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Labor Law I: Labor Standards

Xavier University College of Law


1st Semester SY 2019-2020

Fr. Ismael Jose III V. Chan-Gonzaga, SJ, JD

Course Description:

This course is an introduction to Philippine Labor Laws. It covers Preliminary Title, Pre-
Employment (Book I) and the Migrant Workers and Overseas Filipinos Act (R.A. 8042), as
amended; Book II on Human Resources Development and the TESDA Law (R.A. 7796), and the
Magna Carta for Disabled Persons (R.A. 7277); Book III on Conditions on Employment and
related special laws; Book IV on Health, Safety, and Social Welfare Benefits, including the laws
on the Social Security System, the Government Service Insurance System, and the National
Health Insurance Act, as amended.

Methodology

The course will employ recitation as a method of instruction, to develop the students’ power of
analysis, reasoning, and facility of expression. The students will be asked to answer questions,
based on assigned readings, to stimulate critical thinking and enhance their communication and
argumentation skills. Lecture-discussions, case studies, workshops, and group activities will
also be used to enhance the students’ appreciation of the assigned topics.

Course Requirements and Grading System

Course Requirements Grade Breakdown Description


Includes in-class recitation marks, quizzes,
Class Participation 1/3
group works and short papers assigned
Midterm Exam 1/3 Written examination
May be a written examination or a term paper,
Final Requirement 1/3
at the instructors’ discretion

1. Class Rules
a. Try not to be late
b. Cellular phones are turned off or on silent mode
c. 10-20 minute breaks to be determined
d. Refrain from leaving the classroom during class time (as much as possible)
e. No games please
f. Refrain from talking when in class and you are not reciting
g. I am here to help. We are all students of the law.

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COURSE OUTLINE

INTRODUCTION

Laborem Exercens (On Human Work), Pope John Paul II, 14 September 1981

Link: http://w2.vatican.va/content/john-paul-ii/en/encyclicals/documents/hf_jp-
ii_enc_14091981_laborem-exercens.html

EMPLOYER-EMPLOYEE RELATIONSHIP

A. Elements of the Relationship

Labor Code: Articles 97 (a), (b), (c), (e); 173 (f), (g); 219 (e) & (f)

Cases:
• Television and Production Exponents v. Servaña, January 28, 2008
• ABS-CBN Broadcasting Corp. v. Nazareno, September 26, 2006
• Fulache v. ABS-CBN, January 21, 2010
• Dumpit-Murillo v. Court of Appeals, June 8, 2007
• Fuji Television v. Espiritu, December 3, 2014
• Dasco v. PHILTRANCO, June 29, 2016 (Field Personnel)
(These six cases should be read in relation to Sonza v. ABS-CBN Broadcasting Corporation, June
10, 2004)
• Bernante v. PBA, September 14, 2011
• Abella v. PLDT, June 8, 2005
• Villamaria v. CA, April 19, 2006
• Republic of the Philippines v. ASIAPRO, November 23, 2007
• Coca Cola Bottlers v. Climaco, February 5, 2007
• Angelina Francisco v. NLRC, August 31, 2006
• Tongko v. Manufacturers Life, June 29, 2010 & January 25, 2011
• Matling Industrial v. Coros, October 13, 2010
• Cosare v. Broadcom Asia, February 5, 2014
• Atlanta Industries v. Sebolino, January 26, 2011
• Intel Technology v. NLRC & Cabiles, February 5, 2014
• Royale Homes v. Alcantara, July 28, 2014
• Olimpia Housing Inc. v. Lapastora, January 13, 2016
• Valencia v. Classique Vinyl Products Corporation, January 20, 2017

B. Independent Contractors and Labor-Only Contractors

Labor Code: Articles 106-109


Department Order No. 174, series of 2017
Department Circular No. 01, series of 2017

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Cases:
• Philippine Airlines v. Ligan, February 29, 2008
• San Miguel Corporation v. Aballa, June 28, 2005
• Meralco Industrial Engineering Services v. NLRC, March 14, 2008
• Manila Electric Company v. Benamira, July 14, 2005
• Dole Phils. v. Esteva, November 30, 2006
• Aliviado v. Procter and Gamble, March 9, 2010
• Temic Automotive v. Temic Automotive Phils. Employees Union, December 23, 2009
• Smart Communications v. Astorga, January 28, 2008
• Manila Water v. Dalumpines, October 4, 2010
• Babas v. Lorenzo Shipping, December 15, 2010
• Teng v. Pahagac, November 17, 2010
• Diamond Farms v. Farms Agrarian Reform Beneficiaries Multi-purpose Cooperative,
January 13, 2016
• Manila Memorial Park Cemetery v. Luiz, February 3, 2016
• Quintanar v. Coca Cola Bottlers Philippines, June 28, 2016
• Nestle Philippines, Inc. v. Puedan, Jr., January 20, 2017

C. Classes of Employees

Labor Code: Articles 293, 295-296


Omnibus Rules: Book VI, Sections 5-6

Cases:

Probationary Employees
• Abbott Laboratories v. Alcaraz, July 23, 2013, April 22, 2014
• PNOC-EDC v. Buenviaje, June 29, 2016

Regular and Casual Employees


• Kimberly Clark Phils. v. Secretary, November 23, 2007
• Rowell Industrial Corporation v. CA, March 7, 2007
• PLDT v. Arceo, May 5, 2006
• ABS-CBN Broadcasting Corp. v. Nazareno, September 26, 2006
• Fulache v. ABS CBN, January 21, 2010
• Fuji Television v. Espiritu, December 3, 2014
• Pier 8 Arrastre & Stevedoring Services v. Boclot, September 28, 2007
• The Peninsula Manila v. Alipio, June 17, 2008
• Samonte v. La Salle Greenhills, Inc., February 10, 2016

Conditional Employment Contract


• Sagun v. ANZ Global Services and Operations (Manila), Inc., August 22, 2016

Project Employees
• Poseidon Fishing v. NLRC, February 20, 2006
• Filipinas Pre-fabricated Building Systems (FilSystems) v. Puente, March 18, 2005

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• Leyte Geothermal Power Progressive Employees Union v. PNOC-EDC, March 30, 2011
• Pasos v. PNCC, July 3, 2013
• Exodus International Construction v. Biscocho, February 23, 2011
• DM Consunji v. Gobres, August 8, 2010
• Malicdem v. Marulas Industrial Corp., February 26, 2014
• Jamias v. NLRC, March 9, 2016
• Ganzon, Inc. v. Ando, February 20, 2017
• Herma Shipyard, Inc. v. Esguerra, April 17, 2017

Seasonal Employees
• Benares v. Pancho, April 29, 2005
• Hacienda Bino/Hortencia Starke v. Cuenca, April 15, 2005
• Universal Robina Sugar Milling Corp. v. Acibo, January 15, 2014
• Gapayao v. Fulo, June 13, 2013

Teachers and Professors


• Magis Young Achievers’ Learning Center v. Manalo, February 13, 2009
• St. Mary’s University v. CA, March 8, 2005
• Mercado v. AMA Computer College, April 13, 2010
• Colegio del Santisimo Rosario v. Rojo, September 4, 2013
• De La Salle University Araneta v. Bernardo, February 13, 2017

WAGES

1987 Constitution, Article XIII, Section 3


Labor Code: Articles 218, 290 (as amended by R.A. 10395)

A. Concept and Definition

Labor Code: Articles 97-98


Omnibus Rules: Book III, Rule VII, Sections 2-9

Cases:
• Tan v. Lagrama, August 15, 2002
• Philippine Spring Water Resources v. Mahilum, June 11, 2014
• Mabeza v. NLRC, April 18, 1997

B. Wage-Fixing

Labor Code: Articles 99, 101, 120-127


R.A. 6727, R.A. 8188
R.A. 9178
NWPC Guidelines No. 2, Series of 2012, Guidelines on the Implementation of the Two-Tiered
Wage System
Wage Order No. NCR-20

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Cases:
• David v. Macasio, July 2, 2014
• Nasipit Lumber Co. v. NWPC, April 27, 1998
• ECOP v. NWPC, RTWPB-NCR and TUCP, September 24, 1991
• Metropolitan Bank and Trust Company v. NWPC, February 6, 2007
• NWPC and RTWP v. APL, March 12, 2014

Wage Distortion
• Metropolitan Bank & Trust Company Employees Union-ALU-TUCP v. NLRC,
September 10, 1993
• Prubankers Association v. Prudential Bank, January 25, 1999
• Bankard Employees Union-Workers Alliance Trade Unions v. NLRC, February 17, 2004

C. Payment of Wages

Labor Code: Articles 102-105, 112-119 (check Art. 259 – Agency Fees, in relation to Art. 112)
Omnibus Rules: Book III, Rule VIII

Cases:
• SHS Perforated Materials v. Diaz, October 13, 2010 (compare with Milan v. NLRC,
February 4, 2015)
• Commando Security v. NLRC, July 20, 1992
• Mabeza v. NLRC, April 18, 1997

D. Thirteenth-Month Pay

Presidential Decree No. 851 (1975)


Memorandum Order No. 28 (1986)
Revised Guidelines on the Implementation of the 13th Month Pay Law

Cases:
• National Federation of Sugar Workers v. Ovejera, May 31, 1982
• Dole Philippines v. Leogardo, October 23, 1982
• Universal Corn Products v. NLRC, August 21, 1987
• San Miguel Corporation v. Inciong, February 24, 1981
• Philippine Duplicators v. NLRC, February 15, 1995
• Boie-Takeda Chemicals v. Dela Serna, December 10, 1993
• Philippine Agricultural Commercial and Industrial Workers Union v. NLRC, August 14,
1995

E. Service Charge

Labor Code: Article 96


Omnibus Rules: Book III, Rule VI

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F. Non-Diminution

Labor Code: Article 100

Cases:
• Sevilla Trading Co. v. Semana, April 28, 2004
• Arco Metal Products v. Samahan ng mga Manggagawa sa Arco-Metal-NAFLU, May 14,
2008
• Globe Mackay Cable v. NLRC, June 29, 1988
• Insular Hotel Employees Union v. Waterfront Insular Hotel Davao, September 22, 2010
• Asis v. Minister of Labor, March 15, 1989
• American Wire and Cable Daily Rated Employees Union v. American Wire and Cable,
April 29, 2005
• Royal Plant Workers Union v. Coca Cola Bottlers, April 15, 2013

G. Worker Preference

Labor Code: Article 110

Cases:
• Development Bank of the Philippines v. Labor Arbiter, March 8, 1989
• Development Bank of the Philippines v. Secretary, November 28, 1989
• Development Bank of the Philippines v. NLRC, March 19, 1990 (including dissenting
opinion)

H. Attorney’s Fees

Labor Code: Article 111

WORKING CONDITIONS

A. Management Prerogative

Cases:
• San Miguel Brewery Sales v. Ople, February 8, 1989
• PT & T v. NLRC, May 23, 1997
• Goya v. Goya Employees Union, January 21, 2013
• Tabuk Multipurpose Cooperative, Inc. v. Duclan, March 14, 2016

B. Coverage

Labor Code: Article 82


Omnibus Rules: Book III, Rule I, Sections 1-2

Cases:
• National Sugar Refineries Corp. v. NLRC, March 24, 1993

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• Penaranda v. Banganga Plywood Corp, May 3, 2006
• San Miguel Brewery, Inc. v. Democratic Labor Organization, July 31, 1963
• Auto Bus Transport Systems v. Bautista, May 16, 2005
• Mercidar Fishing Corp. v. NLRC, October 8, 1998
• Labor Congress of the Philippines v. NLRC, May 21, 1998
• David v. Macasio, July 2, 2014
• Apex Mining Company, Inc. v. NLRC, April 22, 1991

C. Hours of Work

Labor Code: Articles 83-90


Omnibus Rules: Book III, Rule I, Sections 3-11, Rule I-A, Rule II

Cases:

Art. 83
• Manila Terminal Co. v. CIR, July 16, 1952
• San Juan De Dios Hospital Employees Association v. NLRC, November 28, 1997

Art. 84
• Rada v. NLRC, January 9, 1992
• University of Pangasinan Faculty Union v. University of Pangasinan, February 20, 1984
• National Shipyards and Steel Corporation v. CIR, December 30, 1961

Art. 85
• National Development Co. v. CIR, November 30, 1962
• Sime Darby Pilipinas v. NLRC, April 15, 1998

Art. 87
• Bisig ng Manggagawa ng PRC v. PRC, September 30, 1981
• PAL Employees Savings and Loan Association, Inc. (PESALA) v. NLRC, August 22, 1996

Art. 88
• Lagatic v. NLRC, January 28, 1998

Art. 89
• Interphil Laboratories Employees Union v. Interphil Laboratories, December 19, 2001

Art. 86
• Mercury Drug Co. v. Dayao, September 30, 1982

Evidence
• Prangan v. NLRC, April 15, 1998
• National Semiconductors Distribution Ltd. V. NLRC, June 26, 1998

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D. Rest Periods and Holidays

Labor Code: Articles 91-94


Executive Order 203 (1987)
Omnibus Rules: Book III, Rules III-IV
R.A. 9849, December 11, 2009

Cases:
• Jose Rizal College v. NLRC, December 1, 1987
• San Miguel Corp. v. CA, January 30, 2002
• Insular Bank of Asia and America Employees Union (IBAAEU) v. Inciong, October 23,
1984
• Wellington Investment and Manufacturing Corporation v. Trajano, July 3, 1995
• Caltex Regular Employees at Manila Office v. Caltex (Phils.), Inc., August 15, 1995

Divisor
• Chartered Bank Employees’ Association v. Ople, August 28, 1985
• Odango v. NLRC, June 10, 2004

E. Service Incentive Leave

Labor Code: Articles 95


Omnibus Rules: Book III, Rule V

Cases:
• Cebu Institute of Technology v. Ople, December 18, 1987
• Auto Bus Transport Systems v. Bautista, May 16, 2005

F. Employees Paid by Results

Labor Code: Article 101

Cases:
• Tan v. Lagrama, August 15, 2002
• Serrano v. Severino Santos Transit, August 9, 2010
• Labor Congress of the Philippines v. NLRC, May 21, 1998
• David v. Macasio, July 2, 2014

G. Miscellaneous

Department Order No. 118-12, Rules and Regulations Regarding the Employment and Working
Conditions of Drivers and Conductors in the Public Utility Bus Transport Industry

Labor Advisory No. 4, series of 2016, Working Conditions in the Movie and Television Industry

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WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES

A. Women

Labor Code: Articles 130, 132-136


Omnibus Rules: Book III, Rule XII, Sections 1, 4-14

R.A. 9710, Magna Carta of Women, Section 1-3, 4 (b) & k, 22, 35, 41
R.A. 7877, Anti-sexual Harassment Act of 1995

Cases:
• Philippine Telegraph & Telephone Co. v. NLRC, May 23, 1997
• Libres v. NLRC, May 28, 1999
• Domingo v. Rayala, February 18, 2008
• Duncan Association of Detailman v. Glaxo Wellcome, September 17, 2004
• Star Paper Corp. v. Simbol, April 12, 2006

Maternity Leave and Paternity Leave

R.A. 1161, Social Security Act, as amended, Section 14-A


R.A. 8187, Paternity Leave Act
Implementing Rules and Regulations of R.A. 8187
CSC Memorandum Circular No. 01-2016

VAWC Victim’s Leave

R.A. 9262, Anti-Violence Against Women and their Children Act, Section 3 (a), 5, 43
Rules and Regulations Implementing Republic Act No. 9262, Section 42

Solo Parent’s Leave

R.A. 8972, Solo Parents’ Welfare Act of 2000, Section 3 (a), 6-8
Implementing Rules and Regulations of R.A. No.8972, Section 16-21

Special Leave

R.A. 9710, Magna Carta of Women, Section 18


Implementing Rules and Regulations of R.A. No. 9710, Section 7 (M), 21

B. Night Workers

Labor Code: Articles 154-161 (as amended by R.A. 10151)


Department Order No. 119-12

For reference: check the repealed Article 130-131

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C. Minors

Labor Code: Articles 137-138


Omnibus Rules: Book III, Rule XII, Sections 2-3
R.A. 7610, Special Protection Against Child Abuse, Exploitation and Discrimination Act, Section
12, as amended by R.A. 7658
R.A. 9231, An Act Providing for the Elimination of the Worst Forms of Child Labor and
Affording Stronger Protection for the Working Child

D. Househelpers

R.A. 10361, Batas Kasambahay

Cases:
• Apex Mining Company, Inc. v. NLRC, April 22, 1991
• Remington Industrial v. Castaneda, November 20, 2006

E. Homeworkers

Labor Code: Articles 151-153


DOLE Department Order No. 5, series of 1992

F. Handicapped/Disabled

R.A. 7277, Magna Carta for the Disabled, Sections 4 (a-d, i), 5-11, 32-33
Labor Code: Articles 78-81
Omnibus Rules: Book II, Rule VIII

Case:
• Bernardo v. NLRC, July 12, 1999

HUMAN RESOURCES DEVELOPMENT PROGRAM

A. National Manpower Development Program – Government Machinery

Labor Code: Articles 43-56 (insofar as they have not been modified)
R.A. 7796, The TESDA Act

B. Apprenticeship and Learnership

Labor Code: Articles 57-77


Omnibus Rules: Book II, Rules VI-VII
R.A. 7687, The Dual Training System Act

Cases:

• Nitto Enterprises v. NLRC, September 29, 1995

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• Filamer Christian Institute v. IAC, August 17, 1992
• Atlanta Industries v. Sebolino, January 26, 2011

C. Employment of Aliens

Labor Code: Articles 40-42


Omnibus Rules: Book I, Rule XIV

Cases:
• General Milling Corp. v. Torres, April 22, 1991
• International School Alliance of Educators (ISAE) v. Quisumbing, June 1, 2000
• McBurnie v. Ganzon, EGI-Managers, Inc., October 17, 2013

PRE-EMPLOYMENT

R.A. 8042, Migrant Workers and Overseas Filipino Act, as amended by R.A. 10022
Implementing Rules, Migrant Workers and Overseas Filipino Act
Department Order 141-15

A. Principles and Definitions

Labor Code: Articles 12 - 13


R.A. 8042 (Migrant Workers and Overseas Filipino Act): Secs. 2 - 5
Omnibus Rules Implementing R.A. 8042, secs. 1 - 2
1991 POEA Rules: Book I, Rules I – II

Cases:
• JMM Promotion and Management, Inc. v. CA, November 22, 1993
• Philippine Ass. of Service Exporters, Inc. v. Drilon, June 30, 1988
• Philippine National Bank v. Cabansag, June 21, 2005

B. Recruitment and Placement

1. Definition; Illegal Recruitment; Prohibited Acts

Labor Code: Articles 13(b), 34, 35, 38, 39


R.A. 8042, Sections 6-9
Rules Implementing of R.A. 8042, Sections 9-13

Cases:
• People vs. Diaz, July 26, 1996
• Aquino vs. Court of Appeals, November 21, 1991
• People v. Señoron, January 30, 1997
• People v. Panis, July 11, 1990
• People v. Goce, August 39, 1995
• Darvin v. CA, July 13, 1998

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• People v. Yabut, October 5, 1999
• People v. Saulo, November 15, 2000
• Athenna International Manpower v. Villanos, April 15, 2005
• Rodolfo v. People of the Phil., August 10, 2006
• People v. Delos Reyes, June 7, 2017

2. Regulation of Recruitment and Placement Activities

Labor Code: Articles 16, 18, 25-33, 35-37


R.A. 8042, Sections 29 – 30

Cases:
• Eastern Assurance Corp. vs. Secretary of Labor, January 17, 1990
• Capricorn Travel and Tours vs. CA, April 3, 1990
• Stronghold Insurance Co. vs. CA, January 30, 1992
• Catan v. NLRC, April 15, 1988
• Royal Crown v. NLRC, October 16, 1989
• Trans Action Overseas Corp. v. Secretary of Labor, September 5, 1997
• Salazar v. Achacoso, March 14, 1990
• Republic v. Human Link Manpower, April 22, 2015

3. Contracts

1991 POEA Rules: Book V, Rule II


Labor Code: Articles 34-35

Cases:
• Virjen Shipping v. NLRC, November 18, 1983, July 20, 1982
• Suzara v. Benipayo, August 15, 1989
• Seagull Maritime v. Balatongan, February 28, 1989
• Chavez v. Bonto-Perez, March 1, 1995
• Interorient Maritime Enterprises, Inc. v. NLRC, September 16, 1996
• Placewell International Services v. Camote, June 26, 2006
• Sunace International Management Services v. NLRC, January 25, 2006
• Santiago v. C.F. Sharp, July 10, 2007
• Dagasdas v. Grand Placement and General Services Corporation, January 18, 2017

4. Government Machinery

Labor Code: Articles 14 - 21, 24 (note that Arts. 15, 17, 19 have been repealed)
E.O. 247 (1987) (POEA Organization)
R.A. 8042, Sections 13 - 30, 32- 34
P.D. 1694 (OWWA)
B.P. 79 (Commission on Filipinos Overseas)

5. Other matters incidental to Overseas Employment

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a. Repatriation:
R.A. 8042, Sections 14 – 18, 36
Omnibus Rules Implementing R.A. 8042, Sections 52 - 61

Case:
• Equi-Asia Placement, Inc. v. Department of Foreign Affairs, September 19, 2006

b. Foreign Exchange Remittance

Labor Code: Article 22


E.O. 857 (1982)
Rules Implementing EO 857, Rule 2, Sections 4; Rule 5, Sections 1 - 5

c. Exemption from taxes and fees; scholarship

R.A. 8042, Sections 35-37

d. Migrant Workers’ Day: R.A. 8042, Section 39

e. Incentives to Professionals: R.A. 8042, Section 31

f. Disciplinary Actions: 1991 POEA Rules, Book VII, Rule 7

6. Dispute Settlement

Labor Code: Articles 36 -37


RA 8042, Sections 9 - 13
Omnibus Rules Implementing R.A. 8042, Sections 28 - 29

Cases:
• Acuña v. CA, May 5, 2006
• Serrano vs. Gallant Maritime, March 24, 2009
• Sameer Overseas v. Cabiles, August 5, 2014
• Yap v. Thenamaris Ship’s Management, May 30, 2011
• Skippers United v. Doza, February 8, 2012
• Stolt-Nielsen v. Medequillo, January 18, 2011
• Estate of Nelso Dulay v. Aboitiz Jebsen Maritime, June 13, 2012
• Hon. Sto. Tomas v. Salac, November 13, 2012
• Status Maritime Corporation v. Doctolero, January 18, 2017
• Maersk Filipinas Crewing, Inc. v. Ramos, January 18, 2017
• Sunit v. OSM Maritime Services, Inc., February 27, 2017
• TSM Shipping Phils., Inc. v. Daivipskibsselsakabet Norden A/S, March 20, 2017
• Seapower Shipping Ent., Inc. v. Heirs of Warren M. Sabanal, June 19, 2017

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ENFORCEMENT MECHANISM (FOR WAGES AND OTHER BENEFITS)

Labor Code: Articles 128-129, 306-307

Cases:
• People’s Broadcasting v. Secretary, May 8, 2009 and March 6, 2012
• Arriola v. Pilipino Star Ngayon, August 13, 2014
• Auto Bus Transport Systems v. Bautista, May 16, 2005

HEALTH, SAFETY AND SOCIAL WELFARE BENEFITS

Medical Dental and Occupational Safety, Articles 162-171


Employees’ Compensation, Articles 172-178

Cases:
• Sarmiento v. ECC, May 11, 1988
• Belarmino v. ECC, May 11, 1990
• Hinoguin v. ECC, April 17, 1989
• GSIS v. CA and Alegre, April 20, 1999
• Valeriano v. ECC, June 8, 2000
• Alano v. ECC, March 16, 1988
• Lazo v. ECC, June 18, 1990
• NFD International Manning Agents v. Illescas, September 29, 2010
• Menez v. ECC, April 25, 1980
• Clemente v. GSIS, July 31, 1987
• Narazo v. ECC, February 6, 1990
• Orate v. CA, March 26, 2003

Art. 179
• Ortega v. Social Security Commission, June 25, 2008
• Ysmael Maritime v. Avelino, June 30, 1987

P.D. 1921 (DOJ Opinion, May 23, 1989, and January 12, 1990)

Social Security (Focus on Coverage, Benefits, Beneficiaries)

R.A. 1161, as amended by R.A. 8282 (SSS)


• Social Security Commission v. Azote, April 15, 2015

R.A. 8291 (GSIS)


R.A. No. 7699, Limited Portability Law

R.A. 7875, as amended by R.A. 9241 and 10606 (National Health Insurance Act)

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