child; and
(5) Engaging in any form of harassment or violence; or
(6) Causing mental or emotional anguish, public ridicule or humiliation to the woman or her child,
including, but not limited to, repeated verbal and emotional abuse, and denial of financial support
or custody of a minor child or denial of access to the woman's child.

Remedies of offended party. - The offended party may file a separate petition for protection order
without claiming damages. The offended party may also pursue other remedies in accordance with Part
II of this Rule by the filing of any of the following:
(a) Criminal action;
(b) Criminal action with reservation of a separate civil action; or
(c) Civil action for damages.

Battered Wife Syndrome

· Battered Wife Syndrome – refers to a scientifically defined pattern of psychological and behavioural
symptoms found in woman living in battering relationship as a result of cumulative abuse.
· Victim-survivors who are found to be suffering from battered women syndrome do not incur
criminal and civil liability notwithstanding the absence of any elements for justifying circumstances of
self-defense under the Revised Penal Code (RPC). (Section 26 of RA No. 9262)
· Battered women include wives or women in any form of intimate relationship with men. In order to
be classified as a battered woman, the couple must go through the battering cycle at least twice.

· The Battered Wife Syndrome is characterized by “cycle of violence” which has 3 phases.
· Phases of Battering Cycle (People vs. Genosa, G.R. No. 135981, January 15, 2004)
1. Tension-building phase – in this phase, minor battering occur. It could be verbal or slight
physical abuse or another form of hostile behaviour. The woman usually tries to pacify the
batterer through a show of kind, nurturing behaviour, or simply staying out of the way.
However, what actually happens is that she allows herself to be abused in ways that, to her, are
comparatively minor.

2. Acute Battering incident – this phase is characterized by brutality, destructiveness and,


sometimes death. The battered woman deems this incident as unpredictable, yet also
inevitable. She usually realizes that she cannot reason with him, and that resistance would only
exacerbate her condition.

pg. 117
3. The Tranquil, loving phase – in this phase, the couple found a profound relief. On the one
hand, the batterer may show tender and nurturing behaviour towards his partner. He knows
that he has been cruel and tries to make up for it, begging her forgiveness and promising never
to beat her again. On the other hand, the battered woman also convinces herself that the battery
will never happen again; that her partner will change for the better; and that this “good, gentle,
and caring man” is the real person she loves.

Venue of Criminal Action

Venue of Criminal action – The Regional Trial Court (RTC) designated as Family Court has the
original and exclusive jurisdiction over cases of violence against women and their children.

If there is no Family Court in the place where the offense was committed, the case shall be filed
in the RTC where the crime or any of its elements was committed (Section 7 of RA No. 9262).

Protection Orders

A protection order is an order issued under this act for the purpose of preventing further acts of violence
against a woman or her child specified in Section 5 of RA 9262 and granting other necessary relief. The
protection orders that may be issued under this Act are the barangay protection order (BPO), temporary
protection order (TPO) and permanent protection order (PPO).

Who may file Petition for Protection Orders?


i. the offended party;
ii. parents or guardians of the offended party;
iii. ascendants, descendants or collateral relatives within the fourth civil degree of consanguinity or
affinity;
iv. officers or social workers of the DSWD or social workers of local government units (LGUs);
v. police officers, preferably those in charge of women and children's desks;
vi. Punong Barangay or Barangay Kagawad;
vii. lawyer, counselor, therapist or healthcare provider of the petitioner;
viii. At least two (2) concerned responsible citizens of the city or municipality where the violence against
women and their children occurred and who has personal knowledge of the offense committed.

Where to Apply for a Protection Order?

Applications for BPOs shall follow the rules on venue under Section 409 of the Local Government Code
of 1991 and its implementing rules and regulations. An application for a TPO or PPO may be filed in the
regional trial court, metropolitan trial court, municipal trial court, municipal circuit trial court with
territorial jurisdiction over the place of residence of the petitioner: Provided, however, That if a family
court exists in the place of residence of the petitioner, the application shall be filed with that court.

How to Apply for a Protection Order?

The application for a protection order must be in writing, signed and verified under oath by the applicant.
It may be filed as an independent action or as incidental relief in any civil or criminal case the subject
matter or issues thereof partakes of a violence as described in this Act. A standard protection order
application form, written in English with translation to the major local languages, shall be made available
to facilitate applications for protections order, and shall contain, among other, the following information:
(a) names and addresses of petitioner and respondent;
(b) description of relationships between petitioner and respondent;
(c) a statement of the circumstances of the abuse;
(d) description of the reliefs requested by petitioner as specified in Section 8 herein;
(e) request for counsel and reasons for such;
(f) request for waiver of application fees until hearing; and
(g) an attestation that there is no pending application for a protection order in another court.

Barangay Protection Orders (BPO)

pg. 118
BPOs refer to the protection order issued by the Punong Barangay ordering the perpetrator to desist from
committing acts like causing physical harm to the woman or her child and threatening to cause the woman
or her child physical harm. BPOs shall be issued to the applicant on the date of filing after ex parte
determination of the basis of the application and shall be effective for fifteen (15) days.

Who may issue BPOs?

- Punong Barangay
- Barangay kagawad

(Note: For BPOs issued by a Barangay Kagawad the order must be accompanied by an attestation by the
Barangay Kagawad that the Punong Barangay was unavailable at the time for the issuance of the BPO)

Temporary Protection Orders (TPO)

TPO refers to the protection order issued by the court on the date of filing of the application after ex parte
determination that such order should be issued. A court may grant in a TPO any, some or all of the reliefs
mentioned in this Act and shall be effective for thirty (30) days. The court shall schedule a hearing on the
issuance of a PPO prior to or on the date of the expiration of the TPO. The court shall order the immediate
personal service of the TPO on the respondent by the court sheriff who may obtain the assistance of law
enforcement agents for the service. The TPO shall include notice of the date of the hearing on the merits
of the issuance of a PPO.

Permanent Protection Order (PPO)

PPO refers to protection order issued by the court after notice and hearing. Respondents non-appearance
despite proper notice, or his lack of a lawyer, or the non-availability of his lawyer shall not be a ground for
rescheduling or postponing the hearing on the merits of the issuance of a PPO. If the respondents appears
without counsel on the date of the hearing on the PPO, the court shall appoint a lawyer for the respondent
and immediately proceed with the hearing. In case the respondent fails to appear despite proper notice, the
court shall allow ex parte presentation of the evidence by the applicant and render judgment on the basis of
the evidence presented. The court shall allow the introduction of any history of abusive conduct of a
respondent even if the same was not directed against the applicant or the person for whom the applicant is
made.

The court shall, to the extent possible, conduct the hearing on the merits of the issuance of a PPO in one (1)
day. Where the court is unable to conduct the hearing within one (1) day and the TPO issued is due to
expire, the court shall continuously extend or renew the TPO for a period of thirty (30) days at each
particular time until final judgment is issued. The extended or renewed TPO may be modified by the court
as may be necessary or applicable to address the needs of the applicant.

The court may grant any, some or all of the reliefs specified in Section 8 hereof in a PPO. A PPO shall be
effective until revoked by a court upon application of the person in whose favor the order was issued. The
court shall ensure immediate personal service of the PPO on respondent.

pg. 119
ANTI-TRAFFICKING IN PERSONS ACT OF 2003 (RA 9208)
RA 9208 as amended by the RA 10364:
 The Republic Act (R.A.) 9208, also known as the Anti-Trafficking in Persons Act of 2003, institute
policies to eliminate trafficking in persons especially women and children.
 It establishes the necessary institutional mechanisms to protect and support trafficked persons, and
provides penalties for its violations.
 In 2012, the R.A. 9208 was amended through the R.A. 10364 also known as the Expanded Anti-
Trafficking in Persons Act

What is the Inter-Agency Council Against Trafficking (IACAT)?


 It is composed of the heads of the following as members:
(a) Secretary, Department of Justice (DOJ) as Chairperson;
(b) Secretary, Department of Social Welfare and Development (DSWD) as Co-Chairperson;
(c) Secretary, Department of Foreign Affairs (DFA) as Member;
(d) Secretary, Department of Labor and Employment (DOLE) as Member;
(e) Administrator, Philippine Overseas Employment Administration (POEA) as Member;
(f) Commissioner, Bureau of Immigration (BI) as Member;
(g) Director-General, Philippine National Police (PNP) as Member;
(h) Chairperson, National Commission on the Role of Filipino Women (NCRFW) as Member;
(i) One (1) representative from an NGO representing the women sector as Member
(j) One (1) representative from an NGO representing the Overseas Filipino Workers (OFWs) sector as
Member; and
(k) One (1) representative from an NGO representing the children sector as Member

What is Trafficking in Persons?


 It refers to the recruitment, transportation, transfer or harboring, or receipt of persons with
or without the victim’s consent or knowledge, within or across national borders by means of threat
or use of force, or other forms of coercion, abduction, fraud, deception, abuse of power or of
position, taking advantage of the vulnerability of the person, or, the giving or receiving of payments
or benefits to achieve the consent of a person having control over another person for the purpose
of exploitation which includes at a minimum, the exploitation or the prostitution of others or other
forms of sexual exploitation, forced labor or services, slavery, servitude or the removal or sale of
organs.
 The recruitment, transportation, transfer, harboring or receipt of a child for the purpose of
exploitation shall also be considered as “trafficking in persons” even if it does not involve any of
the means set forth in the preceding paragraph.
 What is “forced labor and slavery”? It is the extraction of work or services from any person by
means of enticement, violence, intimidation or threat, use of force or coercion, including
deprivation of freedom, abuse of authority or moral ascendancy, debt-bondage or deception.
 three (3) inter-related and interdependent Elements
 Acts - It involves the recruitment, obtaining, hiring, providing, offering, transportation,
transfer, maintaining, harboring, or receipt of persons, with or without the victim’s consent
or knowledge, within or across national borders;
 Means - It is committed by use of threat, or of force, or other forms of coercion, abduction,
fraud, deception, abuse of power or of position, taking advantage of the vulnerability of
the person, or, the giving or receiving of payments or benefits to achieve the consent of a
person having control over another person; and
 Purpose - It is done for the purpose of exploitation or the prostitution of others or other
forms of sexual exploitation, forced labor or services, slavery, involuntary servitude or the
removal or sale of organs.
 Note: Each of these elements must be present and linked to each other: the act/s must be achieved
by one of the means and both must be linked to achieving the exploitative purpose. If any one of the
three (3) elements is absent, then the situation may not involve trafficking in persons, except if it
involves trafficking of a child.
The recruitment, transportation, transfer, harboring, adoption or receipt of a child for the purpose of
exploitation or when the adoption is induced by any form of consideration for exploitative purposes shall
also be considered as ‘trafficking in persons’ even if it does not involve any of the means mentioned.

pg. 120
“Sexual exploitation” refers to participation by a person in prostitution or the production of pornographic
materials as a result of being subjected to a threat, deception, coercion, abduction, force, abuse of authority,
debt bondage, fraud or through abuse of a victim’s vulnerability.

“Prostitution” refers to any act, transaction, scheme or design involving the use of a person by another, for
sexual intercourse or lascivious conduct in exchange for money, profit or any other consideration.

“Pornography” refers to any representation, through publication, exhibition, cinematography, indecent


shows, information technology, or by whatever means, of a person engaged in real or simulated explicit
sexual activities or any representation of the sexual parts of a person for primarily sexual purposes.

“Sex tourism” refers to a program organized by travel and tourism-related establishments and individuals
which consists of tourism packages or activities, utilizing and offering escort and sexual services as
enticement for tourists. This includes sexual services and practices offered during rest and recreation
periods for members of the military.

FORCED LABOR refers to the extraction of work or services from any person by means of enticement,
violence, intimidation or threat, use of force or coercion, including deprivation of freedom, abuse of
authority or moral ascendancy, debtbondage or deception including any work or service extracted from any
person under the menace of penalty.

INVOLUNTARY SERVITUDE refers to a condition of enforced and compulsory service induced by means
of any scheme, plan or pattern, intended to cause a person to believe that if he or she did not enter into or
continue in such condition, he or she or another person would suffer serious harm or other forms of abuse
or physical restraint, or threat of abuse or harm, or coercion including depriving access to travel documents
and withholding salaries, or the abuse or threatened abuse of the legal process.

DEBT BONDAGE refers to the pledging by the debtor of his/ her personal services or labor or those of a
person under his/her control as security or payment for a debt, when the length and nature of services is not
clearly defined or when the value of the services as reasonably assessed is not applied toward the liquidation
of the debt.

SLAVERY refers to the status or condition of a person over whom any or all of the powers attaching to the
right of ownership are exercised.

How is Trafficking in Persons different from Illegal Recruitment and Human Smuggling?

pg. 121
What are the three (3) categories of Trafficking in Persons?

1. Acts of Trafficking in Persons


a. To recruit, obtain, hire, provide, offer, transport, transfer, maintain, harbor, or receive a person by
any means, including those done under the pretext of domestic or overseas employment or training
or apprenticeship, for the purpose of prostitution, pornography, or sexual exploitation
b. To introduce or match for money, profit, or material, economic or other consideration, any person
or, as provided for under Republic Act No. 6955, any Filipino woman to a foreign national, for
marriage for the purpose of acquiring, buying, offering, selling or trading him/her to engage in
prostitution, pornography, sexual exploitation, forced labor, slavery, involuntary servitude or debt
bondage;
c. To offer or contract marriage, real or simulated, for the purpose of acquiring, buying, offering,
selling, or trading them to engage in prostitution, pornography, sexual exploitation, forced labor or
slavery, involuntary servitude or debt bondage;
d. To undertake or organize tours and travel plans consisting of tourism packages or activities for the
purpose of utilizing and offering persons for prostitution, pornography or sexual exploitation;
e. To maintain or hire a person to engage in prostitution or pornography;
f. To adopt persons by any form of consideration for exploitative purposes or to facilitate the same
for purposes of prostitution, pornography, sexual exploitation, forced labor, slavery, involuntary
servitude or debt bondage;
g. To adopt or facilitate the adoption of persons for the purpose of prostitution, pornography, sexual
exploitation, forced labor, slavery, involuntary servitude or debt bondage;
h. To recruit, hire, adopt, transport, transfer, obtain, harbor, maintain, provide, offer, receive or abduct
a person, by means of threat or use of force, fraud, deceit, violence, coercion, or intimidation for
the purpose of removal or sale of organs of said person;
i. To recruit, transport, obtain, transfer, harbor, maintain, offer, hire, provide, receive or adopt a child
to engage in armed activities in the Philippines or abroad;
j. To recruit, transport, transfer, harbor, obtain, maintain, offer, hire, provide or receive a person by
means mentioned in the preceding paragraph for purposes of forced labor, slavery, debt bondage
and involuntary servitude, including a scheme, plan, or pattern intended to cause the person either:
k. To believe that if the person did not perform such labor or services, he or she or another person
would suffer serious harm or physical restraint; or
l. To abuse or threaten the use of law or the legal processes;
m. To recruit, transport, harbor, obtain, transfer, maintain, hire, offer, provide, adopt or receive a child
for purposes of exploitation or trading them, including but not limited to, the act of buying and/or
selling a child for any consideration or for barter for purposes of exploitation. Trafficking for
purposes of exploitation of children shall include:
1. All forms of slavery or practices similar to slavery, involuntary servitude, debt bondage
and forced labor, including recruitment of children for use in armed conflict;
2. The use, procuring or offering of a child for prostitution, for the production of pornography,
or for pornographic performances;
3. The use, procuring or offering of a child for the production and trafficking of drugs; and
4. The use, procuring or offering of a child for illegal activities or work which, by its nature
or the circumstances in which it is carried out, is likely to harm their health, safety or
morals;
n. To organize or direct other persons to commit the offenses defined as acts of trafficking.

The R.A. 10364 includes the following as Acts of Trafficking in Persons:

Attempted Trafficking in Persons – when there are acts to initiate the commission of a trafficking
offense but the offender failed to or did not execute all the elements of the crime, by accident or by reason
of some cause other than voluntary desistance. As such, an attempt to commit any of the offenses mentioned
in the preceding paragraph shall constitute attempted trafficking in persons.

First offense: 6 months of community service as may be determined by the court and a fine of
P50,000.
Second and subsequent offenses: Imprisonment of 1 year and a fine of P100,000.

What is the penalty for violations in case of confidential proceedings? In cases when prosecution or trial
is conducted behind closed-doors, it shall be unlawful for any editor, publisher, and reporter or columnist
in case of printed materials, announcer or producer in case of television and radio, producer and director of

pg. 122
a film in case of the movie industry, or any person utilizing tri-media facilities or information technology
to cause publicity of any case of trafficking in persons. The penalty is imprisonment of 6 years and a fine
of not less than P500,000, but not more than P1 Million.

Who can prosecute the case?


Any person who has personal knowledge of the commission of any offense under this law, the trafficked
person, the parents, spouse, siblings, children or legal guardian may file a complaint for trafficking.

Where should the case be filed (venue)?


A criminal action arising from violation of this law shall be filed where the offense was committed, or
where any of its elements occurred, or where the trafficked person actually resides at the time of the
commission of the offense: Provided, That the court where the criminal action is first filed shall acquire
jurisdiction to the exclusion of other courts.

How about foreigners?


If the offender is a foreigner, he shall be immediately deported after serving his sentence and be barred
permanently from entering the country.

On the other hand, the DOJ, in consultation with DFA, shall endeavor to include offenses of trafficking in
persons among extraditable offenses.

Trafficked persons in the Philippines who are foreign nationals shall, subject to the guidelines issued by the
Council, shall also be entitled to appropriate protection, assistance and services available to trafficked
persons under this law. That they shall be permitted continued presence in the Philippines for a length of
time prescribed by the Council as necessary to effect the prosecution of offenders.

What is the prescriptive period for the offenses? Trafficking cases under this law shall prescribe in 10
years. Trafficking cases committed by a syndicate or in a large scale shall prescribe in 20 years. The
prescriptive period shall commence to run from the day on which the trafficked person is delivered or
released from the conditions of bondage and shall be interrupted by the filing of the complaint or
information and shall commence to run again when such proceedings terminate without the accused being
convicted or acquitted or are unjustifiably stopped for any reason not imputable to the accused.

What acts are considered as “qualified trafficking in persons” and what is the penalty?
The following are considered as qualified trafficking:
 When the trafficked person is a child or below 18 years old;
 When the adoption is effected through Republic Act No. 8043, otherwise known as the “Inter-
Country Adoption Act of 1995” and said adoption is for the purpose of prostitution, pornography,
sexual exploitation, forced labor, slavery, involuntary servitude or debt bondage.
 When the crime is committed by a syndicate, or in large scale. Trafficking is deemed committed
by a syndicate if carried out by a group of three (3) or more persons conspiring or confederating
with one another. It is deemed committed in large scale if committed against three (3) or more
persons, individually or as a group.
 When the offender is an ascendant, parent, sibling, guardian or a person who exercises authority
over the trafficked person or when the offense is committed by a public officer or employee.
 When the trafficked person is recruited to engage in prostitution with any member of the military
or law enforcement agencies.
 When the offender is a member of the military or law enforcement agencies.
 When by reason or on occasion of the act of trafficking in persons, the offended party dies, becomes
insane, suffers mutilation or is afflicted with Human Immunodeficiency Virus (HIV) or the
Acquired Immune Deficiency Syndrome (AIDS).
 When the offender commits one or more violations over a period of sixty (60) or more days,
whether those days are continuous or not; and
 When the offender directs or through another manages the trafficking victim in carrying out the
exploitative purpose of trafficking.

In these cases, the penalty is life imprisonment and a fine of not less than P2 Million, but not more than P5
Million.

pg. 123
What are the penalties for violations of R.A. 9208 as amended by R.A. 10364?

What are the mandatory services to trafficked persons? The concerned government agencies shall make
available the following services to trafficked persons:
 Emergency shelter or appropriate housing.
 Counseling.
 Free legal services which shall include information about the victims’ rights and the procedure for
filing complaints, claiming compensation and such other legal remedies available to them, in a
language understood by the trafficked person.
 Medical or psychological services.
 Livelihood and skills training.
 Educational assistance to a trafficked child.

Repatriation of Trafficked Persons. The DFA, in coordination with DOLE and other appropriate
agencies, shall have the primary responsibility for the repatriation of trafficked persons, regardless of
whether they are documented or undocumented. If, however, the repatriation of the trafficked persons shall
expose the victims to greater risks, the DFA shall make representation with the host government for the
extension of appropriate residency permits and protection, as may be legally permissible in the host country.

pg. 124
Legal Protection to Trafficked Persons. Trafficked persons shall be recognized as victims of the act
or acts of trafficking and as such shall not be penalized for crimes directly related to the acts of trafficking
enumerated in this law or in obedience to the order made by the trafficker in relation thereto. In this regard,
the consent of a trafficked person to the intended exploitation set forth in this law shall be irrelevant.

ANTI-SEXUAL HARASSMENT ACT OF 1995 (REPUBLIC ACT 7877)


1. What is Sexual Harassment?

ANSWER:

According to Section 3 of R.A. 7877 or the Anti-Sexual Harassment Act of 1995, work, education or
training-related sexual harassment is committed by an employer, employee, manager, supervisor, agent of
the employer, teacher, instructor, professor, coach, trainor, or any other person who, having authority,
influence or moral ascendancy over another in a work or training or education environment, demands,
requests or otherwise requires any sexual favor from the other, regardless of whether the demand, request
or requirement for submission is accepted by the object of said Act.
-------------

2. Where can sexual harassment be committed?

ANSWER:

(a) In a work-related or employment environment

Sexual harassment is committed when:

(1) The sexual favor is made as a condition in the hiring or in the employment, re-employment or continued
employment of said individual, or in granting said individual favorable compensation, terms of conditions,
promotions, or privileges; or the refusal to grant the sexual favor results in limiting, segregating or
classifying the employee which in any way would discriminate, deprive or diminish employment
opportunities or otherwise adversely affect said employee;
(2) The above acts would impair the employee's rights or privileges under existing labor laws;
(3) The above acts would result in an intimidating, hostile, or offensive environment for the employee.

(b) In an education or training environment

Sexual harassment is committed:

(1) Against one who is under the care, custody or supervision of the offender;
(2) Against one whose education, training, apprenticeship or tutorship is entrusted to the
offender;
(3) When the sexual favor is made a condition to the giving of a passing grade, or the granting
of honors and scholarships, or the payment of a stipend, allowance or other benefits, privileges, or
consideration; or
(4) When the sexual advances result in an intimidating, hostile or offensive environment for the
student, trainee or apprentice.

YOLANDA FLORALDE vs. COURT OF APPEALS


G.R. No. 123048. August 8, 2000
FACTS:

Petitioners, rank and file employees of the Agricultural Training Institute charged respondent Paulino W.
Resma, the Division Chief of Specialist Services Division (SSD) and Officer-In-Charge, with grave
misconduct in office (sexual harassment) in three separate complaints filed directly with the Civil Service

pg. 125
Commission which formally charged respondent with grave misconduct. Respondent denied all accusations
and asked for the dismissal of the complaints.

Commission resolved to conduct a formal investigation of the case. At the hearing, petitioners affirmed the
contents of their affidavits and gave the specific dates during which the sexual harassment took place and
categorically narrated the various incidents of sexual harassment in the office.

Yolanda Floralde testified that respondent would pinch her at her side close to her bust and when they met
at the corridors respondent would make a motion as though he would embrace her.

Nida Velasco on the other hand testified that Paulino Resma threatened her: "Binantaan po niya ako na
kapag nagsumbong ako ay hindi niya irerenew ang aking appointment dahil casual lang po ako."

Normelita Alhambra testified that " tuwing maglalagay ako ng tubig sa baso sa loob ng CR biglang
sumusulpot si Mr. Resma at dinadakma ang puwit ko at sinasabing gustong-gusto niya ang malalaking
puwit."

The Commission issued a resolution finding respondent guilty of grave misconduct and meted out the
penalty of dismissal from the service with all its accessory penalties. Respondent filed a motion for
reconsideration, but was denied.

Consequently, respondent elevated the case to the Court of Appeals via petition for review which
REVERSED and SET ASIDE the resolutions of the Civil Service Commission. Hence, this appeal

ISSUE:
Whether the Court of Appeals erred in reversing the resolutions of the Civil Service Commission on the
ground that the same were not supported by substantial evidence.

HELD:

The sexual harassment charges against Resma were filed by three (3) rank and file employees of the
Agricultural Training Institute, where respondent Paulino Resma is OIC. Being rank and file employees,
they were all reporting to their superior, Paulino Resma. Their time records were signed by the latter. Sexual
harassment in the workplace is not about a man taking advantage of a woman by reason of sexual desire; it
is about power being exercised by a superior officer over his women subordinates. The power emanates
from the fact that the superior can remove the subordinate from his workplace if the latter would refuse his
amorous advances.

This is the situation at bar. Yolanda Floralde, Nida Velasco and Normelita Alambra were all rank and file
employees reporting to respondent Paulino Resma, and their Daily Time Records (DTRs) were signed by
him.

The evidence adduced before the Commission consists of the positive testimonies of petitioners.

Filing a charge for sexual harassment is not a trivial matter. It entails having to go public with an incident
that one is trying to forget. It means opening oneself to public ridicule and scrutiny. We, therefore, can not
believe the version of the defense that the charges were all fabricated.

As to the issue of whether the resolution of the Civil Service Commission is supported by substantial
evidence, we find that, in fact, preponderant evidence supported its findings.

The Court REVERSES and SETS ASIDE the decision of the Court of Appeals. In lieu thereof, the Court
REVIVES and AFFIRMS the resolutions of the Civil Service Commission dismissing respondent Paulino
W. Resma from office for grave misconduct.

pg. 126
PHILIPPINE AEOLUS AUTOMOTIVE UNITED CORPORATION and/or FRANCISCHUA vs.
NATIONAL LABOR RELATIONS COMMISSION
G.R. No. 124617, April 28, 2000

FACTS:
Private respondent was a company nurse for the Philippine Aelous United Corporation. A memorandum
was issued by the personnel manager of petitioner corporation to respondent Cortez asking her to explain
why no action should be taken against her for (1) throwing a stapler at plant manager William Chua; (2) for
losing the amount of Php 1,488 entrusted to her; (3) for asking a co-employee to punch in her time card one
morning when she was not there. She was then placed on preventive suspension. Another memorandum
was sent to her asking her to explain why she failed to process the ATMapplications of her co-employees.
She submitted a written explanation as to the loss of Php 1,488 and the punching in of her time card. A
third memorandum was sent to her informing her of her termination from service for gross and habitual
neglect of duties, serious misconduct, and fraud or willful breach of trust.

NLRC declared her termination as illegal.

In affirming the NLRC decision, the Supreme Court said that Cortez was able to satisfactory explain her
side.

More importantly, Cortez confessed that she suffered sexual advances from the plant manager up to the
extent of him terminating her if she would not give in.

ISSUE:
Whether the plant manager was guilty of sexual harassment.

HELD:
Yes. The gravamen of the offense in sexual harassment is not the violation of the employee’s sexuality but
the abuse of power by the employer. Any employee, male or female, may rightfully cry foul provided the
claim is substantiated. There is no time period within which he or she is expected to complain through the
proper channels. The time to do so may vary depending upon the needs, circumstances, and more
importantly, the emotional threshold of the employee.

Ma. Lourdes T. Domingo v. Rogelio I. Rayala


G.R. No. 155831
February 18, 2008

Facts:

Petitioner who was then Stenographic Reporter III at the NLRC, filed a complaint for sexual
harassment against respondent, NLRC Chairman Rogelio I. Rayala. She claimed that the respondent
committed the following acts:

a. Holding and squeezing her shoulders;


b. Running his fingers across her neck and tickling her ear;
c. Having inappropriate conversations with her;
d. Giving her money allegedly for school expenses with a promise of future privileges; and
e. Making statements with unmistakable sexual overtones.

Issue:

Whether or not the respondent is guilty of sexual harassment

Held:

Yes.

The Supreme Court held that it is not necessary that the demand, request or requirement of a sexual
favor be articulated in a categorical oral or written statement. It may be discerned, with equal certitude,
from the acts of the offender.

pg. 127
The key ingredient in sexual harassment under RA 7877, therefore, is the feeling or effect of the
victim as a result of the offender’s act. As long as the offender creates an intimidating, hostile or offensive
environment for the victim, there could exist sexual harassment.

3. Who can be victims of sexual harassment?


The victim and perpetrator can be any gender, and the perpetrator does not have to be of the
opposite sex.

In a work-related environment, sexual harassment can be committed against an:

a. Employee; or
b. Applicant for employment

In an education or training environment, sexual harassment can be committed against a person:

a. Who is under the care, custody or supervision of the offender; or


b. Whose education or training is entrusted to the offender.

4. Who are made liable for sexual harassment

The following persons may be liable for sexual harassment:

a. Employer, manager, supervisor, or agent of the employer;


b. Teacher, instructor, professor,coach or trainor;
c. Any person who directs or induces another to commit any act of sexual harassment; and
d. Any person who cooperates in the commission thereof by another without which sexual harassment
would not have been committed.

DUTY OF THE EMPLOYER OR HEAD OF OFFICE IN A WORK RELATED, EDUCATION OR


TRAINING ENVIRONMENT

In order to prevent or deter the commission of acts of sexual harassment and to provide the
procedures for the resolution, settlement or prosecution of acts of sexual harassment, Employers and the
heads of educational or training institution are obliged to:

a. Create a committee on decorum and investigation to handle cases on sexual harassment


- Committee shall conduct meetings with officers and employees, teachers, instructors, professors,
coaches, trainers and students or trainees to increase understanding and prevent incidents of sexual
harassment.
- Conducts investigation of alleged cases constituting sexual harassment.

b. Promulgate rules and regulations


- Together with and jointly approved by the employees or students or trainees, through their
designated representatives, they are responsible for:
i. Setting of the guidelines on proper decorum in the workplace, educational or training
institutions.
ii. Prescribing the procedure for the investigation of sexual harassment;
iii. the administrative sanctions therefor
§ Administrative sanctions shall not be a bar to prosecution in the proper courts for unlawful acts of sexual
harassment.

COMPOSITION OF THE COMMITTEE ON DECORUM AND INVESTIGATION


FOR EMPLOYERS
The committee on decorum and investigation shall be composed of at least one (1) representative from:
a. Management
b. Rank-and-file employees
c. Supervisory employees;
d. Union, if any

pg. 128
FOR EDUCATIONAL OR TRAINING INSTITUTIONS- The committee on decorum and investigation
shall be composed of at least one (1) representative from:
a. the administration
b. trainers, teachers, instructors, professors or coaches; and
c. students or trainees.

CIVIL SERVICE COMMISSION VS NIERRAS


FACTS:
- Olga Oa was the Secretary at the Local Water Utilities Administration, and Peter Nierras was the
Acting General Manager of Metro Carigara Water District, Leyte.
- On July 17, 1994, Oa left for Leyte upon orders from her General Manager, who was endorsed to
LWUA management adviser Peter Nierras. The next day, Oa and Nierras went to San Isidro, Leyte where
the former would brief the local officials. After the briefing, Oa asked Nierras if she could meet with the
municipal mayor, and Nierras replied that the mayor would accommodate her in his farm in Calubian. They
took a motorcycle where, according to Oa, Nierras was already making passes at her.
- Upon depositing their personal belongings in Calubian and proceeded to Nierras’ farm, a drinking
spree happened. At around 10:30pm, Oa, already tired and sleepy reminded Nierras to go back to his
cousins’ house, instead, Nierras only gave her a sleeping mat, a blanket, pillow, and told her to take a rest.
Oa slept in a corner in the balcony of the house in the farm.
- At around midnight, Ona was awakened when Nierras lay down beside her and crept underneath her
blanket. To her surprise, she saw that Nierras was half-naked with his pants already unzipped. Ona tried to
run away but Nierras pulled her and ordered her to go back to sleep. It was only when Ona screamed
“Ayoko, ayoko ayoko” that Nierras stopped grabbing and pulling her.
- Oa filed for sexual harassment case on August 11, 1994 addressed to the administrator of LWUA,
and to CSC on October 28, 1994

ISSUE:
- Whether or not Nierras is guilty of sexual harassment

HELD:
- No. Nierras guilty of grave misconduct and not guilty of sexual harassment because Oaa and Nierras
were not employed with the same agency, hence, it cannot be said that Nierras used his position to procure
sexual favors from Oa.

The Senior Citizens Act


Who is a Senior Citizen?
Resident of the Philippines at least 60 years old.
It includes Filipinos with dual citizenship status, provided they have at least 6 months residency in the
Philippines.

Privileges of Senior Citizens


1. 20% discount and exemption from VAT of purchase of medicines, professional fees of attending
physician, professional fees of health workers, medical and dental services, diagnostic and laboratory fees,
actual fare for land, air and sea transportation, utilization of services in hotels restaurants and recreation
centers, funeral and burial services and admission fees charged by theaters, cinema houses and leisures.

2. Exemption from the payment of individual income

3. 5% discount on monthly utilization of water and electricity supplied by public utilities.

4. Free medical and dental services in all government facilities

5. Exemption from training fees

6. Educational assistance for post-secondary, tertiary, post tertiary, vocational and technical education

pg. 129
7. Continuance of the same benefits given by GSIS, SSA, or Pag Ibig as the case may be.

8. Special discounts in special programs for senior citizens on purchase of basic commodities

9. Express lanes in all commercial and government establishments

10. Death benefit assistance

Discount and VAT exemption


20% discount and VAT exemption also apply to purchases of goods and services paid through credit
cards.

Conditions for availment of the senior citizens’ privileges:


The senior citizen must submit proof of his entitlement through any of the following:
1. Senior citizen’s identification card issued by the Office of the Senior Citizen Affairs;
2. Philippine passport of the senior citizen; and
3. Other documents showing the age and Filipino citizenship.

No double discount
Senior citizen must choose between promotional discount or the 20% whichever is higher and more
favorable. If senior citizen is also a PWD, he may choose on whether to avail of his Senior Citizen Card or
his PWD card.

The senior citizen’s discount can be claimed as tax deduction


The discounts granted by establishments may be claimed as deductions from the gross income for the same
taxable year.

Additional privileges for indigent senior citizens:


1. Free vaccination from the DOH against the influenza virus and pneumococcal disease for indigent senior
citizens;
2. Php 500.00 monthly stipend from the government;
3. Philhealth coverage;
4. Php 2,000.00 death benefit assistance from the government.

Discount for DSWD-Accredited senior citizen center


50% discount on all electricity, water, telephone consumption.
Provided that, the centers are government-run or operated by non-stock, non-profit domestic corporations,
operating for at least 6 months, and must have a separate meter for said utilities.

Incentives for Foster Care


1. Realty tax holiday for the first 5 years starting from the first year of operation; and
2. Priority in the construction or maintenance of roads leading to the aforesaid home, residential community
or retirement village.

Additional tax deduction for private entities that employ senior citizen
Additional deduction from their gross income equivalent to 15% of the total amount paid as salaries and
wages to senior citizen, provided that:
1. the employment is at least 6 months; and
2. the annual income of the senior citizen does not exceed the latest poverty threshold.

Criminal Offenses and Penalties


I. The following are considered as criminal offenses under the Seniors Citizens Act:

a. Pegging a maximum amount of food purchase subject to 20% discount and the VAT exemption, and/
or posting of notice to that effect;

b. Refusal to grant the 20% discount and VAT exemption on take -out/ take home/ drive-thru orders it
appearing that the purchase is for the exclusive use and enjoyment of senior citizens;

pg. 130
c. Refusal to grant a 20% discount and VAT exemption for credit card payments;

d. Refusal to grant a 20% discount and VAT exemption on delivery orders it appearing that the purchases
is for the exclusive use and enjoyment of senior citizens;

e. Making a distinction between branded and generic drugs and medicines in giving the 20% discount;

f. posting notices and signages telling customers that availment of the 20% discount is limited to cash
purchases only;

g. "limiting" of discountable drug and medicine purchases to certain weekdays only, such that senior
citizens cannot avail of the 20% discount on other days; and

h. Restricting the purchase time or period for senior citizen discounts after a certain hour.

Any person who refuses to honor the senior citizen card or violates any provision of the Act and its Rules
shall suffer the following penalties:

Ø For the first violation, a fine of not less than Fifty thousand pesos (Php 50,000.00) but not exceeding
One hundred thousand pesos (Php 100,000.00) and imprisonment for not less than two (2) years but not
more than six (6) years; and

Ø For any subsequent violation, a fine of not less than One hundred thousand pesos (Php 100,000.00) but
not exceeding Two hundred thousand pesos (Php 200,000.00) and imprisonment for not less than two (2)
years but not more than six (6) years.

Ø Any person who abuses the privileges granted herein shall be punished with a fine of not less than fifty
thousand pesos (Php 50,000.00) but not more than One hundred thousand pesos (Php 100,000.00) and
imprisonment of not less than six (6) months.

Abuse of Senior Citizen Privileges


This can be committed by the following:

a. A senior Citizen or his /her representative or a person misusing the privileges by:
i. using several purchase booklets,
ii. availing of the discounts to buy medicines, drugs, medical accessories
and supplies not for the use of the senior citizen,
iii. unauthorized use of the identification card of the senior citizen.

b. A medical practitioner giving prescription to other persons in the name of the senior citizen or giving
anomalous prescription.

Any person who refuses to honor the senior citizen card or violates the above provision of the Act and its
Rules shall suffer the following penalties:

Ø Any person who abuses the privileges granted herein shall be punished with a fine of not less than fifty
thousand pesos (Php 50,000.00) but not more than One hundred thousand pesos (Php 100,000.00) and
imprisonment of not less than six (6) months.

The Office for Senior Citizens Affairs

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.

pg. 131
Qualifications of the OSCA Head

The senior citizen to be appointed by the City or Municipal Mayor as OSCA Head should have the following
qualifications:

a. A Filipino citizen and resident of the municipality or city for at least one (1) year;

b. A registered voter of the concerned city or municipality;

c. Able to read and write;

d. Must be physically and mentally capable of performing the tasks of OSCA Head;

e. A bonafide member of a duly registered senior citizens organization which has a track record of at
least three consecutive years;

f. Good moral character; and

g. At least a high school graduate

Functions of the OSCA


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.

HOME DEVELOPMENT MUTUAL FUND LAW OF 2009


Republic Act No. 9679

I. General Rule and Objectives

The Home Development Mutual Fund (HDMF), more popularly known as the Pag-IBIG Fund
(Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industria at Gobyerno) was established as a national
savings program and an affordable shelter financing for the Filipino worker.

As it is the policy of the State to establish, develop, promote, and integrate a nationwide sound and viable
tax-exempt mutual provident savings system suitable to the needs of the employed and other earning
groups, and to motivate them to better plan and provide for their housing needs, HDMF is deemed to lift
up every Filipino in achieving social justice and national development.

pg. 132
Section 2 of IRR of RA 9679 provides the objective of the law, which is to:
1. Improve the quality of life of its members by developing and promoting an integrated nationwide,
sound, and viable tax-exempt mutual provident savings system suitable to the needs of the employed and
other earning groups;
2. Improve the quality of life of its members by promoting home ownership through the extension of
affordable housing loans;
3. c. Stimulate and assist the shelter industry through the extension of developmental and institutional
financing;
4. Invest the provident savings of its members taking into consideration profitability and safety of the
funds as a means of providing them provident benefits upon termination of their membership in the Fund;
5. Provide small and short term loans, other benefits and assistance programs to its members, consistent
with the Fund’s provident character; and
6. Design and implement other programs that shall further promote and mobilize savings and provide
additional resources for the mutual benefit of its members with appropriate returns on the savings and
investments.

I. History

LAW DATE OF DESCRIPTION


ESTABLISHMENT

Presidential Decree 11 June 1978 The HDMF was established with the Social Security
No. 1530 System assigned to handle the funds of private
employees, while the Government Service Insurance
System for the savings of government workers.

Executive Order No. 1 March 1979 The order directed transferring the administration of
527 the Fund to the National Home Mortgage Finance
Corporation, which was one of the operating agencies
of the then Ministry of Human Settlements.

Executive Order No. 4 June 1979 This order merged the funds for private and
538 government personnel into what is now known as the
Pag-IBIG Fund.

Presidential Decree 14 December 1980 Pag-IBIG was made independent from the NHMFC.
1752, which amended Also, the Fund's rule-making power was vested in its
Presidential Decree own Board of Trustees and Pag-IBIG membership was
1530 made mandatory for all SSS and GSIS member-
employees.

pg. 133
May to July 1986 Pag-Ibig Fund was suspended to give way to the
Presidential Task Force on Shelter to conduct a
thorough review of the Fund and its operations.

Order No. 35 1 August 1986 President Corazon Aquino directed the resumption of
Pag-IBIG membership

Executive Order No. 1 January 1987 Pag-IBIG Fund was made to to a voluntary program
90 once more

Republic Act 7742 1 January 1995 Pag-IBIG membership reverted to mandatory

Republic Act No. 21 July 2009 Membership to the Pag-IBIG Fund is made mandatory
9679 or the Home for all SSS- and GSIS-covered employees; uniformed
Development members of the AFP, BFP, BJMP and PNP; as well as
Mutual Fund Law of Filipinos employed by foreign-based employers. The
2009 law also grants the HDMF exemption from tax
payments like other government provident institutions.

III. Leadership and Entity

The Board of Trustees of HDMF will be composed of the following:


Chairperson of the Housing and Urban Development Coordinating Council Chairman

Secretary of the Department of Finance Vice Chairman

Secretary of the Department of Labor and Employment/ duly designated undersecretary Member

The Secretary of the Department of Trade and Industry / duly designated undersecretary Member

Chief Executive Officer of the Fund Member

Two (2) representatives of private employees Member/s

Two (2) representatives of private employers Member/s

pg. 134
One (1) representative of government employees. Member

The four (4) private sector representatives shall each be appointed by the President of the Philippines for a
term of two (2) years. Provided, however, that of the first to be appointed, one (1) representative of the
employers shall have a term of only one (1) year.
As a corporate entity, in addition to the usual corporate powers under existing laws, the fun shall also have
the following specific 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 R.A. 9679, as well as the effective exercise of the powers and functions,
and the discharge of duties and responsibilities of the Fund, its officers and employees;
b. To adopt or approve the annual and supplemental budget of receipts and expenditures including
salaries and allowances of the Fund’s personnel; to authorize such capital and operating expenditures and
disbursements of the Fund as may be necessary and proper for the effective management and operation of
the Fund;
c. To submit annually to the President of the Philippines not later than March 15, a report of its activities
and the state of the Fund during the preceding year, including information and recommendations for the
development and improvement thereof;
d. To invest not less than seventy percent (70%) of its investible funds to housing, in accordance with
R.A. 9679;
e. To acquire, utilize, or dispose of, in any manner recognized by law, real or personal properties to
carry out the purposes of R.A. 9679;
f. To set up its own accounting and computer systems; to conduct continuing actuarial and statistical
studies and valuations to determine the financial viability of the Fund and its projects; to require reports,
compilations and analysis of statistical and economic data, as well as make such other studies and surveys
as may be needed for the proper administration and development of the Fund;
g. To have the power of succession; to sue and be sued; and to adopt and use a corporate seal;
h. To enter into and carry out contracts of every kind and description with any person, firm or association
or corporation, domestic or foreign;
i. To borrow funds from any source, private or government, foreign or domestic;
j. To invest, own or otherwise participate in equity in any establishment, firm or entity; to form,
organize, invest in or establish and maintain a subsidiary or subsidiaries in relation to any of its purposes;
k. To maintain a provident fund, which shall consists of contributions made by both the Fund and its
officers 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;
l. To design and adopt an Early Retirement Incentive Plan (ERIP) for its own personnel;
m. To establish field offices and to conduct its business and exercise its powers in these places;
n. To approve restructuring proposal for the payment of due but unremitted contributions and unpaid
loan amortizations under such terms and conditions as the Board of Trustees may prescribe;
o. To determine, fix and impose interest and penalties upon unpaid contributions due from employers
and employees;
p. To ensure the collection and recovery of all indebtedness, liabilities and/or accountabilities, including
unpaid contributions in favor of the Fund and to demand payment of the obligations referred to herein, 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.
q. To design and implement other programs that shall further promote and mobilize savings and provide
additional resources for the mutual benefit of the members with appropriate returns on the
savings/investments. The program shall be so designed as to spur socio-economic take-off and maintain
continued growth;
r. To conduct continuing actuarial and statistical studies and valuations to determine the financial
condition of the Fund and taking into consideration such studies and valuations and the limitations herein
provided, readjust the benefits, contributions, interest rates of the allocation or reallocation of the funds to
the contingencies covered; and
s. To exercise such powers and perform such acts as may be necessary, useful, incidental or auxiliary
to carry out the provisions of R.A. 9679.
t. The representative of the government employees shall be appointed by the President of the
Philippines for a term of two (2) years.

pg. 135
IV. Membership and Waiver.

Coverage in the Fund shall be mandatory upon:

1. All employees covered by the SSS and the GSIS, and their respective employers, notwithstanding
any waiver of coverage previously issued, including the uniformed members of the Armed Forces of the
Philippines, the Bureau of Fire Protection, the Bureau of Jail Management and Penology, and the Philippine
National Police;
2. Filipinos employed by foreign based employers.
3. Spouses who devote full-time to managing the household and family affairs, unless they also
engage in another vocation or employment which is subject to mandatory coverage, may be covered by the
Fund on a voluntary basis adopting as a basis of contributions one-half(U2) of the monthly compensation
income of the employed spouse.

Membership in the Fund shall be for a period of twenty (20) years, except when earlier terminated by reason
of:
1. Retirement
2. Disability
3. Insanity
4. Death
5. Departure from the country or other causes as may be provided for by the Board of Trustees.
· Provided, that those who become members of the Fund after the effectivity of this Act may withdraw
the total accumulated value of their contributions to the Fund after the 15TH year of continuous membership.
· Provided, further, that said members have no outstanding housing loans with the Fund.
· Provided, finally, that this option shall not prejudice the member's continuing membership in the
Fund. 6 Resignation, layoff or suspension from employment may not necessarily constitute a ground for
membership termination, except for suspension of contributions.
· Resignation, layoff or suspension from employment may not necessarily constitute a ground for
membership termination, except for suspension of contributions.

Coverage of the Fund and/or the payment of monthly contribution to the same may, by rules or resolutions
of the Board of Trustees, be waived or suspended by reasons of:
1. Nature of employment
2. Condition of business
3. Ability to make contributions
4. Other reasonable considerations

V. Generation and Contribution

Covered employees and employers shall contribute to the Fund based on the monthly compensation of
covered employees as follows:
1. Employees earning not more than One thousand five hundred pesos (P1,500.00)per month - one
percent (1%).
2. Employees earning more than One thousand five hundred pesos (P1,500.00) per month - two
percent (2%).
3. All employers - two percent (2%) of the monthly compensation of all covered employees.
· The maximum monthly compensation to be used in computing employee and employer contributions
shall not be more than Five thousand pesos (P5,000.00): Provided, That this maximum may be fixed from
time to time by the Board of Trustees through rules and regulations adopted by it, taking into consideration
actuarial calculations and rates of benefits. Notwithstanding any contract to the contrary, an employer shall
not deduct, directly or indirectly, from the compensation of its employees covered by the Fund, or otherwise
recover from them, the employer's contribution with respect to such employees.

VI. Housing Features

A member of good standing shall be eligible to apply for housing loans, under such terms and conditions
as may be authorized by the Board of Trustees, taking into account ability to pay. The Board of Trustees
shall institute policies to ensure that lower-income members obtain such housing loans.

pg. 136
VII. Repealing and Effectivity Section 30 and 31 of RA 9679

A. Repealing Clause
Presidential Decree No. 1530, as amended by Executive Order Nos. 527 (series of 1979) and 538 (series of
1979); Presidential Decree No. 1752, as amended by Executive Order Nos. 35 (series of 1986) and 90
(series of 1986); and Republic Act No. 8501 are hereby repealed. Section 6 of Republic Act No. 7742 is
hereby amended accordingly. AU other laws, decrees, executive orders, or rules and regulations, or parts
thereof inconsistent with or contrary to the provisions of this Act or its purposes are hereby amended or
modified accordingly.

B. Effectivity
This Act shall take effect fifteen (15) days after completion of its publication in the Official Gazette or in
at least two (2) national newspapers of general circulation.
Approved: July 21 2009
Effective : August 6 2009

pg. 137
National Health Insurance Act of 2013

IMPLEMENTING RULES AND REGULATIONS

Republic Act 7875 as Amended


Otherwise Known as
The National Health Insurance Act of 2013

OBJECTIVE OF THE LAW


The State shall provide comprehensive health care services to all Filipinos through a
socialized health insurance program that will prioritize the health care needs of the underprivileged,
sick, elderly, persons with disabilities (PWDS), women and children and provide free health care
services to indigents.

This IRR seeks to attain the objectives of the Act which are to:
• Provide all citizens of the Philippines with the mechanism to gain financial access to health services;
• Establish the Program to serve as the means to help the people pay for health care services;

B. Prioritize and accelerate the provision of health services to all Filipinos, especially that segment of the
population who cannot afford these services.

DEFINITION OF TERMS
(a) Abandoned Children – children who have no known family willing and capable to take careof them
and are under the care of the Department of Social Welfare and Development (DSWD), orphanages,
churches and other institutions.
(b) Accreditation of Health Care Providers – a process whereby the qualifications andcapabilities of
health care providers are verified in accordance with the guidelines, standards and procedures set by
the Corporation for the purpose of conferring upon them the privilege of participating in the Program
and assuring that health care services rendered by them are of the desired and expected quality.
Accreditation encompasses licensing or certification, or pre-accreditation survey, as applicable, and
their participation in the Program.
(c) Accredited Collecting Agent – any person, natural or juridical, accredited by the Corporationto
receive, account and remit premium contributions of members.
(d) Act – refers to Republic Act No. 7875 as amended, otherwise known as the National HealthInsurance
Act of 2013.
(e) Automatic Accreditation – is the accreditation route of health care institutions that arelicensed or
certified by Department of Health (DOH) or other certifying body duly recognized by the Philippine
Health Insurance Corporation (PhilHealth) and has the opportunity to be accredited through basic
participation with the Program. These institutions do not require

Pre-Accreditation Survey (PAS). Automatic accreditation is likewise applicable to professional health


care providers subject to compliance of requirements as determined by the Corporation.

(f) Benefit Package – services that the Program offers to members, subject to the classificationand
qualifications provided for in this Rules.
(g) Board – the Board of Directors of the Philippine Health Insurance Corporation.
(h) Capitation – a payment mechanism where a fixed rate, whether per person, family, household,or group,
is negotiated with a health care provider who shall be responsible for delivering or arranging for the
delivery of health services required by the covered person under the conditions of a health care provider
contract.

pg. 138
(i) Case Rate Payment – a payment method, also known as Case-Based Payment, that reimburseshealth
care institutions a predetermined fixed rate for each treated case or disease.
(j) Contribution – the amount paid by or in behalf of a member to the Program for coverage,based on
salaries or wages in the case of members in the formal economy and on household earnings and assets,
in the case of the informal economy, or on other criteria as may be defined by the Corporation in
accordance with the guiding principles set forth in Article I of the Act.
• Clinical Practice Guidelines (CPG) – systematically developed statements based on bestevidence,
intended to assist practitioners in making decisions about appropriate management of specific clinical
conditions or diseases.
• Corporation – refers to the Philippine Health Insurance Corporation (PHIC or PhilHealth),which is
mandated by law to administer the Program.
• Coverage – the entitlement of an individual, as a member or as dependent, to the benefits ofthe
Program.
• Dependent – the legal dependents of a member who are the:
(b) Legitimate spouse who is not a member;
(c) Unmarried and unemployed legitimate, legitimated, acknowledged, illegitimate children and
legally adopted or stepchildren below twenty-one (21) years of age;
(d) Children who are twenty-one (21) years old or above but suffering from congenital disability, either
physical or mental, or any disability acquired that renders them totally dependent on the member
for support, as determined by the Corporation;
(e) Foster child as defined in Republic Act 10165 otherwise known as the Foster Care Act of 2012 ;
(f) Parents who are sixty (60) years old or above, not otherwise an enrolled member, whose monthly
income is below an amount to be determined by the Corporation in accordance with the guiding
principles set forth in the Act; and,
(g) Parents with permanent disability regardless of age as determined by the Corporation, that renders
them totally dependent on the member for subsistence.
• Employee – any person who performs services for an employer in which either or bothmental and
physical efforts are used and who receives compensation for such services, the performance of which
is under an employer-employee relationship.
• Employer – a natural or juridical person who pays or compensates for services rendered byone or more
individuals.
• Enrollment – the process determined by the Corporation to enlist individuals as members ordependents
covered by the Program.
• Fee-for-Service – a fee pre-determined by the Corporation for each service delivered by ahealth care
provider based on the bill. The payment system shall be based on a pre-negotiated schedule
promulgated by the Corporation.
• Global Budget – an approach in the purchase of medical services by which health careproviders
negotiate the cost of providing a specific package of medical benefits based solely on a pre-determined
and fixed budget as determined by the Corporation.
• Grievance – is a remedy as provided for in this Rules where anyone aggrieved by any decisionof the
implementors of the Program can avail of redress.
• Gross Negligence – the utter lack of care and diligence expected of a reasonable person asevidenced
by the respondent’s indifference or being oblivious to the danger of the injury to the person or property
of others.
• Group Health Care Institutions - refer to institutions that have been accredited by PhilHealth

as a group/corporation under one management (e.g. hospitals or other health care institutions with
branches, extensions).

- Health Care Institution - refers to health facilities that are accredited with PhilHealth whichincludes,
among others, hospitals, ambulatory surgical clinics, TB-DOTS, freestanding dialysis clinics, primary
care benefits facilities, and maternity care package providers.
- Health Care Institution Extension or Branches – a licensed facility of any category situatedin
another location that is owned and operated by a health care institution that has been accredited for at
least two (2) years.
- Health Care Provider – refers to any of the following:
A health care institution, which is duly licensed and/or accredited, devoted primarily to the
maintenance and operation of facilities for health promotion, prevention, diagnosis, treatment and
care of individuals suffering from illness, disease, injury, disability or deformity, drug addiction or
in need of obstetrical or other medical and nursing care.

pg. 139
A health care professional, who is any doctor of medicine, nurse, midwife, dentist, pharmacist or
other health care professional or practitioner duly licensed to practice in the Philippines and
accredited by the Corporation; or,

A health maintenance organization (HMO), which is an entity that provides, offers or arranges for
coverage of designated health services needed by plan members for a fixed pre-paid premium; or,

A community-based health care organization (CBHCO), which is an association of members of the


community organized for the purpose of improving the health status of that community through
preventive, promotive and curative health services.

B Health Education Package – a set of informational services such as training and instruction ondisease
prevention, health promotion, rehabilitation and other health education packages that may be
determined by the Corporation. These shall be made available by health care providers to provide
members and their family with knowledge about an illness and its treatment, the means available to
prevent the recurrence or aggravation of such illness and to promote health in general.
K. Health System Providers (HSP) – the organization of people, institutions, and resourcesthat deliver
health care services to meet the health needs of target population that may be accredited subject to the
guidelines set by the Corporation. These include, among others, Inter-local Health Zones (ILHZ),
health care facility network owned and managed by provincial, city and/or municipal governments.
ab. Health Technology Assessment – a field of science that investigates the value of a health technology
such as procedure, process, products, or devices, specifically on their quality, relative cost-effectiveness
and safety. It is usually related to the science of epidemiology and economics and has implications on
policy, decision to adopt and invest in these technologies, or in health benefit coverage.

ac. Home Care and Medical Rehabilitation Services – skilled nursing care, which members get in their
homes/clinics for the treatment of an illness or injury that severely affects their activities or daily living.
Home care and rehabilitation services include hospice or palliative care for people who are terminally
ill but does not include custodial and non-skilled personal care.

ad. Indigent – a person who has no visible means of income, or whose income is insufficient for family
subsistence, as identified by the DSWD based on specific criteria set for this purpose in accordance
with the guiding principles set forth in Article I of the Act.

ae. Late Remittance – PhilHealth premium contribution remitted after the prescribed period as determined
by the Corporation.

af. Local Government Units (LGUs) – provinces, cities, municipalities, and barangays where anenrolled
member resides.

ag. Mechanism for Feedback – the process devised to inform both the Corporation and health care
providers of the data and results of the performance monitoring and outcomes assessment processes.

ah. Member – any person whose premium contributions have been regularly paid to the Program who may
be a paying member, an indigent member, a sponsored member or a lifetime member or otherwise
known as covered member.

ai. National Health Insurance Program (NHIP) – the compulsory health insurance programof the
government as established in the Act, which shall provide universal health insurance coverage and
ensure affordable, acceptable, available and accessible health care services for all citizens of the
Philippines.

aj. Outcomes Assessment – the process of monitoring and reviewing of outcomes resulting fromthe health
care services rendered by accredited providers. Information that can result from an outcome assessment
includes knowledge and attitude changes, short-term or intermediate behavior shifts, reduction of
morbidity and mortality, satisfaction of patients with care and cost, among others.

ak. Out-Patient Clinic – an institution or facility with a basic team providing health services such as
diagnostic consultation, examination, treatment, surgery and rehabilitation on an out-patient basis.

pg. 140
al. Out-patient Services – Health services such as diagnostic, consultation, examination,treatment,
surgery and rehabilitation on an out-patient basis.

am. Participation to the Program – a process whereby a health care provider commits to provide quality
health care services to Program members and dependents as stipulated in a performance commitment.
All services provided shall receive reimbursement from PhilHealth.

an. Peer Review – a process by which the quality of health care provided to Program members or the
performance of a health care professional is reviewed by professional colleagues of comparable training
and experience either within the professional organization or hospital or within the Corporation itself
when commissioned by the Corporation to undertake the same. The results of the said review can be
utilized as basis for quality interventions and/or payment or non-payment of claims.

ao. Performance Commitment – a document signed by health care institutions who intend to participate
in the Program, which stipulate their undertakings to provide complete and quality health services to
PhilHealth members and their dependents, and their willingness to comply with PhilHealth policies on
benefits payment, information technology, data management and reporting and referral, among others.

ap. Performance Monitoring – an ongoing measurement of a variety of indicators of health care quality
in the health field to identify opportunities for improvement in health care delivery.

aq. PhilHealth Employer Number (PEN) – the permanent and unique number issued by the Corporation
to registered employers, who may either be juridical or natural persons.

ar. PhilHealth Identification Number (PIN) - the permanent and unique number issued by
theCorporation to individual members and to each and every dependent.

as. PhilHealth Identification Card – is the health insurance identification card issued by the Corporation
to members and their dependents.

at. PhilHealth Office – the head office and other offices established by the Corporation in everyprovince
and chartered city, or wherever it is deemed practicable.

au. Philippine National Formulary (PNF) – the essential drugs list of the Philippines which is prepared
by the Department of Health (DOH) in consultation with experts and specialists from organized
professional medical societies, the academe and the pharmaceutical industry and which is updated
regularly.

av. Policy Review and Formulation – the process of continuous research, development and evaluation of
program policies that address health needs and ensure delivery of quality and cost-effective health
services.

aw. Portability – the enablement of a member and their dependents to avail of program benefits in an area
outside the jurisdiction of the member’s PhilHealth office.

ax. Pre-Accreditation Survey (PAS) - is a process of assessing health care institutions that are not
automatically accredited as defined by the Corporation as well as those applying for advanced
participation. This includes among others, on-site observation, evaluation of pertinent documents and
interview of personnel and patients.

ay. Preferred Health Care Institution - is a recognition conferred to a health facility that has been granted
advanced participation for beyond compliance with PhilHealth policies, demonstrated higher financial
risk protection, excellent quality of care and better service satisfaction to its clients/patients.

az. Prescription Drug – a drug which has been approved by the Food and Drug Administration (FDA) and
which can only be dispensed pursuant to a prescription order from a provider who is duly licensed to
do so.

ba. Professional Practitioners – include doctors, lawyers, certified public accountants, and other
practitioners required to pass government licensure examinations in order to practice their professions.

d. Program Implementor– any official and/or employee of the Corporation who, in the generalconduct
of the operations and management functions of the Corporation, is charged with the implementation of
the Program and the enforcement of the provisions of the NHI Act of 1995 as amended, this Rules, and

pg. 141
other administrative issuances related thereto, including officials and employees of other institutions
who are duly authorized by virtue of a Memorandum of Agreement (MOA) to exercise any of the
powers vested in the Corporation to implement the Program.
e. bc. Quality Assurance – a formal set of activities to review and ensure the quality of services provided.
It includes quality assessment and corrective actions to remedy any deficiency

bd. Residence – the place where a member actually resides.

be. Retiree – refrs to a member of the Program who has reached the age of retirement as provided by law
or who was retired on account of permanent disability as certified by the employer and the Corporation.

bf. Salary – the basic monthly compensation paid regularly for services rendered.

bg. Sufficient Regularity of Premium Contribution – is a pattern characterized by consistent remittance


of premium contributions.

bh. Third Party Accreditation – is the accreditation of health care institutions by a third party duly
recognized and authorized by PhilHealth exclusive of the decision-making function to grant or deny
accreditation to Program.

bi. Traditional and Alternative Health Care – the application of traditional knowledge,skills and
practice of alternative health care or healing methods which include reflexology, acupuncture, massage,
acupressure, chiropractics, nutritional therapy and other similar methods in accordance with the
accreditation guidelines set forth by the Corporation and the Food and Drug Administration (FDA).

bj. Treatment Procedure – any method used to remove or alleviate the signs and symptomsand/or causes
of a disease.

bk. Utilization Review - a formal review of health resource utilization or of the appropriateness of health
care services on a prospective, concurrent, or retrospective basis.

COVERAGE

All Filipinos shall be mandatorily covered in accordance with the principles of universality and
compulsory coverage enunciated in Section 2(b) and 2(l) of the Act, implementation of the Program shall
ensure sustainability of coverage and continuous enhancement of the quality of service.

The Program shall cover the following members and their dependent/s:

• Members in the Formal Economy


Government Employee - an employee of the government, whether regular, casual orcontractual,
who renders services in any of the government branches, military or police force, political
subdivisions, agencies or instrumentalities, including government-owned and-controlled
corporations, financial institutions with original charter, Constitutional Commissions, and is
occupying either an elective or appointive position, regardless of status of appointment.
Private Employee - an employee who renders services in any of the following:

Corporations, partnerships, or single proprietorships, NGOs, cooperatives, non-profit


organizations, social, civic, or professional or charitable institutions, organized and based in the
Philippines including those foreign owned;

Foreign governments or international organizations with quasi-state status based in the


Philippines which entered into an agreement with the Corporation to cover their

Filipino employees in PhilHealth;

Foreign business organizations based abroad with agreement with the Corporation to cover their
Filipino employees in PhilHealth.

pg. 142
All other workers rendering services, whether in government or private offices, such as job
order contractors, project-based contractors, and the like
Owners of Micro Entreprises

Owners of Small, Medium and Large Enterprises

Household Help – as defined in the Republic Act 10361 or “Kasambahay Law”


RA 10361, Sec. 4 (D) – Domestic worker or “Kasambahay” refers to any person engaged in
domestic work within an employment relationship such as, but not limited to, the following: general
househelp, nursemaid or “yaya”, cook, gardener, or laundry person, but shall exclude any person
who performs domestic work only occasionally or sporadically and not on an occupational basis.
The term shall not include children who are under foster family arrangement, and are provided
access to education and given an allowance incidental to education, i.e. “baon”, transportation,
school projects and school activities

Family Drivers

• Members in the Informal Economy

Migrant Workers – documented or undocumented Filipinos who are engaged in aremunerated


activity in another country of which they are not citizens.
Informal Sector - to this sector belong, among others, street hawkers, market vendors,pedicab and
tricycle drivers, small construction workers, and home-based industries and services.
Self-Earning Individuals – individuals who render services or sell goods as a means oflivelihood
outside of an employer-employee relationship or as a career. These include professional
practitioners including but not limited to doctors, lawyers, engineers, artists, architects and the
like,businessmen, entrepreneurs, actors, actresses and other performers, news correspondents,
professional athletes, coaches, trainers, and such other individuals.
Filipinos With Dual Citizenship – Filipinos who are also citizens of other countries.
Naturalized Filipino Citizens – those who have become Filipino citizens throughnaturalization as
governed by Commonwealth Act No. 473 or the Revised Naturalization Law.
Citizens of other countries working and/or residing in the Philippines – foreigncitizens with
valid working permits and/or Aliens Certificate of Registrations (ACRs) working and/or residing
in the Philippines.

A Indigent – a person who has no visible means of income, or whose income is insufficient forfamily
subsistence, as identified by the DSWD based on specific criteria set for this purpose in accordance
with the guiding principles set forth in Article I of the Act.

B Sponsored Member – a member whose contribution is being paid by another individual,government


agency, or private entity according to the rules as may be prescribed by the Corporation.

C Lifetime Member – a member who has reached the age of retirement under the law and haspaid at
least one hundred twenty (120) monthly premium contributions.

 Members of PhilHealth who have reached the age of retirement as provided by law and have met
the required premium contributions of at least 120 months, regardless of their employer/s’ or
sponsor’s arrears in contributions and is not included in the Sponsored program nor declared as
dependent by their spouse or children. Age of Retirement –

ENROLLMENT OF BENEFICIARIES
PhilHealth Identification Number and Health Insurance ID card

- for purposes of identification, eligibility verification and utilization recording. The issuance of this
ID card shall be accompanied by a clear explanation on the rights, privileges and responsibilities
of a PhilHealth member and the list of PhilHealth-accredited healthcare providers.

pg. 143
Note: The absence of the ID card shall not prejudice the right of any member to avail of benefits or medical
services under the Program.

Note: This health insurance ID card with a corresponding ID number shall be recognized as a valid
government identification and shall be presented and honored in transactions requiring the verification of a
person’s identity.

Note: A member may request for replacement of the Health Insurance ID Card due to loss or wear and tear
upon payment of fees for the issuance of a new card

Requirements for Registration of Members and Dependents

A person intending to register with the Program regardless of membership category, shall submit to the
Corporation a properly accomplished prescribed Membership Registration Form, whereby the member
shall certify the truthfulness and accuracy of the information provided including the list of declared
qualified legal dependents. If warranted, the Corporation may require submission of supporting documents.
The same process shall be maintained for amendments/revision to any submitted data of the member and/or
dependents.

Emancipated Individual or Single Parent


Any person below 21 years of age, married or unmarried but with a child, shall be enrolled as a member.

Effectivity
Membership shall take effect upon (1) enrollment and; (2) payment of the required premium contribution.

PREMIUM CONTRIBUTIONS
Remittance of Premium Contribution
Remittance of contribution shall be mandatory for all members. It shall be made to PhilHealth offices or to
any of the accredited collecting agents. Failure to timely remit the appropriate premium contribution shall
be subject to interest and penalties as prescribed by the Corporation without prejudice to other applicable
penalties herein provided.
Note: Remittance is mandatory, and failure to remit as such subject to interest and penalties.
Note: Members in the formal economy shall continue paying the monthly contributions to be shared equally
by the employer and employee at a prescribed rate set by the Corporation not exceeding five percent
(5%) of their respective basic monthly salaries.

Mandatory Appropriation of Premium Contribution for Government Agencies


It shall be mandatory for all government agencies to include the payment of premium contribution in their
respective annual appropriations. Any increase in the premium contribution of the national government as
employer shall only become effective upon inclusion of said amount in the annual General Appropriation
Act (GAA).
Note: Increase in premium requires inclusion in the annual GAA before it became effective.

Enrollment of Citizens of Other Countries Working in the Philippines


Citizens of other countries working in the Philippines may be allowed coverage in the Program provided
that their countries have existing reciprocity agreements with the Philippines, subject to additional
guidelines as may be prescribed by the Corporation.

Identification and Enrollment of Indigents


All indigents identified by the DSWD under the NHTS and other such acceptable methods, shall
automatically be enrolled and covered under the Program.

pg. 144
LIFETIME MEMBERS
Required Number of Monthly Premium Contributions to Qualify as Lifetime Member
Any person who has reached the age of retirement and has paid at least 120 monthly contributions shall be
qualified as a Lifetime Member. The number of monthly contributions required as a Lifetime Member may
be increased in accordance with an actuarial study to sustain the financial viability of the Program.

Requirements to be a lifetime member:


• Reached the age of retirement
• Paid at least 120 monthly contributions

Lifetime Member with Current Source of Income


A Lifetime Member who obtains a regular source of income from employment, practice of profession and
other means shall resume paying the required monthly premium contribution until finally ceasing to earn,
provided that said income is above the poverty threshold.

BENEFITS UNDER THE NATIONAL HEALTH INSURANCE PROGRAM


The Program aims to provide its members with responsive benefit packages. In view of this, the
Corporation shall continuously endeavor to improve its benefit package to meet the needs of its members.

SECTION 37. Benefit Package


The Corporation shall continuously endeavor to improve its benefit package to meet the needs of
its members and undertake the following:

a. Additional benefit items and improve those already being provided;

b. Develop the appropriate provider payment mechanisms;

c. Continuously improve the system for benefit availment; and,

d. Strictly monitor the implementation of benefit availment.

BENEFIT PACKAGE MEMBERS AND THEIR DEPENDENTS


OUT-PATIENT MEDICAL AND SURGICAL IN-PATIENT CARE
CARE

1. Services of health care professionals 1. Room and board

2. Diagnostic, laboratory and other medical 2. Services of health care professionals


services

3. Personal preventive service 3. Diagnostic, laboratory and other medical


examination services

4. Prescription drugs and biologicals, subject to the 4. Use of surgical or medical equipment and
limitations of the Act facilities

5. Health Education 5. Prescription drugs and biologicals, subject to the


limitations of the Act

6. Health Education

Other benefit packages:

a. Emergency and transfer services;

b. Health Education Packages; and,

pg. 145
c. Such other health care services that the Corporation and the DOH shall determine to be appropriate and
cost-effective.

*These services and packages shall be reviewed annually to determine its financial sustainability
and relevance to health innovations, with the end in view of quality assurance, increased benefits and
reduced out-of-pocket expenditure. Such review shall include actuarial studies.

HEALTH SERVICES NOT COVERED BY THE NATIONAL HEALTH INSURANCE PROGRAM

Excluded Personal Health Services


The Corporation shall not cover expenses for health services, which the Corporation and the DOH
consider cost-ineffective through health technology assessment. The Corporation may institute additional
exclusions and limitations as it may deem reasonable in keeping with its protection objectives and financial
sustainability.

Continuation of Entitlement to Benefits in Case of Death of Member


In case of death of the member, the dependents of the deceased member shall continue to avail of the
benefits for the unexpired portion of the coverage or until the end of the calendar year, whichever comes
first.

Note: Unexpired portion of the coverage or until the end of the calendar year, whichever comes
first.

CONDITIONS FOR ENTITLEMENT OF BENEFITS


Entitlement to Benefits
Members and/or their dependents are entitled to avail of the benefits if either of the following is met:

a. Paid premium contribution for at least three (3) months within the six (6) months prior to the first day
of availment; or,

b. Paid in full the required premium for the calendar year.

In addition, the member is not currently subject to legal penalty of suspension as provided for in Section 44
of the Act and has paid the premium with sufficient regularity. The Corporation may issue other
requirements for entitlement to benefits as it deems appropriate.

The following need not pay the monthly contributions to be entitled to the Program’s benefits

a. Retirees and pensioners of the SSS and GSIS prior to March 4, 1995; and,

Members of PhilHealth who have reached the age of retirement as provided for by law, not gainfully
employed or continuing their practice as professional and have met the required premium contributions of
at least 120 months

Benefits of Members and their Dependents Confined Abroad


Members and/or their dependents shall be eligible to avail of benefits for confinement/s outside the country:
Provided, that the conditions for entitlement under this Rules are met and the following requirements are
submitted within one hundred eighty (180) calendar days from the date of discharge:

a. Official receipt or any proof of payment and/or statement of account from the health care institution
where the member/dependent was confined; and,

pg. 146
b. Certification of the attending physician as to the final diagnosis, period of confinement and services
rendered.

The benefits to be granted shall be paid to the member in the equivalent local rate based on the Level Three
(3) hospital category with the applicable case-rate payment.

ACCREDITATION OF HEALTH CARE PROVIDERS


Types of Accreditation

Accreditation shall be of the following types:

a. Initial Accreditation – This shall be given to qualified health care providers that are applying for the
first time. The accreditation shall take effect upon compliance of the requirements. If the facilities of a
revoked institutional health care provider are transferred either by sale or lease or such other modes of
transfer, such will be treated as an application for initial accreditation.

b. Continuous Accreditation – This shall be given to accredited health care providers that applied
through basic participation and who complied with the requirements prescribed by the Corporation that
qualify them for uninterrupted participation to the Program, until their accreditation is withdrawn based
on rules set by the Corporation.

c. Re-accreditation – the accreditation that shall be given to health care providers under any of the
following conditions, or any other conditions as determined by the Corporation:

1. Health care institutions whose previous accreditation has lapsed or whose subsequent application
was denied;
2. Health care institutions that failed to submit the requirements for continuous participation within
the prescribed period;
3. Acquisition of additional service capability that would require change in license/certificate, as
applicable, issued by the relevant authority;
4. Transfer of location. The health care institution must first secure a license to operate from the
DOH for the new facility prior to the date of transfer and apply for re-accreditation within ninety
(90) calendar days from the date of transfer. Beyond this period, the accreditation shall
automatically lapse and all claims filed with the Corporation shall not be paid. The health care
institution must inform the Corporation of the planned transfer indicating the exact date of transfer
and address of the new site. The ninety (90) day grace period shall not apply to the new site if it is
not licensed;
5. Upgrading of facility level or category;
6. Change in the classification of health care institution;
7. Change in ownership. The health care institution in good standing must apply within the ninety
(90) calendar days from actual change of ownership;
8. Resumption of operation after closure/cessation of operation.
Professionals whose previous accreditation has lapsed or whose subsequent application was denied
shall be re-accredited.

When the accreditation of a health care institution lapsed due to the voluntary act of a health care
provider to evade the consequences of a previous violation or adverse findings indicating fraud, as
determined by the Corporation, the application for re-accreditation shall be denied.

d. Reinstatement of Accreditation – the restoration of accreditation after compliance to conditions


following a suspension imposed by the Corporation.

pg. 147
Participation to the Program
A process whereby a health care provider commits to provide quality health care services to the Program
members and their dependents as articulated in its performance commitment. In return, it shall receive
reimbursement from PhilHealth for services provided.

There are two levels of participation for Health Care Institutions (HCI):

a. Basic Participation – is the minimum level of participation granted by PhilHealth to all


HCIs that comply with all the requirements including the performance commitment (e.g. license or
certificate, as applicable) and pass the accreditation survey, when applicable. Health care
institutions shall be granted continuous basic participation with PhilHealth until withdrawn based
on the rules set by the Corporation.

b. Advanced Participation – a higher level of participation granted by PhilHealth to HCIs


already engaged for basic participation that are able to comply with all the requirements set
byPhilHealth and pass the mandatory survey for Advanced Participation.

HEALTHCARE PROVIDERS
The following health care providers shall be accredited before they can participate in the Program:

a. Health Care Institutions

1. Hospitals

2. Out-patient clinics

iv. Rural health units/health centers

v. Dispensaries/infirmaries
vi. Birthing homes/facilities
vii. Medical Out-patient Clinics

viii. Other Primary Care Facilities licensed by the DOH

3. Free-Standing Dialysis Clinics

4. Ambulatory Surgical Clinics

5. Health Maintenance Organizations (HMOs)

6. Community-Based Health Care Organizations (CBHCOs)

7. Pharmacies

8. Other health care institutions licensed by the DOH

DOH b. Health Care Professionals

1. Physicians

2. Dentists

3. Nurses

4. Midwives

5. Pharmacists

6. Other duly licensed health care professionals

pg. 148
SECTION 56. Accreditation Requirements for Health Care Institutions
The following requirements shall apply to Health Care Institutions in appropriate cases:

a. They must have been operating for at least three (3) years prior to initial application for accreditation,
with a good track record in the provision of health care services. The date of reckoning of the three-
year operation requirement shall be the effectivity date of either the initial license, clearance to operate,
certificate, or other proof of operation issued by the DOH or other pertinent government agencies if
applicable. HCI that have temporarily stopped operation due to upgrading, expansion, change of
ownership or any other causes shall have their length of operation computed on a cumulative basis
from the date of the initial operation of the former institution;

b. They must be licensed / certified by the DOH, as applicable;

c. They must comply with the provisions of the performance commitment. They must have their own
ongoing formal program of quality assurance that satisfy the Corporation’s standards;

d. Any other requirements that may be determined by the Corporation.

Exemptions from Three-Year Operation Requirement


A HCI that does not qualify for the provision of the three- year operation requirement may still apply and
qualify for initial accreditation if it meets any of the following conditions:

a. Its managing health care professional has a working experience in another accredited health care
institution for at least three (3) years or a graduate of hospital administration or any related degree. If
the managing health care professional leaves the accredited health care institution within the initial year
of accreditation the accreditation shall be withdrawn effective on the date of vacancy;

b. It operates as a tertiary facility or its equivalent;

c. It operates in an LGU where the accredited HCI cannot adequately or fully service its population;

d. Its service capability is not currently available in the LGU;

e. It is an extension or branch of a health care institution that has been accredited for at least two

(2) years; and,

f. Other conditions as may be determined by the Corporation.

The following health care institutions shall be exempted from the three (3) year operation requirement:

a. Primary Care Benefit Providers with or without out-patient malaria package;

b. TB DOTS providers;

c. Non-hospital maternity care package providers;

d. Animal bite treatment providers; and,

e. Such other health facilities as may be determined by the Corporation

pg. 149
Accreditation requirements for Physicians, Dentists, Nurses, Midwives, Pharmacists and
other Licensed Health Care Professionals

Physicians, dentists, nurses, midwives, pharmacists and other licensed health care professionals shall
comply with the following requirements to be accredited:

a. They must be duly licensed to practice in the Philippines by the PRC;

b. They must be members of the Program with qualifying premium contributions;

c. They must comply with the provisions set forth in the performance commitment for professionals; and

d. They must comply with any other requirements that may be determined by the Corporation.

No accreditation fees shall be imposed by the Corporation for health care professionals and shall not require
a certificate of good standing or such other analogous certification for them to be accredited.

Findings on ethical issues by disciplinary bodies of accredited professional organizations of the Professional
Regulation Commission (PRC) or specialty societies recognized by the Philippine Medical Association
(PMA) in the case of medical specialists, shall be considered in assessing the performance of health care
professionals. Suspension of membership in such professional organizations shall be given due
consideration in assessing the continued accreditation of such professionals.

pg. 150
B. SOCIAL SECURITY LAW

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

May 01, 1997

The Philippine Social Security System (SSS; Filipino: Paseguruhan ng Kapanatagang


Panlipunan) is a state-run, social insurance program in the Philippines to workers in the private,
professional, and informal sectors. SSS is established by virtue of Republic Act No.1161, better known as
Social Security Act of 1954. This law was later amended by Republic Act No. 8282 in 1997.

Objective of the law


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.

Persons covered by the SSS law maybe classifies as

1. Compulsary
2. Voluntary

Coverage in the SSS shall be compulsory upon


1. All employees not over sixty (60) years of age and their employers
2. Domestic helpers with monthly income shall not be less than One thousand pesos (P1,000.00)
3. Foreingers employed in the Philippines
4. 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:
a. All self-employed professionals;
b. Partners and single proprietors of businesses;
c. Actors and actresses, directors, scriptwriters and news correspondents who do not fall within
the definition of the term "employee"
d. Professional athletes, coaches, trainers and jockeys; and
e. Individual farmers and fishermen.

Date of effectivity 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.

The following may be covered by the SSS on a voluntary basis.

1. Spouses who devote full time to managing the household and family affairs; and
2. Filipinos recruited by foreign-based employers for employment abroad

Employees not covered by SSS Law:


pg. 151
1. Purely casual employees;
2. Employees serving on an alien vessel, when such vessel is outside of the Philippines;
3. Employees of the Philippine government, its instrumentalities and agencies;
4. Employees of foreign government, international organization and their wholly-owned
instrumentalities
5. Temporary employees, if excluded by regulation of the Social Security Commission

OBLIGATIONS OF EMPLOYER

1. Require the presentation of the SS number of a prospective employee;


2. Report all employees for SS coverage within thirty (30) days from the date of employment by
submitting an accomplished Employment Report (SS Form R-1A) at the SSS servicing branch;
3. Deduct from the employees the monthly SS contributions based on the schedule of contributions;
pay his share of contributions including Employees' Compensation (EC) and remit these
contributions to the SSS with tellering facilities or accredited banks within the first ten (10)
calendar days following the month when said contributions are due and applicable;
4. Submit a summary of all employees' contributions thru Contribution Collection List (SS Form R-
3) together with a copy of the Special Bank Receipt (SBR) and Contributions Payment Return
(SS Form R-5) within 10 days after the applicable quarter;

An employer may also participate in the SSSNet, a computer service using the electronic data
interchange technology, designed to hasten the posting of employees' contributions for faster
processing and availment of benefits and loan privileges.

Or, the employer may opt to participate in the R3 Diskette Project which allows the submission of
the monthly summary of employees' contribution thru a diskette or flash disk. This system is a
better alternative to manual reporting as it minimizes encoding errors and processing time.
5. Issue official receipts and maintain official records of employment and deductions for all
contributions deducted from the employees' pay envelopes;
6. Remit to the SSS all salary, educational, stocks investment or privatization loan amortization of
his employees and submit an accomplished Monthly Salary/Calamity/Emergency/Stock
Investment Loan Payment Return (SS Form ML-1) to any of the SSS accredited banks within the
first ten (10) calendar days following the month when said amortizations are due and applicable;
7. Submit a summary of all employees' loan amortization thru an accomplished Collection List (SS
Form ML-2) with copies of the SBRs and SS Form ML-1 on or before the tenth day following the
applicable month to the SSS servicing branch;

An employer may also participate in the Salary Loan Repayment Diskette project which allows
the submission of the monthly summary of employees' loan repayment thru diskette, CD, flash
disk or DVD. This system provides an employer with convenience and hastens the posting of
member's loan repayments.
8. Advance SS and EC sickness benefits due to his/her employees once these are approved by the
SSS;
9. Advance SS maternity benefits due to qualified female employees;
10. File for reimbursement for all legally advanced sickness and maternity benefits;
11. Keep his/her employees updated on the changes in SSS policies and increases in their benefits;
12. Ensure that all forms submitted are properly and accurately accomplished;
13. Inform SSS of any change in company address, business name or temporary/permanent cessation
of business operations through the submission of a duly notarized Employer Data Change
Request (SS Form R- 8);
14. Submit an updated Specimen Signature Card (SS Form L-501) annually; and
15. Certify SSS-related documents for the employees when required for purposes of their claims

EFFECT OF NON-REPORTING OR NON-REMITTANCE

 To the Employee

The employee is still entitled to SS benefits even if the employer fails or refuses to remit
the SSS contributions.

pg. 152
 To the Employer

An employer who does not report temporary or provisional employees is violating the SS
law. The employer is liable to the employees and must:

 pay the benefits of those who die, become disabled , get sick or reach retirement
age;
 pay all unpaid contributions plus a penalty of three percent per month; and
 be held liable for a criminal offense punishable by fine and/or imprisonment.

 To the Self-employed Person and Voluntary Member

A self-employed person who fails to register with the SSS may be subjected to fines
and/or imprisoned. However, in the event the self-employed or voluntary member does
not realize earnings in a given month, payment of SSS contributions for that month is no
longer required.

Self-employed and voluntary members may pay their monthly contributions


prospectively or in advance, but never retroactively to cover month/s when no
contribution payments were remitted.

In the case of the covered Non-Working Spouse, if he/she later becomes employed, self-
employed or an OFW, the membership shall be reclassified accordingly as employed or
self-employed or OFW.

EFFECT OF FAILURE TO MAKE TIMELY REMITTANCE OF CONTRIBUTION

Section 28 of RA 8282 states that non-remittance of worker’s SSS contributions shall be punishable
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.”

pg. 153
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
paycontributions 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
22-A of R.A. 8282.

Effect of Separation from Employment

When an employee under mandatory coverage has resigned or is separated from employment, his
employer’s contribution on his account and the employer’s obligation to pay contribution arising
from that employment shall cease upon the effectivity of his resignation or 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. Should the employee be a
member-saver, he may suspend his contributions to the Fund during the period of his
unemployment. However, he may remain in good standing by remitting to the Fund his monthly
contributions together with the employer counterpart to be shouldered by him. A member-
borrower, on the other hand, shall continue to pay and remit to the Fund his monthly
contributions together with the employer counterpart to be shouldered by him.

SUMMARY OF SSS BENEFITS


TYPEOFBENEFIT QUALIFYINGCONDITIONS AMOUNT OFBENEFIT
SICKNESS •The member is unable to work The amount of the member’s
A daily cash allowance paid due to sickness or injury and is daily Sickness Benefit
for the number of days a confined either in a hospital or allowance is equivalent to
member is unable to work due at home for at least four (4) ninety percent (90%) of his/her
to sickness or injury. days; average daily salary credit
•He/she has paid at least three (ADSC).
(3) months of contributions The Sickness Benefit is granted
within the 12-month period up to a maximum of 120 days
immediately before the in one calendar year.
semester of sickness or injury;
•He/she has used up all
company sick leaves with pay
for the current year and has
duly notified his/her employer;
or
•He/she must notify the SSS
directly by filing a sickness
benefit application if he/she is
separated from employment, a
self-employed or voluntary
member, including overseas
Filipino worker (OFW)-
member.
MATERNITY •The member has paid at least The amount of the daily
A daily cash allowance granted three (3) months of Maternity Benefit allowance is
to a female member who is contributions within the equivalent to one hundred
unable to work due to 12-month period immediately percent (100%) of her ADSC,
childbirth or miscarriage. before the semester of her multiplied by 60 days in case
childbirth or miscarriage; of normal
•If employed, she must has delivery/miscarriage/ectopic
given notification of her pregnancy without opera-
pregnancy through her tion/hydatidiform mole (H-
employer; or mole), or by 78 days for
•She must directly notify the caesarean section
SSS if she is separated from

pg. 154
employment, a self-employed delivery/ectopic pregnancy
or voluntary member, including with operation.
OFW-member. The Maternity Benefit is
granted up to the first four (4)
deliveries or miscarriages only.
DISABILITY •The member has paid at least If qualified, the member is
A cash benefit granted – either one (1) month contribution granted a monthly Disability
as a monthly pension or a lump before the semester of Pension, plus a P500 monthly
sum amount – to a member disability. Supplemental Allowance.
who becomes permanently •To qualify for a monthly The lowest monthly Disability
disabled, either partially or disability pension, he/she must Pension is P1,000 if the
totally. have paid at least 36 monthly member has less than ten (10)
contributions prior to the credited years of service
semester of disability. (CYS); P1,200 if with at least
•If with less than 36 monthly ten (10) CYS; and P2,400 if
contributions, he/she is granted with at least twenty (20) CYS.
a lump sum amount.

RETIREMENT •The member is at least 60 If qualified, the member is


A cash benefit granted – either years old (optional retirement), granted a monthly Retirement
as a monthly pension or a lump separated from employment or Pension, plus a 13th Month
sum amount – to a member has ceased to be self-employed; Pension payable every
who can no longer work due to and has paid at least 120 December.
old age. monthly contributions prior to The retiree has the option to
the semester of retirement; or receive the first eighteen (18)
•The member is 65 years old months pension in lump sum,
(mandatory retirement), discounted at a preferential rate
whether employed or not; and of interest to be determined by
has paid at least 120 monthly the SSS. This option can be
contributions prior to the exercised only upon filing of
semester of retirement. the first retirement claim, and
•To qualify for a monthly the Dependent’s Pension and
retirement pension, the member 13th Month Pension are
must have paid at least 120 excluded from the advanced
monthly contributions prior to eighteen (18) months pension.
the semester of retirement. If the member has dependent
•If with less than 120 monthly minor children, they are given
contributions, he/she may be a Dependent’s Pension
granted a lump sum amount, but equivalent to ten percent (10%)
will also be given the option to of the member’s monthly
continue paying contributions pension or P250, whichever is
to complete the 120 months to higher. Only five (5) minor
become eligible for monthly children, beginning from the
pension. youngest, are entitled to
Dependent’s Pension.
No substitution is allowed.
The lowest monthly
Retirement Pension is P1,200
if the member has 120 monthly
contributions or at least ten
(10) CYS; or P2,400 if with at
least twenty (20) CYS.
DEATH •A monthly death pension is If qualified, the member’s
A cash benefit granted – either granted to the primary primary beneficiary is granted
as a monthly pension or a lump beneficiary (legitimate spouse a monthly Death Pension, plus
sum amount – to the until he/she remarries, and a 13th Month Pension payable
beneficiaries of a deceased dependent legitimate, every December. If the
member. legitimated or legally adopted, member has dependent minor
and illegitimate children) of the children, they are given a
deceased member who had paid Dependent’s Pension
at least 36 monthly equivalent to ten percent (10%)

pg. 155
contributions prior to the of the member’s monthly
semester of death. pension or P250, whichever is
•A lump sum amount is granted higher. Only five (5) minor
to the primary beneficiary if the children, beginning from the
deceased member had less than youngest, are entitled to
36 monthly contributions. Dependent’s Pension.
•If there are no primary No substitution is allowed.
beneficiaries, the member’s The lowest monthly Death
secondary beneficiaries Pension is P1,000 if the
(dependent parents) shall be member had less than ten (10)
given a lump sum amount. CYS; P1,200 if with at least
ten (10) CYS; and P2,400 if
with at least twenty (20) CYS.
FUNERAL •The employee-member was The Funeral benefit is a
A cash benefit given to reported for coverage by his/her variable amount ranging from a
whoever paid for the burial employer; minimum of P20,000 to a
expenses of the deceased •A self-employed maximum of P40,000,
member. member/OFW/non-working depending on the member’s
spouse who had at least one (1) paid contributions and CYS.
contribution payment;
•A voluntary member who was
previously covered either as
employed/ self-employed/OFW
and had at least one (1)
contribution payment.
EMPLOYEES’ Cash Benefit for temporary The EC Program aims to assist
COMPENSATION (EC) sickness or disability, those who suffer from work-
PROGRAM permanent partial or total connected sickness or injury
disability, and death resulting in disability or death.
Medical Services, Appliances, Starting June 1984, the benefits
and Supplies Rehabilitation under the EC Program may be
Services enjoyed simultaneously with
benefits under the Social
Security Program, thus,
allowing double compensation
for covered members who
suffer work-related
contingencies. All SSS-
registered employers and their
employees are compulsorily
covered under the EC Program
and need not register again
under the EC.
LOAN: •An employed, currently-paying A one-month loan is equivalent
Salary self-employed or voluntary to the average of member’s last
A cash loan granted to an member who has six (6) posted twelve (12) monthly salary
employed, currently- paying monthly contributions within credits (MSCs), or the amount
self-employed or voluntary the last twelve (12) months applied for, whichever is
member. It is intended to meet prior to the month of filing of lower. A two-month loan is
the member’s loan application. equivalent to twice the average
short-term credit needs. •For one-month loan, the of the member’s last twelve
member must have 36 posted (12) MSCs posted, rounded to
monthly contributions prior to the next higher MSC, or the
the month of filing of amount applied for, whichever
application. is lower.
•For two-month loan, the The loan shall be charged an
member must have 72 posted interest rate of ten percent
monthly contributions prior to (10%) per annum until fully
the month of filing of loan paid, based on diminishing
application. principal balance, and shall be
•If employed, the member’s amortized over a period of 24
employer must be updated in months.

pg. 156
the payment of contribution and If the loan is not fully paid at
loan remittances. The member the end of the term, interest
must also be updated in the shall continue to be charged on
payment of other loans with the outstanding principal
SSS. balance until fully paid.
In case of default, the
arrearages/unpaid loan shall be
deducted from the member’s
short-term benefit claims (e.g.,
sickness/maternity), if any, or
from his/her final benefit claim
(e.g., death, retirement, total
disability).
The loan can be renewed after
payment of at least fifty
percent (50%) of the original
loan amount and at least fifty
percent (50%) of the loan term
has lapsed.

pg. 157
C. The Government Service Insurance Act of 1997

IRR Republic Act 8291

Rules I-V

Pursuant to Section 53 of Republic Act No. 8291, otherwise known as the Government Service Insurance
System Act of 1997, the following Rules and regulations are hereby adopted and promulgated to carry out
the provisions of the law.

Definition of Terms:
 IRR - These Implementing Rules and Regulations pursuant to Republic Act (RA) 8291
 GSIS - The Government Service Insurance System created by Commonwealth Act 186
 Board - The Board of Trustees of the Government Service Insurance System
 Employer - Employer are the following:
o The Philippine government;
o its political subdivisions, branches, agencies or instrumentalities;
o including government-owned or controlled corporations; and
o financial institutions with original charters,
o the constitutional commissions; and
o the judiciary.
o Note: In keeping with Section 3 of this Ad, the Armed Forces of the Philippines (AFP) and
the Philippine National Police (PNP) are considered Employers under this Act only for
purposes of their civilian and non-uniformed personnel
 Employee or Member - Any person receiving compensation while in the service of an Employer
as defined above, whether by election or appointment, irrespective of status of appointment,
including barangay and sanggunian officials, but, pursuant to Section 3 of the Act, excluding the
(i) uniformed members of the AFP and PNP; and (ii) Bureau of Fire Protection (BFP) and the
Bureau of Jail Management and Penology (BJMP)
 Active Member - A Member who is not separated from the service and therefore continues to
receive compensation from an Employer
 Dependents -Dependents are the following:
o the legitimate spouse dependent for support an & member or pensioner;
o any legitimate, legitimated and/or legally adopted child, including any illegitimate
child, who is unmarried, not gainfully employed, who has not attained the age of majority,
or being at the age of majority but incapacitated and incapable of self-support due to a
mental or physical defect acquired prior to age of majority; and
o the parents dependent upon the member for support;
 Primary Beneficiaries - The legitimate spouse, until he/she remarries, and the dependent children
 Secondary Beneficiaries -secondary beneficiaries shall include:
o the dependent parents; and
o the legitimate descendants
 Compensation -The basic pay or salary received by an employee, pursuant to his/her tenure in
the service of an Employer. Per diems, bonuses, overtime pay, honoraria, allowances and any
other emoluments which are not integrated into the basic payshall not be considered as
compensation for purposes of this IRR
 Contribution - The amount payable to the GSIS by the Member and the Employer in accordance
with Rule III of this IRR.
 Current Daily Compensation - The actual daily compensation or the monthly compensation
divided by the number of working days in the month when the disability occurred but not to
exceed Twenty-two (22) days, (ADC/WD) or (AMC/WD)
 AMC or Average Monthly Compensation - The AMC is the average monthly compensation
received by the member during his last Thirty-Six (36) months of service preceding his
separation/retirement/disability/death, or if less than Thirty-Six (36) months, during the actual
number of months he received such compensation. However, the AMC shall be limited to a
maximum of Ten Thousand Pesos (P10,000). The AMC is computed as shown under Rule IV of
this IRR.
 RAMC or Revalued Average Monthly Compensation - The AMC plus Seven-hundred Pesos
(P700.00). Refer to Rule IV on the Computation of the Basic Monthly Pension, (AMC + P700)

pg. 158
 Lump Sum - The Basic Monthly Pension multiplied by Sixty (60) months without any discount,
(BMPx60 months)
 Pensioner - Any person receiving or who has received old-age or permanent total disability
benefits either in lump sum or as a monthly pension excluding those receiving survivorship benefits
 Gainful Occupation - Any productive activity that provides the member with income at least-
equal to the minimum compensation of government employees
 Disability - Any loss or impairment of the normal functions of the physical or mental faculties
of a member, which reduces or eliminates his capacity to continue with his current gainful
occupation or engage in any other gainful occupation
 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 or mental
faculties of the member
 Permanent Total Disability - Accrues or arises when recovery from total disability is remote
from the medical point of view
 Temporary Total Disability - Accrues or arises when the impaired physical or mental faculties
can be rehabilitated and/or restored to their normal function
 Permanent Partial Disability - Accrues or arises upon the irreversible loss or impairment of
certain physical faculties, despite which the member is able to pursue a gainful occupation

Compulsory Membership
Membership with the GSIS is compulsory upon:

 All government personnel who are receiving fixed monthly compensation and have not reached
the mandatory retirement age of 65 years, whether elective or appointive;
 Elective officials who will be more than 65 years old at the end of this term;
 Officials appointed by the President of the Republic of the Philippines who remain in office after
reaching the age of 65;
 Contractual or casual employees who receive fixed monthly compensation and render the
required number of working hours for the month. Provided that the following conditions that
determine an employee employer relationship exist:
o the person was selected and engaged by an employer as an individual, rather than as a
representative, assignee or agent of another entity;
o the employer pays the salary to the employee as an individual;
o the employer has power of dismissal; and
o the employer has the power to control the means and the result of the work to be done.

Employees excluded from compulsory coverage of the GSIS:

 Employees who have separate retirement schemes under special laws and are therefore covered by
their respective retirement laws, such as the members of the Judiciary, Constitutional Commissions,
and other similarly situated government officials;
 Uniformed Personnel of AFP, BFP, and BJMP whose coverage by the GSIS has ceased effective
June 24, 1997;
 Uniformed members of the Philippine National Police (PNP) whose coverage by the GSIS has
ceased effective February 1, 1996;
 Contractual Employees who are not receiving fixed monthly compensation;

Benefit Coverage
All Members of the GSIS shall be covered with:

 life insurance and


 social security protection including;
o retirement
o disability
o survivorship
o separation, and
o unemployment benefits, and
o such other benefits and protection as may be extended to them by the GSIS, subject to the
limitations provided by law

pg. 159
GSIS Membership is classified as follows:

 Active members. These members are still in the service and are paying the integrated premiums
prescribed under R.A. 8291. These members are covered for the entire package of benefits and
privileges being extended by the GSIS.
 Policyholders. These members are covered for life insurance only and are entitled to the specific
benefits accruing from the life insurance coverage; they can avail of policy loan privilege only.
 Separated members. These members are former active members who have been separated from
the service and are still covered by the GSIS under the principle of “once a member, always a
member”; as such, unless the terms of their separation provide otherwise, they shall be entitled to
receive future benefits under PD. 1146 in the event of compensable contingency such as old-age
(attainment of age 60 years), disability, survivorship and death. They are not, however, entitled to
any loan privilege.
 Retired members. These members are former active members who have retired from the service
and are already enjoying the corresponding retirement benefits applied for. These members are not
entitled to any loan privilege.

The following benefits under PD. 1146 may be granted to separated members of the PNP, BJMP and
the BFP subject to the satisfaction of eligibility requirements:

 Old-Age Benefit
o For those who have served for at least three (3) years but less than fifteen (15) years —
 Cash payment equivalent to one hundred percent (100%) of the average monthly
compensation for every year of service rendered upon reaching age sixty (60).

o For those who have served for at least fifteen (15) years —
 Basic monthly pension for life guaranteed for five (5) years upon reaching age
sixty (60) with the option to convert the basic monthly pension for the first five (5)
years into lump sum at 6% discount.

 Permanent Disability Benefits


o if payment of at least thirty-six (36) monthly contributions within the last five-year
period immediately preceding disability or at least one hundred eighty monthly (180)
contributions has been made.
 For total disability — Basic monthly pension for life
 For partial disability — Basic monthly pension payable in accordance with the
Rules and regulations prescribed by the GSIS
 Survivorship Benefits
o if payment of at least thirty six (36) monthly contributions within the last five year
period immediately preceding the disability or at least one hundred eighty monthly
contributions prior to disability has been made.
 Primary beneficiaries — Basic survivorship pension guaranteed for thirty six
(36) months and the dependents’ pension.
 Designated and Recorded Secondary Beneficiaries (in the absence of primary
beneficiaries) — Cash payment equivalent to fifty percent (50%) of the average
monthly compensation for each year contributions were paid.
 Funeral Benefit
o Available to those with at least three (3) years service and payment of the corresponding
integrated contributions as of their separation from the GSIS.
 Retirement Benefit
o Those in the service before June 1, 1977 shall have the option to choose among the modes
of retirement under RA. 660, RA. 1616 or PD. 1146.

Effect of Separation from the Service:


 A Member separated for cause shall automatically forfeit his/her benefits, unless the terms of
resignation or separation provide otherwise. In the case of forfeiture of benefits, the separated
employee shall be entitled to receive only One-half (½) of the cash surrender value of his/her
insurance.

pg. 160
 Unless separated for cause, a Member separated from the service prior to qualification for
retirement benefits shall continue to be a member and shall be entitled to benefits that provide for
contingencies.

Collection and Remittance of Contributions and Other Amounts


Amount of Contributions
 Effective June 24,1997, it shall be mandatory for the covered employee and the employer to pay
the monthly contributions specified in the following schedule:
o For all Employers and Employees, except for those Members of the Judiciary and the
Constitutional Commissioners:

Monthly Compensation (MC) Employee’s Share Employer’s Share

P10,000 and below 9% of MC 12% of MC

Over P10,000 9% of P10,000 + 2% of (MC-P10,000) 12% of MC

 For members of the Judiciary and Constitutional Commissioners

Monthly Compensation (MC) Employee’s Share Employer’s Share

Regardless of Amount 3% 3%

Effects of Non-Remittance of Contributions on the Eligibility to Benefits of Members :

 All loan privileges of the member shall be suspended;


 Premium arrearages and outstanding service loan accounts and corresponding surcharges shall be
deducted from the proceeds of the claim.

Computation of the Basic Monthly Pension


The Basic Monthly Pension (BMP) shall be computed on the basis of the following factors:

 Total Years of Service (YOS)


 Average Monthly Compensation (AMC);
o If YOS is less than thirty-six (36) months:

Total compensation received preceding unemployment/disability/death


AMC= Actual number of months member received compensation

o If YOS is thirty-six (36) months or more:

AMC=
Total compensation received during latest Thirty−six (36) months preceding separation/retirement/disability/death
Thirty−six (36) months

pg. 161
 Revalued Average Monthly Compensation (RAMC)
o 𝑅𝐴𝑀𝐶 = 𝐴𝑀𝐶 + 𝑃700

Computation of BMP

 If YOS is fifteen (15) years or less,


o BMP = 37.5% x RAMC
 If YOS is more than fifteen (15) years,
o BMP = 37.5% x RAMC + 2.5% x RAMC x (YOS-15) 4.4.3.
Note: The BMP shall not exceed ninety percent (90%) of the AMC.

The following are the minimum amounts of basic monthly pension:

 One Thousand Three Hundred Pesos (P1,300) for:


o Existing old-age/retirement and disability pensioners;
o Prospective retirees and disability pensioners with less than twenty (20) years of service;
and
o Those qualified for retirement or disability pension benefits
 Two Thousand Four Hundred Pesos (P2,400) for members who retired or are disabled upon or after
the effectivity of this Act with at least twenty (20) years of service.

Computation of the Creditable Service


The computation of creditable servicefor the purpose of determining the amount of benefits payable under
this Act shall include the period or periods of service from the date of appointment/election but not
earlier than actual assumption up to the end of the service period or periods, starting from the original
appointment, including:

 periods of service at different times under one or more employer; and


 service rendered overseas under the authority of the Philippine government, provided the Member
received compensation from his/her Employer as defined in the Act.

Effects of Re-employment
 All service credited for retirement, resignation or separation for which corresponding benefits have
been awarded shall be excluded in the computation of service in case of re-employment.

Basis of computation of Total Service.

For the purpose of computing the total service rendered, full-time and other services rendered with
compensation shall be converted to their fulltime equivalent, reckoned in hours or days actually rendered,
using a Forty- (40-) hour week and 52 weeks a year as basis.

Rule VI: Entitlement to Separation Benefit

Who are entitled?

A member who has rendered a minimum of Three (3) years creditable service shall be entitled to separation
benefit upon resignation or separation under the following terms:

(1) For a Member with at least Three (3) years but less than Fifteen (15):
A cash payment equivalent to one hundred percent (100%) of the average monthly compensation for
very year of service the member has paid contributions, but not less than Twelve Thousand Pesos
(P12,000), payable upon reaching sixty (60) years of age or upon separation, whichever comes later;

(2) For a Member with at least Fifteen (15) years of service and less than Sixty years (60) of age upon
separation:

pg. 162
(a) A cash payment equivalent to eighteen (18) times the basic monthly pension, payable at the time
of resignation or separation;

(b) An old-age pension benefit equal to the basic monthly pension, payable monthly for life upon
reaching age 60.

Rule VII. Unemployment Benefit

Unemployment benefit is in the form of monthly cash payments equivalent to fifty percent (50%) of the
average monthly compensation subject to the following conditions:

1. A member shall be entitled to the unemployment benefits in the form of monthly cash payments if all
the conditions below are met:
(a) he/she was a permanent employee at time of separation;
(b) his/her separation was involuntary due to the abolition of his/her office or position resulting from
reorganization; and
(c) he/she has been paying the contributions specified under Rule 3.1 (a) for at least One (1) Year prior
to separation.
2. A member who has rendered at least Fifteen (15) years of service will be entitled to the Separation
Benefits described in Rule VI, instead of the Unemployment Benefit.

How it should be paid?

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

Those entitled to more than Two (2) months of Unemployment Benefits shall initially receive Two (2)
monthly payments. A seven-day (7-day) waiting period shall be imposed on succeeding; monthly payments
to determine whether the separated member has found gainful employment either in the public or private
sector.

All accumulated unemployment benefits paid to the employee during his/her entire membership with the
GSIS shall be deducted from the separation benefits to which the member may be entitled to upon his
voluntary resignation or separation.

Rule VIII Retirement

Retirement benefit is one of the following:

1. The lump sum equivalent to Sixty (60) months of the BMP payable at the time of retirement plus an
old-age pension benefit equal to the basic monthly pension payable for life, starting upon the expiration
of the five-years covered by the lump sum; or
2. A cash payment equivalent to Eighteen (18) times his/her basic monthly pension plus monthly pension
for life payable immediately.

What are the conditions to avail the retirement benefit?

(a) he/she has rendered at least Fifteen (15) years of service;


(b) he/she is at least Sixty (60) years of age at the time of retirement; and

pg. 163
(c) he/she is not receiving a monthly pension bene�t from permanent total disability.

What is the compulsory retirement age?

Unless the service is extended by appropriate authorities, retirement shall be compulsory for an employee
at Sixty-five (65) Years of age with at least Fifteen (15) Years service: Provided, that if he/she has less
than Fifteen (15) years of service, he/she may be allowed to continue in the service in accordance with
existing Civil Service Rules and regulations.

Notification by Employer
It shall be the duty of the Employer to notify its Employee at least Ninety (90) days in advance of the date
of his/her compulsory retirement.

Conflicts in Date of Birth


The date of birth reflected in the "Information for Membership" shall be adopted. In case of conflicting
dates, the date in the birth certificate or baptismal certificate will prevail.

Effect of Re-employment
When a retiree is re-employed, his/her previous services credited at the time of his/her retirement shall be
excluded in the computation of future benefits. In effect, he/she shall be considered a new entrant.

How to file?

The following documents shall be �led in duplicate with the GSIS Head office or any Branch Office, as
the case may be, at least Thirty (30) Days before the date of retirement for processing and payment of
benefit:

(1) Application for Retirement/Old-age Benefits duly approved and endorsed by the head of office who
shall be responsible for compliance with all laws and legal requirements covering retirement;
(2) Service Record;
(3) Clearance from the Ombudsman; and,
(4) Such other documents as may be required by the GSIS.

Rule IX Disability and Sickness-Income Benefits

Concept
Disability benefits are the benefits which are granted to a member due to the loss or reduction in earning
capacity caused by a loss or impairment of the normal functions of his/her physical and/or mental faculties
as a result of an injury or disease.

The loss in earning capacity shall be determined not only on the basis of the member's actual loss of income
from his/her usual occupation but also on his/her capacity to continue engaging in any other gainful
occupation because of the impairment.

Types of Disabilities
1. Permanent total;
a. Complete loss of sight of two eyes;
b. Loss of two (2) limbs at or above the ankle of wrist;
c. Permanent paralysis of two (2) limbs;
d. Brain injury resulting in incurable imbecility, insanity, or other irreversible conditions;
e. Such other cases as may be determined by GSIS.

2. Permanent partial; or
a. Complete and permanent loss of the use of the following:
i. Any finger;
ii. Any toe;
iii. One arm;

pg. 164
iv. One hand;
v. One foot;
vi. One leg;
vii. One of both ears;
viii. Hearing of one or both ears;
ix. Sight of one eye;
b. Such other cases as may be determined by GSIS

3. Temporary total Disability accrues or arises when there is complete but temporary incapacity to
continue with a member's present employment or engage in any gainful occupation due to the loss or
impairment of the normal function of the physical and/or mental faculties of the member. In effect, this
loss or impairment can be- reversed to the point where the member can continue with his previous
employment or engage in another gainful occupation.

Criteria for Evaluating the Extent of Disability of a Member


1. The extent of actual loss of compensation or incapacity to earn; or
2. When the member's incapacity to earn cannot be precisely determined, the loss or reduction in
earning capacity shall be based on the Table of Loss Percentage prescribed by the GSIS; or
3. In the event the injury/disease which caused an impairment not listed in this Rule, the GSIS shall
determine the equivalent percentage loss or reduction of earning capacity taking into account the
extent of the functional and/or anatomical loss resulting from such injury/disease in relation to the
over-all physiology of the disabled member.

Provisions for Permanent Total Disability


He shall entitled to the monthly income benefit for life equivalent to the basic month pension effective from
the date of disability when:

a. he/she is in the service at the time of disability; or


b. if separated from the service,
(1) he/she has paid at least Thirty-Six (36) monthly contributions within the Five (5) year period
immediately preceding his/her disability; or
(2) he/she has paid a total of at least One Hundred Eighty (180) monthly contributions, prior to
his/her disability; and
c. he/she is not receiving the old-age retirement pension benefit.

In addition to the monthly income benefit for life, a cash payment equivalent to Eighteen (18) times his/her
basic monthly pension, shall be paid to a member who was in the service at the time of his/her permanent
total disability and who has paid a total of One Hundred Eighty (180) monthly contributions.

If the conditions are not met, he shall be immediately paid the cash payment equivalent to one hundred
percent (100%) of his/her average monthly compensation for each year of service he/she paid contributions
but not less than Twelve Thousand Pesos (P12,000.00). Accordingly, he/she shall no longer receive
separation benefit.

Provisions for Partial Disability


A member whose disability is partial shall be entitled to a cash payment equivalent to the basic monthly
pension to be paid in accordance with the schedule of disabilities or Table of Loss Percentages if he/she
satisfies the conditions cited in Permanent Total Disability.

Provisions for Temporary Disability


A member who suffers temporary total disability shall be entitled to seventy-five percent (75%) of his/her
current daily compensation for each day or fraction thereof of temporary total disability benefit to start not
earlier than the Fourth (4th) Day, but not exceeding one hundred twenty (120) days in one calendar year
when:

pg. 165
(a) he/she has exhausted all sick leave credits and collective bargaining agreement sick leave benefits,
if any; and
(b) he/she was in the service at the time of his/her disability; or
(c) if separated, he/she 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/her disability

Periodic Medical Report


The disabled member, except those with permanent partial disability, shall submit annual medical reports
on his/her impairment, duly certified by his/her attending physician, and/or submit himself to annual
medical and physical examination. If he/she fails to comply with this retirement, the payment of his/her
benefit shall be suspended and shall be resumed only upon his/her compliance thereto provided that, he/she
is found still entitled to the benefit.

Effect of Recovery from Impairment


The benefit being enjoyed by a disabled member shall be suspended notwithstanding his/her being
unemployed, when he/she has recovered from his/her disability and has regained his/her capacity to engage
in any gainful occupation, as determined by the GSIS.

If the recovery is such that the resulting disability is classified as "permanent partial," the bene�t
corresponding thereto shall be paid in accordance with the Table of Loss Percentage, effective on the date
of recovery as determined by the GSIS.

The decision of the GSIS on the extent of recovery shall be final and binding.

Effect of Re-employment or Self-Employment


The benefit being enjoyed by a disabled member shall be automatically suspended regardless of whether
his/her reemployment in the government, or employment in the private sector, or self-employment;
Provided that, if self-employed, he/she is earning at least the minimum compensation of government
employees, as determined from his/her Income Tax Return or other indubitable proofs as may be required
by the GSIS.

If the disability benefit of the re-employed or self-employed member is more than his/her salary from his/her
re-employment, the GSIS shall pay only the difference. The payment, however, shall be suspended if the
member recovers or fails to comply with this Rule.

Payment of the disability benefit which has been suspended shall be resumed upon termination of the re-
employment/self-employment so long as the member is still entitled to the benefit.

Forfeiture of Disability Benefits


All the foregoing provisions notwithstanding, any member who is enjoying disability benefit shall
automatically forfeit his/her right to the continued enjoyment thereof if he/she refuses or deliberatelyfails
to:

(a) have himself/herself medically treated by a physician when required by the GSIS; or
(b) take the prescribed medication; or
(c) have himself/herself confined in a hospital without justifiable reason, when such confinement is
required by the GSIS; or
(d) avail himself/herself of such rehabilitation facilities as may be duly recommended by the GSIS and
made available for him/her; or
(e) observe such precautionary and/or preventive measures as prescribed by a physician or expressly
required of him/her to prevent he aggravation or continuance of his/her disability.
(f) report on his/her re-employment.

However, upon compliance with the requirements, his/her benefit shall be resumed if he/she is still
qualified.

pg. 166
Limitation to Enjoyment of Disability Benefits
Should a new impairment supervene while a member is enjoying; disability benefit, the extent of his/her
disability shall be re-evaluated taking into account the existing impairment(s) and the new impairment in
relation to the entire being of the member, and the benefit corresponding thereto shall be paid in lieu of that
currently enjoyed by the member. In no case shall a member enjoy more than one disability benefit at any
given time.

Rule X Accreditation

SECTION 52. Health Care Providers – The following health care providers shall be accredited before
they can participate in the NHIP:
a. Institutional Health Care Providers
– Hospitals
– Out-Patient Clinics
– Health Maintenance Organizations (HMOs)
– Preferred Provider Organizations (PPOs)
– Community-Based Health Care Organizations (CBHCOs)
– Other institutional health care providers licensed by the DOH

b. Independent Health Care Professionals


– Physicians – Dentists
– Nurses – Midwives
– Pharmacists – Other duly licensed health care professionals

Requirements and Conditions of Accreditation (Section 53)

a. Health care institutions must have been operating for at least three (3) years prior to initial
application for accreditation (Three-Year Operation Requirement - The date of reckoning of the three-
year operation requirement shall be the effectivity date of either the initial license, clearance to operate,
accreditation certificate, or other proof of operation issued by the Department of Health or other pertinent
government agencies if applicable. (Section 54).

Provided, that a health care provider which has not operated for at least three (3) years may likewise
apply and qualify for accreditation if it complies with all other accreditation requirements and further meets
any of the following conditions:

1. Its managing health care professional has had a working experience in another accredited
health care institution for at least three (3) years;

2. It operates as a tertiary facility or its equivalent;

3. It operates in a local government unit where the accredited health care provider cannot
adequately or fully service its population; and

4. Other conditions as may be determined by the Corporation.

b. Health care institutions must have the human resources, equipment, physical structure and other
requirements in conformity with the standards of the relevant facility, as determined by the
Corporation;

c. All personnel of the health care institution must be members of the NHIP;

d. Physicians and other health care professional must submit a Certificate of Good Standing from
their respective recognized national associations.

e. Health care providers must have their own ongoing formal program of quality assurance that satisfy
the Corporation’s standards;

f. They must adopt all referral protocols, practice guidelines, payment mechanisms, health resource
sharing arrangements of the NHIP and other accepted standards of practice;

pg. 167
g. They must recognize and respect the rights of patients;

h. They must comply with all information system requirements including but not limited to reporting
mechanisms established by the Corporation and maintenance of accurate records of all patients,
services rendered and health outcomes resulting from such services,

i. They must accept any and all corrective actions to be prescribed by the Corporation

j. They must allow the Corporation to inspect and secure reproduction of certified true copies of their
medical and financial records and to visit, enter and inspect their respective premises and facilities,
consistent with Section 16 m) of RA 7875;

k. The health care professionals must be members of the NHIP;

l. Health care providers must comply at all times with all the requirements and provisions of RA
7875, as amended by RA 9241,

m. Any other requirements that may be determined by the Corporation.

SECTION 55. Specific Accreditation Requirements and Conditions for Hospitals – In addition to the
general requirements and conditions prescribed in this Rules, hospitals shall comply with the following
specific requirements and conditions for accreditation:

a. It must be licensed by the DOH;

b. It must comply at all times with the provisions of Republic Act 4226, otherwise known as “The
Hospital Licensure Act,” and its prevailing Implementing Rules and Regulations as well as other
applicable administrative issuances;

c. It must be a member in good standing of any national association of licensed hospitals in the
Philippines duly recognized by the Corporation in accordance with its established standards and
criteria;

d. All secondary hospitals must establish a Therapeutic Committee and other committees that
will ensure rational drug use; and

e. All tertiary hospitals must establish Therapeutics and Infection Control Committees and
other committees that will ensure rational drug use.

SECTION 56. Accreditation Requirements for Out-Patient Clinics - The Corporation shall prescribe
the requirements and conditions for the accreditation of out-patient clinics that will support the
provision of services which these facilities are accredited for.

SECTION 57. Specific Accreditation Requirements and Conditions for HMOs and PPOs – In addition
to the general requirements and conditions prescribed in this Rules, HMOs and PPOs shall comply with the
following specific requirements and conditions for accreditation as a direct provider of health care services
to individual members or to an affiliate of accredited health care institutions:

a. It must have a Clearance to Operate from the DOH in accordance with the provisions of
Executive Order No. 119 and pertinent DOH issuances;

b. It must be duly registered with the SEC;

c. Its laboratory, x-ray and diagnostic facilities, if any, must comply with all the Rules,
regulations and licensing requirements of the DOH; and

d. A corporate HMO must be a member in good standing of any national association of HMOs
in the Philippines cleared to operate in the Philippines in accordance with subsection (a) hereof,
duly recognized by the Corporation in accordance with its established standards and criteria.

pg. 168
A cooperative HMO must be a member of good standing of any regional or national federation of
cooperatives, and must be duly recognized by the Corporation in accordance with its established standards
and criteria.

SECTION 58. Specific Accreditation Requirements and Conditions for CBHCOs - In addition to the
general requirements and conditions prescribed in this Rules, CBHCOs shall comply with the following
specific requirements and conditions for accreditation as a direct provider of health care services to
members:

a. It must be organized, owned and/or managed by an association of members of the community


for the purpose of improving the health status of the community through preventive,
promotive and curative health services;

b. It must be duly registered with the SEC and/or with the CDA; and

c. Its laboratory, x-ray and diagnostic facilities, if any, must comply with all the Rules,
regulations and licensing requirements of the DOH.

SECTION 59. Accreditation Requirements for HMOs, PPOs, and CBHCOs As Financial
Intermediaries – The Corporation shall prescribe the requirements and conditions for the
accreditation of HMOs, PPOs, and CBHCOs as financial intermediaries.

SECTION 60. Specific Accreditation Requirements and Conditions for Physicians – In addition to the
general requirements and conditions in this Rules, physicians shall comply with the following specific
requirements and conditions:

a. The physicians must be duly licensed to practice medicine in the Philippines by the Professional
Regulation Commission (PRC);

b. They must be PhilHealth members with qualifying premium contributions;

c. Physicians must submit a Certificate of Good Standing from their respective national
associations which is duly recognized by the Corporation in accordance with its established
standards and criteria;

d. They must abide by the Code of Ethics as prescribed under Section 24, Paragraph 12 of the
Medical Act of 1959, as amended;

e. They must comply with practice guidelines or protocols, peer review and payment
mechanisms of the NHIP;

f. They must not charge members over and above the professional fees provided by the NHIP
for members admitted to a PhilHealth bed; and

g. They must comply with any other requirements that may be determined by the Corporation.

SECTION 61. Specific Accreditation Requirements and Conditions for Other Health Care
Professionals (Dentists, Nurses, Midwives, Pharmacists and other licensed health care professionals) – In
addition to the general requirements and conditions in this Rules, dentists, nurses, midwives, pharmacists
and other duly licensed health care professionals shall comply with the following specific requirements and
conditions:

a. They must be licensed to practice their profession by the PRC;

b. They must be PhilHealth members with qualifying premium contributions;

c. They must be a member in good standing of any national association of licensed practitioners
of their profession in the Philippines duly recognized by the Corporation in accordance with its
established standards and criteria;

pg. 169
d. They must not charge members over and above the professional fees provided by the NHIP
for members admitted to a PhilHealth bed;

e. They must follow all practice guidelines or protocols, peer review and payment mechanisms
of the NHIP; and

f. They must comply with any other requirements that may be determined by the Corporation.

SECTION 62. Types of Accreditation – Accreditation shall be of the following types:


a. Initial
b. Renewal
c. Re-accreditation
d. Reinstatement
e. Provisional

SECTION 63. Accreditation of Institutional Health Care Providers –


a. The Corporation shall determine the period of accreditation and reserves the right to issue or
deny accreditation after an evaluation of the capability and integrity of the health care provider.

b. The Corporation shall determine the required documents to be submitted to comply with the
requirements and conditions for accreditation. Such documents shall be subject to verification
and authentication at the discretion of the Corporation.

c. Institutional health care providers shall be visited and inspected as often and as necessary to
determine compliance with the requirements and conditions for accreditation.

d. The Corporation shall impose an accreditation fee and such other fees at rates prescribed by
the President and CEO.

e. The Corporation may limit accreditation to a specific number of beds for hospitals as well as
to specific health care services and surgical operations for other institutional health care
providers.

f. Inspection and initial evaluation of application for accreditation shall be decentralized to the
PhilHealth Offices. Their recommendation shall be forwarded to the Accreditation Committee for
decision subject to the approval by the President and CEO.

g. The decision of the President and CEO on all matters pertaining to accreditation shall be final
and executory, unless a motion for reconsideration is filed with the Accreditation Committee
within thirty (30) calendar days from receipt of such a decision. Only one motion for
reconsideration shall be entertained. If the last day falls on a Saturday, Sunday, legal holiday or
a declared non-working day due to force majeure, the motion may be filed on the next working
day. In case the motion for reconsideration is denied, an appeal may be filed with the Board
within fifteen (15) calendar days from receipt.

h. Revocation of an accreditation is permanent. It shall operate to disqualify the health care


providers from obtaining another accreditation in their own name, under a different name, or
through another person, whether natural or juridical. If the facilities of the revoked institutional
health care provider are transferred either by sale or lease or such other modes of conveyance, such
will be treated as an application for initial accreditation. For this purpose, the three-year in operation
Rule shall be reckoned from the new owner’s/transferee’s/lessee’s first license, clearance to
operate, accreditation certification or other proof of operation issued by other government agency.

i. Accreditation shall take effect prospectively. Claims for services before the effectivity of
accreditation and after the expiration of accreditation shall be denied.

j. For renewal of accreditation, applications shall be filed within thirty (30) calendar days
before the ninety (90) calendar days prior to the expiration of the existing accreditation. In
case of incomplete submission of the requirements, the application shall be returned for
completion by the health care provider who should refile the same within thirty (30) calendar
days from receipt thereof.

pg. 170
k. Even after accreditation has been granted, the Corporation may decide to downgrade the
category of an institutional health care provider, reduce bed capacity or suspend the
accreditation due to adverse findingsand reports.

l. provisional accreditation may be granted for a period as may be determined by the Corporation.

SECTION 64. Accreditation of Health Care Professionals –

a. The Corporationshall determine the period of accreditation and reserves the right to issue or
deny accreditation after an evaluation of the capability and integrity of the health care
professional.

b. The Corporation shall determine the documents to be submitted to comply with the
requirements and conditions for accreditation. Such documents shall be subject to verification
and authentication at the discretion of the Corporation.

c. The Corporation shall impose an accreditation fee and such other fees at rates prescribed by
the President and CEO.

d. The Corporation may limit accreditation to health care professionals performing specific
health care services, as applicable, depending on training, experience, capability, and specialty
certification.

e. Application for initial accreditation of health care professionals shall be approved by the
President and CEO.

f. A revocation of accreditation is permanent.

g. Accreditation shall take effect prospectively.

h. For renewal of accreditation, applications shall be filed within thirty (30) calendar days before
the ninety (90) calendar days prior to the expiration of the existing accreditation. In case of
incomplete submission of the requirements, the application shall be returned for completion
by the health care professional who should refile the same within thirty (30) calendar days
from receipt thereof.

SECTION 65. Initial Accreditation –


a. Accreditation shall be given to qualified health care providers who are applying for the first
time.

b. The accreditation shall take effect upon approval of the application

SECTION 66. Renewal of Accreditation –


a. Accreditation shall be renewed after compliance with the requirements and conditions set
forth in this Rules.

b. A health care provider under suspension cannot apply for renewal of accreditation unless
such suspension has been lifted and all requirements, conditions and corrective actions set by
the Corporation have been complied with.

SECTION 67. Re-Accreditation –


a. A health care provider whose previous accreditation has lapsed or whose subsequent
application was denied may apply for re-accreditation.

b. An institutional health care provider in good standing, but whose ownership has changed, must
apply for re-accreditation within ninety (90) calendar days from actual change of
ownership, subject to the provisions of this Rules.

c. An institutional health care provider in good standing which intends to transfer location must first
secure a license to operate from the DOH for the new facility prior to the date of transfer and

pg. 171
apply for reaccreditation within ninety (90) calendar days from the date of transfer subject to the
provisions of this Rules. Beyond this period, the accreditation shall automatically lapse and all
claims filed with the Corporation shall not be paid. The health care provider must inform the
Corporation in writing of the planned transfer indicating therein the exact date of transfer and
address of the new site. The ninety (90) - day grace period shall not apply to the new site if it is not
licensed.

d. Where the accreditation lapsed due to the voluntary act of a health care provider to evade the
consequences of a previous violation or adverse findings indicating fraud, as determined by
the Corporation, the application for re-accreditation shall be denied.

e. Re-accreditation shall also be given to a health care provider who:


- acquires new skills;
- qualifies as a specialist; and
- upgrades or downgrades its facilities in the case of institutional health care providers.

f. The re-accreditation shall take effect upon approval of the application.

SECTION 68. Reinstatement of Accreditation – Accreditation that has been suspended may be
reinstated after all requirements and conditions set by the Corporation have been complied with.

SECTION 69. Process of Accreditation of Institutional Health Care Providers –


a. The institutional health care provider shall apply for accreditation by submitting the duly
accomplished forms and documents required and upon payment of the required fees.

b. An inspection shall be conducted within sixty (60) calendar days upon receipt of the complete
application.

c. A decisionshall be made within a reasonable period of time from receipt of the application.

d. A Certificate of Accreditation shall be issued to the institutional health care provider upon
approval of the application.

SECTION 70. Process of Accreditation for Health Care Professionals –


a. A health care professional shall apply for accreditation by submitting the duly accomplished
forms and documents required and upon payment of the required fees.

b. The completed application shall be processed and validated by the Corporation.

c. A decision shall be made within thirty (30) calendar days from date of receipt of complete
application.

d. An Accreditation Card shall be issued to the health care professional upon approval of the
application.

SECTION 71. Grounds for Denial/Non-Reinstatement of Accreditation – The following shall be the
grounds for the denial/non-reinstatement of accreditation:
a. non-compliance with any or all of the requirements and conditions of accreditation;

b. revocation, non-renewal or non-issuance of license/accreditation/clearance to operate or


practice of the health care provider by the DOH, PRCor government regulatory office or
institution;

c. conviction due to fraudulent acts as determined by the Corporation until such time that the
decision is reversed or modified by the Board or Appellate Court;

d. change in the ownership, management or any form of transfer either by lease, mortgage or
any other conveyance of a health care institutionfor the purpose of evading the consequences of
fraud or violationspreviously committed after a thorough investigation;

e. non-compliance with the safeguards provided under this Rules; and

pg. 172
f. such other grounds as the Corporation may determine.

SECTION 72. Certificate of Accreditation of Institutional Health Care Providers – The Certificateof
Accreditation shall contain an accreditation number and shall be publicly displayed in a prominent
and visible place in the health care provider’s office or place of practice. The certificate shall be
replaced upon each renewal. In case of revocation of accreditation, the health care provider shall be required
to surrender the certificate. All accredited health care institutions shall likewise put up conspicuous signs
indicating that they are PhilHealth accredited, of size and dimension as the Corporation may hereafter
determine. It shall be placed outside the facility preferably beside the spot where the facility’s name is
written. If, for any reason, the accreditation of the institution is revoked or suspended, the Corporation
reserves the right to place another sign indicating the same.

Rule XI National Association of Providers

SECTION 73. Identification and Recognition of National Associations – The Corporation shall
identify and recognize national associations of health care providers for the purpose of assuring
quality health care. The Corporation may recognize national associations for provider groups that meet
the criteria for recognition set forth in this Rules.

SECTION 74. Criteria for Recognition – The Corporation shall use the following criteria in recognizing
such national associations:
a. The association must be in active operation;

b. It must be national in scope and must have a significant number of members throughout the
country;

c. It must possess a juridical personality;

d. It must undertake a continuing professional education program or its equivalent and require
from its members minimum number of units or hours of attendance to the program for a
particular period; and

e. It must cooperate with the Corporation in the implementation of quality assurance programs
and in the investigation, discipline, and imposition of penalties to erring accredited members of
the association.

SECTION 75. Cooperation Between the Corporation and the Recognized National Associations –
The Corporation shall coordinate closely with the recognized national associations to encourage and
ensure cooperation from the provider-members as well as to promote compliance with the
requirements and conditions for participation in the NHIP.

Rule XII Performance of Monitoring of Health Care Providers

SECTION 76. Objective – The Corporation shall develop and implement a performance monitoring
system for all health care providers which shall provide safeguards against:

a. over- and under-utilization of services;

b. unnecessary diagnostic and therapeutic procedures and interventions;

c. irrational drug use;

d. inappropriate referral practices;

e. gross, unjustified deviations from currently accepted practice guidelines or treatment


protocols;

f. use of fake, adulterated or misbranded pharmaceuticals or unregistered drugs;

pg. 173
g. use of drugs other than those recognized in the PNDF and those for which exemptions were
granted bythe Board; and

h. withholding/denial of benefits/services to members and dependents.

The practices enumerated above are grounds for suspension, revocation, denial of accreditation and/or filing
of a criminal complaint with the proper courts if so warranted, without prejudice to the reduction or denial
of claims as provided in this Rules.

SECTION 77. Monitoring System – To achieve the above objective, the monitoring system shall include,
among others, the following activities:
a. Periodic inspection of facilities and offices;

b. Gathering of utilization data from services rendered by all health care providers who shall be
required to submit mandatory reports thereon;

c. Periodic review of these data for purposes of determining quality and cost effectiveness as
well as adherence to practice guidelines by health care providers;

d. Utilization review;

e. Peer review;

f. Periodic assessment of the performance of all health care providers; and

g. Submission of Mandatory Monthly Hospital Reports and other reportorial requirements, as


determined by the Corporation.

Rule XIV: Adjudication of Claims and Benefits


GSIS have original and exclusive jurisdiction to settle any dispute arising under RA 8291, Commonwealth
Act No. 186, as amended, and other laws administered by the GSIS with respect to the following:
1. Coverage of employers and employees;
2. Entitlement of members to the following benefits:
a. Separation benefits
b. Unemployment or involuntary separation benefits
c. Retirement benefits
d. Disability benefits
e. Survivorship benefits
f. Funeral benefits
g. Life Insurance benefits
3. Collection and payment of contributions;
4. Criminal actions arising from this Act; and
5. Any other matter related to any or all of the foregoing which is necessary for their determination.
The prescriptive period for claims under RA 8291 is four (4) years from date of contingency; however, this
does not apply to life insurance and retirement.
The quasi-judicial functions of GSIS shall be vested in its Board of Trustees, and any member of the Board
may be designated by them as the Hearing Officer whose functions are the following:
1. To receive oral and documentary evidence of the parties to a case and to Rule on their admissibility;
2. To issue summons, subpoenas, subpoenas duces tecum, orders, and other similar processes
necessary for the proper determination and disposition of the case before him/her;
3. To appoint a counsel de officio for pauper litigants who are unable to secure the assistance of
counsel, if they request for such assistance;
4. To administer oaths or affirmations;
5. To submit findings and recommendations to the Board within the time prescribed in these Rules;
and
6. To perform such other acts as may be directed by the Board or as may be necessary for the effective
and efficient discharge of his/her powers and duties.
pg. 174
On the other hand, it is the Secretary of the Board or his representative who shall be designated as the Clerk
of the GSIS. As such, he shall have the following duties and responsibilities:
1. To issue under the seal of the GSIS all ordinary writs and processes incident to pending cases, the
issuance of which does not involve the exercise of functions appertaining to the Board, or Hearing
Officer or Board Officer, and make out and sign all writs and processes issuing from the GSIS;
2. To perform, in the absence of the Board or the Hearing Officer, all the duties of the Board or the
Hearing Officer receiving applications, petitions, inventories, reports, and the issuance of all orders
and notices that follow as a matter of course under the Rule;
3. To safely keep all records, papers, files, exhibits and public property committed to his charge, and
the seal of the GSIS;
4. o keep a general docket, each page of which shall be numbered and prepared for receiving all the
entries in a single case; and to enter therein all cases, numbered consecutively in the order m which
they were received; and, under the heading of each case and a complete title thereof, the date of
each paper filed or issued, of each order of judgment entered, and of each step taken in the case;
5. To keep a judgment book containing a copy of each judgment rendered by the Board in the order
of the date; and a book of entries of judgment, containing at length in chronological order entries
of judgment or orders of the Board;
6. To keep an execution book in which he or his deputy shall record at length in chronological order
each execution, and the officer’s return thereon, by virtue of which real property has been sold;
7. To prepare, for any person demanding the same, a copy certified if proper under the se al of the
GSIS of any paper, record, order, judgment or entry in this office, for the fees prescribed by this
Rule;
8. To compile the decisions of the Board and cause their publication in a series to be known as GSIS
Reports; and
9. To keep such other books and perform such other duties as the Board may direct.

pg. 175
Adjudication Process

File Petition Clerk of the GSIS shall issue Before conducting the hearing, the
the corresponding summons to Hearing Officer may call the
the respondent/s together with parties to a preliminary conference:
a copy of the petition.  Stipulation of Facts
 Issues

Hearing Officer shall render his findings and


recommendations not later than Fifteen (15) days
from the submission of the positions of the parties
if he determined that recommendation may be
rendered, without need of a formal hearing, on the
basis of the pleadings affidavits and other Affidavits If respondent fails to answer the
evidences, and positions/statements submitted by petition within 10 days, the Board,
the parties motuproprio, or on motion of the
petitioner, shall render judgment as
may be warranted by the facts
Hearing Officer deems it necessary to hold a
alleged in the petition and limited
hearing to clarify specific factual matters
to what is prayed for therein.
before rendering his findings and
recommendations, he shall set the case for
hearing for the purpose.
The Board shall decide the case within Thirty (30)
days from its submittal.

Hearing Officer shall submit his findings and If the case was heard directly by the Board, it shall
recommendations to the Board within 30 working render its decision thereon within Thirty (30)
days from when the parties have closed their working days from the time case is submitted by
the parties for decision.
respective evidence and filed their last pleading.

Within 15 days from receipt of notice, aggrieved


party may appeal the decision to the Court of
Appeals under Rule 45 or 43 of the Rules of
When no appeal is perfected and there is
no order to stay by the Board, by the Court.
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.

Rule XV: FUNDS OF GSIS

What consist of the Funds of the GSIS?

 All contributions described and payable under Rule III of this IRR, together with their earnings and
accruals, shall constitute the GSIS Social Insurance Fund, which shall also be used to finance the
benefits administered by the GSIS.
 The funds of the GSIS shall not be used for purposes other than what are provided for under RA
8291. Moreover, no portion of the funds of the GSIS shall accrue to the General Fund of the national
government except as may be allowed under the Act.

May the Funds of the GSIS be invested?

 Yes. 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

pg. 176
shall submit to both Houses of Congress of the Philippines an annual report on all investments
made.

Where may the GSIS invest its funds?

 The funds of the GSIS may be invested in the following:

1. In interest-bearing bonds or securities or other evidence of indebtedness of the Government


of the Philippines;
2. In interest-bearing deposits or securities of any domestic bank doing business in the
Philippines: Provided, that in the case of such deposits, these 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 has prior designation as a depository
for the purpose by the Monetary Board of the Central Monetary Authority;
3. 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 investable fund of the GSIS Social
Insurance Fund shall be invested for these purposes;
4. 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;
5. In real estate property, including shares of stocks involving real estate property and
investments secured by first mortgages on real estate or other collateral acceptable to the
GSIS: Provided, That such investments shall, in the determination of the Board, redound
to the benefit of the GSIS, its members, as well as the general public;
6. In debt instruments and other securities traded in the secondary markets;
7. In loans to, or in bond s, debentures, promissory notes or other evidence of indebtedness
of any solvent corporation created or existing under the laws of the Philippines;
8. In investments in stocks for trading, whether common and preferred, of any solvent
corporation or financial institutions with proven track record of profitability over the last
Three (3) years and payment of dividends at least once over the same period;
9. In investments in the equity of any establishment, firm or entity, either fully or partially
owned;
10. In domestic mutual funds including investments related to the operations of mutual funds;
and
11. In foreign mutual funds and in foreign currency deposits or foreign currency-denominated
debts non- speculative equities and ot her 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: Provide d, further, That the issuing company
has proven a track record of profitability over the last Three (3) years and payment of
dividends at least once over the same period.

When does the GSIS make an Examination and Evaluation of its Funds?

 It shall make an actuarial examination and valuation every three (3) years to coincide with the
review of the Insurance Commission.

What are the following exemptions of the GSIS and its Assets and Funds from Taxes, Assessments,
Fees, charges, and Duties-State Policy?

 Notwithstanding any laws to the contrary, the GSIS, its assets, properties, revenues including all
accruals thereto, and benefits paid, are exempt by virtue of RA 8291 from all taxes, assessments,

pg. 177
fees, charges and duties of all kinds.

These exemptions shall continue unless expressly and specifically revoked and any assessment
against the GSIS as of the approval of RA 8291, are hereby considered paid.

Are the Benefits of GSIS Members exempted from Tax, Attachment, Levy or Other Legal
Processes?

 Yes. The social security benefits and other benefits of GSIS members shall be exempt from tax,
attachment, garnishment, execution, levy or other processes issued by the courts, quasi-judicial
agencies or administrative bodies in connection with all financial obligations of the member,
including his pecuniary accountability arising from or caused or occasioned by his exercise or
performance of his official functions or duties or incurred in connection with his position or work,
as well as COA disallowances.

However, monetary liability in favour of the GSIS may be deducted from the benefits of the
member.

Rule XVI Administration

Powers and Functions of the GSIS


1. To formulate, adopt, amend and/or rescind such Rules and regulations and ensure the effective
execution of the powers, functions, duties, and responsibilities of the GSIS, its officers and
employees;
2. To adopt or approve the annual and supplemental budget of receipts and expenditures including
salaries and allowances of the GSIS personnel; and to authorize such capital and operating
expenditures and disbursements of the GSIS;
3. To invest the funds of the GSIS, directly or indirectly;
4. To acquire, utilize and dispose of, in any manner recognized by law, real or personal property in
the Philippines or elsewhere necessary to carry out the purposes of RA 8291;
5. 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;
6. To have the power of succession;
7. To sue and be sued;
8. To enter into, make, perform and carry out contracts of every kind and description with any
person, form or association or corporation, domestic or foreign;
9. To carry on any other lawful business whatsoever in pursuance of, or in connection with the
provisions of this Act;
10. 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) active members
and where the setting up of the branch office is financially viable;
11. 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 because of its receivables from any
government or private entity;
12. To invest, own or otherwise participate in equity in any establishment, firm, or entity, domestic or
foreign;
13. To approve appointments in the GSIS according to the Civil Service Rules and regulations;
Provided, That all positions in the GSIS shall be governed by a 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,

pg. 178
That the compensation plan shall be comparable with the prevailing compensation plans in the
private sector and shall be subject to periodic review by the Board no more than once every Four
(4) years without prejudice to yearly merit review or increases based on productivity and
profitability;
14. To design and adopt an Early Retirement Incentive Plan (ERIP) and/or financial assistance for
retirement for its own personnel;
15. 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;
16. 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 provision of Republic Act No. 7699, otherwise known as the Portability Law;
17. To be able to float proper instruments to liquefy long-term receivables by selling the same in the
secondary mortgage market;
18. 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
RA 8291 during the preceding year, including information and recommendations on broad
policies for the development and perfection of the programs of the GSIS;
19. To maintain a Provident Fund, which consists of contributions made by both the GSIS 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;
20. 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 provisions of this Act;
21. 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 remittance
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;
22. To determine, fix and impose interest upon unpaid premiums due from employers and employees;
23. To ensure the collection or recovery of all indebtedness, liabilities and/or accountabilities,
including unpaid premiums or contributions in favour of the GSIS arising from any cause or
source whatsoever, due from all obligors, whether public or private.
24. 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
25. To exercise such powers and perform such other acts as may be lawful, necessary, useful,
incidental or auxiliary to attain the purposes and objectives of RA 8291 and carry out its
provisions.

The Board of Trustees


Composition - President and General Manager of the GSIS and Eight (8) other members to be appointed
by the President of the Philippines, whose representation is as follows:

One (1) from either the President of the Philippine Public-School Teachers Association (PPSTA) or the
President of the Philippine Association of School Superintendent (PASS);

Two (2) from leading organizations or associations of government employees/retirees;

Four (4) from the banking, finance, investment, and insurance sectors; and a recognized member of the
legal profession who at the time of appointment is also a member of the GSIS.

Duties
 Elect from among themselves a Board Chairman. The President and General Manager of the
GSIS shall be, ex officio, the Vice Chairman.

pg. 179
 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) for each board meeting attended by them, but not to exceed Ten
Thousand Pesos (P10,000) a month and reasonable transportation and representation allowances
as may be fixed by the Board.

Powers and Functions of the Board of Trustees


1. To formulate the policies, guidelines and programs to effectively carry out the purposes of RA
8291;
2. To promulgate such Rules and regulations as may be necessary or proper for the effective
execution of the powers, functions, duties and responsibilities of the GSIS, its officers and
employees;
3. To have the primary duty to receive and hear appeals for administrative remedies involving
disciplinary actions against GSIS employees, before such appeals are referred to the courts as
formal complaints;
4. 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:
5. Upon the recommendation of the President and General Manager, to approve the GSIS'
organizational and administrative structures and staffing pattern, and to establish, x, review,
revise and adjust the appropriate compensation package for the officers and employees of the
GSIS with 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 Salary
Standardization Law and Republic Act No. 7430, otherwise known as the Attrition Law;
6. 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;
7. The provision of any law to the contrary notwithstanding, to compromise or release, in whole or
in part, any claim or to 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;
8. 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;
9. To determine, fix and impose interest upon unpaid or unremitted premiums and/or contributions;
and
10. To do and perform all acts necessary, proper or incidental to the attainment of the purposes and
objectives of this Act.

President and General Manager 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.

 Shall be assisted by one or more executive vice-presidents, senior vice-presidents, vice-presidents


and managers in addition to the usual supervisory and rank-and- le positions who shall be
appointed and removed by the President and General Manager with approval of the Board, in
accordance with the existing Civil Service Rules and regulations.
 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.

pg. 180
 Shall appoint the personnel of the GSIS, remove, suspend or otherwise discipline them for cause,
in accordance with existing Civil Service Rules and regulations, and prescribe their duties and
qualifications to the end that only competent persons may be employed.

Auditor- the Chairman of the COA shall be the ex officio auditor of the GSIS. He may appoint a
representative who shall be the Auditor of the GSIS, and the necessary personnel to assist said
representative in the performance of his duties. Has the duty to 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.

Legal Counsel— The Government Corporate Counsel shall be the legal adviser and consultant of the
GSIS, and the GSIS may assign to it 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 as well as Branch Attorneys shall serve as the
GSIS in-house legal counsel.

Insurance Commission — The Insurance Commissioner or his authorized representatives shall make an
examination of the financial condition and methods of transacting business of the GSIS at least once
every Three (3) years to coincide with the GSIS actuarial review and valuation. The report of said
examination shall be submitted to the Board of Trustees, with copies 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 in conducting the examination,
including the salaries of the examiners and the actuary for the actual time spent.

Rule XVII Penal Provisions

Penalties under Article 172 of the RPC — 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

Other Penalties. — Persons who commit criminal acts in connection with the operation of RA 8291
shall be subject to the following penalties;

1. Obtaining or receiving any money or check invoking any provision of this Act 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) nor more than Twenty Thousand Pesos (P20,000) 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.
2. Failing or refusing to comply with the provisions of RA 8291 and its IRR shall be punished by a
fine of not less than Five Thousand Pesos (P5,000) nor more than Twenty Thousand Pesos
(P20,000) 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.
3. The Heads of Offices, 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 contribution; or who fails or refuses to remit or delays remittances by
more than Thirty (30) days from the time such amount becomes due and demandable; or fails 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
ne of not less than Three Thousand Pesos (P3,000) but not more than Six Thousand Pesos
(P6,000), and in addition shall suffer absolute perpetual
disqualification from holding public office and from practicing any profession or calling licensed
by the government.

pg. 181
4. Receiving or keeping funds or property belonging, payable or deliverable to the GSIS and
appropriates the same, or takes or misappropriates or uses the same for any other purpose; 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.
5. Deducting the monthly contribution or loan amortization from a member's compensation, but fails
to remit the same to the GSIS within Thirty (30) days from the date they should have been
remitted shall be presumed to have misappropriated such contribution on 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.
6. 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 preparation of
payroll reflecting deductions and remittance of the same to GSIS, 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 these become 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 ne of not less than Ten Thousand Pesos (P10,000) nor more than Twenty
Thousand Pesos (P20,000), and in addition shall suffer absolute perpetual disqualification from
holding public office and from practicing any profession or calling licensed by the government.
7. The officers and/or personnel referred to in Rule 17.2.6 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.
8. For the charges or complaints referred to in Rule 17.2.6, the liabilities 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.
9. Failure of the Members of the GSIS Board, including the Chairman and the Vice-Chairman, to
comply with the provisions of Rule 17.2.2 of this IRR, 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) nor more than Ten Thousand Pesos (P10,000) without prejudice to any civil or
administrative liability which may also arise there from.

Rule XVIII General Provisions

Dispensation of Social Insurance Benefits


Retirement benefits must be paid to the employee on his last day of service in the government. Provided,
that all requirements are submitted to the GSIS Thirty (30) days prior to the effective date of the
retirement;

Development and Disposition of Acquired Assets

The GSIS shall have the right to develop and dispose of 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 an 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 properties or acquired assets to determine their current
market value. All notices of sale shall be published in newspapers of general circulation.

pg. 182
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.

Exclusiveness of Benefits. — Whenever other laws provide similar benefits for the same contingencies
covered by RA 8291, 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 other law chosen are less than the
benefits provided under RA 8291, the GSIS shall pay only the difference.

pg. 183

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